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The activities of Regional Agency for Development and Innovation in the Agro-forestry sector (ARSIA) for the development of organic agriculture and livestock productions in Tuscany.
M. Bonanzinga1, P. Bottazz2 and C. Mearini 3
1 ARSIA: Agenzia Regionale per lo Sviluppo e l’Innovazione nel settore Agricolo-forestale [Regional Agency for the development and the innovation in the agricultural and forestry sector], loc. Ex Enaoli 58010 Rispescia (GR), 2 ARSIA, loc. Ex Enaoli 58010 Rispescia (GR), 3 ARSIA, Via Pietrapiana, 30 – 50121 Firenze
Introduction
Italy is the leading country in Europe, in terms of agricultural surface converted to the organic system. As presented in Figure 1, in 2001, the overall surface dedicated to organic agriculture was 1,182,000 ha; compared with the organic hectarage of 70,000 ha in 1993. Data for the last two years (2002-2003) are not yet available, but we can unofficially affirm that there was a stasis, with a reduced increase in organic growth.
Figure 1: Surface area converted to the organic system in Italy(hectares per year)
The organic agriculture is mainly developed in the islands and in the southern regions: Sardinia (313.000 hectares), Sicily (195.000 hectares) and Apulia (130.000 hectares) are the Italian regions with the most organically cultivated surfaces.
As far as the surface distribution according to different land use, the following breakdown is registered (Figure 2):
- 44.8% of surfaces is assigned to forage cultivations (50% of them are concentrated in Sardinia);
- 21.5% is assigned to cereals, mainly to durum wheat (47,7% concentrated in Apulia, Sicily and Sardinia);
- 13.2% is assigned to other cultivations (vegetables and industrial cultivations);
- 9.9% to olive;
- 7.1% to fruits; and
- 3.5% to vineyards.
Data on organic livestock production are still incomplete, and the situation is continuously changing: in 2001, in fact, there were about 3,500 enterprises that agreed complied with organic animal production standards, but the number of enterprises is rapidly growing, particularly in regard to beef production.
Figure 2 : Surface distribution of organic land in Italy according to different production systems
The activities of the ARSIA in organic agriculture
ARSIA is principally engaged in the following two sectors:
1) control and supervision; and
2) promotion, experimentation and transfer of innovation.
Referring to the activity of control and supervision, in Italy this task has been assigned to the Regions; in particular, the Tuscan Region assigned it to ARSIA. In order to do that, ARSIA established a structure dedicated exclusively to the activity of control. The technicians realise controls respecting the volunteer prescriptions of quality, on the basis of a manual, drawn up according to the ISO 9001.200 rules. Every year, all the certification bodies and a sample of organic producers/operators in Tuscany are inspected.
Concerning the activity of promotion, experimentation and transfer of innovation, ARSIA initiated, for every food chain, a “consultation group”, formed by researchers, representatives of agricultural producers and enterprises, the competent departments of the Regional Council, environmental associations and associations of consumers. The “consultation groups” aim at identifying priorities, objectives and contents of researches promoted by ARSIA.
ARSIA has about 70,000 hectares and 2,700 farms converted to organic agriculture. Many projects have been promoted by public calls for proposals, whose content was about both diffusion and research. The tool of the call for proposal is another innovation that the Agency has promoted in the last years to commit diffusion and research projects in a transparent way. In particular, the following projects were realised by call for proposal:
- Projects for the activity of diffusion in organic animal productions;
This call produced six diffusion projects, whose value was 20,000 € each, financed 100% by ARSIA. The length of each project was four months.
- Organic and biodynamic Tuscan agriculture finalised to plant-animal production activity (analysis of constraints and technical, managerial, entrepreneurial opportunities for the exploitation of the organic meat).
The project was assigned to the University of Pisa, department of agronomy and management of agro-eco-system, and foresees a total cost of 274,400 €, co-financed by ARSIA with 149,600 €; the project lasts 3 years (2002-2005). Topics of the research are animal welfare, techniques of feeding (with a relation to the integration fattening and grazing, too), quality of forages (with particular attention to nutritional, sanitary and conservative aspects), management of dejections, quality of carcasses and meat, and economic evaluations.
- The organic and biodynamic Tuscan agriculture in relation with systems aimed at vegetable production.
The project was assigned to AIAB Toscana and foresees a total cost of 173,427 € and a co-financing of ARSIA equal to 129,986 €; it lasts 3 years (2002-2005). Topics of the research are defining systems of cultivation for Tuscan environments, according to soil and climate; evaluation of systems mainly referred fertility conservation and weed control; comparison among green manures and among manures; economic evaluations.
Projects with a smaller total cost , have been directly assigned; in particular:
- Homeopathic methodology and animal welfare in dairy cattle; and
- Organic sheep breeding and homeopathic veterinary science;
These initiatives have been both realised in collaboration with the International Superior School of veterinary homeopathy “Rita Zanchi” of Cortona (AR).
- Productive performance and meat quality of calves born from Charolais and Maremmana cows and reared with the traditional or organic method
Realised in collaboration with the University of Pisa, Department of animal productions of the Faculty of veterinary medicine.
As far as the innovation experiments are concerned, ARSIA directly manages the Centre for the Technical Innovation Experiments of Grosseto (ex Enaoli resort, Alberese) in the natural park of Maremma, on the land of the agricultural regional farm of Alberese. In the Centre, that has an overall surface of 20 hectares, all converted to the organic system, evaluations are realised on rotations-systems of cultivation, comparison of varieties, test of anticryptogamic defence, evaluations of green manures and tests of managing organic matter.
In terms of technology transfer, ARSIA created the service “Agrinnova Trasferimento (TRANSFER, www.agrinnova.it), aiming at favouring the meeting between the demand and the offer of technical and technological innovation in the agricultural sector. On the web site of TRANSFER, there are some pages dedicated to “Bioinnova”, concerning organic agriculture. In the framework of “Bioinnova, a database has been created, with the involvement of promoters and owners of innovation. The database contains specific pages with descriptions of innovations immediately transferable to farming, with links to other information about seminars and technical meetings, farm walks, guided visits, training and updating courses for technicians and publications, including cd-roms and videos.
Outputs from ARSIA editorial activities are listed below:
AA.VV. (1997) Annuario dei mezzi tecnici per l’agricoltura biologica. [Yearbook of technical tools for the organic agriculture]; edited by ARSIA and CEDAS – (FC).
AA.VV. (1988) La commercializzazione dei prodotti biologici. [The commercialisation of organic products]; edited by ARSIA and written by M. Miele (University of Pisa).
AA.VV. (1999) L’omeopatia negli allevamenti di bovini da latte. [The homeopathy in the breeding of dairy bovines]; edited by ARSIA and written by F. Del Francia (International Superior School of veterinary homeopathy “Rita Zanchi” di Cortona - AR).
AA.VV (2003) Zootecnia biologica. [Organic zootechnics]; Edagricole, edited by V. Ferrante (Univ. Milano). Publication realised in collaboration with the Regions Abruzzo, Emilia-Romagna, Lazio, Lombardia, Toscana e Umbria.
Impact of economic investments on animal welfare: a case study
C. Contini1, A. Martini2, V. Ferrante3, L. O. Zorini1, P. Migliorini4,
G. Lorenzini2 and S. R. Bellière4
1 Department of Agricultural and Land Economics, University of Florence; 2 Dipartimento di Scienze Zootecniche, University of Florence; 3 Istituto di Zootecnica, University of Milan; 4 Dipartimento di Scienze Agronomiche e Gestione del Territorio Agro-forestale, University of Florence
Introduction
The interest towards the problems of animal welfare in the last few years has not only increasingly involved the scientific community, but also public opinion, becoming the object of debates and discussions between producers, consumers and all those who, in different ways, work in the sector.
To change the structures and the management of a farm to improve the welfare of the animals generates costs for the producers. These costs are only partially covered through an increase in revenue as a result of quantitative and qualitative improvements in production and to a greater willingness on the part of the consumers to pay for animal friendly production.
Part of the costs remains at the producers’ expense, as a result of the presence of consumers whose willingness to pay for products obtained with an attention to the animal’s welfare does not compensate the greater costs sustained by the producers. Here we are referring to those consumers that do not share the concerns about animal welfare or due to budget constraints choose less expensive products (Alroe and Kristensen, 2011; Appleby, 2001; Bertoni and Calamari, 2001; Rollin, 2001).
For these reasons, even in the presence of adequate information regarding the methods of production, the free market alone does not seem capable of insuring adequate standards for animal welfare. Thus, to improve the rearing conditions for all animals, it would be necessary for animal welfare to be considered as a collective social good and for society to bear the costs of the externalities deriving from the adaptation of the farm’s structures and organization with the aim of bettering animal welfare (Harper et al, 2001; Miele and Parisi, 2001).
On the one hand this presupposes a definition of minimal standards for animal welfare on the part of policy makers, and on the other hand, the evaluation of the measure of the economic value of animal welfare. The first point has been of great interest to the European Community for a long time. The EU has, since 1976 until today adopted a series of directives aimed at defining the minimum requirements of animal welfare in intensive livestock rearing. Among these directives it is worth mentioning those referring to calves, swine, laying hens. In regard to dairy cows, no specific norm exists but we usually refer to the directive 98/58/EC of the Council regarding the protection of animals in farms, a directive accepted in Italy with the legislative decree n.146 of March 26, 2001. To this, one must also add the regulation (EC) 1804/99 and the relative
Ministerial Decrees in which the word welfare is a recurring element without any precise indication regarding either what is intended with the term welfare or the systems to adopt for its evaluation.
The fact that the rearing of livestock with an organic method has as one of its most basic principles the objective of guaranteeing the welfare of the animals through systems of rearing that are more adequate to the typology of the animal being reared, respecting the behavioural characteristics and the physiology, does not on its own allow for the attribution of higher profitability to this system of rearing. It is necessary to equip one with the instruments fit for a scientific evaluation of the level of welfare that are simple, practical and reliable.
In regard to the evaluation of the measure of the economic value of welfare, there are studies that have been conducted using the method of contingent evaluation through the willingness of the consumers to pay. From the results of these analyses, it is not clear that they express the economic value that people attribute to animal welfare as much as they measure the consumer attitude on an arbitrary monetary scale (Bernett, 1995; Bernett, 1997; Bernett and Larson, 1996; Bernett and Blaney, in press). As an alternative, the economic value of animal welfare can be measured through the growth in the costs due to the investments and to the changes in the management of the production systems designed to improve animal welfare.
Objectives
This study analyzes the efficiency, in terms of animal welfare, of the investments completed in a dairy farm with the aim of conforming the company structure and organization to the EC regulation 1804/99.
When applied to Italy, the study can be of use to the livestock farms that in the next few years will find themselves having to bear the investments necessary to comply with the EU regulation on organic livestock production. This refers to both conventional farms that choose to convert to organic production (the growing necessity for the qualification of food production is in fact determining a strong interest in the livestock sector for organic production), and the numerous organic farms that are currently in derogation but must comply by 2010 with the regulation (one indication regarding the number of these farms can be given in reference to the Region of Tuscany where about 10% of the 3,506 of Italy’s organic livestock farms are situated (Lunati, 2002) and where it is estimated that 28% of the farms are currently in derogation regarding the structures and use of pastures, while 6% of the farms are in derogation regarding access to outdoors. .
In the European context, the evaluation of the annual costs born by the farm to obtain adequate levels of animal welfare compliance can supply a measure of economic value of this good, indispensable to the policy makers in formulating the policies relative to the safeguarding of animal welfare.
Materials and methods
Methodology
Concerning the economic analysis, the costs of the investments that have affected animal welfare have been evaluated, taking into consideration the investments carried out by the farm from 1999 to today. The investments relative to building improvements are calculated by the actual cost of reconstruction, those relative to the equipment are calculated according to current prices. The cost of manual labor is relative to the cost of work actually sustained by the farm. The cost of off farm services is valued according to current prices.
The annual cost, relative to every investment, has been calculated (as a sum of the amount of depreciation, the amount of interest on the capital, the variable costs and the annual amount of maintenance). When the investments have been geared towards the betterment of the already existing structures (such as the flooring or the multiple boxes for the nurse cows and the calves), the increase of the annual cost of the investments was calculated. It is reasonable to expect that these investments had a positive impact on the production. However, in our analysis we did not take into consideration the impact of all the investments on the production because it was difficult to separate these effects from those produced by other variables (i.e. rearing techniques and the animal’s feeding).
Concerning the evaluation of animal welfare in a livestock farm, in the last few years there has been a development of diverse methods in different European countries. The greatest possible use for such methods is that of an instrument of management for the producer who wants to improve the conditions of the life of his animals, as integrated systems regarding the certification of products or as real legislative instruments. An example of the use of these systems of evaluation of welfare for the purpose of certification is represented by the ANI35 (Bartussek, 1999) that is utilized in Austria for the certification of organic livestock production. The ANI35 was adopted as an index of evaluation regarding the efficiency of the farm’s investments in terms of animal welfare in this study.
The method of evaluation begins with the desire to have a simple system that can be standardized, univocal and capable of being applied to all the situations in the field (Bartussek, 2000). The system is essentially based upon the evaluation of the structures of the livestock farm, upon the possibility of social contacts and the relationship between humans and animals. The advantage of this method for the producer is that he can obtain an immediate analysis of the points where the welfare of his animals is being compromised: for example, a structure can be extremely modern with ample space for the animals, excellent light and ventilation, but the animal welfare can be compromised by a lack of care by the stockperson, as evidenced by dirty animals and structures, the presence of neglected lesions etc.. In the same way this method gives the possibility of scoring all the different situations in a way that makes it easy to improve animal welfare by verifying the critical points and acting upon them gradually (Verga & Ferrante, 2001).
The case study farm
The study was carried out in Mugello, a hilly-mountainous region located in the North-Eastern sector of Tuscany, in the province of Florence. In this region livestock farming is very diffuse, so much so that the area is the most important point of reference for the Dairy Center of Firenze, Pistoia and Livorno. The extensive character of the agriculture and the traditional high quality of the systems of production have created a widespread interest on the part of both producers and consumers regarding agricultural production in general and that of livestock in particular that is respectful of the quality of the environment.
The farm in this study is a tenancy cooperative (whose members are salaried) with a dairy cows enterprise. The cooperative has operated as a certified organic farm since its conversion which took place between 1992 and 1995 . Its entire production is bought by the Dairy Center of Firenze, Pistoia and Livorno and the current farm gate milk price is 0.48 € per liter . The farm employs 13 full-time agricultural workers, a high number when compared to the herd size, but this choice is due to maximize employment in order to positively affect the timeliness of its operations. The farm’s total surface (being rented) is 352 hectares. A total of 280 heads of the Italian Holstein breed are reared (see Table 1). The daily production of milk is 3.5 tons. The milk composition averages 3.55% fat, 3.13% protein and 200,000 somatic cells per milliliter.
Table 1: Herd composition on the study farm
The stock is managed in open housing, with cubicles for the adult animals and deep litter beds for the young. The stable dimensions are 100 meters in length and 20 meters in width. It has 200 cubicles covered with hay and an external paddock (3,800 square meters) part of which is grovel ground and part is concrete. The exercise areas are in concrete. Before the investments started (1999), the concrete surface did not offer good grip to the animals and this led to possible problems of slippage. Before 2003, the calves were kept in single cages until one week of age, before being returned to the part of the stable designated for the calves. This area had boxes and external paddocks. Before 1999, the stock had no access to grazing.
Results
The investments, realized almost exclusively with the farm’s manual labor, were made during three years: 1999, 2001 and 2003. For all of its investments the farm received public contributions covering 50% of the costs, contributions that derived from funds destined for the improvement of farming structures (Plan of Rural Development of the Region of Tuscany Measure 1, Legislative Decree of the Italian Republic 173 of 1988, Regulation EC 2081/93
Objective 5b).
In 1999 the investments were:
1. Pasture for the heifers and dried off cows:
2.5 hectares of land for grazing upon irrigated land previously occupied by an orchard. The pasture is fenced in with zinc and plastic-coated barbed wire held up every 2 meters with chestnut poles. Inside there are two non-freezing drinking troughs and one hay bale feeder. The cost of the investment was 16,280.50 € and the annual cost of the investment was 4,616.78 €.
2. Stable flooring and that of part of the external paddock with hexagonal concrete blocks that offer good grip to the animals. The cost of investment was 33,172.50 € and the annual cost of the investment 700.13 €.
In 2001, the investments were:
3. A wood shelter with a tile roof was erected inside the pasture for the heifers and dried off cows. The shelter has a walking surface of 90 square meters and a covered surface of 117 square meters that is open on two sides. The cost of the investment was 24,417.00 € and the annual cost of the investment was 2,174.34 €.
In 2003 the following investments were made:
4. Pasture for the dairy cows: 2.5 hectares of pasture upon irrigated land previously occupied by an orchard. The pasture is fenced in with zinc and plastic-coated barbed wire held up every two meters with chestnut poles. Inside there two drinking troughs. The cost of the investment is 14,963.57 € and the annual cost of the investment is 5, 890.71 €.
5. The boxes for the nurse cows and the calves. There are two boxes, each with a walking surface of 30 square meters and a covered surface of 20 square meters. The structure is made of prefabricated, zinc-coated iron and covered with varnished, compressed wood panels. The roof is made of double-layered sheet metal, with a layer of expanded polyurethane coinhibitor that assures good thermal isolation. The floor is composed of litter and inside of every box there are small cup-shaped cast-iron troughs and a zinc-coated iron feeder. Behind the structure the animals have access to a grassy and wooded external surface (of 600 square meters). The cost of the investment is 5,496.33 € and the annual cost of the investment is 224.17 €.
6. Cow brush for the dairy cows the cost of which is 1,250.00 €, the annual cost of which is 344.17 €.
7. Fans in the stable: there are 13 electric fans, supplied with acclimatized humidifiers. The system is equipped with a thermostat and the fans begin functioning at 25°C, while the humidifiers begin working at 30°C. The cost of the investment is 15,000.00 € and the annual cost is 3,708.55 €.
The fans had an effect upon the welfare of the animals that is directly reflected in their production, as it keeps the production of milk constant even when the temperature is very high. Supposing that in a place like this, without ventilation, it is possible to verify a fall in the production of 5% for 1.5 months, the presence of fans would determine an increase in capital that over ten years would completely repay the cost of investment.
For the other investments it was not possible to make direct connection in terms of monetary gain since, as we have already mentioned in the methods, such effects are difficult to separate from the general context of the farm.
The complete cost of the investments undertaken from 1999 up to the present is 110,579.90 € and the respective annual cost is 17,658.86 € (Table 2).
Table 2: Cost and annual cost of the investments realized from 1999 to 2003 by the case study farm.
The analysis of animal welfare was carried out for the dairy cows, for the dried off cows and for the heifers. The results demonstrate that, in terms of variation in welfare, the effects of the investments undertaken in the past six years are the same for the three groups. In fact, on the ANI35 scale that goes from –9 to +45.5, the dairy cows pass from a score of 33.5 in 1999 to 40.5 in 2003, with a total growth of 7. This is the same total growth as the heifers and the dried off cows that pass from 33 to 40 points (Figure 1).
Figure 1: Increase of animal’s welfare from 1999 to 2003 on the case study farm, based on ANI35 Index.
The initial difference in points between the group of dairy cows and the other two groups is due to the different composition of the groups, with those of the heifers and dried off cows based upon age, and that of the dairy cows which are kept in herds of mixed ages. Another difference regards the shifts in points relative to animal welfare that occur over time and are due to the different time in which the groups had use of the pasture.
With reference to the dairy cows, the changes in the different aspects of the ANI 35 Index on the case study farm are presented in Figure 2.
Figure 2: Changes in the different aspects of ANI35 score on the study farm with reference to the dairy cows.
The investments undertaken by the farm in the past six years resulted in an increase in animal welfare for the dairy cows, for the dried off cows and for the heifers equal to 7 points that have determined an annual cost per liter of milk produced of 0.0134 €. In particular, the pastures were principally responsible for better animal welfare, realizing an increase in the score equal to 4 points while, when looking at the costs, the pastures had an annual cost per liter of milk equal to 0.0080 €. Another substantial investment for welfare was the flooring of the stable (+2) that has determined an annual cost of 0.005 € per liter of milk; the boxes for the nurse cows and the calves have added 0.5 points to the welfare score, determining an annual cost per liter of milk at 0.0002 €, and the fans have augmented the welfare by 0.5 points, determining an annual cost per liter of milk equal to 0.0028 €. Considering all the investments analyzed in our work, the amount of the annual costs that determined an increase of 1 point in the ANI35 scale is 2,522.69 € per ANI score .
The highest efficiency was reached by the flooring of the stable, followed by the boxes for the nurse cows and the calves, while the pasture and the fans reveal themselves to be less efficient investments. Finally, the shelter for the pasture and the cow brush result as environment enrichment and thus reveal them to be of secondary importance in respect to the other innovations (Table 3).
Table 3: The efficiency of the various investments in terms of animal welfare on the study farm.
ANI35 score/€ 0.38‰ 2.86‰ 0‰ 0.13‰ 2.23‰ 0‰
Discussion and conclusions
To highlight those aspects of rearing and husbandry that have influenced animal welfare, let us refer to the shifts in the curve of welfare for the dairy cows, keeping in mind that the same considerations also apply for the other two groups.
Before the farm made the investments in 1999, the ANI score on the farm was 33.5, giving an excellent score (the ANI score goes from -9 to + 45.5). Considering in detail the different aspects, one can notice that as far as the possibility for movement is concerned, compared to an adequate possibility for movement in passing between a lying and a standing position and the presence of an external paddock utilized throughout nearly the entire year, the cows did not have an optimal surface inside the stable and, above all, completely lacked access to grazing. Closely linked to this situation is the score relative to the flooring which was lower due to the absence of pasture and to the presence of gravel yard that, in the case of adverse climatic conditions, could not have guaranteed good footing for the animals. Beyond this, one must also consider that both points of passage and the rest areas also presented themselves as moderately slippery and therefore not in optimal condition. From a structural point of view, when faced with the possibility of using an open space for more than 230 days a year and for more than 8 hours a day, the animals lived in a structure that guaranteed a fair amount of light with good air quality. On the other hand, the occasional presence of air currents in the rest area and of noise that could be a source of stress for the animals affected the welfare score negatively.
When considering the animal’s social interactions, one notes how the welfare score was lowered as a result of the available covered space for the animals; this is in relation to the fact that the cattle, although they are social animals, require their own individual space to be maintained in order to prevent the rise of social stress (Houpt, 2000). From the point of view of the structure of the herd, the solution employed was not ideal, even if it can be considered a good compromise in a context that also has to be productive. Within this very same context the score was also penalized as a result of the management of the young, even though there is not yet any scientific evidence that demonstrates the necessity of the calves to be in constant visual contact with the herd. Finally, regarding the attitude of the stockperson, one can observe that the level of attention was optimal as witnessed by the level of cleanliness of the animals and their surroundings, as well as by the condition of the hooves. One must note that within this context the instrument of evaluation appears incomplete, as a more correct evaluation of the human-animal relationship should also take into account the level of fear towards humans on the one hand, and on the other, the attitude of man towards his animals during, for example, eating or other routine practices. However, the method is considered appropriate for this study, with a focus on the investments (in terms of farm’s structures and organization) rather than on the attitude of the stockperson.
Following the investments undertaken in 1999 the score rose to 35.5. The result is essentially attributable to the changes relative to the flooring that was modified. The farm equipped itself with new flooring that, having reduced the slipperiness of the walkways and of the external paddocks, augmented the ANI score. This was a demonstration of how this system of evaluation immediately reveals the positive effects of even small interventions upon the overall welfare.
In 2003, one sees a noticeable jump in the welfare score, with the introduction of pasture for the dairy cows. This improvement allowed for a rise in score to 40.5, as the presence of pasture favorably affected, not only the organism of the animal allowing it to function better and thus improve its overall state of health, but also upon social interaction as the animal is better capable of managing both its individual space as well as its relationships of dominance and submission. In the last observation year the quality of the air has improved by to the installation of the fans that are beginning to assume a role of fundamental importance given the extremely hot weather during the observation period.
Our results, if confirmed by further analysis, show that with regards to the organic market, the costs sustained by the farmers for the improvement of animal welfare could be easily internalized, as it is reasonable to expect that the consequent (fair) increase in price of the milk would not mean a decrease in the demand on the market. The problem can be raised when considering the hypothesis of developing regulations to better the condition of breeding even in the conventional farms. In this context, if applied also to other typologies of farms, the analysis carried out in our study can give the policy makers the information on the value of the positive externalities produced by the farmers that operate in the respect of animal welfare. This information could help to set up measures for the internalization in the market prices of the externalities or (as an alternative) to evaluate the cost of the incentives for producers.
Finally, when considering the extension of the European Union and the consequent shortage of the resources available for the financial backing of agriculture, it is possible to expect that there will be a growing selectivity in the usage of the resources. In this context, this analysis could provide the farmers with a method of self evaluation for the betterment of the effectiveness of animal welfare inputs.
Further developments of our work should include the analysis of the relationships between the investments we have taken into account and the growth of the production. This could allow to highlight how different aspects of animal welfare relate to the production side and to assess the annual costs of the investments deducted out of the income increase.
References
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Sustainable production methods and economic development of the marginal rural zones of the Italian Central Apennines
F. Ansaloni and V. Cammertoni
Department of Veterinary Sciences, University of Camerino, Via Fidanza 15, 62024 Matelica (MC), Italy
Introduction
The development of traditional farming and local food processing methods in the rural Apennines, in Central Italy, could contribute to the economic growth in these areas. In recent years, demand for food and non-food products produced with sustainable production methods, particularly by organic farming (OF), has increased. Local agricultural workers and food processors have responded to this demand by producing traditional food and textile products, along with offering rural tourism either alone or integrated with traditional tourism, and by activities aimed at preserving the natural environment.
The two case histories in this paper focus on the agro-environmental economic growth possibilities by developing a wider use of organic farming methods. The first case history studies the development of organic farming in an environmentally protected area, the Monti Sibillini National Park (MSNP). The second case history analyses the natural textile production chain in the Marche, Umbria and Tuscany regions in Central Italy .
The Sustainable Agriculture Project (SAP)
A project on environmental farming in a national park is an original concept in Italy. National Parks and protected areas in the country are the result of conservation needs. The SAP is a service that the National Park Authorities offer to operators for the years 2002 to 2005 to assist the growth of rural sustainable methods and their integration with the agro-food and non-food industries, including traditionally manufactured products, tourism and other services (Renieri et al., 2001; La Manna et al., 2002; La Manna et al., 2003). Some of the problems considered in this project are environmental conservation and protection, promotion of the area and the use of human resources in traditional production methods.
On the one hand, the SAP aims to safeguard the entire environment of the Park (flora, fauna and local traditions). On the other hand, as the project developed, it was found necessary to intervene in the actual management of natural resources by creating an agricultural system with a high sustainability level that would allow growth and development in the rural marginal areas in order to raise the income of agricultural manufacturers. This latter goal was deemed necessary, as there was no overall agricultural sustainability policy in the area.
According to the intentions of the Co-ordinating group for the SAP, this project is a first step towards favouring the growth of organic farming adopted voluntarily by the producers. A further aim of the project is to create a multi-functional farm that combines several aspects of agricultural production, environmental protection offered by external agents to preserve the natural surroundings and recreational facilities to round out and promote local agricultural products and services to meet local demands.
The following are still felt to be necessary by the Co-ordinating group:
- maintain the MSNP as an umbrella organisation;
- facilitate the development of a Producers Association under the aegis of the MSNP to market agricultural products;
- work towards the creation of an Organic Farming Consortium to protect their products by controlling farming methods and product source tracking.
In 2002, after a long initial management period begun in 1994, four specialised technicians put SAP methods into operation in the MSNP area. The action model for the project is based on the advice of the Co-ordination Group, the activities of the technical committee and the participation of the individuals involved and the social network. The practical instruments of the projects are meetings with various participants, “Case del Parco”, Co-operatives, local trade shows and extra-territorial events, etc. along with hard copy and computer generated informational supports.
Project activities have been subdivided into general and specific areas. The former concern the joint activities of various private and public professionals in the various production sectors. The later is the pilot project for the development of highly environmentally sustainable farming practices (Table 1).
Table 1: Sustainable Agriculture Project (SAP) actions
Undoubtedly one of the principle success factors to facilitate the achievement of the stated goals is the National Park’s commitment to the preservation of its natural resources and the adoption of Organic Farming practices. The area has neither derivative pollution sources nor external pollution, as there are very few and distant industrial plants. In addition, human generated pollution is limited. In 2002, there were 16,000 residents or 22.8 inhabitants per square kilometre in this area. Furthermore, organic farming practices represent life in harmony with what the tourist expects to find in a Park of this nature. There are over 15,000 hectares set aside for semi-activity while 25,000 hectares have been designated as pasture (Table 2).
Table 2: - Protected area concerned “Parco Nazionale dei Monti Sibillini” (From: La Manna –Pagoni - Pancotto - Roscioni 2003; http://www.sibillini.net)
The various townships that share in the Park’s administration cover an area larger than the protected area. According to the 2000 agricultural census data of the overall township area, there are 78,657 hectares, of which 45,495 hectares can be used for farming. In the overall area (78,657 hectares), 10.16% is certified under organic farming (13.86% of the agricultural land in the Park area). The percentage of the total organic area in the township where organic farming predominates is extremely variable and disconnected, ranging from a minimum of 1.0% to a maximum of 27.1%. The percentage of farming land is even more variable and concentrated. Land percentage, where organic farming methods predominate, ranges from 0.9% to 33.7% or on average 16.4%.
There are 2,429 farms in the Park, according to the 2000 census for the townships. Of this total, 173 practice organic crop production and 37 organic livestock production. In townships that practice organic farming, the percentage of organic vegetable farms ranges from a minimum of 0.4% to a maximum of 36.3% with an average of 10.8%. There are very few organic farms in Umbria, and they concentrated mainly in the townships of Preci and Norcia. This, according to some observers, is due to wide local promotional activities. Furthermore, limited organic farming practice on livestock farms is probably due to the recent application of animal rearing standards.
Based on the results of a recent research carried out by SAP technicians, there are a total of 230 professional farms of which 55 practice organic cultivation and 15 organic livestock farms [Pancotto 2003]. The total number does not include those small farms where annual turnover does not guarantee an adequate standard of living to the farmer and the farmer’s family.
Natural textile production chain
Products in the natural textile chain (traditional, handicraft and industrial textiles) include clothing, fabrics, rugs, bedspreads, curtains, knitwear, etc. which do not use fibres containing chemical processing residue, are organic or use environmentally friendly products such as natural vegetable dyes. From a technical point of view, textile manufacturing requires a farm–industry integration. Raw fibre can be obtained from organically managed sheep, from naturally coloured Merino fleece and other animals.
A common form of organisation is made up of the following stages (Figure 1):
1 - animal rearing
2 - fibre processing into yarn and/or textile products at small local craft mills;
3 - sale of products directly by the farm with the additional service of rural tourism or other opportunities to meet with customers such as environmental courses, weaving techniques, internet selling, etc..
Animal rearing includes selection of breeding stock aimed at improving wool quality, colour and cleanliness. Raw materials include natural animal fibres such as wool, mohair and alpaca, or vegetable fabrics such as hemp, linen and gorse along with natural plant dyes, for example the dyer’s wood Isatis tintoria (AA.VV., 1999; AA.VV., 2001).
Raw fibre processing consists in washing and spinning followed by dying with natural vegetable dyes. Wool from various local producers or that purchased on the open market may be blended together.
As far as wool production is concerned operators in this sector are sheep and goat farmers specialised in forage production, sheep and goat rearing farmers who produce wool, agro-tourist workers who sell craft products directly and sheep and goat animal rearing associations. At the present time the textile chain is a short one from farm to customer. There is no business relationship between raw fibre producers with the processors at the present time (Figure 2).
At the processing level, the individuals involved come from small-medium companies and craft work shops which do the washing, carding and spinning, textile producer associations and artistic handicraft associations for textile production and the diffusion of weaving techniques. The principle difference between local craft processing compared with industrial processing is the small amount of raw fibre handled and the use of traditional techniques by recovering and widening the professional skills in the area. The processing techniques can satisfy, with limited changes, sustainable production criteria and quality certification standards such as Eco label and brand labelling.
Finally and as far as the state of textile product distribution, these products are characterised by their local nature and the high level of production and processing sustainability.
Farm operative stages organization chart Figure1
Oganization of the stadiums of the natural textile manufactured articles chain Figure2
Market demand is for natural textile products of both local and non-local production. Target market is made of consumers in the middle to high income bracket who are not necessarily concerned by the amount of warmth the textiles provide. Factors influencing demand are sustainable production methods, aesthetic quality and raw materials used in the product being an original and typical product of a particular geographic area.
Agro-tourism is a significant factor in the growth of textile production. Rural services attract customers, develop initial cash flow and help maintain farm income constant. From a geographic point of view, agro-tourist farms in central Italy are located in beautiful surroundings with hilly country, lush pasture lands and free range animals in addition to being near historical, cultural and culinary traditions necessary for the tourist trade. The multi-functional farm is another factor in pulling in business, the interdependence of the farm sector and the sale of its non-food products.
As proof of the economic viability of raw fibre processing for manufactured textiles, it is useful to take a look at the 2000/2001 income analysis of a small family run farm located in northern Umbria. This farm offers textile products manufactured from alpaca and mohair fibre produced on the farm itself in addition to providing rural tourism. The high cost of raw fibre production is offset by processing activities and sale of finished products (Table 3).
Table 3: Production costs and prices of "Maridiana" small family farm (euro average value per unit of 2000 and 2001 years) (Ansaloni and Pyszny, 2003)
Constraints to local fibre and textile production
The external environment in this area, which constitutes an influencing factor, is the presence of several small and medium textile companies and craft workshops for textile processing. The weak points of the natural textile product chain are at consumer level and market demand for raw materials. For the consumer, it is very difficult to recognise and find a local natural product with certified production method and provenance.
Demand for natural raw materials is weak due to inconsistent and spotty quality. For this reason, the sheered wool is often left unsold and stocked at farms and consequently goes from being a natural resource to being an animal origin special refuse cost. Today, raw material producers have no clientele willing to pay the high price necessary to cover production costs and, therefore, the more advantageous policy for the farms is to convert raw wool into yarn and then sell products on their farms that have been produced by locally outsourced small and medium industries.
At the processing level, there are two problems, the difficulty of obtaining local raw fibre and the absence of a real business relationship between the farms and the distribution channels. As far as the former is concerned the farms purchase ordinary produced raw material from Australia, New Zealand, South Africa and South America, while OF produced raw material comes from Turkey, Peru and India.
As far as the distribution problem is concerned, there is a notable absence of distributors and sale representatives needed to promote and sell the products to retailers. Currently, the distribution channel is the small craft work shop and direct sale of products by the farms that also provide rural tourism services. For the future, it is possible to foresee a wide network of points of sale to market typical agro-food products and textiles. These shops would be located in the major natural, historical, craft, artistic and rural tourism areas.
The Consortium Arianne
In 2002, Arianne, an international consortium for the study of natural vegetable and animal fibres and production systems and processing was set up at the University of Camerino, in the Marche. This project took its original thrust from the small private farms and textile industries in Umbria and the Marche to co-ordinate research in the field with farm activities. These enterprises were particularly sensitive to customer demand for sustainably produced product, manufactured from naturally coloured fibres, dyed with vegetable dyes and of local origin.
The common elements that must characterise naturally produced textiles are the type of product and the production technique. For the type of product, the geographic origin must identify raw material, the yarn and the products. As far as production technique is concerned, the adoption of organic farming or Eco Label methods is advised.
The public research centres that support the initiative worldwide are: Italian National Agency for New Technologies, Energy and the Environment (ENEA) in Rome, the University of Jilin Changcung in China, the Catholic University of Cordoba Argentina, the El Alto State University in La Paz Bolivia, the University of Gottingen in Germany, Swarthmore College in Philadelphia USA and a non-governmental organisation, DESCO, in Peru. Among the private enterprise within the project, there are five farms and five yarn processing and packaging industries. The National Park of Monti Sibillini (Macerata), the CNA (Craft Industry Association) of the Marche, the Craft, Artistic and Trade Association (Macerata) and AIAB (Association of Italian Organic Farming) contribute to the project.
The activities of Arianne are dedicated to the development of research and service projects for the enterprises. UNICAM and ENEA have, for a long time, carried out specific programmes for the exchange of knowledge, the development of agricultural systems and sustainable processing in the hill and mountain areas of the Italian Apennines in addition to drawing up protocols aimed at improving natural textile quantity and quality. It is hoped that the enterprises will be able offer product protection consultation, that is, raw fibre and product production according to norm, product quality certification with relevant certification manual along with technical, commercial and training consulting services for the enterprises themselves.
Organic farming methods and rural marginal zones of the Italian Central Apennines
Among the specific success factors are product differentiation and lower adaptation costs compared with products from other Italian intensive farms and farms in this area using organic farming methods. Product differentiation depends on product originality, that the product is a craft product, producer’s talent, geographic origin, sustainability, organic farming production methods and attractiveness to the consumer. These farms are in fact located in beautiful countryside near historic, cultural and local wine and culinary delights.
Among the common success factors are the higher price that organic products command compared to conventional products along with the product’s intrinsic superior and aesthetic quality. Consumer purchase decisions are influenced more by new social and economic needs, especially intangible and symbolic aspects. Processed goods have become increasingly less basic necessities and more style-of-life indicators where mere material aspects disappear creating profound changes in various different social behaviours (Fabbris 1995 in Del Giudice 2000).
The main weaknesses that affect the spread of the organic farming methods are that demand exceeds supply and there is little attention paid to the local institutional context.
As long as demand exceeds supply for local products the following concepts remain unchanged:
1. products will succeed in the market depending on their geographical origin; and
2. products are de facto organic.
Today high demand has eliminated the need to differentiate products with the organic faming method in a market where the premium price that organic products command makes little or no difference and only creates numerous additional costs. These costs are created by lower yields, certification and training, compliance with production technical strictures such as farm finances, animal rearing, health and hygiene and processing and the costs related to blending farm produced fibres with outsourced conventional fibres. In particular, the National Park’s decision to promote sustainable production methods, instead of organic farming, is a compromise to satisfy the varied and different needs of the parties involved in order to activate the SAP programme for the 1991-93 three year plan for protected areas in the territory. From an agricultural point of view, the spread of organic farming methods is seen as a punitive measure against conventional farmers. The common feeling that local production and animal rearing are de facto organic impedes the development of a guaranteed product policy with its certification process carried out by competent authorities.
Other causes that confirm this situation are represented by the fact that the agricultural producers are poorly informed about the market opportunities of organic products and the technical ways to adopt the method of the organic agriculture; this depends on the scarce offer of services of specialized public technical support in organic farming and in the lack of a developed commercial net.
Insufficient official attention to organic farming methods is manifest in the indifference towards what has been proposed by professional organisations. For example, there is a need to consider the difficulties caused by the fact that the organic farming consulting committee of Umbria continues to have, on the one hand, the heavy responsibility of checking on farms and, on the other hand, has very little effectiveness with tobacco growers in reducing fertiliser use and with influence on the agricultural policies.
National resources used in cultivating fodder and sheep rearing are substantially without any alternative economic solution capable of guaranteeing higher incomes. For this reason, the organic farming method to orient product towards greater differentiation and “made in” brand and quality product management may be one of the opportunities for growth and development.
In more general terms, problems in this field are above all the lack of co-ordination between workers in the various sections of the quality chain. As in other cases in these areas, organic products such as fodder, cheese and milk are sold at conventional product prices and processing industries that purchase organic raw materials are located at a distance from the production areas creating high transport costs for the farmer.
SAP has observed three problems:
1. in order to meet the objectives, personnel and financial investment are inadequate;
2. farmers are diffident about the project because of conflict with the Park in the past and because of other factors such as advanced age and farming as a second income;
3. creating a balance between the natural environment and the livestock rearing is difficult and regarding this, the excessive number of wild boar must be taken into consideration.
Conclusions
The development of the Central Italian rural marginal areas, which are characterized by numerous typical niche products in addition to having a high tourist population, could be enhanced by organic farming methods as a means to differentiate farm products and generally improve the area by making it a real ecological oasis, characterized by the high environmental balance that tourist are seeking. The primary condition to be met in order to reach this objective is that farmers must abandon the notion that it is enough to certify the origin of a product to make it successful and therefore must adopt organic farming certification on a large scale as a means of product guarantee.
The actions to be undertaken to develop local organic farming productions can be shared by both the public and the private sectors. The former are the supply organisation, product quality protection and certification. The aim of the supply organisation is to increase production and concentrate warehousing in local and/or inter-regional storage facilities. This would make it possible to reach a minimum industrial processing level to increase the producer’s market power and create co-operation quality chain among all the links of the chain, particularly between producer and small to medium-sized local processors.
Certification regards OF production methods, geographical origin of the raw material and final products and product quality.
Public action would be aimed at making the consumer aware of product provenance and developing associations and consortia for quality certification and technical assistance to improve product quality.
References
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Why are consumers buying organic meat and milk? A qualitative study of the Italian market
D. Gambelli, S. Naspetti and D. Vairo
DIIGA, Università Politecnica delle Marche, Via Brecce Bianche, 60100 Ancona, Italy
Introduction
Consumer interest in organic food in Italy has grown rapidly over recent years. Because of an increasing interest in quality and safety of food products, this trend is expected to continue in the future. Particularly in the light of various food scares that have emerged throughout Europe, consumers have become more and more concerned about the safety of food they are eating. Nevertheless, besides a growing demand for food that is produced in a healthy way, organic consumer motivations are still unknown in most cases (Zanoli and Naspetti, 2002). Although existing research has generally stressed a positive attitude towards organic products, consumer perceptions of organic food have not been researched in depth and, more surprisingly, “the few studies conducted in this field have shown that there was little concern about animal welfare, generally, and least concern in food production” (Miele and Parisi, 2003). More specifically, most existing surveys – even the most recent - were interested in testing whether there was higher awareness of organic food amongst consumers but they did not explore the level of product knowledge in any depth.
One of the major problems in organic food distribution is that consumers awareness (knowledge of the existence of organic products) and product knowledge (knowledge of what organic products are, what characteristics they have, how are they produced and what are the consequences associated to their use) is low (Zanoli, 2002). In Italy, studies refer to a generalized lack of visibility of organic products: even though recent surveys show that consumer awareness of organic products is relatively high (90%: Zanoli et al., 2001b; Colussi, 2003), the level of information and knowledge about organic products and their production is still low. Even among current organic consumers, there is still a lack of information about product characteristics, certification bodies, labels, etc.
Regarding motivations for buying organic products, health aspects seem to be the most important motives mentioned by Italian consumers, although studies often do not explore such motives very deeply (Zanoli et al, 2001c; Zanoli and Naspetti, 2002). Recently, the growing number of food scandals and the fear of GMOs (Finzi, 2001) are often cited as reasons for recent interest in organic products, however some other key factors influencing consumer orientation are emerging.
Consumer interest, especially for organic meat and dairy products, has grown during recent years. This is due to meat scares experienced by consumers as a result of the BSE scandal and emphasized by the media. As a consequence, concerns about animal rights and animal welfare issues has grown. Nevertheless, Italian consumers are less concerned about animal welfare than consumers in northern Europe, as reported by Naspetti (2001) and Miele and Parisi (2001). In Italy consumers rarely put animal welfare among their food concerns; they mostly refer to animal well-being because of the impact that the life of the animal can have on human health. The relationship between animals and health is reaffirmed in the consumer request for healthier and tastier products. (Miele and Parisi, 2001).
A greater level of guarantee for consumers and the greater attention paid to animal welfare by producers could also be a consequence of the application in Italy of the EC Regulation 1804/1999 which represents a new opportunity for breeders.
In this paper we present some results concerning the perceptions, attitudes and behaviour of Italian consumers regarding organic milk and meat . The study considers present patterns of consumption of organic products in terms of consumer types, points of sale and motivations and barriers, and then pinpoints possible future trends in consumer attitudes towards organic products. The study aims to identify the Italian organic meat and dairy consumer (with ideas coming from consumers about consumers) and his shopping preferences. It also aims to investigate motivations and barriers related to buying organic dairy products, for Italian organic consumers, in order to better understand their decision-making process. Finally it analyses future trends in organic marketing, focusing in particular on the key factors that may play a role in the future development of the animal products market.
Methodology
Focus groups
12 focus group discussions were conducted in order to understand consumer attitudes and perceptions relating to organic food. Six group sessions were conducted in the Apulia region and six group sessions were conducted in the Marches region. Between 8 and 12 participants were present in each group: six groups were made up of consumers who regularly buy organic food, the other six groups were made up of participants who either buy organic occasionally or who never buy organic .
Other criteria for recruiting and quota were as follows:
1. Aged 18 to 55 plus (at least 25% of each 18-35, 36-54, 55+)
2. Male/female mix (25-40% male)
3. Participants with children (at least 25% have children younger than 14)
4. Mix of full time and part time employment (at least 25% are working full time)
5. Different levels of education (at least 50% not university educated)
Group sessions lasted approximately two hours, each focus group session was recorded in order to have a transcript of the discussion for analysis. In what follows, parts of the text written in italics comes from the transcript of the focus group discussion. After a pre-test, a discussion guide was used by the focus groups moderators. The guide had been designed and agreed by the research coordinators on the basis of the findings of national reports on literature review and then translated into the national language.
Laddering
A total of 104 interviews were conducted in Italy between February and April 2002. Both consumers and non-consumers of organic products were interviewed, in similar proportions: 51% declare themselves to be regular buyers of organic food and 49% to be occasional or non-buyers of organic food . In order to compare different consumer types, potential respondents were recruited in three main areas of Italy. Approximately half of the respondents (54%) were interviewed in central Italy (Marches) and the remaining 46% of the sample was shared between a northern region (Veneto) and a southern one (Apulia). Consumers were also recruited in different proportions depending on their locality: approximately 65% lived in urban areas (Lecce, Ancona or Padova), while the remaining lived in rural areas.
Regarding preferred point of sale, 41% of respondents state that they make most of their (organic) food purchases in supermarkets, 39% prefer to buy in specialised organic shops, whilst the remaining consumers buy organic food at open air markets. Data for consumer means-end chains were collected empirically by means of face-to-face (“soft”) laddering interviews . Through the questions used in the interviewing process, consumers were asked to build ladders for four different product categories – dairy, fruit and vegetables, cereals and pasta and meat products. Due to the small number of consumers, meat products could not be analysed. As a direct consequence of the lack of national legislation on organic animal products until 2001, the market for organic meat products is at an early stage of development.
In order to discover what personally motivates consumers to choose dairy products, as opposed to other product types, consumers were asked to give reasons for buying (or refusing) organic dairy products and to link these motivations to product attributes and their consequences in order to reveal their underlying beliefs, feelings and desired ends.
Once all the interviews had been carried out, they were professionally transcribed. Subsequently, the interviewers decoded them into chunks of meaning. These chunks were then listed in ladder forms following the iterative coding procedure suggested by Reynolds and Gutman (1988) which yielded ladders composed of links between attributes, consequences and values. Two independent judges then classified each of the chunks for all the laddering interviews, using a jointly developed set of codes. The index of reliability between the judges (Perrault and Leigh, 1989) was 0.80, exceeding the recommended guideline (inter-rater-reliability ³ 0.70, the theoretical maximum being 1). All disagreements were resolved by discussion. Out of 104 consumers interviewed, meaningful and valid ladders were extracted for 28 consumers describing motivations and for 53 consumers describing barriers . The coding of ladders describing motivation made use of 42 codes, whilst ladders describing barriers made use of 51 codes.
A new software package called MECanalyst was developed by the authors and was used to derive the implication matrices and the relevant Hierarchical Value Maps (HVMs) for both the complete group of consumers and each relevant subgroup (regular vs. occasional buyers; urban vs. rural; income levels; levels of product knowledge; consumers with children aged less than 10 vs. consumers with no or older children).
Scenario analysis
In order to investigate the possible future trends of the organic market, a scenario analysis was used to identify hypothetical situations that could be considered as possible descriptions of the organic market in the future. Scenario analysis has been developed in management literature as a tool for systematic strategic thinking and planning, in order to identify the forces that drive the system and examine the interaction of current trends and uncertainties within a given market domain and time frame. It can be considered as a way of defining a suitable strategy for forecasting problems in complex and rapidly changing social systems.
In this context, scenarios are tools for strategic analysis and summarise large amounts of information about the future from different sources, with special attention to actors, aims, mechanisms and causes and effects of change. They should not be considered as mere forecasting techniques, but rather as tools to support decision making, that may predict likely policy options given different possible future situations. Multiple scenarios may be used to characterise the limits within which the future is likely to evolve.
There is a wide variety of methodological approaches to scenario analysis, ranging from more intuitive and qualitative to more structured models. In what follows, we present the results from two scenario analyses referring to the future of the organic market in Europe by 2010, one using a semi-quantitative cross-impact method based on fuzzy logic (Zanoli et al., 2000), and the other based more on a qualitative, intuitive-logic approach (Gambelli and Zanoli, 2003) . Both models were not explicitly built for the specific analysis of organic meat and dairy products, bur rather for a more general analysis of the forces influencing the organic market in general both from perspective of supply and demand. Nevertheless, significant and relevant trends and key issues may be extrapolated and referred to the livestock sector, given the fact that many consistencies emerged from the focus group and laddering analysis.
Results focus group: the attitudes and perceptions of Italian organic meat and dairy consumers
The perceived consumer
The Italian organic consumer is perceived by regular and non-regular consumers as:
· well-informed;
· ethical;
· concerned about health;
· wealthy.
We have listed those statements made by consumers about consumers which had wide consensus in the focus groups . For several non-regular consumers, information seems to be an important factor, allowing them to distinguish between a conventional product and an organic one: in this way the consumer becomes aware of the food choice they are making. Information about rules, certification bodies, logos, benefits of organic farming, differences between natural and organic products and so on are fundamental if one wants to avoid simply following a trend and to make a rational choice.
In a similar way, several regular consumers consider that widely circulated information is fundamental to building a proper culture around organic food, and information is currently perceived as insufficient. As a result of the BSE crisis, information on food and nutrition has grown but,
“… now the emergency is over, everything has gone back to the way it was before…”
Since consumers of organic food do not feel satisfied with, or do not trust conventional products, they consider conventional food as being of low quality, inferior to organic food. These consumers have an ecological, ethical attitude towards quality of life in general: consuming organic is a way of behaving ethically. From this perspective, some regular consumers stress the fact that it is necessary to guarantee natural and appropriate animal husbandry, which implies no cruelty towards cows and no intensive breeding.
People consume organic products because they are afraid of the damage conventional food could do to their health or because they are worried about their children's health: organic food is synonymous with healthy nutrition. Furthermore, organic food is sometimes used by people with allergies or health problems, such as those suffering from disease or illness.
To guarantee that consumers are able to eat wholesome food, some regular consumers emphasise the importance of ensuring appropriate animal husbandry, as mentioned above, which is possible if intensive breeding and conventional medicines are avoided.
In addition, some regular consumers, in order to avoid illness or allergies derived from the use of dairy milk, have suggested that goat’s milk be produced.
The cost of organic products is high and for this reason only those with a higher income can afford the expense: organic products seem to be aimed at an elite. For regular and non-regular consumers, low income is the main reason that limits the regular purchase of organic products.
Preferred point of purchase
Several regular consumers prefer to buy organic meat and milk in specialized shops, because they feel they have a greater guarantee of product quality: they have no doubt that the product is a genuine organic one. These results are also confirmed in the laddering study . Regular organic consumers have expressed some doubts and mistrust in dairy and meat products from new brands. More specifically, regular organic consumers feel worried about the large number of organic farms that appeared after the BSE problem: they think that organic farming has only grown because people have seen a business opportunity in this area.
For many non-regular consumers, buying organic products in supermarkets is more practical: it is a matter of habit and involves spending less time and effort shopping. Concerning products themselves, some consumers prefer to buy meat in supermarkets, where they think meat is subjected to stricter controls; moreover in supermarkets there is usually a butcher’s section where you can have the same relationship you would have with an independent butcher. However, an equal proportion of consumers believe that meat should be bought in a known butcher because the problem is
“…who is able to guarantee the product I buy?…”:
if the consumer knows the owner, he can ask where he buys the meat and this is perceived as a form of guarantee.
Importance of origin
There is general agreement amongst regular organic consumers that knowing the origin of meat and dairy products is important during purchase: this makes product traceability very important.
Non-regular consumers are interested in knowing the origin of organic products because it gives them a greater guarantee: this is true for both organic and conventional products but
“…since I pay more for an organic product, knowing its origin is even more important…”.
In general, regular and non-regular consumers prefer meat which comes from Italy. In fact, some consumers have noticed that they have given more weight to product origin since the BSE problem.
In particular, some consumers think that meat should come specifically from the Marche region (for those consumers coming from this area) because, ever since the BSE problem, they only trust local meat:
“… Chianina cows [a breed of cow] are famous throughout Italy …”.
Results laddering: motivations and barriers in organic animal products consumption
Organic food perceptions previously investigated using focus group research has been analysed further and in greater depth using means-end chain analyses to understand some specific reasons which differentiate purchase behaviour for organic dairy products from organic products in general.
As specified above, organic products are still perceived by regular consumers as healthy, tasting good, expensive and “clean”, but some product-specific perceptions make it possible to gain a greater understanding of the reasons that differentiate purchase behaviour for dairy consumption from that of other products. When buying organic products, milk and dairy products do not tend to be the first products consumers choose (Hill and Lynchehaun, 2002). Consumers usually prefer to take fruit and vegetables. Compared to other food categories, consumers assign a symbolic content to milk, that is retrieved partly through product knowledge but that goes deeper into their minds and is linked to the past. As we will see, the great majority of values indicate that respondents justify their preferences in this way and is most probably a sign of their great familiarity with dairy products.
The HVMs for buying motivations of regular consumers and barriers of occasional buyers, are presented in Figure 1 and 2, respectively. They both show the means-end chains listed by at least 4 respondents (cut-off = 4). The codes at the top of the maps (in bold) represent the consumers' final motivations or values. Arrows show how they are linked with the lower levels: consumer benefits or positive consequences (in CAPITAL LETTERS), and product attributes (in italic). Each code block contains the code label, the number of chunks it represents and the percentage of subjects that have named it. Bolder arrows refer to links mentioned by a larger number of respondents.
Figure 1: HVM for Buying motivations of organic dairy products
Figure 2: HVM for Buying barriers of dairy products
Besides mentioning some general motivations and barriers which connect consumer purchase behaviour , the following discussion uses the main groups of values present in the maps to analyse and compare the two HVMs.
Health and well-being values
In agreement with previous cognitive studies (Zanoli and Naspetti, 2002), when making reference to general motivations for buying organic products, Italian consumers above all mention aspects associated with health and well-being. With respect to all other motivations, health is clearly the most relevant for consumers .
At the attribute level, regular consumers explain the positive influence of organic products on their own health and well-being. They base their claim principally on the assumption that organic dairy products are naturally produced since they contain less chemical additives. Choosing organic helps people to eat good healthy food and to stay healthy thus avoiding illnesses. This reasoning regarding the purchase of organic dairy products puts taste as a secondary nodal point.
The results also show that health is a discriminating factor between the choices of the two groups of respondents: regular and occasional consumers. When looking at barriers, the presence of the health issue in two contrasting codes and risks (eating/staying healthy and do not eat/stay healthy) indicates that non-habitual consumers are aware of the risk of not eating healthily (eating healthy) when giving up organic products in favour of other purchases, but also have doubts about the quality of organic products and ask for reassurance.
The fulcrum of reasoning for all consumers is the sense of well-being, which links the attribute level to the value level.
Self-centred values
Regular consumers are particularly attracted by motivations linked to personal satisfaction: Self-actualisation, Well-being, Quality of life and Happiness, Inner harmony. Only when satisfaction is obtained through the product's sensory characteristics, is a chain produced that addresses hedonistic motivations – feel pleasure, feel good à Happiness, Inner harmony or Self actualisation. As a result, the organic product cannot be chosen without taking its sensory attributes into account. In other words, organic products should necessarily have a good taste (tastes good), which can be traced back to a desire for the real/genuine taste of organic food. To regular consumers, organic milk, and also yoghurt and certain Italian cheeses, are also good quality products for two reasons. Firstly, there is a difference in the production process, organic dairy products are naturally produced. Secondly, they have superior sensory characteristics; the taste is distinctive, less watery and less industrial (real/ genuine taste).
Looking at barriers to purchase, better distribution and a wider range of organic products in conventional shops would help to increase the demand for organic products, as might be expected theoretically. However, when looking at maps with higher cut-off levels, respondents seem to acknowledge their desire for independence (self-actualisation) in order to reach a higher level of satisfaction and to be happy. They can obtain these advantages and have more freedom to choose thanks to having greater knowledge about organic products. Non-regular consumers ask for more information as an instrument for better trust because organic products are not mass-produced and so consumers are not so familiar with them.
Social and altruistic values
Most of the value codes which generally motivate organic consumption can be ascribed to values of self-enhancement or other egotistic motives, according to Schwartz’s (1992) classification, but regular organic consumers sometimes link dairy products with more altruistic goals: three altruistic and self-transcendent values appear on the map - Taking care of family, Benevolence/Social harmony and Good relations with others.
Influenced by the high frequency of children inside the family (68% of cases) respondents express their interest in social ties. For this reason, organic products are associated with taking better care of the family and, specifically, of children’s health, through better nutrition. In addition, organic products are linked to greater respect for others, a desire to help others and most of all to better (good) relations with others. [Figure 1].
The Taking care of family value also acquires more importance in the occasional consumers subgroup. Those consumers with children who regard the family as an important final motivation (Taking care of family) believe that, in choosing conventional products, their children eat good and healthy food, and so are relaxed about their children's health. Consumers without children link their main barriers, prices and availability, to more concrete aspects and obviously, to self-centred and less altruistic motivations. Their main interests are to have greater freedom and success.
Environmental values
As other studies have shown and in contrast to consumer behaviour in other European countries (Grunert and Juhl, 1995; Makatouni, 2002; Zanoli and Naspetti, 2002), environmental motivations, which are also usually linked to the consumption of organic products, are not as important for Italian consumers. Consumers in Italy are little inclined to non-consumption and austerity (green consumers), but pay great attention to eating and “global well-being” (Calvi -Eurisko, 1993). This resolves the tension between hedonistic and environmental motivations at the level of well-being.
The “environmental” motivation is only found amongst regular consumers, those familiar with organic products, and is not even a dominant characteristic. Therefore it is hard to distinguish the figure of a truly “green” consumer, from the point of view of consumption choices. Previous results regarding consumer scepticism about organic consumption are to be confirmed (Zanoli and Naspetti, 2001) by looking at the wide incidence of values related to personal motivations. From all this, the figure of a traditionalist and non-innovative consumer emerges. The research therefore reveals a consumer still reluctant to widen the horizons of what they consume towards organic food products, solely on the basis of “environmental” motivation.
Pleasure value
At the value level, Italian consumers also give importance to the pleasure of eating good food (Food as enjoyment). Respondents who regularly buy organic dairy products address food quality (good quality) by referring to the characteristics “perceived” in the. They tend to think of dairy products as having the “quality of times past”. It is important to bear in mind that milk is the food on which children are first raised; thus, consumers are transported back to past tastes and situations which somehow give them pleasure and, at more abstract levels, lead to Inner harmony and Happiness . This link with the past is to be considered as a further sign of consumer familiarity with these products and confirmation of the importance of dairy products in the consumer's mind.
Some other key factors, such as those mentioned by Hill and Lynchehaun (2002), influence organic milk purchase and could affect future marketing strategies:
Quality
As mentioned previously, Italian organic milk products are considered to be good quality products. Among quality aspects, the most important characteristic organic consumers assign to organic products is the lack of chemical substances in the product and the production process.
Additionally, regular organic consumers also explain their choice of organic because they have a preference not just for healthy products but also for foods that promote physical well-being and have better nutritional properties. The nourishing attributes of organic dairy products, together with elements of quality, continue to be relevant in consumers’ minds, even if they are not scientifically proven (Zanoli and Marino, 2002).
For non-regular consumers, the perceived good quality of conventional products is a reason for not choosing organic food. Consumers do not believe that organic products are better quality and have a better taste than conventional ones. They are convinced that they can find products that look and taste good and which are also wholesome from the conventional range of products. Since consumers with less experience of organic products do not seem to perceive the differences between organic and conventional products, a greater effort should be made to increase consumer familiarity with organic products. Past studies (Zanoli and Naspetti, 2002) also demonstrate that the level of experience has a deep influence on consumer perception and in this case products tastings could help the spread of organic products.
Price
Among non-regular consumers, higher prices of organic products do not seem to affect fully-employed respondents or those with higher knowledge but slightly discourage purchase for those with low incomes. Consumers are somewhat unwilling to pay for organic dairy products, due to the fact that they do not consider such products as having good value for money. However price reduction does not seem a strategy for increasing sales since the price barrier is not perceived at a deep level: although occasional consumers complain that spending much more for food purchases would mean not having enough money for other needs or priorities, they also make a link with health risks, which are understood as a result of not having the financial possibility of buying and eating healthy food. An educational strategy would be a better solution and could make consumers aware of the whole organic method.
Availability
Non-habitual organic milk buyers, besides stressing the higher prices of organic products, mention the availability issue as having the same weight as the issue of reliability of conventional products (good quality of conventional product). Their purchases are influenced not only by the convenience of using habitual shops close to home, but also by hygienic standards and the prospect of obtaining high-quality products . These consumers seem to reject organic products for practical reasons: non-availability in the habitual shop represents an unfeasible and uncomfortable way of shopping in the consumer's mind and makes organic purchases more difficult (not easily available).
Despite the fact that organic products are available on the shelves in 95% of supermarkets and many of them (namely COOP and Esselunga, Carrefour, Conad, Crai, Despar, Pam, Billa and Selex) have their own private label for organic products, the range of products sold is not very wide and so consumers still complain about the availability issue. As might be predicted theoretically, better distribution and a wider range of organic products in conventional shops would help to increase demand for organic products .
Knowledge
Compared to regular dairy consumers, most of whom have a high level of knowledge (86% of the cases); occasional consumers do not want to be driven by the market. They want to eat healthy but, at the same time, are not keen to give up life's pleasures. For non-regular consumers, those with lower level of knowledge want to have more freedom of choice and to be better informed about the methods of organic production and processing and about how organic products can be recognised. Finally, non-regular consumers are not willing to change their food habits unless they are certain products are of higher quality.
The fact that those consumers that are more familiar with organic products seem to have a more idealistic cognitive structure than occasional consumers - see the higher presence of more altruistic values - and that occasional consumers give more practical reasons for rejecting organic product, seems to confirm the idea that organic products are “think and not feel” products. In other words, organic products are not linked to an emotional feeling, but to a logical and rational thought process. For occasional consumers, this perception may be considered a symptom of a lower emotional participation in food choice which seems to be related to a lack of information.
Non-regular consumers, who mention negative aspects of buying organic products, ascribe the barriers to their choosing organic food to their lower level of knowledge. They refer to a general lack of information which de-motivates them or, at least, influences their organic choices in a negative way. Scepticism concerning organic products could be solved by having more information. Greater knowledge could make choices more rational and potential consumers could have more trust in organic products.
Results scenario analyses: possible future trends in the consumption of organic animal products
Though the scenario analyses we refer to were not explicitly focused on the organic livestock products market, some results can be singled out and extended to this specific sector of the Italian market. In particular, two main groups of factors influencing the demand of organic livestock products can be distinguished: a general set of “macro” factors, and a more specific set of “micro” factors.
The first group of factors are general macro-economic and social aspects which may affect the demand of meat and dairy products, in particular:
§ supply of organic products in general and of livestock products in particular;
§ liberalisation process of markets and the regulatory framework of CAP;
§ development and growing presence of GMOs and of processed livestock food products obtained by new and “controversial” technologies;
§ attitude of consumers and society in general towards ethical and environmental issues.
The second group of relevant factors can be considered more directly related to the process of consumer choice of organic livestock products, and refer mainly to:
§ product range and availability,
§ livestock product quality;
§ promotion and advertising of organic livestock products;
§ media coverage of the organic sector in general and of organic livestock in particular;
§ consumers’ attitude toward livestock products of regional origin.
The scenario analyses (for details see Zanoli et al., 2000 and Gambelli and Zanoli, 2003) depict how these factors are actually strictly interrelated, and produce a wide range of different future situations for the Italian market of organic animal products. The per capita consumption of meat products in general in Italy is among the highest in the EU, and after stagnation due to the BSE scandals, it still shows positive trends. Nevertheless, the overall consumption of organic meat is still at low levels, due mainly to the low availability of organic meat. In fact, although Italy is one of the most important producers of organic fruit and vegetable products, the lack of a national regulatory framework concerning livestock until 2001 has strongly discouraged livestock breeders from converting to organic. Furthermore, the recently approved national regulation concerning organic livestock is perceived as quite restrictive for breeders, which has, of course, not favoured a strong increase in national livestock production.
Under such circumstances, it seems that there is potential for substantial growth of foreign organic meat products in the Italian market (including products from outside the EU), which could be favoured by increased market liberalisation and directly affected by EU enlargement.
Nevertheless, wild liberalisation processes and EU enlargement are also likely to produce controversial effects on the demand of meat products, due mainly to consumer food scares in general, and to the issue of traceability of the organic meat filière in particular. The recent BSE crisis has shown how reactive consumers may be to scandals in the meat markets, and has also raised the level of attention that consumers pay to the origin of meat products, creating very favourable conditions for the development of organic meat market. Highly liberalised markets may nevertheless increase the risk of scandals also taking place in the organic meat sector, mainly due to the difficulties in the control of organic animal feeds. In any case, recent events seem to show that demand for organic meat products seem to be more influenced (positively) by scandals in the conventional food sector (such as BSE), than (negatively) by scandals in the organic sector (such as the German organic feed scandals).
Another aspect that may counterbalance the increase in imports of livestock products, in particular from new accession countries, is the general diffidence of Italian consumers to trust the quality of livestock products from eastern European countries: the Chernobyl disaster and the impression of a general lack of standards guaranteeing quality still have a negative effect on the attitude of consumers to food products in general coming from Eastern Europe.
Concerning dairy products, a distinction must be made between mass market products such as milk, yoghurt and cheeses produced on industrial level, and products of regional origin and typical products, usually locally produced. In the first case, the growing liberalisation and the EU enlargement process will produce a considerable increase in imports of organic milk and processed dairy products in the EU and in Italy; in the second case, it seems much more unlikely that non-Italian dairy products erode market share significantly, given the particular attention that Italian organic consumers pay to the origin of products. In fact, the image of originality and authenticity, traditionally associated to locally produced regional products is in Italy strongly related to the concept of products obtained using environmentally safe methods, and typical dairy products are therefore “naturally” preferred by organic consumers.
A further effect of the potential increase of organic livestock products due to higher market liberalisation is the risk of confusion amongst consumers, especially if there are no strong and reliable certification standards and logos. This aspect is related to the more general issue of the need amongst consumers of organic livestock products for more information about both the organic sector in general (i.e. how organic products are produced, the differences with respect to conventional practices, the actual beneficial effects of organic livestock and farming for society and environment and so on) and about meat and dairy products in particular. There is a requirement for more advertising and promotion of organic products, and is an aspect related to private sector initiative - especially from processors and traders. The lack of adequate mass media coverage and promotion for livestock products and labels has been singled out in the scenario analyses as one of the strongest barriers to the expansion of demand, and such results have been confirmed by the in depth analyses on consumer motivations discussed above.
Closely related to the issue of promotion of organic livestock products is that of quality and of the certification and labelling system. Consumers associate organic products with the concept of quality, and would like such quality to be certified clearly using labels that are easy to see, in order to support them in the process of choosing products. The results from the in-depth analysis of consumer motivation show how personal satisfaction is among the most important forces driving the preference for organic. This evidently hinges upon the consumers assumption that organic products have higher quality standards, in terms of “environmental content” and/or of taste and nutritional characteristics. The quality issue is therefore a key element affecting the future competitiveness of organic livestock products, and although there is an implicit trust on the part of consumers, at least of regular ones, there is little still scientific evidence concerning the actual superiority of organic products with respect to the conventional ones. If, in the future, such evidence was to emerge and become widely acknowledged, this would be likely to boost the demand for organic products, particularly amongst non-regular consumers. On the other hand, if studies and comparisons between organic and conventional products were to find no significant differences, an important competitive element of organic products could be lost.
From this point of view, well developed and reliable certification and labelling services can be considered crucial to increasing market transparency in the organic livestock sector, in order to avoid free-riding practices by increasingly commercial service organisations. One step towards market transparency is surely the recent approval of the European logo for organic products, but the links between organic farming and consumers could be further increased by a pan-European campaign showing the positive impact of organic farming and processing on the environment and on public health. Efficient and visible labelling services could also be a strategic tool to exploit new marketing possibilities related to the development of organic products also certified and labelled as regionally produced food.
Finally, a further important motivation for consumers choosing organic livestock products seems to be, quite predictably, the ethical and environmental concerns. The scenarios show that these concerns have positive influences on the demand of the organic products, and in some cases are strictly connected to the preference for typical and regional products. The results of the laddering analysis seem nevertheless to indicate that these aspects may have been slightly overestimated in the scenario analysis, and prompt further examination of this issue.
Conclusions
This study contributes to reducing the lack of information concerning the factors which affect the consumption of organic animal products in Italy, by distinguishing the basic characteristics of consumers, their personal motivations during the purchase process, and the key factors that might play a central role in determining future demand in the organic animal products market.
The focus group analysis distinguishes four main aspects that can be attributed to the Italian consumer of organic animal products: information about products, ethical concerns, attention to health, adequate income level. It also analyses the role played by the point of sale and by the origin of products in the way consumers approach the purchase of organic animal products.
The laddering analysis investigates the cognitive characteristics of consumers leading to the purchase of organic animal products, exploring in detail the role played by health issues, social values, self actualisation and environmental concerns. Italian organic consumers seem to be influenced mainly by hedonistic motivations, and show a rational rather than an emotional approach to the choice of organic animal products. The main barriers to the purchase of these products by non-regular consumers are the lack of knowledge about organic products in general and animal products in particular, perceived quality and high prices.
The scenario analysis shifts the focus from the individual attitudes to the social behaviour of consumers, exploring the key factors that might influence the demand for organic animal products in the Italian market. Liberalisation of world market, EU enlargement and GMOs are closely related factors that might boost the demand for organic products due to an increase in food scares: organic animal products might become strongly preferred as they represent a safeguard for consumer concerns about health. Furthermore, action taken to increase the amount of information available around the organic sector and organic products, such as visible labelling, media coverage, advertising, may prove effective in supporting the demand for organic animal products in the future.
The three approaches used to analyse motivations for buying organic animal products therefore lead to a common core of results that essentially point towards consumer attitudes toward health and food safety as the major factor motivating the purchase of organic animal products. Critical elements for the enlargement of organic demand share for animal products are linked to the requirement of more information about the actual differences between the quality of organic and conventional products that might reassure and support consumers when shopping for food.
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Analysis of organic dairy farm revenue for the period 1999 - 2002 in the province of Bologna, Italy
D. Sarti and P. Vanelli
IBIMET - Istituto di Biometeorologia - Sezione di Bologna, Consiglio Nazionale delle Ricerche (CNR), Unità Operativa Economica dei Sistemi Agro-Territoriali, Via P.Gobetti, 101 - 40129 Bologna (Italy)
Introduction
As a result of the re-organisation of the Italian National Research Council (CNR), the Centre for Analysis and the Management of the Agro-territorial Systems in Bologna has become the Economic operative unit for in Bologna section of the Institute of Biometrology (IBIMET). This centre, from its very beginning in 1971, has worked on financial data and the analysis of farm management in the regions of Tuscany, Emilia Romagna and the Triveneto and is still carrying out research aimed at promoting rural development in the farm areas, the subject of this paper.
The systematic elaboration of farm data under study at the centre has, with the help of global management indices and analysis of financial data covering the main processing stages in Tuscany and Emilia Romagna, furnished original documentation of undeniable importance that gives an objective and overall picture of interest to a number of individuals including farm owners, technicians who actually run the farms, researchers in farm economics and managers of various public enterprises.
Materials and methods
In consideration of the hill climate and environmental difficulties in the area, it was decided to analyse productive activities that could stimulate farming economy and check on the changes that community policy would create in the economy of the farms. The objective of this study was to evaluate the costs and revenue of two different types of dairy cattle systems for companies in the Bolognese hill area. Of the sixty farms under financial study, six were selected. The annual balance sheets from 1992 to date of these six farms were available at the CNR centre and they contain similar characteristics as defined by the objectives.
Farm structure and production factors
The common characteristics of the cases studied are the following:
- family owned and run operation;
- organic farming since 1992;
- main product: fresh milk for human consumption;
- vegetable production: Alpha-alpha and cereals produced and reemployed in the farm;
- the young livestock, that replaces the animal heads to end career, is nurturer, is nurtured inside the farms.
Since 1995, four of the six livestock farms and co-operative members have sold organic milk to the Consorzio Cooperative GRANLATTE in Bologna. The other two produce conventional milk that is then delivered to the GRANDUCATO processing plant in Florence. The differences between the two systems are outlined in Table 1.
Table 1: Farm resources
Recently three of the four organic dairy farms have renewed the cow-sheds. The new barn which has a milking parlour and milking machine hook up has enabled the farmer to widen the production area. In the remaining two farms, new barns became active in the year 2000. The two farms that produce milk in accordance with conventional methods are very similar to those spread over the area. They have a traditional barn with a common housing built in the late sixties with an on-site milking station.
The average arable area of the organic dairy farms is around 50 hectares, of which two thirds is taken up with forage or alfalfa, while the remaining area is used for the cultivation of grain and high protein grain such as barley and bean crops whose production has been reemployed in the farm.
Only the products exceeding the dairy farm’s own need are sold on the market as organic products. In addition, the dairy farms have around 30 hectares of woods. The dairy rearing farms that produce conventional milk have a little over 30 hectares of land of which four fifths are cultivated for forage and the remaining hectares are used for grain cultivation. Crops harvested from fields using organic methods yield slightly less than those using traditional methods. Alfalfa crops yield from 6 to 8 tonnes per hectare, while grain crops yield 4 –5 tonnes per hectare.
Stock are pure bred Italian Holsteins. One of the farms also has pure bred Brown Swiss cows. In the four year period from 1999 to 2002 on the organic farms, the average number of milking cows in production increased from 25 heads in 1999 to 35 in 2002 (a 40% increase). In the same period in conventional rearing farms, livestock decreased from 13 to 12.
The average number of family members engaged in the work was two individuals per organic dairy farm, while conventional farm average was 1.5 individuals. These figures remained unchanged during the entire study period.
Data analysis
Revenues and expenses were organised by category in examining the financial budget of the farms. Data were collected and reported for milk quantity and expressed as averages over the two year periods 1999-2000 and 2001- 2002 to insure a well-balanced comparison of the production types. In the first two year period, the chronological comparison as per MacSharry (Ansaloni F. e Ali) can be seen. The second two year period reports the effects of the Agenda 2000 and, as far as the cases under study are concerned, new livestock buildings were in operation.
The revenue includes resources from milk (inclusive of VAT), other revenue (includes gross income from the barn and European Community subsidies.
Costs include forage and reemployed grains, feed and other purchased feed stock, medicine, veterinary expenses, insemination costs, materials, miscellaneous such as fuel, electrical energy, insurance, services and transport, farm equipment expenses, barn maintenance and general expenses including organic certification costs and lastly the amount of capital re-invested. Cost of reused forage was debited from the barn expenses on the bases of the estimated value, which takes into account local market prices. Therefore, the cost of alfalfa hay was estimated at 100€ per ton and grain at 150 € per ton.
Above costs do not include labour costs of the owner, his family nor property or investments of the owner. Capital and work income has been calculated on the difference between income and costs as described above.
Data collection by technicians and accountants from the farms required numerous and systematic meetings with the farmers for proper and correct information retrieval, for example to have a clear understanding of the amount of products used, storage and to understand the reasons behind farm owner choices and their economic expectations.
Milk payment is based on a reward and debit system, based on whether or not certain requirements are met. In order to formulate an estimate of economic results over a five year period in accordance with the reform, it was necessary to evaluate the components that make up the price of the milk and possible variations. Milk prices paid to the farm are made up as follows:
- base price which includes the value of the milk agreed to at regional level among dairy farmer associations and the main milk industries;
- greater or lesser value that private and co-operative industries accredit to raw materials in certain areas of production in relationship to need which may vary even a great deal in the various months of the year and from year to year;
- milk quality price based on meeting certain regional technical parameters, which above all in the summer months may give a negative reading;
- premium price for organic products which generally has been set by the milk processors or industries based on their needs and in particular the price that they have been able to obtain on the market;
- lastly price formulation for milk must take into consideration penalties or rewards based on the amount of product delivered daily (0 to 50 litres –33,05 €/ton; 51 a 100 litres –16,53 €/ton; 101 to 200 litres –9,30 €/ton; from 201 to 300 litres no deductions; from 301 to 1000 litres +1,55 €/ton; from 1001 to 3000 litres +2,58 €/ton; over 3000 litres +4,13 €/ton). No penalties are applied for organic milk.
Results
Income
Total revenue per tonne of milk varied greatly over time (between the two year periods) depending on the type of production (Table 2). Overall revenue from the organic farming enterprises for the two year period 1999-2000 was about 500€ per tonne, an increase of 12% over that of conventional farming. In the following two year period, organic milk increased over 23% while conventional method increased by 5%.
In determining capital and labour income, price received at delivery was extremely important as was milk quality. In the two year period 1999 – 2000, both organic and conventional milk averaged around 430 € per ton. Only in the last two year period did organic milk reach 485 € per ton or an increase of 12%. The incidence of this income on the total income varied considerably. Organic milk registers a lower percentage (9-12%), and in both cases income was lower by 8 –4 percentage points in the second two year period due to a proportional increase in other income.
The price increase (inclusive of VAT) for organic milk up to 30 March 2000 was 45.04 € per tonne and progressively increased to 56.29 € per ton from 1 April 2000, 73.10 € per ton from 1 April 2001 and 84.44 € per ton from 1 April 2002. Price was based on conventional milk quality standards together with the increased value attributed to the milk itself by the co-operative GRANDUCATO and matched most of the price increase achieved by organic milk up to the year 2000. For this reason, average unit price for milk from both types of production in the first two years differed only by 4 € per ton.
Table 2: Technical and economic analysis of milk production in the Bolognese hill country - € per ton
(Source: own data)
Other income, mainly gross income from the barn varied from a minimum of 60 € per ton to a maximum of 160 € per ton with a greater effect (18-24% against 12-16% conventional) on organic milk revenues as opposed to conventional milk revenues. From the first to the last two year period, milk prices increased 50% because more animals (biological increased from 6 to 12 heads) were kept for fattening and also because of the increase in beef prices once the BSE crisis was settled. European Union funding for livestock and butchering increased on average by 6 € per ton for organic production and little more than 3 € per ton for conventional production. For organic production and starting from the year 2000, to this amount EU financial subsidies for fodder pastures explicitly for organic livestock rearing must be added. The total amount of these subsidies for the farms under study is on average 27 € per ton of milk.
There were no significant difference in costs for each type of production. Overall costs in the two types of production in the first two year period total on average 414 € per ton of milk. In the second two year period, there was an increase of 21 € per ton or 5.1% in organic milk production and 45 € per ton or 10.9% in conventional milk production. In general, feed costs were on average 72% of the total costs. In organic production, feed costs exceed the amount of that calculated for conventional production. Other costs total on overage 17% of the total.
In the first two year period, re-integration costs of the investment for both organic and conventional milk totalled 40 € per ton, in the second two year period costs increased 44% and 26% respectively for organic and conventional milk. The major cost for the last two year period was due to the forced reduction of milk produced in order to stay within the milk quotas.
With organic milk production, capital and labour income per tonne from the first to the second two year period increased by 80.1%, to 242 € per ton. With conventional milk, however capital and labour income remained at 93 € per ton. Overall income with organic milk increased almost 250% from the first to the second two year period going from 29.651 € to 49.897 € compared to conventional milk which decreased by 14% from 6690 € to only 5767 €.
Preventive analysis of the effects arising from the application of income reform
Based on production results from the year 2002 and preceding years, forecasts of obtainable economic results for the period 2003–2008 have been made. The following are the forecasts:
- consistent production yield for the entire period;
- price stability for technical equipment purchased on the market;
- consistent costs for farm equipment including machinery and services;
- conservation of current production techniques;
- conservation of price increase for organic milk of 84.44 € per ton (VAT included) based on the agreements between the Dairy Farmer Associations and the Consorzio Co-operative GRANLATTE.
Over and above these, the Agenda 2000 guidelines have been applied along with the OCM guidelines updated in accordance with the Fischler reform dated 26 June 2003 regarding dairy products. These include:
- abolition of recommended pricing;
- intervention of price reduction (25% less for butter and 15% less for skimmed milk) which translates into a 15% price reduction for milk equally distributed over three years beginning with the year 2005;
- no increase in milk quotas
- de-coupling and modulation when the reform is fully introduced with a 3% reduction of subsidies in 2008;
- direct assistance for milk produced in accordance with the CE Directive 1255/99 dated 17 May 1999, Chapter IV article 16 and integrated by Italian adaptations according to what is set out in the subsequent article 17. According to article 18 of the same community directive, the overall amount (premium for dairy products and additions) granted per individual tonne of milk may reach and not exceed 13.9 € in 2005, 27.7 € in 2006 and 41.7 € in 2007. Subsidies taken into account in the forecast analysis totalled 8.2 € per tonne for 2005, 16.4 € for 2006 and 24.6 € for 2007.
According to the forecast analysis, the capital and labour for farms in the Bolognese hill country which produce organic milk (Figure 1) will have a progressively increased income up to 200 € per ton in the 2007-08 two-year period.
Conventional milk dairy farms on the other hand were severely penalised due to the application of the reform which calls for a heavy price reduction causing a severe drop in already extremely low incomes. Income forecast for the 2007-2008 two year period indicate a decrease to 60 € per ton (-37%) (Figure 2)
Overall capital and labour income per unit of labour in dairy farm using organic production techniques for the two year period 2003 –2004 reached a level of 26.150 € which progressively reduced is going to be 22.140 € for the two year period 2007-2008 (Figure 3).
In those farms that carried out reconstruction and necessary updates production capacity increased 45% (to three times that of conventional dairy farms) albeit with enormous financial investment. Conventional dairy farm income per worker is 2.444 € and there have been no current actions but a containment of production capacities within milk quota limits.
Figure 1-3
Conclusions
Organic dairy farms take full advantage of the territory in which they are located. They must meet technical standards, make notable commitments as per the directives in the Agenda 2000 and need to meet the requirements of Reg. Ce 1804/99. The authors suggest that livestock farms for milk production in marginal hillside and mountain areas should be safeguarded and promoted whether they use conventional or organic production methods. It is also suggested that marginal activities like organic and conventional dairy cattle farms in the hill country should be given subsidies to apply modern technology to reach the maximum quotas allowed by article 16 Chapter IV of the directive Reg. Ce 1255/99 integrated by Italian national and regional requirements as set out in article 18 cited above.
The inability of the dairy farms to meet the norms regarding free range animal housing (required by decree before stipulated time) means that these small farms run the risk of closing. The authors, therefore, suggest that the current government re-enact the waiver to permit Italian farms to conform to the relative housing norms by 2010.
Replacing obsolete rearing structure is important :
- to increasing production capacity;
- to bringing it into balance with the land available; and
- to allow efficient labour mechanisation and rationalisation.
Progressive price increases in organic milk are a correct recognition of production method quality that requires increasingly higher costs and personal sacrifice on the part of the farmer in order to achieve a satisfactory income. This result has been made possible by membership in dairy processing co-operatives, insuring a higher production technique professional level, product diversification and a more efficient product organisation to respond to market needs. The Consorzio Cooperativo GRANLATTE, under another name assumed the responsibility of marketing organic milk in 1995 (Ansaloni - Sarti 1996). GRANLATTE began by purchasing 7,000 kilos of organic milk from five dairy farms every day. Today GRANLATTE purchases 33,000 kilos of organic milk from 11 dairy farms on a daily basis. In addition, the organic dairy product line begun with fresh milk and yoghurt has been expanded to include fresh cheeses like stracchino and mozzarella.
The demand for organic milk and other organic products is a real demand. The hope for the future is that this demand will be helped by further EU subsidies to assist dairy farms in meeting technical standards that this type of production requires. It would also be good to have a further increase in organic milk prices to insure an adequate income to the dairy farmer so that the current situation may not only continue but improve and grow.
References
Ansaloni F, Sarti D. (1996) «Aspetti economici della produzione di latte con il sistema dell’agricoltura biologica», L’Informatore Agrario n.13.
Ansaloni F., Sarti D. (1998) “Fattori di sviluppo della zootecnia biologica da latte”, Seminario di Studio Ce.S.E.T dedicato al tema “La contabilità ambientale in agricoltura e selvicoltura, Cansiglio, 29 maggio 1998, a cura di P.Gajo e M.Merlo.
Ansaloni F., Gatto P., Rivaroli S., Sarti D. (2001) "Strategie di sviluppo di aziende da latte in collina e montagna", L'Informatore Agrario, n.8.
Berni P., Begalli D. (2000) Efficienza aziendale e prospettive della zootecnia da latte nelle regioni di montagna, il caso delle comunità montane del Baldo e della Lessinia, Amministrazione provinciale di Verona, Comunità montana della Lessinia, Comunità montana del Baldo.
Casati D. (1997) “Gli effetti della riforma PAC sull’agricoltura italiana”, Convegno Sidea, Torino.
Messori F. (1999) – Aspetti economici dell’agricoltura biologica nella provincia di Reggio Emilia. Un’analisi della filiera. A cura del Dipartimento di protezione e valorizzazione agroalimentare dell’Università di Bologna.
Rivaroli S., Sarti D. (2000) “Allevamento in collina, quale futuro?”, Terra e Vita, n. 33.
Production costs and profitability of organic Parmigiano-Reggiano cheese and organic industrial milk in northern Italy
A. Menghi and K. de Roest
Centro Ricerche Produzioni Animali S.p.A., Corso Garibaldi 42, 42100 Reggio Emilia, Italy
Introduction
In the framework of the project, “Monitoring livestock production in Emilia-Romagna Region”, the Research Centre on Animal Production carrie out, in 2002, a specific survey among organic milk producers. The aim was to calculate milk production costs for both organic milk for Parmigiano Reggiano cheese, and milk for industrial use. Furthermore, the profitability of both types of production has been calculated.
The methodology used was based on the model of the European Dairy Farmers (www.dairyfarmer.net), who annually calculate milk production costs in 14 EU Countries. The data was collected by means of questionnaires.
The farm samples regarding industrial milk production included farms located on the hills and mountains of the Emilia-Romagna Region, outside the Parmigiano Reggiano PDO (Protected Designation of Origin) area. The farms in the sample of Parmigiano cheese producers were located both on the plains and in the hills. Given the strong heterogeneity of the farms located in the hills (size, breeds, buildings etc.), it was possible to sample in this category only the farms on the plain. In the latter case, the sample consists of all types of farms operating in this area. The results of the analysis have been compared to similar samples of conventional farms involved in the project for several years.
Industrial milk
The sample included small farms, with an average of 44 Italian Friesian cows (Table 1). The average production of milk per head was 5.6 tons per lactation. The production is comparable to conventional farms located in the same area. Fat and protein content can be considered good, reaching 3.8% and 3.4% respectively. Average lifespan of the cows was 4.6 years after first calving.
All arable land of the farms was cultivated to produce animal feed. Alfalfa was the main forage crop cultivated in rotation with cereals and protein crops (usually horse bean). The production per hectare of the main crops were: 5.3 tons of alfalfa hay, 4.6 tons of winter wheat, 4.3 tons of barley and 2.6 tons of horse beans. Because of the limited acreage of the farms, these yields are unable to satisfy the feeding needs of the herd. Organic concentrates and flour are bought in to complete the feed ration. The amount of concentrates used in organic farms was similar to that used in conventional farms. The main difference was that in organic farms, the proportion of flour in the feed ration (corn flour in particular) is bigger than in conventional farms, where concentrates represent the bigger proportion.
Table 1: Technical characteristics of the sample in 2001
The common strategy of all farms in the sample was to use their own feed production as much as possible and to rely on external inputs as little as possible. This strategy was particularly evident in the case of concentrated feed because of the high price of the concentrates. Family farm labour was mainly employed for forage production. Contract labour was scarcely used. There was a large machinery park to do the work in the farm. Crop fertilizers were mainly manure from the livestock and small amounts of other minerals were added.
Another interesting characteristic of some of the farms was the rearing of male calves for organic beef production. This strategy increased the value of the calf meat. When calves were sold at a few days of age, they were sold at the same rate as the conventional calves, as there is no market for organic calves. The situation was different when the calves reached about 300 kg of weight, when they could be sold as organic beef. During 2001 (a crisis beef period), the price of young bulls was about 2.5 Euro per kg of live weight. However, cull cows, even if they are certified as organic, they are not always sold as organic.
Excluding public support for organic production, the production cost per liter of milk in 2001 was 68.15 euro per 100 kg of milk. The cost is about 20% higher than for conventional milk (Table 2). Feeding costs were about 20% higher than conventional production, but the composition of this cost is different in different samples. In the case of organic farms, the high costs of concentrates push the farmers to produce as much as possible. Basic self-produced forage is integrated with concentrates and flour. Producing organic feed on the farm using low input methods requires high input of labor and the number of machinery has to be adequate to perform all technical interventions on the land and crops. It means that, to the costs of purchasing feed, labour input, machinery depreciation, interests on capital and other variable costs linked to fuel consumption, energy, mechanics etc. should be added. In conventional production, the use of chemical inputs makes it possible to reduce labor input and all related costs. Organic certification accounts for about 1% of total production costs. This has a negative impact on profit for these farms. The milk price is on average 43-44 euro/100 kg of milk (about 41 euro for conventional milk). The good revenue from meat production at about 8 euro per 100 kg of milk and the EU subsidy for organic production leads to a total revenue of 56.5 euro per 100 kg of milk production. This sum does not cover the total production cost previously calculated.
In Italy, it is quite common that dairy farms located on the mountains hardly remunerate sufficiently their own labour and invested capital. This is true also for organic dairy farms. To reach the same modest remuneration of labour and capital (if EU subsidies will continue to be available) milk prices should be at least 13% higher than conventional milk and 21% higher, if subsidies were not available.
Table 2: Industrial milk production costs
Milk for organic Parmigiano-Reggiano cheese production
The sample of dairy farms producing milk for Parmigiano Reggiano cheese accounted for only 5 farms; they represent all farms involved in this type of production on the plain (Table 1). All farms had converted to organic production several years earlier. The limited number of farms of this sample does not allow us to define them as the typical farm for organic Parmigiano Reggiano production, and even the large size of these farms (258 heads and 310 Ha on average) describe a particular situation. They are, in fact, big farms, employing a large number of workers (8.4 on average). As in the case of liquid milk cows, productivity is very similar between organic and conventional. Fat and protein content is slightly higher in organic milk but in line with conventional milk. The average age of the cows is 5.9 years.
The use of concentrates was lower on organic than on conventional farms (2,094 kg against 2,335 kg per year per cow). Quality of forage was one of the most important factors in milk production and it was even more important in organic dairies. The fact that concentrates are limited to a maximum of 40% of the ration in organic milk production requires a very high quality of forages in order to obtain good productivity per cow.
Table 3: Technical characteristics of the sample in 2001
The strategy of the farms was to produce as much feed as possible on the farm in order to reduce purchased inputs. Not taking into account the EU subsidies to organic farming, the milk production cost in farms producing Parmigiano Reggiano cheese was 47.2 euro per 100 kg of milk. This cost is about 10% higher than the sample including conventional farms. The relatively small difference is due to the fact that the product specifications make the organic and the conventional system quite close to each other (see the feeding rules for example). Purchased feed on organic farms was lower than on the conventional farms. This is due to the self-production of forage in the large acreage of these farms. In some cases, organic soy was cultivated in order to supply protein to the animals. All cost items, pertaining to forage production (e.g. machinery and labour). were higher in organic farms than in conventional herds (Table 4).
Profitability of the farms, was very different from the organic farms producing liquid milk. On the farms, milk was processed within the farm and ripened and sold directly as final product to individual consumers or to retailers. In both cases, the added value of the production is kept on the farm. To give an idea of the difference, in 2001 conventional Parmigiano-Reggiano was sold, on average, at 9 euro per kg while the organic Parmigiano-Reggiano cheese was sold at about 11.5 euro per kg of cheese. Subtracting from the organic cheese price the processing and ripening costs, we obtain 62 euro per 100 kg of milk (47.05 euro for conventional milk). This means that the production cost previously calculated at 47.2 euro was largely covered by the milk price. To this value, we should also add the EU subsidies for organic farming, but the lack of information does not permit this final calculation.
Table 4: Parmigiano Reggiano milk production costs
Conclusions
The technical performance comparison between the organic farms and the conventional farms shows that organic farms can have similar performances to conventional farms. To meet this target, the farm strategy needs to be drawn in a particular way, based on good availability of labour, land and capital. In this way, it is possible to solve one of the most problematic aspect of organic animal production: feed management. Self-production of animal feed gives the farmer the opportunity to limit the purchase of organic forages and concentrates that are, at the moment, very expensive. Those farmers who have a limited availability of labour, land and capital, can hardly manage their farms in a profitable way. For this reason, many organic farms with dairy production prefer to cultivate and sell organic crop products and keep the livestock production under the conventional system.
This empirical survey shows that profitable organic dairy production is possible only in a limited number of farms. In the case of organic milk producers located on the hills and mountains, the traditional way of farming was close to the organic system. Their strategy was to certify the product as organic in order to add value to the product without large investments. For some of them, the approval of the Regulation 1804/99 represented a challenge. The low profitability of these farms has forced many of them to cease farming alltogether or return to conventional farming. The profitability of these farms is linked to the milk price. Their small size and the price setting at national or regional level does not take in account the higher production costs of farms working in marginal areas. For these and for other reasons (social and environment, for example), the decreasing trend in number of dairy farms on hills and mountains is likely to continue.
The situation of the farms producing organic Parmigiano-Reggiano is completely different. They are not marginal farms and have a clear strategy linked to the market. Conversion of these farms to organic production was linked to the possibility to diversify their product, also gaining a market power towards big retailer chains. They could add value to a product that they could sell directly to their customers, avoiding the intermediary system and wholesalers. Cheese can be stored for several months, while liquid milk can only be sold to the industry immediately after production.
When comparing the result of this empirical survey to other similar surveys carried out in other EU countries, one common problem is the high price of organic concentrates. They can reach a price 60-70% per cent higher than the conventional product. Higher labour input and machinery is also common in other organic dairy farms in Europe (de Roest, K., Menghi, A., 2003). The success of organic dairy farms is also dependent on the technical know-how of the farmer: conversion of a farm to organic production requires a new equilibrium among the different farm inputs. The high variability among the farms included in the survey shows that many farms in Italy are still far from reaching this equilibrium.
References
Menghi, A., de Roest, K. (2002) I costi di produzione del latte biologico. L'Informatore Agrario, n. 34.
Menghi, A., de Roest, K., Corradini, E., Fornaciari, G., (2002). Costo di produzione e di trasformazione del latte in Emilia-Romagna. CRPA NOTIZIE n. 7.
de Roest, K., Menghi, A., (2003) .Alcuni aspetti economici delle principali produzioni zootecniche biologiche in europa e nel mondo. Available on line : http://www.inea.it/zoobio_ita/zoowp2.doc
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Poster Presentation:
Socio-encomical effects of organic crops and animals rearing diffusion in Tuscany (Central Italy)
A. Pardini and F. Longhi
Department of Agronomy and LaND Management, University of Florence, piazzale delle Cascine, 18, 50144 Firenze.
Introduction
Recent adulterations of products in food industry have increased consumer interest in foods that are produced in more natural systems (i.e. on organic, biodynamic, integrated farms). The new interest is focused mainly on organic crops and livestock products that, in Central Italy, have already reached most of the market places.
Further diffusion of organic foods can have positive influences on social and economical conditions of farmers that operate in marginal areas. Organic farming and typical, regional products have also been recognized to increase chances to maintain people in rural areas (Tallarico et al., 2002) and, in turn, to have a beneficial effect on land care (Pardini, 2002). Availability of local (typical) foods, especially if organic, have also a positive influence on the number of customer-days in Tuscan agri-tourism farms (Pardini et al., 2002). Unfortunately high prices and reduced diffusion in market places limit availability of organic products. This paper describes some important parameters related to organic foods available in Tuscan market places in order to favor their further diffusion.
Materials and methods
Prices and availability of vegetal crops and livestock products and by-products in wide areas of the Provinces of Firenze, Prato and Pistoia were investigated (Figure 1). A total of 65 supermarket chains and other shops were also investigated in 15 Municipalities in the area.
Figure 1: Geographical position of the Municipalities investigated. Circles show areas of 20, 40 and 80 km diameters from town centers.
The following investigations were carried out:
1. Availability of organic foods (at least 5 different foodstuffs);
2. Prices of organic and conventional foods (on 10 fruit types, 11 vegetables, 4 pulses, 7 meat parts and salami, milk); and
3. Reasons for lack of organic foods in marketing chain (interviews to managers and owners of the shops).
Results and discussion
Availability of organic foods (Figure 2)
Organic foods were available in all (100%) supermarkets in urban areas. In two towns (Firenze and Prato), there were also shops that sold only organic foods. The percentage of supermarkets that sold organic foods remained very high (always above 95%) also at longer distance from towns. However, the amount of organic food available was reduced further away from town centres, where no specialized shops were located. The percentage of family run shops that sold organic products was small at any distance from the town centre and their number reduced consistently with increasing distance from towns.
Figure 2: Percentage of supermarkets chains (grey) and other shops (black) where at least 5 organic foods were available, inside the town area and by 20, 40, 80 km from town center.
Food prices (Figure 3)
The average prices (mean of 10 fruit types of the 65 shops) calculated for organic fruits was 66.7 % higher than the price of same, conventional fruits. Organic vegetables were 66.6 % more expensive than conventional ones. Pulses were 52.3 % more expensive than the same foods from conventional agriculture. Organic meat was 39.8 % more expensive. However, it must be noted that, normally, this food can be bought in organic farms only in pre-packed mixtures that comprise several different animal parts and consequently does not allow any choice. Milk price was 31.5 % higher when organic. The lack of choice is a detrimental parameter additional to higher prices of organic meat.
Organic products resulted cheaper in supermarket chains than the same foods available in family run shops, and even cheaper in specialized shops than in the other types of shops (not visible in the figure).
Figure 3: Comparison of organic and conventional food prices (average of category products and 65 shops).
Reasons for shops not to carry organic food
The interviews pointed out that family-run shops that are placed far from town centers have little interest in selling organic foods because:
1) People who live in rural areas often crop most of their food in private orchards where they grow some poultry (this answer was given by 78.3 % of the respondents). Local people trust more the quality of self grown plants and animals because they have control, even if most people have adopted conventional farming systems that make use of several chemicals.
2) The number of inhabitants and population density is smaller than in towns, consequently the demand for special foods is limited (69.0 % of the respondents gave also this answer). There are exceptions where there is seasonal presence of foreign tourists. However people have normally short holidays during which they are not very concerned with the quality of food.
3) People who live in mountains and marginal rural areas are normally aged and they have got less comprehension of the quality differences of organic and conventional foods (this reason was given by 43.7 % of the respondents). For the same reason there is also less attention to fraudulent practices in food industry.
4) Shops that are near marginal rural areas might offer only few organic foods. This leads to a situation where clients loose interest in quality and special foods and simply and simply buy what is available (this answer was given by 37% of the respondents).
Conclusions
Organic foods were present in almost all supermarket chains and many other shops. However, further diffusion in mountain and other marginal areas appeared difficult. Limitations are related to high prices of organic food. However, the concerns on price interact also with education, this is understood comparing prices of most organic foods with that of chip-bags, a lower quality food than organic that is sold in large quantities nonetheless of the high cost (up to 9.39 Euro per kg), if people effort to buy this food at this price their preferences can be guided to prefer organic foods that guarantee higher quality at cheaper prices. Other limitations to organic foods diffusion are related to population density, social structure (age) and education.
Prices of organic foods can be further reduced with scientific and technological development. However, consumer education on the quality of food by national and local authorities, research and extension institutions and by professional and customers organizations appears important. Promotional actions on quality of organic food as well as on better quality and taste of local genotypes of plants and animals also appear needed.
References
Pardini A., 2002. Mediterranean pastoral systems and the threat of globalization. Invited Paper, FAO-CIHEAM XI meeting Mediterranean Pastures network, Djerba (Tunisia), October-November 2002.
Pardini A., Mosquera M.R., Rigueiro A., 2002. Land management to develop naturalistic tourism. Proc. V International IFSA (Int. Farming Systems Association) Sym., April 2002
Tallarico, Ghiselli, Pardini, 2000. La produzione biologica della lenticchia nel Mugello. Agricoltura Ricerca, 188, 23-30.
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Field Visit:
Organic farms in Mugello region in Italy - background to workshop farm visits
A. Martini, P. Migliorini, G. Lorenzini, S. Rosi Bellière and Contini, C.
Mugello area
Mugello is a hilly/mountainous region located in the North-Eastern sector of Tuscany, in the province of Florence. In this region livestock farming is so diffuse that the area is the most important point of reference for the Dairy Centre of Florence, Pistoia and Livorno and the Meat Centre of the Agricultural Co-operative of Firenzuola.
The extensive character of the agriculture and the traditional high quality of the production system, have created a widespread interest in producers and consumers in agricultural production in general and that of livestock in particular. There is a particular interest in the environmental impact of livestock production in the area.
Cooperativa Emilio Sereni
The farm is a dairy production tenancy co-operative (whose members are salaried). The co-operative has operated as a certified organic farm since its conversion, which took place between 1992 and 1995. Its entire production is bought by the Dairy Centre of Florence, Pistoia and Livorno.
The farm employs 13 full-time agricultural workers. The President is Giuseppe Pietracito, who is also the President of Breeders Association of the Florence and Prato Provinces.
The farm’s total surface (being rented) is 352 hectares, while the utilized agricultural area is156 ha. A total of 280 heads of the Italian Holstein cows produce on average 3500 dm3 of milk daily. The average milk quality measures are: 3.55% fat, 3.13% protein and 200,000 somatic cells per milliliter. The livestock are managed in a loose, open housing system. The dimensions of the stable are 100 meters in length and 20 meters in width, with an external paddock (3,800 square meters), part of which is in packed earth and part is concrete. The walking areas within the stable and to and from paddocks are concrete. In total, the area used for livestock constitute 1,666 square meters of covered surface with a fence, external to the stable, for the livestock, that totals 3,800 square meters (1,428 square meters in cement and 2,436 square meters in packed earth of paddock).
The following improvements have been made to improve the animal welfare:
1. boxes for the nursecows and the calves,
2. cow brush for the dairy cows
3. fans in the stable, supplied with climatized humidifiers.
4. pasture for the dairy cows: 2,5 hectares of pasture on irrigated land,
5. pasture with wood shelter for the heifers and dried off cows: 2.5 hectares of land for grazing on irrigated land, and
6. stable flooring in hexagonal cement blocks that offer good grip to the animals.
(source: C. Contini, et al., 2003 presented at SAFO 1st workshop).
Agricultural Cooperative of Firenzuola (CAF)
The Agricultural Co-operative of Firenzuola (CAF) is a joint-stock co-operative, founded in 1972 by a group of producers from the Municipality of Firenzuola (in the Province of Florence). The aim of the Cooperative is to slaughter and market the products of the Cooperative’s members, who are mainly cattle, pig, sheep and goat producers. After a difficult beginning, the Cooperative has grown over the years and is now a stable feature of Mugello meat production. Five different direct sale points have been opened since the founding of the co-operative.
Currently, the CAF deals with some 130 small farms throughout the area of Mugello and high Mugello. These farms are family farms, that rarely employ outside labour. The principal aim of the farms that are members of the co-operative is to add value to the mountain-grown meat in order to enable production in areas where there is little possibility to practice intensive agriculture. Fifteen of the member farms are organic that use closed cycle breeding, i.e. produce their own calves and fatten them on the farm. The stock (most of them Limousine, Charolais, Chianina and Romagnola breeds) are kept from spring to autumn in mountain pastures. The calves are weaned at 6 to 8 months of age and are slaughtered at 18 to 20 months of age.
Almost all of the organic farms make use of derogations in terms of buildings and the use of the pastures, and virtually always keep the calves in boxes for the entire period of fattening. The animals are mostly fed with organic products grown by the farm itself, such as grain and hay. Few farms use silage, and almost no one is in derogation for the utilisation of 10% of conventional foods.
With its own technicians, the CAF carries out inspections that are added to those of the certification bodies (ICEA, CCPB, IMC, etc.). The aim is to increase the organic livestock farms of Mugello to produce almost exclusively organic meat in an area particularly favourable to extensive and high-quality productions.
In 1997, the CAF took over the management of the Public Slaughterhouse of Borgo S. Lorenzo in order to meet its own slaughtering needs, and also those of the other breeders penalised by the closing of other communal installations. Since October 2000, the CAF manages a new slaughterhouse (Meat Centre), created by the Consortium of Communities in Mountain Areas. It consists of a modern slaughterhouse for cattle, sheep and pigs, a plant for cutting and preparing meat products, with the community recognition EC 2417 M (macellazione/slaughtering) S (sezionamento/cutting) P (prodotti preparati/prepared products), and a local retail outlet. The new structure of nearly 2000 square meters is approved for the slaughter and production of organic meat (Body of Control CCPB) and IGP (PGI) for the white beef of the Central Apennines.
Azienda Valdastra (http://www.valdastra.it/)
The farm of Valdastra, owned by Doctor Adriano Borgioli, is in the municipality of Borgo San Lorenzo, in Mugello, a few kilometers from Florence. In the 15th century, the villa of Valdastra (‘vallis ad astra’ as it was called in the place names of the time), the edifices and surrounding lands were owned by Bernardetto de’ Medici, a cousin of Lorenzo the Magnificent. The Medici family, native of Mugello, had many properties in the area, and, a short distance from Valdastra, there still exist buildings and various other testimonies of their presence.
In the 17th century, Valdastra passed to the Padri Serviti of Santissima Annunziata, dependents of the Convent of Montesenario. Confiscated by the State in 1867, the villa and the farm were bought by Cavalier Evaristo Piani and by the Noblewoman Marianna Gandini, who adapted it as their residence. The villa of Valdastra holds decorations of remarkable worth of the Liberty period, and is part of a “liberty walk” that includes palaces, churches, private and public residences in Mugello.
The actual farm is divided into two parts: a level part made up of fertile irrigated fields along the Sieve river where grain, fodder and vegetables (potatoes, cabbage, beans) are cultivated, and a hilly part, used for pasture for the raising the cattle. The wood thicket and high brush constitute an excellent habitat for both settled and migrating wild game that also make the Valdastra an interesting faunal and hunting farm.
Today the farm, that practises organic agriculture since 1988 (Body of Control AIAB/ICEA), has nearly 300 hectares, cultivated with seed crops and pasture (UAA), and 200 hectares of woods. Cattle production (organic since 2001) was initiated by Adriano Borgioli in 1964 with some 20 heads of Brown Swiss cattle. In 1986, the nearly 100 heads of Brown Swiss were exchanged with a breed exclusively used for meat: the Limousine. 100 steers of the highest genealogy were acquired by the expert cattle selectors from the French Central Massif, as well as bulls chosen from the French Genetic Center of Lanaud with the aim of improving the genetic patrimony and qualifying the breeding at a national level, privileging the pedigree line. The Etendard and Glaieuil bulls were well known and highly appreciated by the Italian breeders. In the last few years Danish bulls were also acquired.
With the purpose of increasing the quality and welfare of the stock, the management of the livestock farm has evolved over the years, with a special regard to a better use of the buildings and the farm’s own fodder production. The farm is managed with open housing and the animals have access to the pasture. The herd is constituted by 320 heads, managed in groups of about 30 heads, divided by gender and age. There are also 120 cows, and each animal is electronically identified with an endo-ruminal microchip. The farm’s own production of fodder and grain is more than sufficient for the diet of the herd. Calving takes place in the spring and in the autumn. The annual production averages about 110 calves; about 10 % of the females are retained for breeding. About 40% are sold for reproduction, while the rest are fattened and slaughtered as organic calves by the Agricultural Co-operative of Firenzuola, of which Valdastra is a member since 1977.
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