An overview of Italian agriculture and food

industry

Federica PiersimoniISTAT - Italian National Institute of Statistics

Agriculture Servicepiersimo@istat.it

Joint UNECE/EUROSTAT/FAO/OECD Meeting on Food and Agricultural

Statistics in Europe

Rome, 29 June – 1 July 2005

Contents

AgricultureAgri - food

I/O tables

Added value

Output

Intermediate consumption

Gross fixed investments

Employment - NA

Foreign trade

Consumption

Industrial census

Agricultural censusEmployment

Input-output accounts Output of manufacture of food products

and beverages

2,8 12,72,7

14,2

1,257,4

8,9

Agriculture, forestry andfishing

Manufacture of foodproducts and beverages

Other industries

Hotels and restaurants

Other services

Final consumptions

Exports

Output of agriculture, forestry and fishing

8,2

38,4

4,43,70,8

37,8

0,4 5,9

Agriculture, forestry andfishing

Manufacture of foodproducts and beverages

Other industries

Hotels and restaurants

Other services

Final consumptions

Gross investments

Exports

Input of agriculture, forestry and fishing

82,5

17,5Agriculture, forestry andfishing

Imports

Input of food processing sector

2,6

80,3

17,0 Agriculture, forestry andfishing

Manufacture of foodproducts, beverages andtobacco

Imports

Added value at basic prices

- 13

- 8

- 3

2

7

12Agriculture, forestryand fishing

Agriculture, huntingand forestry

Fishing

Industry (excludingconstruction)

Food, beverages andtobacco industries

Food industries

Beverage and tobaccoindustries

TOTAL

•Italian economy: slowing down from 2002

•Agriculture: from 2000 a negative rate of growth till 2004

•Contribution to GDP almost constant from 1992 3%

•Industry: quite positive growth in the nineties till 2001

•Food, beverages and tobacco: trend rather different; from 2001 a total increase of 6%

•Contribution to GDP almost constant from 1992 2%

Output at basic prices

•Italian economy: from 1994 always a positive rate of growth with a slowing down from 2001

•Agriculture: from 2000 a negative rate of growth

•From 1999 a decrease of –8,4%

•Industry: quite positive growth in the nineties till 2001

•Food, beverages and tobacco: in the second half of the nineties, worse trend; from 2000 a better performance

•From 1999 an increase of +10,7%

Output

- 11,0

- 6,0

- 1,0

4,0

9,0

Agriculture, forestryand fishing

Agriculture, huntingand forestry

Fishing

Industry (excludingconstruction)

Food, beverages andtobacco industries

Food industries

Beverage and tobaccoindustries

Total

Output, intermediate consumption and added value at basic prices

Agriculture, forestry and fishing2001 2002 2003 2001 2002 2003 2001 2002 2003

Output - 0,4 - 2,1 - 4,0 4,1 2,1 5,5 3,6 - 0,0 1,2Intermediate consumption - 0,2 1,8 - 1,6 4,3 0,5 2,3 4,1 2,3 0,7Value added - 0,5 - 3,9 - 5,2 3,9 2,8 7,1 3,4 - 1,2 1,5

Food, beverages and tobacco industriesOutput -0,4 5,1 1,3 3,8 1,3 2,7 3,4 6,4 4,0Intermediate consumption -0,4 5,3 1,3 3,5 -0,2 2,1 3,1 5,1 3,4Value added -0,3 4,2 1,0 4,6 5,8 4,4 4,2 10,2 5,5

Quantities Prices Values

Constant values Current values

Gross fixed investments

•Agriculture: increases at the end of the nineties, then negative trend

•In 2002 and 2003, greater rate of growth in comparison to total investments

•BUT…. agriculture is loosing weight!!! In 1976, 7,2%, in the nineties 4-5%, last three years 4,3% on the total investments

•Food, beverages and tobacco: in the nineties there have been high increases of the investments in this sector

•FBT is gaining weight: in 1976 6,5%, in 2001 9,9% of the industrial investments

-15

-10

-5

0

5

10

15

20

25

199

2

1993

199

4

199

5

1996

1997

1998

199

9

2000

2001

200

2

200

3

Agriculture,forestry andfishing

Agriculture,hunting andforestry

Fishing

Industry(excludingconstruction)

Food, beveragesand tobaccoindustries

Total

constant values 1995

current values

constant values 1995

current values

constant values 1995

current values

Agriculture, forestry and fishing 9.058 9.999 -4,6 -2,9 4,3 4,2Agriculture, hunting and forestry 8.711 9.613 -4,9 -3,1 4,1 4,0Fishing 348 387 2,7 3,5 0,2 0,2Industry (excluding construction) 53.671 60.128 -0,4 1,8 25,2 25,0Food, beverages and tobacco 5.289 5.963 2,3 4,6 2,5 2,5Total 213.121 240.564 1,9 4,2 100 100,0

Values 2001 % var 01/00 % distribution

Investments in Agriculture: 58% machinery and 29% buildings

Investments in Food, beverages and tobacco industries: 74% machinery

Employment (National Accounts)•Agriculture: -4,9% in last

three years = more than 55.000 employees

•In 2004, 51,8% subordinate and 48,2% self-employed (respectively 48% and 52% in 1992)

•6,9% of total employment in 1992, in last three years only the 4,4%

Employees and TLU (thousands of units)

-

500,0

1.000,0

1.500,0

2.000,0

2.500,0

Agriculture, forestryand fishing (EMP)

Agriculture, forestryand fishing (TLU)

•FBT: +9,3% in last three years with different rates for F or BT

•In 2004, 76% subordinate and 24% self-employed (respectively 72% and 28% in 1992)

•About 9% of industrial employment (growing in last three years) Employees and TLU

(thousands of units)

430,0

440,0

450,0

460,0

470,0

480,0

490,0

500,0

510,0

520,0

Food, beverages andtobacco industries(EMP)

Food, beverages andtobacco industries(TLU)

Employment (National Accounts)

- 10,0

- 8,0

- 6,0

- 4,0

- 2,0

-

2,0

4,0

6,0

8,0

10,0

1993

1995

1997

1999

2001

2003

Agriculture, forestryand fishing

Agriculture, huntingand forestry

Fishing

Industry (excludingconstruction)

Food, beverages andtobacco industries

Food industries

Beverage and tobaccoindustries

Total

Import-export trade

•Agriculture: imports almost constant in last five years (-0,6%)

exports (-1,8%) with an up and down trend

•Fishery: imports +13% in last five years (above all EU-25 fish farming)

exports (-9%), above all to EU-25

•Manufacturing: imports +7,6% in last five years

exports +6,3% in last five years

•FBT: imports +13% in last five years

exports +18% in last five years

Incidence of FBT to manufacturing about 6%

Almost 80% of imports comes from EU-25

About 65% of export goes to EU-25

Import-export trade

% composition of FBT in 2004

10,5

22,4 1,7

12,3

12,2

6,3

7,8

13,3

9,1

14,7

4,4

2,42,5

1,3

12,1

27,5

6,225,4

7,90,1

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

Import 04 Export 04

Tobacco products

Beverages

Other food products

Prepared animal feeds

Grain mill products, starchesand starch products

Dairy products

Vegetable and animal oils andfats

Fruit and vegetables

Fish and fish products

Meat and meat products

For agriculture:

•Imports: 36% cereals and other crops; 24% fruit

•Exports: 51% fruit; 31% vegetables

Import-export tradeDecomposition in quntity and unitary average values

Variations in value for manufacturing:

•Imports: variations of UAV

•Exports:variations of UAV and quant.

IMPORTS

70

80

90

100

110

120

130

140

150

2000 2001 2002 2003 2004

Agriculture and hunting products-QUANTITIES

Agriculture and hunting products-UAV

Fishing and fish farming products -QUANTITIES

Fishing and fish farming products -UAV

Food products, beverages andtobacco - QUANTITIES

Food products, beverages andtobacco - UAV

Manufactured products - QUANTITIES

Manufactured products - UAV

EXPORTS

70

80

90

100

110

120

130

140

150

2000 2001 2002 2003 2004

Variations in value for fishing and fish farming:

•Imports: variations of quantities

•Exports: both UAV and quant.

Variations in value for FBT:

•Same as for fishing but for exports, last 3 years UAV, in 2001 quantities

Variations in value for agriculture:

•Imports and exports: variations of UAV (only in 2002 var. of quantity exchanged)

Consumption

Total consumption:

1996-2000 revival

2001-2002 stagnation

2003-2004 +2,3%

FBT consumption:

2004 total decrease of 0,9% (from 1996), above all for fruit (-4,1%), sugar, jam, honey, syrups, chocolate and pastry (-3,0%), mineral water, sparkling drinks and juices (-2,9) and tobacco (-5,8%)

(except bread and cereals (+0,8%), fish (+1,9%), milk, cheese and eggs (+0,6), other food products (+0,7%))

Consumption

-

5.000

10.000

15.000

20.000

25.000

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Bread and cereals

Meat

Fish

Milk, cheese and eggs

Oil and fats

Fruit

Vegetables (includedpotatoes)

Sugar, jam, honey,syrups, chocolate andpastryOther food products

Coffee, tea, cocoa

Mineral water,sparkling drinks andjuicesNon-alcoholicbeverages

Alcoholic beverages

Tobacco

Consumption expenditure for FBT products (millions of euro)

% incidence of FBT on total expenditure: 20,5% in 1992, 17,3% in 2004

Analyzing expenditure in current and in constant values, it can be observed that most of the variations of last years were due to inflation

Consumption

Percentage composition of the consumption: meat is the product that has more impact on food products households expenditure. In last years the percentage had a little decrease for the well-known animals diseases while the consumption of fruit and vegetables is increased

constant values 1995

current valuesconstant values

1995current values

constant values 1995

current values

Bread and cereals 18.848 21.893 0,8 3,0 17,0 15,9

Meat 22.444 26.838 -0,7 1,7 20,3 19,5

Fish 6.969 8.959 1,9 3,7 6,3 6,5Milk, cheese and eggs 14.260 16.904 0,6 2,4 12,9 12,3

Oil and fats 5.001 6.029 0,4 4,7 4,5 4,4Fruit 5.871 7.887 -4,1 -0,6 5,3 5,7

Vegetables (included potatoes) 10.399 13.907 -0,2 1,5 9,4 10,1Sugar, jam, honey, syrups, chocolate and pastry 6.382 7.822 -3,0 -0,3 5,8 5,7

Other food products 310 366 0,7 2,2 0,3 0,3

Food products 90.484 110.604 -0,3 2,1 81,7 80,2

Coffee, tea, cocoa 1.717 1.781 -0,2 0,5 1,6 1,3Mineral water, sparkling drinks and juices 5.002 5.921 -2,9 -1,1 4,5 4,3

Non-alcoholic beverages 6.719 7.702 -2,2 -0,7 6,1 5,6

Alcoholic beverages 4.292 5.855 -0,3 2,9 3,9 4,2

Tobacco 9.223 13.758 -5,8 3,5 8,3 10,0

Food, beverages and tobacco 110.719 137.920 -0,9 2,1 100,0 100,0

Total consumptions 641.399 817.502 1,2 3,5

% var 04/03Values 2004 % distribution

Employment (censuses)8-th industrial census (October 2001)

5-th census of agriculture (October 2000)

Employment to October 2001

Employment to the agrarian year corresponding to 1/11/1999 – 31/10/2000

Information: number of working days carried out in the farm regards both for self-employed (i.e. the conductor and his family) and subordinate workers (i.e. the other farm labour force with regular or temporary contract)

In order to obtain an homogeneous measure with industrial census, the working days have been transformed in labour contracts, i.e. in number of jobs

Labour contracts: proxi variable for employmentProblem: different dates

labour contracts have been estimated for October 2001 considering a combination of the agricultural labour force variation between the mean of the four previous October 2000 quarters and last quarter 2000 (Labour Force Survey), and the variation of the employment in agriculture from 2000 and 2001 (national accounts figures)

For the 20 Italian regions ( NUTS 2) and for self-employed and subordinate workers

Both industrial census and census of agriculture communes (NUTS - LAU 2) figures have been classified by Labour Force Survey degree of urbanization:

A densely populated area (at least 500 inhabitants/Km²);

B intermediate urbanized area (between 100 and 499 inhabitants/Km²);

C thinly populated area (less than 100 inhabitants/Km²).

Then the about 4.400.000 businesses local units of industrial census have been classified into “agriculture” and “agri food industry”

Codes:

1. primary agriculture (from census of agriculture);

2. primary agriculture (from industrial census);

3. manufacture of food products, beverages and tobacco (from industrial census);

4. auxiliary suppliers (from industrial census);

5. services suppliers (from industrial census).

A B C Total (regions)Agriculture 154.236 726.271 577.287 1.457.794Agri-food 622.421 707.957 230.024 1.560.402Total (sectors) 8.072.938 6.708.254 2.332.776 17.113.968

A B C Total (regions)Agriculture 10,6 49,8 39,6 100,0Agri-food 39,9 45,4 14,7 100,0Total (sectors) 47,2 39,2 13,6 100,0

A B C Total (regions)Agriculture 1,9 10,8 24,7 8,5Agri-food 7,7 10,6 9,9 9,1Total (sectors) 100,0 100,0 100,0 100,0

In 2001, agriculture and agri-food employment represented the 17,6% of the total of the employees: 8,5% agriculture and 9,1% agri food

48,3% of total agriculture and agri-food employment is relative to agriculture, with a range from 19,9% in densely populated area to 71,5% in thinly populated area The percentage of employment in agriculture is strictly correlated with the density of the population, both for labour in farms and in businesses, the second one much less important than the first one (only the 4%)

In absolute values the major part of agricultural employment is in intermediate urbanized areas.

In densely populated areas, the most part (49,4%) of the agriculture and agri food employment is in services industries (4,8% of the total)

In intermediate urbanized and thinly populated areas is in primary agriculture (the 50,6% and the 71,5% respectively)

0 1 2 3 4 5 TotalA 7.296.281 141.005 13.231 149.385 89.518 383.518 8.072.938B 5.274.026 699.612 26.659 216.458 127.660 363.839 6.708.254C 1.525.465 560.443 16.844 78.014 24.366 127.644 2.332.776Total 14.095.772 1.401.060 56.734 443.857 241.544 875.001 17.113.968

The 49,8% of employment in primary agriculture is in intermediate urbanized areas and the 39,6% in thinly populated areas

The 48,8% of employment in food manufacturing industries and the 52,9% in auxiliary suppliers are in intermediate urbanized areas

Only the 24,7% of employment in thinly populated area is in agriculture

Employment by area and sector (2001)

Primary agriculture, food manfufacturing and services suppliers increase of importance from A to C

Code A B C Total0 7.296.281 5.274.026 1.525.465 14.095.7721 141.005 699.612 560.443 1.401.0602 13.231 26.659 16.844 56.7343 149.385 216.458 78.014 443.8574 89.518 127.660 24.366 241.5445 383.518 363.839 127.644 875.001

Total 8.072.938 6.708.254 2.332.776 17.113.968

Degree of urbanization

Absolute frequencies

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

A B C Total

Relative frequencies (for areas)

0,0

5,0

10,0

15,0

20,0

25,0

A B C Total

1

2

3

4

5