Skip to content
Attività

The food and agriculture sector: protecting brands and supporting companies

    • Florence
    • 11 April 2016

          Kick-starting discussions at this national roundtable was the acknowledgment that the Italian food and agriculture industry is one of the most emblematic of the Made in Italy sectors, not only because of the international appeal that Italian cuisine has always held, but also due to the economic importance of the sector. Indeed, Italy is the leader in Europe for niche products protected by designations like DOP (or PDO – Protected Designation of Origin) and IGP (or PGI – Protected Geographical Indication), the production of which generates a total economic value of over 260 billion euro (17% of the Italy’s GDP) while accounting for 3.3 million jobs (13% of the country’s employment) as well as exports of 34 billion euro.

          It was stressed, however, that while such achievements are an excellent starting point, this sector – as with many others in Italy – needs greater coordination and upsizing. To that end, systemic investment is required in the most strategic brands and value chains, without neglecting to address the challenges, doubts, and contradictions that run through the industry. The first issue singled out as needing to be resolved was that of how “Made in Italy” is defined, a point deemed essential to ensure that the label is properly protected. For instance, should it only cover products made entirely in Italy or also those that are processed in Italy? Although more stringent rules could be useful to protect brands against unfair competition, it was felt that they should not penalize certain processing industries – such as the coffee industry – which are strongly associated with Italy and the Italian way of life.

          A further problem cited as necessitating a solution was that of how to deal with Italian-sounding foreign products. While this phenomenon could in some cases pose a threat, it could – if properly distinguished from outright product piracy  – be turned into a means of enhancing the desirability of genuinely Italian-made products. Lastly, another issue raised was the need to strike the right balance between production for local consumption and food intended for export.

          The retailing aspect was at any rate considered key to resolving both the contradictions of the Italian agro-food industry as well as for ensuring the survival of a sector characterized in very large part (95% of cases) by small to medium-sized enterprises. The lack of major Italian retail groups operating at a global level was viewed as a potential drawback which is only partly offset by the new delivery channels that are emerging, such as e-commerce. In order to sell and endure in international markets, it was seen as essential to have a certain critical mass or at least good coordination between small and middle-sized players. The challenge for the industry thus becomes one of closing the gap with other countries in terms of systemic capacity to reach more distant markets, without however penalizing the individual initiative demonstrated by many food businesses, which, in the past few years, has contributed to important firsts, starting with recent record levels achieved in wine exports.

            Related content