1. REGIONS FOR ECONOMIC CHANGE Workshop 3C ‘ Bringing economic diversification to rural areas’ Carlo RicciBruxelles, 8 March 2007 Adding value to local products

2. Nightmares of agriculture in the nineties Collapse of prices of undiversified products (raw materials) Increased dependence on farming subsidies, which are due to be gradually phased out over time Inexorable decline in jobs and farms number (inability to attract young people)

3. Added value of a product It is essentially based on 3 categories of factors: Territorial identity Human resourcesRaw materials Local races or varieties (biodiversity) Professionalism (tastiness, healthiness, imagine ….) Typicalness, uniqueness …..

4. Territorial strategies for adding value They are based on “cycles” of support actions: Characterization Protection Marketing Field researches and studies Pilot projects Awareness raising Technical support and training Incentivizing virtuous behaviours Voluntary regulations Territorial labels Newtworking to sell on short and long distribution channels Promotion

5. The situation today Meat, milk, cereals and forage cost today as 15 years ago (profitability of all raw material is more or less decreasing) Despite specific policies, the human resources hemorrhage from agriculture keeps on Which rural areas in 2013? ….. and which strategies to add value today? We have to take into account that in last 10 years radical cultural changes have affected mental maps and behaviours of the main players of this game: Consumers, policy makers ( both at central and local level), farmers

6. Consumers of 2000 Curious: searching authentic experiences more than products Realist: (very) careful to the quality/price ratio of the product/service Social: interested in relationships and situations that create “community” And then,…… well informed (very),…… autonomous (they feel like deciding),……..(last but not least!) ethical….

7. The gastronaut (1) metamodel of a consumptiom style Territory is a metaphoric place fruit of a collective culture that produces symbolic values. The “gastronomic layers” are real cultural assets. Tradition is a successful innovation. Landscape preservation is the better territorial origin protection for products. ……..about territory: "The man is an omnivor that eats meat, vegetables and imaginary." “To eat the territory” is the tension to know and to sniff ….and about gastronautic consumers: (1) Davide Paolini “Carta del gastronauta”, www.gastronauta.com

8. Policy makers More aware of the value of gastronomic identity for territory All careful to tourism (and territorial image) Have changed perception on farmers: from protected (and monitored) category to territorial marketing factor/partners Wine routes in Italy (2) 100 wine routes involving 1.135 municipalities (14% of Italian municipalities) 4 millions wine tourists (increasing 6% per year) with 2.000 millions euro of tourist consumption related to wine 1.400 public bodies e around 6.000 private actors involved (2) “ IV Rapporto sul Turismo del Vino”, Censis Servizi S.p.a. 2004

9. Lessons from the most resourceful producers Strongly trust in the “Territory” that is the potential represented by the local wealth of identity and specificity. Without any inhibition towards the market. Mentality change To develop the local productions that can bring added value To improve professionalism in processing and marketing To reach the "valley side" of the food chain to directly manage commercial relations Change in business orientation

10. Today everyone of these actors perceives that the rural territory is called to answer new needs Of quality and safety of products Of preservation of environmental components as biodiversity, cultural identity and landscape, otherwise destined to disappear Of use of the leisure time and of “rural experience” Of residency of more or less temporary kind

11. Source: monitor alimentare, DOXA 2003 Quality: certification or trust raising?

12. “Responsible” consumption in Italy (3) 36% of consumers practises kinds of “responsible purchase” Since 1994 to 2005 the number of solidarity purchase groups of citizens (Gas) passed from zero to 220 The association Slow-food (a sort of WWF for typical foods) has 35.000 members, 360 clubs e 200 “garrisons” (3) “Scegliere bene”, indagine Iref-ACLI, 2004 The consumer: Client or partner? ….. and other new trends in European Countries

13. Italian “Wine routes” weaknesses Agreement among partners on strategies and programs Public subventions raising Quality of welcoming in the firms Structural lacks (tasting points and sale networks) Scarce presence of museums and wine galleries Territorial planning: Government or governance?