isbn 978-88-8145-302-3

LOM

BARD

Y A

GRI

CU

LTU

RE IN

FIG

URE

S -

2012

LOMBARDY AGRICULTURE IN FIGURES - 2012

Fondo Europeo Agricolo per lo Sviluppo Rurale: l’Europa investe nelle zone rurali PSR 2007-2013 Direzione Generale Agricoltura

Editing staff Sabrina Giuca, INEA (supervisor); Maria Silvia Giannini (coordination for DGA, Lombardy Region); Alessandro Nebuloni, DGA, Lombar-dy Region; Roberto Pretolani, DEMM; Renato Pieri, SMEA; Francesca Marras, INEA; Guido Gay, ÉUPOLIS Lombardia

Topical consultantsDaniele Bellomo, Danilo Bertoni, Lucia Briamonte, Maurizio Castelli, Stefano Dell’Acqua, Maria Silvia Giannini, Sabrina Giuca, Teresa Lettieri, Claudio Liberati, Pietro Manzoni di Chiosca e Poggiolo, Sonia Marongiu, Renato Pieri, Roberto Pretolani, Maria Rosaria Pupo d’Andrea, Serena Tarangioli

Editing revisionSabrina Giuca, Maria Silvia Giannini, Francesca Marras

ProcessingMarco Amato, Alessia Fantini, Fabio Iacobini

Editorial coordinationBenedetto Venuto

Editorial SecretaryRoberta Capretti

Layout plan and realisationCarlo Silva and staff INEA (Jacopo Barone, Piero Cesarini, Fabio Lapiana, Sofia Mannozzi)

PhotographyCarlo Silva

Internet editionMassimo Perinotto

English translationJames Varah

Secretarial staffLara Abbondanza and Debora Pagani

We would like to thank for their collaboration: Maria Teresa Besana, Gabriele Boccasile, Isabella Brandi, Valentina Cardinale, Gloria Corti, Simonetta De Leo, Cristian Della Torre, Rita Iacono, Andrea Massari, Giovanna Nicastro, Donatella Parma, Antonio Pepe, Andrea Povellato, Marina Ragni, Roberto Tonetti

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In this third edition of the booklet “Lom-bardy Agriculture in Figures 2012”, the research institutes INEA, DEMM and SMEA, with which the Agriculture DG collaborates for its preparation, provide an updated structural and economic framework for the agri-food system in Lombardy, based on the most recent administrative and statistic data, including the final results of the ISTAT 6th General Agricultural Census. The publication this year is also supple-mented by information regarding agri-food processing cooperatives, made available by the Observatory of Italian Agricultural Cooperation.In 2011, despite the economic crisis, ag-riculture and the food industry showed positive trends. The value of agri-in-dustrial production in Lombardy ex-ceeded 12 billion euro, up 7.3% com-pared to 2010, accounting for as much as 16.1% of the national total and about 3.7% of the region’s GDP. The value of the regional agricultural component,

amounting to 7.2 billion euro, shows an increase of 11.5%, with a significantly increased share of 14.5% of the national total, while value added from the food industry in Lombardy, estimated at +2.4% compared to 2010, has more fa-vourable elements compared to the na-tional level and other economic sectors.In 2011 there was, therefore, a strength-ening of the share of the regional sys-tem with respect to the national, an expression of the overall responsive-ness of Lombardy’s businesses, whose dynamics are better than the national economy’s as a whole, though there was a further decline in the number of busi-nesses (-1.6%).While the recovery of agricultural pro-duction, largely due to the increase in prices (+11.2%), brings value to higher levels than before the crisis, the recov-ery of value added seems not yet com-pleted and critical elements for profit-ability were already glimpsed in the first half of 2012.

Improving the efficiency of produc-tion processes and farms’ profitability remains a priority for strengthening the competitive capacity of the Lom-bardy system, which should be pursued through development strategies that can affect individual farms or groups of farms, also involving specific sectors at different territorial levels. Structural adjustment, product inno-vation and adoption of new organiza-tional models are some of the measures the Lombardy Region supports through the Measures of the 2007-2013 Rural De-velopment Programme, with spending progress of 86.4% of available resourc-es and liquidation of more than 50% of resources. Attention to agriculture also involves promotion of quality agri-food, representation of wine, organic and PDO and PGI, with actions designed to consolidate and establish new trade links on international markets and to increase the presence and recognition of the specificity of these productions in

4

a positive phase for exports.In the face of a problematic economic situation, the Lombardy Region has guaranteed, for the third consecutive year, greater liquidity to businesses, by disbursing 50% of the 2012 single appli-

cation premium and directing the first flows earlier than in previous years, to farmers in the Mantua area affected by the earthquake; this measure, alongside initiatives in favour of operating credit, provides less costly financing condi-

tions for farms than the ordinary credit market.For more details remember that this edi-tion of the brochure is accompanied by the annual reports of regional analysis, “The agri-food system in Lombardy”.

Councillor for Agriculture of the Lombardy Region

Giulio De Capitani

CONTENTS

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ECONOMY AND AGRICULTURELand and population pg. 10 Protected Areas pg. 15Gross domestic product pg. 20 Value added pg. 22 Employment pg. 24

AGRI-INDUSTRIAL SYSTEMComponents of the system pg. 28 Food industry and cooperation pg. 29Distribution pg. 33 Foreign trade pg. 35 Food consumption pg. 38

AGRICULTUREProduction levels in agriculture pg. 42Agri-meteorological trend pg. 46Intermediate consumption pg. 47Investments pg. 49 Prices pg. 52 Structures in agriculture pg. 55 Economic results of farms pg. 65 Credit for agriculture pg. 72 Land market pg. 74

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MULTI-FUNCTIONALITY AND AGRICULTUREWater management pg. 78 Forests pg. 82 Agri-energy pg. 86 Products of designated origin and traditional products pg. 89 Organic farming pg. 95 Agri-tourism (Farm stays) pg. 99Direct sales pg. 102Educational farms pg. 108

AGRICULTURAL POLICYRegional legislation pg. 110Regional spending pg. 112 CAP - Pillar 1 pg. 114 Rural Development Programme (CAP - Pillar 2) pg. 117

GLOSSARYGlossary pg. 124

ECONOMY AND AGRICULTURE

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The region, totalling 23,862 square kilometres, or about 7.9% of national area, is characterised by lowlands

(47%), hills (12.4%) and mountains (40.5%). In terms of population, Lom-bardy is the top Italian region with

nearly 10 million residents (16.4% of the national population), mostly con-centrated in lowlands and foothills. In

land and population

Land, resident population and inhabitant density in Lombardy, 2011

Total land % Breakdown Resident population % Breakdown of Density (sq.km.) of land as of 1/1/2011 resident population (inhabitants/sq.m.)

Lombardy 23,862.80 100.0% 9,917.714 100.0% 415.6 Mountains 9,672.81 40.5% 1,054,835 10.6% 109.1 Hills 2,963.62 12.4% 2,052,259 20.7% 692.5 Lowlands 11,226.37 47.0% 6,810,620 68.7% 606.7 Bergamo 2,722.86 11.4% 1,098,740 11.1% 403.5 Brescia 4,784.36 20.0% 1,256,025 12.7% 262.5 Como 1,288.07 5.4% 594,988 6.0% 461.9 Cremona 1,770.57 7.4% 363,606 3.7% 205.4 Lecco 816.17 3.4% 340,167 3.4% 416.8 Lodi 782.36 3.3% 227,655 2.3% 291.0 Mantua 2,338.84 9.8% 415,442 4.2% 177.6 Milan 1,576.59 6.6% 3,156,694 31.8% 2,002.2 Monza and Brianza 405.49 1.7% 849,636 8.6% 2,095.3 Pavia 2,964.70 12.4% 548,307 5.5% 184.9 Sondrio 3,211.90 13.5% 183,169 1.8% 57.0 Varese 1,198.71 5.0% 883,285 8.9% 736.9

Source: ISTAT.

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these areas, the population density exceeds 600 inhab./km², compared to the regional average of 415 inhab./km² and the national average of 201 inhab./km². The population shows

some dispersion in the area so that only 25.5% of the population lives in municipalities with more than 50,000 inhabitants, compared to 34.7% na-tionally.

With an average annual increase in the decade 2001-2010 of 1.3% versus 0.6%, calculated on a national basis, the dynamic of the population is rath-er lively, partly because of the recent

% Land cover in Lombardy, 2007

Inhabited Agricultural areas Wooded Mountains areas Total arable permanent permanent change % absolute average areas and bodies of agricultural area crops crops pastures 1999-07 annual change water

Bergamo 13.9 28.4 17.4 0.7 10.3 -5.4 -557 39.4 18.4Brescia 11.3 35.0 27.3 2.0 5.7 -7.1 -1,611 31.9 21.9Como 16.0 15.2 6.4 0.2 8.5 -4.3 -109 48.1 20.8Cremona 10.6 85.5 80.7 3.5 1.2 -1.6 -300 1.6 2.4Lecco 15.0 15.9 5.3 0.2 10.4 -9.9 -179 48.6 20.5Lodi 12.5 80.2 75.8 3.8 0.6 -2.6 -211 3.2 4.1Mantua 12.4 82.0 75.2 5.7 1.1 -2.8 -693 1.1 4.5Milan 39.8 51.9 48.7 1.6 1.7 -6.3 -692 6.2 2.0Monza and Brianza 53.4 36.2 34.2 0.3 1.7 -8.3 -166 9.2 1.1Pavia 9.0 74.0 61.3 11.4 1.3 -2.4 -682 12.0 5.0Sondrio 2.4 7.7 0.5 1.0 6.2 -2.9 -94 34.8 55.1Varese 28.9 15.2 11.1 0.2 3.9 -4.8 -117 45.0 10.9Lombardy 14.1 43.7 35.9 3.1 4.7 -3.9 -5,410 24.5 17.7

Source: ERSAF-DUSAF 2007.

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massive migrant flows; about 10% of the population is foreign, compared to the national average of 7%.In 2010 there were about 12.3 million tourist arrivals, 12.4% of the national total, of which 47.4% were from for-eign countries, above the Italian aver-age. For presences, the region’s share of the national total dropped to 8.3%, a sign of a limited average length of stay, typical of business tourism, which is more common in Lombardy than elsewhere. 46.3% of tourist arriv-als are concentrated in the province of Milan, followed by Brescia with 16.4%. 91% of arrivals were in hotels, with the remaining 9% to complemen-tary businesses. Arrivals in farm stays are approximately 1% of the regional total. Land cover, according to DUSAF (2007) figures, shows a prevalence of agricultural areas (43.7%), followed by woodland (24.5%) and populated

Amount of agricultural land (000 ha), 2010

UAA Land UAA/land %Bergamo 71.0 272.3 26.1Brescia 181.8 478.4 38.0Como 23.7 128.8 18.4Cremona 135.5 177.1 76.5Lecco 10.5 81.6 12.8Lodi 55.6 78.2 71.1Mantua 168.7 233.9 72.1Milan 64.9 157.7 41.1Monza and Brianza 9.7 40.5 23.9Pavia 176.9 296.5 59.7Sondrio 75.1 321.2 23.4Varese 13.4 119.9 11.2 Lombardy 986.8 2,386.1 41.4Italy - North 4,568.8 11,993.0 38.1Italy 12,856.0 30,132.0 42.7 Lombardy/Italy - North (%) 21.6 19.9 Lombardy/Italy (%) 7.7 7.9

Source: ISTAT.

areas (14.1%), although these propor-tions vary widely at the provincial

level. The rate of human settlement is very high in the provinces of Monza

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and Milan (53.4% and 39.8%, respec-tively). Cremona is the province with the greatest share of agricultural land (85.5%), while that of Lecco has the highest percentage of forests. Utilised agricultural area (UAA) is nearly 1 million hectares, correspond-ing to 41.4% of the regional area, in line with the national average; in par-ticular, regional UAA represents 7.7% of the Italian total. The province with greatest share of UAA to total surface is Cremona (76.5%); at the opposite extreme is Varese (11.2%). The data of the 6th General Agricultural Cen-sus show a decrease of 5.1% of region-al UAA over ten years, and a much steeper drop in the provinces of Ber-gamo (-23.6%), Sondrio and Lecco.As with population density, the ratio of resident population to agricultural area is very high, much higher than the corresponding figure for Italy and the European Community.

Ratio of population/agricultural land (inhabitants/100 ha UAA), 2010

Lombardy

Italy - North

Italy

EU-27*

1,005

608

472

289

Source: ISTAT.*EUROSTAT, 2007

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Tourist arrivals in Lombardy and Italy by type of enterprise, 2010

Total % of arrivals Arrivals Arrivals in Agri-tourism Total arrivals from abroad in hotels complementary businesses (farm stays)

Bergamo 833,709 37.2 737,771 95,938 3,068 1,799,351 Brescia 2,016,536 51.3 1,500,796 515,740 28,070 8,464,905 Como 952,286 63.6 824,333 127,953 7,135 2,540,319 Cremona 189,698 26.5 169,521 20,177 6,419 361,672 Lecco 168,289 45.4 118,503 49,786 1,790 473,634 Lodi 128,374 24.7 127,280 1,094 242 211,038 Mantua 192,128 26.2 141,634 50,494 25,853 439,140 Milan 5,692,914 50.7 5,608,525 84,389 n,d, 11,589,857 Monza and Brianza 428,780 22.4 425,054 3,726 n,d, 701,235 Pavia 163,414 21.1 141,375 22,039 10,900 408,911 Sondrio 635,553 32.7 545,559 89,994 8,868 2,495,026 Varese 897,259 50.2 845,646 51,613 2,019 1,641,776 Lombardy 12,298,940 47.4 11,185,997 1,112,943 94,364 31,126,864 Italy 98,813,845 44.3 79,374,146 19,439,699 2,110,100 375,542,550

Source: ISTAT.

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protected areas The official list of protected natural areas in Lombardy indicates a surface of approximately 134,000 hectares, or 4.5% of the protected area at the national level and 5.5% of the regional land area. The 105 natural areas in the region include: the Stelvio National Park, two state nature reserves (Fon-tana Woodland and Siro Negri Wood-land), 13 regional parks, 62 regional nature reserves and 27 other protect-ed areas, represented by natural monuments, oases and natural areas of local interest. In addition to these natural protected areas, the system of protected areas in Lombardy includes other types, such as multi-municipal parks of local interest, whereas there are a total of 24 regional parks, which are divided into river, mountain, ur-ban belt, agricultural and forestry. Within the confines of the regional parks, however classified, we can identify agri-forests or uncultivated

areas in regional parks, characterized by higher levels of naturalness and mainly aimed at conservation and restoration of natural characteristics. The set of regional parks, therefore, covers more than 460,000 hectares of Lombardy, of which 14% is protected natural area; generally speaking of park areas, inclusion should be made of the Stelvio National Park, bringing the total to 524,000 ha.The regional protected area also in-cludes other types of protected areas: wetlands and areas belonging to the Natura 2000 network, whose surfaces cannot be summed directly because there may be some overlap. These represent 15.6% of the regional sur-face (compared to 21% covered na-tionally). In particular, there are 193 Sites of Community Importance (SCI) affecting 224,203 hectares of the sur-face, or 9.4% of regional area, and 67 Special Protection Areas (SPAs) for

a total of 297,425 hectares, 12.5% of regional area. However, if we exclude 19 overlapping SCIs and SPAs, the Natura 2000 network in Lombardy includes 241 sites spread over a total of 372,154 hectares. In the provin-cial distribution of the Natura 2000 area, the province of Sondrio is in first place (41.3%), followed by Ber-gamo (22.3%) and Pavia (15.6%). 36% of Natura 2000 sites in the region are included in protected areas and play an important role in the conservation and protection of the most impor-tant habitats and species. The sites, in fact, are home to 61 species listed in Annex II of the Habitats Directive (47 animal species) and 87 species of birds included in Annex I of the Birds Directive.In 2011, 84.4% of the surface of SCIs was classified as belonging to the Al-pine bio-geographical region, while the remaining 15.6% was classed as

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Surface and number of land areas by class and region (hectares)

Region National State Regional Regional Other Total % to % to Park Nature Nature Nature regional national territorial Reserve Park Reserve protected areas total surfaceMolise 4,059 1,190 0 50 2,291 7,590 0.2 1.4Liguria 3,860 16 21,592 23 1,781 27,272 0.9 4.7Valle d’Aosta 37,007 0 5,747 512 0 43,266 1.5 13.2Friuli-Venezia Giulia 0 399 46,352 7,043 0 53,794 1.8 6.8Umbria 17,978 0 40,629 0 4,535 63,142 2.2 7.5Marche 61,099 6,085 22,800 493 0 90,477 3.1 9.2Sardinia 84,205 0 6,779 0 0 90,984 3.2 3.8Emilia-Romagna 30,729 8,246 51,578 2,627 142 93,322 3.1 4.0Veneto 15,030 19,483 56,734 2,120 0 93,367 3.2 5.1Lombardy 59,766 244 63,756 9,492 702 133,960 4.5 5.5Tuscany 39,958 11,039 51,471 32,539 6,040 141,047 5.4 6.9Piedmont 45,377 3,383 95,425 15,181 19,747 179,113 5.7 6.6Basilicata 157,346 965 33,655 2,197 0 194,163 4.1 12.0Lazio 26,629 25,864 114,632 43,563 6,576 217,264 7.3 12.4Calabria 220,630 16,158 17,687 750 10 255,235 8.7 16.9Puglia 186,177 9,906 66,024 5,870 0 267,977 4.4 6.6Sicily 0 0 185,551 85,164 3,026 273,741 9.3 10.5Trentino-Alto Adige 70,968 0 207,651 2,211 1,790 282,620 9.7 20.8Abruzzo 219,432 17,783 56,450 10,329 1,057 305,051 10.4 28.1Campania 185,431 2,014 150,143 10,076 2,541 350,205 11.2 23.9Italy 1,465,681 122,775 1,294,656 230,240 50,238 3,163,590 100 9.7Protected land areas (n.) 22 146 105 335 144 752 - of which: Lombardy 1 2 13 62 27 105

Source: MATTM - Nature Conservation Board, EUAP, 2005; Official list of protected natural areas, 6th updating of 27 April 2010.

17

continental. Among the SCIs in Lom-bardy, some are “priority” for which the EU has required special attention: acidophilus grasslands of Nardus Stricta, alluvial forests of Alnus glu-

Distribution of protected natural areas in Lombardy

44.6%

0.2%

0.5%

47.6%

7.1%

National Park

State Nature Reserve

Regional Nature Park

Regional Nature Reserve

Other regional protected areas

Source: MATTM - Nature Conservation Board, EUAP, 2005; Official list of protected natural areas, 6th updating of 27 April 2010.

tinosa and Fraxinus excelsior, woods of Pinus mugo and Rhododendron hirsutum and peat bogs.In Lombardy, 75.5% of SPAs fall in the Alpine bio-geographical region while

24.5% are continental. Unlike SCIs, whose extension has remained the same for the five years of 2006-2011, the surface of SPAs in the Alpine bio-geographical region has increased

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considerably compared to 2006 (+66.9%), signifying the region’s im-portance to this type of environment, which includes 40% of European flora. The variety of environments and the coexistence of agriculture, forestry and grazing make the Natura 2000 network in Lombardy relevant within the framework of the National Strat-egy on biodiversity.The special “Agriculture” project supported by the region aims to pro-mote sustainable agriculture within protected areas and regional parks. On one hand, this allows the best de-velopment of agri-food products and, on the other, the restoration and con-servation of natural elements of agri-cultural land (wetlands, hedgerows, woodlands, meadows), which are very important for the growth and mainte-nance of biodiversity.

Regional parks in Lombardy

Park (ha) Natural area to park (%)Parco Adamello 50,935 43Parco Adda Nord 6,900 28Parco Adda Sud 24,343 0Parco Agricolo Sud Milano 47,055 0Parco Alto Garda Bresciano 37,452 15Parco Campo dei Fiori 6,337 24Parco Colli di Bergamo 4,683 21Parco Grigna Settentrionale 5,541 0Parco Groane 3,696 35Parco Lombardo della Valle del Ticino 91,618 22Parco Mincio 15,859 0Parco Monte Barro 645 64Parco Monte Netto 1,470 0Parco Montevecchia e Valle del Curone 2,746 74Parco Nord Milano 641 13Parco Oglio Nord 15,173 0Parco Oglio Sud 12,745 0Parco Orobie Bergamasche 69,860 0Parco Orobie Valtellinesi 44,094 0Parco Pineta di Appiano Gentile e Tradate 4,833 76Parco Serio 7,514 0Parco Spina Verde 967 88Parco Bosco delle Querce 44 100Parco Valle del Lambro 8,179 52TOTAL 463,329 14Source: Lombardy Region - DG systems of greenery and landscape, October 2011.

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Extension of Natura 2000 sites by region (ha)*

Piedm

ont

Valle

d'Aost

aLo

mbar

dy

Liguri

a

Trento

Bolza

no

Vene

toFri

uli-Ve

nezia

Giulia

Emilia

-Roma

gna

Tuscan

yUm

bria

March

eLaz

ioAb

ruzzo

Molise

Camp

ania

Puglia

Basili

cata

Calab

riaSic

ilySa

rdinia

0

100,000

200,000

300,000

400,000

500,000

600,00039

6,83

7

98,9

33

372,

067

149,

819

173,

411

414,

679

149,

733

147,

354

256,

863

362,

725

120,

200

146,

213

441,

630

387,

076

118,

724

395,

537

474,

597

164,

774

319,

392

568,

736

529,

838

* The number and extension of Natura 2000 sites by region is calculated excluding overlapping of SCIs and SPAs. Source: MATTM, 2010.

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gross domestic productGDP in Lombardy, corresponding to 20.7% of the national GDP and 2.6% of the EU’s, is the highest among the Ital-ian regions. The last available regional data at current prices (for 2009 updat-ed in February 2012) is approximately 317 billion euro, followed by Lazio (with 165 billion, equivalent to 10.8%), the Veneto (with 141 billion, equal to 9.2%) and Emilia-Romagna (135 bil-lion, equal to 8.8%). This figure is in-teresting when compared to that of the regional population, which represents 16.3% of the national and 1.96% of the EU-27 totals. It follows that the GDP per capita in Lombardy, amounting to 32,400 euro, follows the per capita val-ues of Valle d’Aosta and Trentino-Alto Adige and is 27.7% higher than the na-tional level and 37.7% higher than the Community’s. GDP per unit of labour (AWU), in cur-rent terms, is approximately 71,300 euro, 13% and 35.4% higher than simi-

Trend in GDP per inhabitant in Lombardy (euro), 2003-2009

GDP/InhabitantYear Current Chain prices indexes

2003 30,449 27,779 2004 31,058 27,667 2005 31,544 27,554 2006 32,356 27,836 2007 33,442 27,994 2008 33,425 27,233 2009 31,780 25,281 Lombardy/Italy (2009) 1.26 1.26Lombardy/North-Italy (2009) 1.06 1.06Lombardy/EU-27 (2009) 1.35 1.23Source: ISTAT, Regional economic accounts.

Trend in GDP per work unit in Lombardy (euro), 2003-2009

GDP/Work unitYear Current Chain prices indexes

2003 62,570 57,085 2004 64,433 57,398 2005 66,197 57,824 2006 67,328 57,923 2007 69,796 58,424 2008 70,715 57,616 2009 70,039 55,715 Lombardy/Italy (2009) 1.12 1.12Lombardy/North-Italy (2009) 1.07 1.07Lombardy/EU-27 (2009) 1.33 1.21Source: ISTAT, Regional economic accounts.

lar parameters at the national and EU levels. 2009 was a difficult year for the Italian economy and in particu-lar for the region. Lombardy’s GDP, measured in chain indexes (pre-Feb-ruary 2012), shows a significant de-

crease from the previous year (-6.3%), worse than the national average, -5% between 2008 and 2009. On an an-nual basis, productivity of labour also dropped, by 3.3% compared to -2.5% at the national level.

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Trend in GDP in Lombardy (million euro), 2003-2009*

Current prices

Chain indexes

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

20072003 2004 2005 2008 20092006

310,952

247,359 263,961

323,973

* Chain indexes - year of reference 2000. Source: ISTAT, Regional economic accounts.

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% Share of VA from agriculture1 to GDP, 2010

VALombardy 1.0Italy 1.8Italy-North 1.4Italy-Centre 1.4Italy-South and Islands 3.2EU-27 1.7Belgium 0.7Bulgaria 4.9Denmark 1.3France 1.8Germany 0.8Greece 3.1Netherlands 1.8Poland 3.7Portugal 2.2United Kingdom 0.6Romania 6.7Spain 2.6Sweden 1.7Hungary 3.81Agriculture, forestry and fishing. Source: ISTAT, Regional economic accounting; EUROSTAT.

value added68.3% of value added (VA) In Lom-bardy comes from the service sector and 30.7% from industry, while the contribution of the primary sector is only about 1%. This share is lower than the averages for Italy, the Com-munity and the regions of northern Italy, but is comparable with Germany and the United Kingdom. The trend of the last decade confirms, as in the rest of Italy, a gradual loss of importance in the primary sector in relative terms. Despite the low percentage from the agricultural sector, Lombardy, with a share of 11.4%, contributes more than the other regions to value added in the nation’s agriculture and forestry.The regional VA, after dropping below the 1% threshold in 2009, partly be-cause of the large losses in value add-ed from agriculture (-13%), reversed its path, with an increase of 1.7% in 2010 (whereas industry declined sharply) and 11.7% in 2011.

VA at basic prices1 by sector in Lombardy (million euro), 2009

30.7%

68.3%

1.0%

Agriculture, forestry and fishing

Industry, including building

Services, including the public sector

Total

2,771

86,817

192,940

282,528

1 Values at current prices.Source: ISTAT, Regional economic accounting.

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VA from agriculture1 to total2 (%)

Italy Italy - North Lombardy

0.0

0.5

1.0

1.5

2.0

2.5

3.0

20062000 2001 2002 2003 2004 2007 2008 20092005

1Agriculture, hunting and fishing.2Values at current prices.Source: ISTAT, Regional economic accounting.

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employmentIn 2011, total employment in Lom-bardy, equal to 4.27 million, repre-sented 18.6% of the national work-force; some 57,500 workers were employed in agriculture, correspond-ing to 1.3% of total employment In Lombardy and 6.8% of the agricultural labour force in Italy. The percentage of the agricultural labour force to to-tal in Lombardy is below the national average, equal to 3.7%, and that of the EU, which is 5%.Between 2010 and 2011, employment in agriculture fell by 11% (-7,000 units), while the service sector (64%) dropped by 0.2% (-5,000 units). The employed in industry (34%) increased by 1%, compared with a total regional balance of zero; the balance is sub-stantially stable nationally as well (+0.4%), where the drop in agricultur-al and industrial workers was attenu-ated by services.In the region, dependent workers in

agriculture, who accounted for 35% of total employed (compared with 48% nationally) are the component that has dropped the most in recent years; although independent workers, after a stable period, have shown a downturn.The share of female workers in agri-culture in Lombardy was 18.8% in 2011, lower than for the economy as a whole, for the northern regions (26.1%) and for Italy (29.2%).In Lombardy, according to the census, foreign workers in agriculture (more than 16,000 units) have a significant presence, representing 42% of non-family labour and 12% of the total, al-most twice the Italian average. Mostly, they come from non-EU countries.In Lombardy, employment in agricul-ture, expressed in terms of work units (AWU) and based on 2009 ISTAT data, represents a share of 2.7% of the re-gional total, compared to 33.5% for

33.5%

63.8%

2.7%

Agriculture, forestry and fishing

Industry, including building

Services, including the public sector

Total

121

1,486

2,833

4,440

Source: ISTAT, Regional economic accounting.

Work units by sector in Lombardy (‘000 units), 2009

25

% Share of workers in agriculture1 to total of the economy, 2011

% Lombardy 1.3Italy 3.7Italy- North 2.6Italy - Centre 2.4Italy - South and Islands 6.8EU-27 5.0Austria 5.3Belgium 1.3Bulgaria 6.8Denmark 2.4France 2.9Germany 1.6Greece 12.4Netherlands 2.5Poland 12.7Portugal 9.9United Kingdom 1.2Romania 28.6Spain 4.2Sweden 2.0Hungary 4.81 Agriculture, forestry and fishing.Source: ISTAT, workforce survey - 2011 average, EUROSTAT.

Total and agricultural workers by gender and geographical area, 2011

Workers Agricultural workers

‘000 units % women ‘000 units % women Lombardy 4,273.0 41.9 57.5 18.8Italy-North 11,925.2 42.8 310.4 26.1Italy 22,967.2 49.7 850.4 29.2

Source: ISTAT, workforce survey - 2011 average.

industry and 68.3% for services. If we take into account that the value added from agriculture accounts for only 1% of regional VA, we see a strong differ-ence in productivity between those employed in agriculture and in other sectors. The average productivity of an agricultural work unit at constant prices is 58% of an average work unit in services and 63% of the figure for in-dustry. However, in recent years there

has been a trend to an increase in value added per AWU and per agricul-tural worker, with a certain shrinkage of the productivity gap per employee compared to other economic sectors. In 2011, the changes in VA and em-ployment have brought about a strong increase in the profitability of agri-cultural labour compared to the same framework nationally, which is basi-cally stable.

26

VA at basic prices per AWU and by sector (euro)*, 2003-2009

AgricultureServicesIndustry

0

10,000

20,000

30,000

40,000

50,000

60,000

20092004 20052003 2006 2007 2008

*Chain indexes - year of reference 2000. Source: ISTAT, Regional economic accounts.

AGRI-INDUSTRIAL SYSTEM

28

components of the systemIn 2011, the economic size of the agri-food system in Lombardy was estimat-ed at 37 billion euro, or 16.2% of the value of the national agri-food system and 11.2% of the regional GDP. Much of the final value of the region’s agri-food system comes from distribution and catering, with value added shares,

Main components of the agri-industrial system at basic prices in Lombardy (million Euro, 2011)

respectively, of 40.3% and 21.1%. The ratio between the value of agri-food production, approximately 12.3 bil-lion euro, and the value of the system as a whole is one to three. In particular, 8.5% of the value of the regional agri-food system comes from value added (VA) from agriculture (compared to

12.1% at the national level, including forestry and fishing). The food indus-try, whose VA is about 20% of the na-tional total, accounts for 13.5% of the value of the system (11% on a national basis), while intermediate consump-tion in agricultural represents 11% of the total value of the system.

4,091

3,158

5,015

7,822

14,929

2,018

37,032

Intermediate consumption in agriculture

Value added from agriculture, forestry and fishing

Value added from the food industry

Value added from catering

Trade and distribution

Indirect taxation on agri-industry

Value of AES

13.5%

40.3%

5.4% 11.0%

8.5%

21.1%

Source: estimates based on ISTAT figures.

29

Value added (VA) from the food in-dustry in Lombardy in 2011 was es-timated at about 5 billion euro. This value corresponds to 20% of value added from the national food industry and 13.5% of the value of the regional agri-food system. The relative impor-tance of the sector at the regional lev-el is clear from the fact that VA from the food industry exceeds VA from agriculture by roughly 60%, whereas nationally these values are basically equal. The share of VA from the re-gional food industry to value of agri-cultural production is 41%, compared to 33% nationally. There are 5,973 active businesses in the sector, or 5.6% of regional manu-facturers, an increased share over 2010. There has been an annual in-crease of 0.7% of food businesses, as against a drop of 1.4% in total manu-facturers. 96.1% of active businesses are involved in food production, while

food industry and cooperation

Provincial distribution of food and manufacturing businesses in Lombardy1, 2011

Food Artisan food Manufacturing Tot. % share Tot. % share Tot. % share

Bergamo 677 11.3 527 13.3 11,750 11.1Brescia 878 14.7 642 16.2 15,768 14.8Como 320 5.4 245 6.2 7,045 6.6Cremona 368 6.2 242 6.1 3,267 3.1Lecco 216 3.6 147 3.7 4,257 4.0Lodi 132 2.2 82 2.1 1,709 1.6Monza 323 5.4 206 5.2 9,961 9.4Milan 1,584 26.5 864 21.8 31,497 29.6Mantua 458 7.7 304 7.7 4,695 4.4Pavia 402 6.7 262 6.6 4,844 4.6Sondrio 210 3.5 136 3.4 1,430 1.3Varese 405 6.8 308 7.8 10,098 9.5Total 5,973 100.0 3,965 100.0 106,321 100.01Active businesses. Source: Infocamere.

4.6% produce drinks. Artisan busi-nesses make up an important share, 66.4% of active businesses, with the exception of the drinks sector, where

only a quarter are artisan businesses, with a growth of 1% in the 2011-2010 two-year period. The provincial breakdown of busi-

30

Food businesses in Lombardy, 2011

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Activebusinesses

Registeredbusinesses

Registeredbusinesses

Activebusinesses

ARTISAN BUSINESSESTOTAL BUSINESSES

321

271

72 72

6,415

5,702

3,929 3,893

Food Drinks

Source: Infocamere.

Share of business categories in food and manufacturing businesses in Lombardy1, 2011

0

20%

40%

60%

80%

100%

Food Drinks Food Drinks

TOTAL FOODBUSINESS

Total manufacturing

businessARTISAN FOOD

BUSINESS

Artisanmanufacturing

business

23.5% 54.6%

29.5%

11.8%

5.2%

45.4%

49.3%

11.1%

55.6%

33.3%

7.5%

33.9%

58.5%

36.9%

25.0%

37.4%

36.4%

36.7%

Individual businesses

Capital companies

Other

Partner companies

1Active businesses.Source: Infocamere.

31

nesses is led by Milan (26.5%), fol-lowed by Brescia (14.7%) and Ber-gamo (11.3%). The classification is similar for artisan food businesses, but with a lower share for Milan and higher shares for the other provinces. The annual trend shows growth in active businesses in Brescia (+4.2%) and Milan (+1.7%) and a significant decrease in Varese (-4.7%).With regard to the legal form of food businesses, the main types are sole proprietorships and partnerships. There is a fair share of joint-stock companies (23.5%), which are rather prevalent in the production of bever-ages (56.6%). According to INAIL fig-ures, in 2010 alone the food industry provided employment in Lombardy for 100,000 workers (-1.8% compared to 2009), or 20.6% of the national total. Employment in this sector is largely concentrated in the metropolitan area of Milan, with a density of larger busi-

Provincial distribution of workers in food businesses in Lombardy, 2010

Food Artisan food Tot. % share Tot. % share

Bergamo 6,791 6.8 2,581 13.3Brescia 9,704 9.8 3,294 17.0Como 3,741 3.8 1,183 6.1Cremona 7,802 7.9 1,003 5.2Lecco 2,842 2.9 755 3.9Lodi 2,078 2.1 418 2.2Mantua 7,224 7.3 1,435 7.4Milan 42,425 42.7 4,095 21.1Monza and Brianza 4,013 4.0 1,100 5.7Pavia 4,741 4.8 1,174 6.0Sondrio 3,030 3.1 702 3.6Varese 4,887 4.9 1,676 8.6Lombardy 99,278 100.0 19,416 100.0Italy 482,234 166,446

Lombardy/Italy (%) 20.59 11.67 Source: INAIL.

nesses. Workers in artisan businesses are more geographically distributed and there are about 19,000. Cooperation is an important phenom-

enon in agri-food processing. In 2008, according to the latest available fig-ures, there were 300 businesses and more than 4,000 employees, 5.1%

32

and 4.5% of national totals, respec-tively. The share of the national total is much higher for milk and dairy, which includes just under half of ag-ri-food co-ops in Lombardy and over 50% of workers in the sector. Agri-food co-ops in 2008 realised turnover

of roughly three billion euro, with an 8.2% share of the regional food indus-try turnover, a significant though not particularly strong “weight”. In Lom-bardy, the average revenue per busi-ness, amounting to 9.8 million euro, was higher than the national average

of 5.9 million euro per business.Agri-food cooperatives in Lombardy are strongly concentrated in the provinces of Mantua, Cremona and Brescia, with 87.2% of the turnover of the region’s agri-food cooperative system.

Distribution of agri-food co-ops by category in Italy and Lombardy, 2008

Lombardy Italy Lombardy/Italy Businesses Workers Businesses Workers % Businesses % Workers

Milk and dairy 138 2,116 963 11,932 14.3 17.7Services 76 626 1,547 14,802 4.9 4.2Horticulture 26 722 1,321 30,448 2.0 2.4Wine 18 164 611 8,619 2.9 1.9Meat livestock 18 401 494 20,663 3.6 1.9Other 24 145 898 7,322 2.7 2.0

Total 300 4,176 5,834 93,786 5.1 4.5

Source: Observatory of Agricultural Cooperation in Italy.

33

distributionLombardy has established itself as one of the leaders in Italy and Europe for modern distribution: the density of modern sales points (hyper-markets, supermarkets, superettes and dis-count stores), in 2011, exceeded 290 square metres per 1,000 inhabitants. This is a figure of absolute impor-tance, similar to or greater than that recorded in more densely populated European areas.The region has 2,487 modern food distribution stores, with a total area of 2.8 million square metres, an increase compared to 2010 (+2.6%). The in-crease in selling space, at a markedly higher rate than the national average (+1.5%), affected most of the provinc-es, with the exception of Lecco, Lodi and Sondrio. This phase of further development in modern retail mainly involves hyper-markets (+4.2%), with a net increase, between openings and closings, of 10

Modern distribution sales points in Lombardy, 2011

N. sales points Area sq. m. % change 2011/10Superettes 612 173,845 -4.0Supermarkets 1,090 1,082,608 0.7Hyper-markets 230 1,221,714 4.2Discount 555 349,475 6.3Total 2,487 2,827,642 2.6 Source: Processing of Nielsen figures.

Area per 1,000 inhabitants in modern distribution sales points in Lombardy (sq.m.), 2011

Superettes Supermarkets Hyper-markets Discount Super+Hyper TotalBergamo 20.7 120.7 92.2 52.5 212.9 286.0Brescia 20.3 157.6 150.6 53.6 308.2 382.1Como 15.6 87.5 139.2 35.4 226.7 277.8Cremona 8.0 117.4 121.4 40.5 238.8 287.3Lecco 14.6 87.3 123.7 38.9 211.0 264.5Lodi 15.6 82.0 230.9 35.8 312.9 364.3Mantua 22.0 171.4 111.4 63.7 282.8 368.5Milan 17.0 88.2 116.3 23.2 204.4 244.6Monza and Brianza 15.8 87.0 148.8 22.2 235.8 273.7Pavia 19.9 121.7 145.7 41.0 267.4 328.2Sondrio 59.1 117.7 138.4 44.4 256.2 359.6Varese 13.4 145.8 112.9 32.4 258.7 304.5Regional total 18.0 112.3 126.7 36.2 239.0 293.3Source: Processing of Nielsen figures and Observatory of Commerce - Lombardy Region.

34

sales points in 2011. Discount stores, which in recent years have had dou-ble-digit growth rates, increased by 6.3% between 2010 and 2011, with a net addition of 21 stores and an in-crease above the national average, due to fact that the region has historically

shown lower indices of density of low-cost shops than the rest of Italy.In Lombardy, large private retail chains predominate. The important rearrangement of outlets, which took place over the last two years, was led by the central Cieffea, which joins two

leading firms (Carrefour and Finiper). This purchasing centre accounts for slightly more than 18% of regional selling space, followed by Esd Italia (16.2%) and Centrale Italiana (14.7%).

Breakdown of modern distribution sales area in Lombardy, 2011

Centrale Cieffea (Carrefour, Finiper, Sisa, Coralis)

Esd Italia (Selex, Agorà)

Centrale Italiana (Coop, Despar, Sigma, Il Gigante)

Centrale Auchan-Crai (Auchan, Crai)

Sicon (Conad, Interdis and Standa-Rewe)

Esselunga

Bennet

Other

Total (sq. m.)

18.4%

16.2%

10.8%

9.6%

9.2%

14.7%

5.9%

15.3% 521,058

458,734

414,442

306,151

270,964

258,755

165,593

431,945

2,827,642

Source: Processing of Nielsen figures and Observatory of Commerce - Lombardy Region.

35

foreign trade In 2011, the deficit in foreign trade of agri-food products at current prices was the worst of all time, both in Lom-bardy, where it stood at 4,769 million euro, and nationally, where it reached 8,956 billion euro: the deficit rose 16% for the year and 23.2% in abso-lute value. This is the consequence of two phenomena common to both geo-graphical areas: on the one hand, the value of purchases on foreign markets exceeds that of exports and, in 2011, as in 2006 and 2010, exports grew less than imports. In Lombardy, the increase in exports (+5.9%) depends on growth in terms of both volume (+1.9%) and price (+3.9%), while the growth in imports (+10.7%) is the result of a significant increase in average prices (+11.9%) and a slight decrease in volume (-1.1%). Agri-food imports account for 7.8% of regional imports, whereas exports stalled at 4.7%; instead, the same per-

Lombardy’s foreign trade in agri-food products at current prices (million euro)

% Share of agri-food products in the make-up of Lombardy’s trade balance

Import Export Balance

1999 5,690 2,425 -3,2652000 6,120 2,608 -3,5122001 6,273 2,811 -3,4622002 6,283 3,025 -3,2582003 6,542 3,152 -3,3902004 6,844 3,278 -3,5662005 7,119 3,559 -3,5602006 7,902 3,742 -4,1602007 8,309 4,122 -4,1872008 8,559 4,571 -3,9882009 7,929 4,214 -3,7152010 8,691 4,579 -4,1122011 9,619 4,850 -4,769% Change 2011/2010 10.7 5.9 % Change 2011/1999 69.1 100.0

Source: Processing of ISTAT figures in SH6 classification.

Import Export

1999 7.2 3.82000 6.4 3.62001 6.4 3.62002 6.5 4.02003 6.7 4.22004 6.5 4.12005 6.4 4.22006 6.6 4.02007 6.2 4.12008 7.1 4.42009 8.2 5.12010 7.5 4.92011 7.8 4.7

Source: Processing of ISTAT figures in SH6 classification.

36

centages calculated for Italy reach 9.7% and 8.1%, respectively. The region’s main foreign market of supply is France, with a share of 21.3%, followed by Germany (13.3%), the Netherlands (11.3%) and Spain (9.5%). On the export side the top two countries are France (15.2%) and Ger-many (13.2%), followed by Switzerland (8.2%) and the USA (7.9%). The sourc-es of supply, therefore, are less concen-trated than export markets.Milk and dairy is the main product cat-egory of trade both in terms of imports (14.9%), and exports (19.3%).

Main countries of origin and destination for Lombardy’s agri-food imports and exports, 2011

11.3%2.8%

32.4%

21.3% France

Germany

Netherlands

Spain

Belgium

Switzerland

United Kingdom

Austria

Other

13.3%

9.5%4.1%

IMPORT

2.7%

2.7%

8.2%

5.2%

35.0%

15.2%

13.2%

7.9%7.1%

EXPORT

4.3%3.9%

France

Germany

Switzerland

United States of America

United Kingdom

Netherlands

Spain

Belgium

Other

Source: Processing of ISTAT figures in SH6 classification.

37

Shares of imports and exports of Lombardy’s agri-food products, 2011

8.2%

6.0%4.0%

14.9%

12.3%

6.4%6.3%

IMPORT

41.9%

Milk and dairy products

Fresh and frozen meat

Processed and preserved fish

Feedingstuffs

Oils and fats

Cereal derivatives

Sugar and sweet products

Other products7.1%5.6%

32.7%

19.3%

Milk and dairy products

Cereal derivatives

Oils and fats

Sugar and sweet products

Soft drinks

Prepared meats

Wine

Other products

18.8%

6.0%5.9%

EXPORT

4.6%

Source: Processing of ISTAT figures in SH6 classification.

8.2%

6.0%4.0%

14.9%

12.3%

6.4%6.3%

IMPORT

41.9%

Milk and dairy products

Fresh and frozen meat

Processed and preserved fish

Feedingstuffs

Oils and fats

Cereal derivatives

Sugar and sweet products

Other products7.1%5.6%

32.7%

19.3%

Milk and dairy products

Cereal derivatives

Oils and fats

Sugar and sweet products

Soft drinks

Prepared meats

Wine

Other products

18.8%

6.0%5.9%

EXPORT

4.6%

38

food consumptionThe average monthly expenditure per household in Italy, in 2011, was 2,488 euro in current values, a growth of 1.4% compared to 2010. Lombardy, with 3,033 euro per household (up 4.7% compared to 2010), is the region with the highest average monthly ex-penditure, followed by Veneto with 2,903 euro per household.Average household expenditure for food and beverages has risen nation-ally, in current values, by 2.2% com-pared to 2010 (with a corresponding price increase of +2.4%), to 477 euro monthly. In particular, expenditure increased for “meat”, “milk, cheese and eggs” and “sugar, coffee and oth-er”. In Lombardy, average monthly expenditure for food and beverages was 491 euro, an increase of 3.3% compared to 2010; this figure puts the region in fourth place, behind Campa-nia, Umbria and Sicily, regions, how-ever, with larger families and a less

Average monthly household expenditure at current prices (euro), 2005-2011

Lombardy Italy Italy-North

2,000

2,500

3,000

3,500

2,872 2,886 2,8962,930 2,918 2,896

3,033

2,3982,461 2,480 2,485 2,442 2,453

2,488

2,6892,786 2,796 2,810 2,768 2,796

2,843

2005 2006 2007 2008 2009 2010 2011

Source: Processing of ISTAT figures, sample survey of household consumption.

39

efficient distribution network.The share of expenditure on food and beverages in Lombardy is 16.2% of the total expenditure, preceded only by Trentino-Alto Adige (14.1%) and Veneto (16.1%), while higher shares are spent in Campania (28.7%), Sicily (27.2%) and Calabria (25.7%).

Average monthly household expenditure at current prices for food and drinks (euro), 2005-2011

Lombardy Italy Italy-North

400

500

490

480

470

460

450

440

430

420

410

486 486

463

483

470475

491

456

467 466 475461 467

477

454461

449

464

455

473

2005 2006 2007 2008 2009 2010 2011

Source: Processing of ISTAT figures, sample survey of household consumption.

40

Average monthly household expenditure (euro) and percentage share for food and drinks by region, 2011

Expenditure for food and drinks (euro)

% Sh

are fo

r foo

d and

drink

s

Average monthly expenditure (=100%)

Piedm

ont

Valle

d'Aost

aLo

mbar

dy

Liguri

a

Trenti

no-Alt

o Adig

eVe

neto

Friuli-

Vene

zia Gi

uliaEm

ilia-Ro

magn

aTus

cany

Umbri

aMa

rche

Lazio

Abruz

zoMo

liseCa

mpan

iaPu

gliaBa

silicat

aCa

labria

Sicily

Sardi

niaIta

ly

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

5

10

15

20

25

30

35

% Share food and drinks

Avera

ge m

onthl

y exp

endit

ure pe

r fam

ily

Source: ISTAT survey on household consumption.

AGRICULTURE

42

production levels in agricultureIn 2011, regional agricultural output at basic prices (OBP), excluding for-estry and fishing, and including re-lated services and activities, reached a value of approximately 7.2 billion euro, strengthening the region’s share of national production value, which is already the highest in the country (up from 13.9% to 14.5%). The region, moreover, makes up 28.2% of OBP in Northern Italy and, according to 2010 EUROSTAT figures, contributes 1.8% of OBP in agriculture for the EU-27. For livestock alone, Lombardy con-tributes 26.2% of national produc-tion, 37.9% in Northern Italy and 2.7% within the EU.The breakdown of OBP shows the re-gion’s strength in livestock: indeed, livestock production contributes 60% of OBP, whereas crop production makes up 31%, followed by related services and secondary activities. On the contrary, at the national lev-

Agricultural output at basic prices, intermediate consumption and value added in Lombardy, (million euro), 2011

Lombardy Italy Lombardy/Italy million euro % million euro % %

Crops 2,213 30.9 26,235 53.3 8.4Herbaceous 1,399 19.5 14,535 29.5 9.6Fodder 488 6.8 1,800 3.7 27.1Tree crops 326 4.6 9,900 20.1 3.3Livestock 4,275 59.7 16,294 33.1 26.2Meat 2,429 33.9 10,118 20.6 24.0Milk 1,642 22.9 4,962 10.1 33.1Other livestock 204 2.9 1,215 2.5 16.8Connected services 531 7.4 6,144 12.5 8.6Total OBP goods and agricultural services 7,019 98.1 48,674 98.9 14.4(+) secondary activities* 208 2.9 1,528 3.1 13.6(–) secondary activities* 69 1.0 981 2.0 7.1Total OBP agriculture 7,158 100.0 49,222 100.0 14.5Intermediate consumption 4,071 56.9 23,309 47.4 17.5Value added at basic prices 3,087 43.1 25,913 52.6 11.9* Secondary activities mean those performed in agriculture and not separable from it, such as farm stays, processing of milk, fruit and meat, shown with the sign (+), and those performed in other branches of the economy within the scope of crops and livestock (for example by commercial enterprises), shown with the sign (-).Source: ISTAT, Value added at basic prices from agriculture by region.

el, crops make up more of OBP than livestock, 53% compared to 33%. As

for individual categories, in terms of share of OBP, milk and pork predomi-

43

nate (23.4% and 15.6%), followed by cereals (14.2%) and beef (11.3%).In terms of livestock at the national level, Lombardy holds several re-cords, producing 40% of pigmeat, 37.1% of cow’s milk and 25.9% of beef. It produces important shares of Italy’s poultry meat (18.9%), eggs (17.6%) and honey (14.7%). Compared to 2010, the value of agricultural pro-duction in the region rose by 11.5% (national production grew by 7.2%), almost entirely due to the increase in prices, while total volume remained unchanged. The increase in OBP was balanced between crops (+13.8%) and livestock (+11.4%), while it was more modest for related services (+4.4%) and secondary activities (+6.7%).Crop OBP in 2011 increased mainly due to the cereal sector (+31.1%) and industrial crops (+10.7%); for tree crops, there was a growth in value for vine products (+10.8%), while fruit

Value of agricultural output at basic prices by main category in Lombardy, 2011

Cereals and dried legumes

Vegetables

Industrial crops

Nursery products

Vines

Fruit

Other tree crops

Fodder crops

Beef

Pigmeat

Other meats

Milk

Eggs and other

Connected services

14.2%2.9%7.6%

3.6%0.7%

1.4%2.3%

1.9%

15,6%

7.7% 11.3%

23.4%0.5%

7.0%

Source: ISTAT, Value added at basic prices from agriculture by region.

44

Main crop production in Lombardy, 2011

Volume Value1 000 t % change 2011/10 % Lombardy/Italy million euro % change 2011/10 % Lombardy/Italy Soft wheat 228.5 -32.6 8.1 56.9 -7.3 8.1Durum wheat 45.2 -55.5 1.2 14.8 -33.2 1.1Barley 83.6 -34.0 9.3 17.9 -7.2 9.3Rice 648.5 -1.3 41.8 201.1 13.6 41.7Hybrid maize 2,880.0 13.2 29.6 654.2 51.3 29.6Soybeans 111.5 8.9 20.4 31.9 21.4 20.4Sugar beets 389.0 -7.6 11.1 16.1 0.3 11.0Potatoes 29.0 -2.7 1.9 11.8 3.4 1.7Tomatoes 505.7 -11.3 8.3 60.1 11.4 6.0Melons 88.0 -1.1 13.3 42.4 5.0 20.0Sold wine grapes 75.9 35.5 2.3 17.1 53.7 2.5Wine (000 hl) 80.3 -0.5 4.7 142.8 7.3 7.9Olive oil 0.9 -10.0 0.2 2.0 -3.0 0.2Peaches 6.6 -2.9 0.6 1.8 -24.0 0.6Apples 51.0 1.0 2.3 15.4 -12.0 2.3Pears 17.6 -0.6 1.9 8.9 -25.7 1.9Kiwi 8.5 -6.6 2.0 5.3 9.8 1.91 At basic prices. Source: ISTAT, Value added at basic prices from agriculture by region.

was down (-14.4%) and nursery pro-duction dropped (-4.3%).Among cereals, which posted the larg-est increase in terms of percentages

compared to 2010, maize, which ac-counts for 29.6% of national produc-tion, showed an increase of 51% in value and 13.2% in volume. Positive

results were also reported for rice (41.8% of national production), whose value is on the rise (+13.7%) despite a modest decline in volume, and for

45

soybeans, with an increase of 21.4% in value and 8.9% in volume com-pared to 2010. On the contrary, there were heavy losses, especially from the point of view of volume, for other cereals. For horticultural OBP, which recovered slightly compared to 2010, there was an increase in production value of tomatoes (+11.4%); for tree crops, however, peaches, apples and pears markedly declined. Among pro-

cessed products, wine stood out, at 4.7% of national production in volume and 7.9% in value, and OBP increased in value by 7.3%, while production volume remained stable from 2010. The increase in value of OBP of live-stock by individual product affected pigmeat (+14.6% in value and 1.3% in volume), poultry meat (+17.8% and 3.2%, respectively) and cow’s milk (+11.6% in value), the latter showing

a slight decrease in production over the previous year (-1.8%). Beef and eggs reported increases in value and volume, while sheep and goat produc-tion was down for the year.In 2011, value added from the region’s agriculture, approximately 3.1 billion euro, increased in current terms by 11.7% compared to the previous year, while its share of production value, of 43.1%, remained stable.

Main livestock production in Lombardy, 2011

Volume Value1

000 t % change 2011/10 % Lombardy/Italy million euro % change 2011/10 % Lombardy/Italy Beef 369.5 1.4 25.9 791.6 6.9 23.2Pigmeat 833.8 1.3 40.0 1,096.6 14.6 39.0Sheepmeat and goatmeat 0.9 -10.0 1.4 2.7 -9.3 1.4Poultrymeat 320.2 3.2 18.9 447.7 17.8 17.1Eggs (million) 2,317.0 1.2 17.6 198.2 2.8 17.0Cow’s milk (000 hl) 4,217.7 -1.8 37.1 1,639.9 11.6 36.3Sheep and goat milk (000 hl) 3.1 -3.2 0.5 2.5 -2.0 0.6Honey 1.7 -5.6 14.7 5.7 4.8 14.81 At basic prices. Source: ISTAT, Value added at basic prices from agriculture by region.

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Since the beginning of 2011, the weather trend, because of anomalies of extreme, difficult-to-control events such as downpours, hail, drought and high temperatures, was critical for the agricultural sector in the area.Around the middle of March storms occurred which required urgent measures to remove water from fields by consortium institutions in affected areas. Maize in the Lower Lodi area was one of the crops most affected by structural problems on the Cremona-Milan canal; and there were also situ-ations of a certain complexity caused by the flooding of the Chiese River. Between mid-April and the end of May, the complete absence of pre-cipitation triggered further problems for maize; with the land completely

dry and not always supported by ad-equate irrigation relief, disaster oc-curred in the Lower Brescia area. The spring drought called for a series of ir-rigation measures in the areas of the Terre dei Gonzaga Consortium on the right bank of the Po and the East Ti-cino Villoresi Consortium. In addition to maize, the main crops in difficulty were alfalfa, May hay and other fod-der crops, barley and wheat. At the end of May, new heavy rains, mixed with hail, created problems for the vineyards around Pavia and for gar-den vegetables, maize and soybeans in Mantua. The summer period was marked by the alternation of hail-storms and heat waves of varying in-tensity. Between Varese, Como and Lecco, along the foothills of the Alps,

the storms in mid-July caused dam-age to crops of maize, hay, soybeans, vegetables and berries, and to struc-tures, particularly greenhouses and sheds used for agriculture. The excess heat, which arrived in the second half of August, reduced the yields of cow’s milk to varying extent, depending on the area, and caused scorching in the horticultural sector, in particular pumpkins in the areas of Mantua and Cremona. There were also drops in cereal yields, due to changes in tem-perature and water supply.The harvest in the Oltrepò Pavese was affected, on the other hand, by hail. In the autumn the continuing hot weath-er resulted in prolonged irrigation of fruit orchards.

agri-meteorological trends

47

intermediate consumptionIn the agricultural sector regional spending on intermediate consump-tion in 2011 stood at more than 4 bil-lion euro, or 17.5% of the national to-tal. The share of regional intermediate consumption to the total value of the agriculture industry, of 56.9%, is 10 points higher than it is for Italy, while slightly lower in comparison with the European Community.

The increase in spending of 11.2% over the previous year is solely due to the rise in prices (11.3%). The in-crease in value of intermediate con-sumption, the same as the increase in production at basic prices in agri-culture, maintains an almost constant share of intermediate consumption to value of production.The trend in terms of trade between

Intermediate consumption in agriculture in Lombardy

Values at % % to % Change % Change % Change current prices Category Italy value volume price 2011 2011/10 2011/10 2011/10 (million euro)

Fertilisers 252.7 6.2 17.2 19.0 -0.5 19.6Plant protection products 55.4 1.4 6.9 5.8 -1.2 7.1Seeds 178.6 4.4 13.4 12.1 -1.3 13.6Feedingstuffs and expenses for livestock 1,495.5 36.7 25.1 11.5 -0.8 12.4Other intermediate consumption 2,088.7 51.3 15.2 10.3 0.6 9.5Intermediate consumption 4,070.9 100.0 17.5 11.2 0.0 11.3

Source: ISTAT.

% Share of intermediate consumption to agricultural production value, 2010

%

Lombardy 57.0

Italy 46.9Italy-North 52.9Italy-Centre 42.4Italy-South and Islands 39.9

EU-27 59.5France 59.2Germany 69.7Netherlands 64.7Poland 60.8United Kingdom 64.7Romania 57.1Spain 44.7

Source: ISTAT, Value added from agriculture at basic prices by region; EUROSTAT.

the prices of agricultural products and those for intermediate consumption has declined steadily in recent years,

48

and did so again in 2011.With reference to the main catego-ries of inputs, ISTAT figures indicate a dramatic increase in spending for fertilisers (+19%), seeds (+12.1%) and

feedingstuffs (+11.5%), while the in-crease is smaller for plant protection products (+5.8%). For each category of inputs the increase in value of con-sumption is due solely to changes

in prices, although seeds and plant protection products show a negative change in the volumes used, albeit just over a percentage point.

49

According to the latest available ISTAT figures at the regional level, the volume of gross fixed investments in agriculture is about 1.6 billion euro, a decline of 16.8% over the previous year. Gross fixed investments in agri-culture in Lombardy are estimated at 15.9% of national agricultural in-vestments, and 2.7% of the total regio-nal gross fixed investments.The share of investments in value ad-ded from agriculture in the region, at current prices, stood at 56.7%. The amount of investment per unit of agri-cultural labour (AWU) is 66% higher than the national index. Moreover, unlike the rest of the country, this indicator is comparable to per capita investment calculated for the services sector and is even 6.5% higher than the same figure for industry.

investmentsTrend in gross fixed investments in agriculture* in Lombardy

Current values % of tot. % of tot. % of VA from (million euro) investments investments in agriculture in Lombardy1 agriculture in Italy1 in Lombardy 1

2000 1,224.5 2.6 12.7 34.7 2001 1,537.5 3.1 15.9 41.4 2002 1,531.1 2.9 14.5 42.6 2003 1,600.8 3.1 14.4 45.5 2004 1,862.1 3.4 15.2 52.7 2005 1,896.8 3.2 15.6 62.9 2006 2,132.1 3.4 17.3 67.8 2007 1,773.2 2.6 14.9 56.8 2008 1,924.3 2.8 16.3 59.7 2009 1,604.9 2.7 15.9 56.7 * Agriculture, forestry and fishing. 1 Values at current prices. Source: ISTAT, Regional economic accounts.

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Share of gross fixed investments in agriculture* in Lombardy to total regional investments and national agricultural investments1

* Agriculture, forestry and fishing. 1 Values at current prices. Source: ISTAT, Regional economic accounts.

% to total investments in Lombardy

% to total agricultural investments in Italy

0

5

10

15

20

2000 2004 2005 2006 2007 2008 20092001 2003 2002

2.6 2.6 2.8 2.73.1 2.9 3.13.4 3.43.2

12.7

15.914.5 14.4

15.2 15.617.3

14.916.3 15.9

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Gross fixed investments1 per AWU and by sector in Lombardy and Italy, 2009

0

3,000

6,000

9,000

12,000

15,000

Agriculture

Industry

Services

Lombardy Italy Lombardy ItalyLombardy Italy

13,352

8,029

12,52911,905

13,49012,584

1 Values at current prices.Source: ISTAT, Regional economic accounts.

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In 2011 the prices of agricultural prod-ucts in Lombardy underwent a sharp increase (+11.2%) compared to the na-tional average (+6.8%), practically the sole reason for the region’s increase in the OBP for agriculture. Compared to 2010, in line with regional agricultural production, intermediate consump-tion registered a price increase of 11.3%.The increase in prices of production affected both agricultural crops (+15%) and livestock (+11%) in the region.Among crops, cereals led the hike in prices, an increase of about 29% compared to 2010. Price increas-es were also substantial for fodder crops (+11.4%) and industrial plants (+10.6%), whereas they were more modest for vegetables (+3.8%). In con-trast, the prices of horticultural prod-ucts dropped by 4.2%.In 2011, tree crops, whose prices re-covered slightly, reflected an uneven

prices Change in implicit prices of agricultural products in Lombardy and Italy, 2011

Category % Change 2011/10 Lombardy % Change 2011/10 ItalyCrops 15.0 6.7Herbaceous crops 19.9 12.1Cereals 28.8 33.7Dried legumes 13.5 14.7Potatoes and vegetables 3.8 3.3Industrial plants 10.6 7.7Flowers and ornamentals -4.2 -4.4Fodder crops 11.4 7.0Tree crops 1.8 -0.3Vine products 8.4 10.4Olive products 7.6 8.1Fruit -14.5 -13.3Other tree crops -0.6 -1.1Livestock 11.0 9.5Meat 10.2 9.2Milk 13.6 12.4Eggs 1.6 1.6Honey 11.0 11.0Non-food livestock 6.3 4.4Connected services 1.5 1.4Total output of agricultural goods and services 11.4 6.9(+) secondary activities (farm stays. processing)* 3.6 2.1(-) secondary activities (commercial enterprises)* 9.6 8.1Total agricultural output b.p. 11.2 6.8Intermediate consumption 11.3 7.8* Secondary activities mean those performed in agriculture and not separable from it, such as farm stays, processing of milk, fruit and meat, shown with the sign (+), and those performed in other branches of the economy within the scope of crops and livestock (for example by commercial enterprises), shown with the sign (-).Source: ISTAT, value added from agriculture at basic prices by region.

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Price index trend in various phases of marketing (2000=100)150

145

140

135

130

125

120

115

110

105

100

95

902001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

ISTAT agricultural product price index

Domestic market price index Food, drinks and tobacco industry

Consumer price index Food and non-alcoholic drinks Lombardy

Consumer price index Food and non-alcoholic drinks Italy

Source: ISTAT.

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trend among various productions: on one hand, wine products were up by 8.4%, while other fruit recorded falling prices (-14.5%).Almost all livestock sectors registered price increases close to the average. The price of milk increased by 13.6% compared to 2010, while meat rose by 10.2%, mainly due to the price of pig-meat (+13.1%) and beef (+5.4%). There was also a slight increase in the price

of eggs, higher for honey and non-food livestock products.The long term comparison among price indices of agricultural products, industrial production and consump-tion confirms the trend of a greater in-crease in prices for consumption than for production and origin, the latter showing high volatility. More recently, it can be observed that distribution has dampened the substantial changes

in agricultural prices, although in the second half of 2010 there was a recov-ery in consumer prices and, above all, in the industrial producer price index.It is interesting to note that in the last few years the price changes for food consumption in the Lombardy region have been less pronounced than for Italy as a whole, likely as the effect of the significant market share of large-scale retail.

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According to the results of the 6th General Agricultural Census, there were 54,333 farms in Lombardy in 2010, accounting for 3.3% of the na-tional total. The total agricultural area (TAA) stands at approximately 1,229,000 hectares, while the utilised agricultural area (UAA) is calculated at 986,826 hectares, or 7.7% of the national UAA. UAA managed by farms in Lombardy suffered a drop of 5.1% compared to 2000. This reduction, lower in absolute value than the drop in the number of farms (-23.5%), re-sulted in an increase in average UAA per farm from 14.6 to 18.2 hectares, double the national average. Individual farms and direct mana-gement remain the prevalent legal form and operation method; certainly, compared to 2000, forms of part-nership have grown in importance, particularly in Lombardy, just as the item “other form of management”

structures in agricultureStructural characteristics of agriculture in Lombardy and Italy, 2010

Lombardy Italy Lombardy/ Italy (%)

Farms (n.) 54,333 1,620,884 3.35Total livestock farms (n.) 22,064 217,449 10.15Cattle farms (n.) 14,718 124,210 11.85 - of which dairy cattle 8,463 50,337 16.81Agricultural and forest area (AFA) (ha) 1,229,561 17,081,099 7.20Utilised agricultural area (UAA) (ha) 986,826 12,856,048 7.68Units of livestock (LSU) 2,739,158 9,957,399 27.51Workers on farms (n.) 137,447 3,870,754 3.55 - of which family members 98,157 2,932,651 3.35Total days worked (thousands) 19,261 250,806 7.68 - of which family workdays (thousands) 15,067 200,905 7.50

Average TAA per farm (ha) 22.63 10.54 214.74%Average UAA per farm (ha) 18.16 7.93 229.0%Livestock rearing/farms (%) 40.61 13.42 302.7%LSU/UAA (n.) 2.78 0.77 358.4%LSU/herd (n.) 124.15 45.79 271.1%Workers per farm (n.) 2.53 2.39 105.9%Workdays per farm (n.) 354.5 154.7 229.1%Workdays/UAA (n.) 19.52 19.51 100.1%Family workdays (%) 78.2% 80.1% 97.7% Source: ISTAT - 6th General Agriculture Census.

56

is growing in importance, including agistments. Overall, there is more availability of UAA for rent, a preva-lent form of land possession in Lom-bardy (49.5%), in terms of hectares, compared to ownership, unlike what happens at the national level (29.9%); there is also a greater share, in terms of farms and surface, of farms that own land for rent (also with other forms of possession) and farms that only rent (11.9% compared to 4.7%). In 2010, 40.6% of the farms in Lom-bardy, equal to 22,064 units, run a ranching operation, as against the corresponding 13.4% at the national level. The importance of livestock in Lombardy within the national context is indicated by the widespread use of livestock rearing, which is 3 times hi-gher than the corresponding national parameter, as well as the herd size (2.7 times) and density per hectare of UAA (3.6 times). The number of livestock,

Agricultural management and labour in Lombardy and Italy, 2010

Lombardy Italy number % number %Head farmer

- with middle school diploma 34,853 64.1 1,158,494 71.5- with university degree 3,516 6.5 100,981 6.2- under age 40 7,894 14.5 161,716 10.0- women 10,761 19.8 497,847 30.7

Non-family labour 39,290 28.6 938,103 24.2of which - foreign labour 16,527 42.1 233,055 24.8 - non-EU foreigners 9,065 54.8 98,581 42.3 - EU-27 foreigners 7,462 45.2 134,474 57.7of which - on-going 18,353 46.7 163,145 17.4 - occasional 16,494 42.0 695,557 74.1

Source: ISTAT - 6th General Agriculture Census.

represented in live stock units (LSU), 27.5% of the national total, also sets Lombardy apart in the Italian context. With the exception of sheep and go-ats, most head are concentrated on lowland farms; mountain livestock far-ming, with a share of 59.5% of farms, is more common than in lowlands, though farms are smaller. More than

half the farms in Lombardy are in the lowlands; these concentrate 65% of TAA and 73% of UAA and have a size of holding of 24.4 ha, higher than the regional average (18.4 ha/farm). 23.5% of farms operate in the mountains and manage 25.7% of TAA and 17.6% of UAA and have an average size of 13.8 ha. The situation with farmland is

57

much more concentrated than in the national context; 8.9% of farms with more than 50 hectares of UAA con-trol 55.6% of utilised agricultural area, while on the other hand, farms with less than 5 ha of UAA (49.8% of total) cover only 4.8% of this area.

The share of agricultural labour in the Lombardy region to the total in Italy is 3.5% in terms of number of workers, and 7.7% in terms of working days, indicating a greater importance of full-time labour compared with other Italian regions. 78.2% of working days

were carried out by members of the farmer’s family, as against 80% at the national level. The share of non-family labour is higher in Lombardy, 28.6%, and has a higher proportion of foreigners (42% compared to 24.8%), particularly those of non-EU origin

Characteristics of farm management in Lombardy and Italy

Lombardy 2010 Italy 2010 Lombardy 2000 Italy 2000 Farms UAA % UAA % UAA % UAA n. % hectares % Official classification

- individual farms 44,554 82.0 527,520 53.5 76.1 63.6 79.1 - companies 9,523 17.5 405,539 41.1 17.7 29.8 11.7 - other official categories 256 0.5 53,766 5.4 6.3 6.6 9.2

Form of management - direct management by the farmer 50,687 93.3 805,868 81.7 82.8 82.1 81.2 - management with salaried workers 3,106 5.7 134,373 13.6 11.6 17.9 18.7 - other form of management 540 1.0 46,585 4.7 5.6 0.0 0.1

Title of possession - own property 449,309 45.5 61.9 55.3 76.8 - rental 488,206 49.5 29.9 41.5 19.4 - freehold 49,311 5.0 8.5 3.3 3.8

TOTAL 54,333 100 986,826 100.0 100.0 100.0 100.0Source: ISTAT - 6th General Agriculture Census.

58

Farms by UAA class in Lombardy and Italy, 2010

Class of UAA Lombardy Italy % Lombardy % Lombardy/Italy farms UAA (ha) farms UAA (ha) farms UAA farms UAA< 5 ha 27,076 47,655 1,182,320 1,846,841 49.8 4.8 2.3 2.65-10 ha 7,726 55,154 186,145 1,295,295 14.2 5.6 4.2 4.310-20 ha 7,341 103,794 120,115 1,663,483 13.5 10.5 6.1 6.220-30 ha 3,635 88,434 46,687 1,128,980 6.7 9.0 7.8 7.830-50 ha 3,730 142,681 40,915 1,556,922 6.9 14.5 9.1 9.2> 50 ha 4,825 549,108 44,702 5,364,526 8.9 55.6 10.8 10.2Total 54,333 986,826 1,620,884 12,856,048 100 100 3.4 7.7Source: ISTAT - 6th General Agriculture Census.

Farms, utilised agricultural area and total area in Lombardy and Italy, 2010

Lombardy Italy Average area (ha) % Lombardy/Italy farms* ha farms ha Lombardy Italy farms areaArable crops 35,222 715,263 828,390 7,009,311 20.3 8.5 4.3 10.2Tree crops 14,660 36,484 1,192,081 2,380,769 2.5 2.0 1.2 1.5Permanent grasslands and pastures 21,822 234,591 274,486 3,434,073 10.8 12.5 8 6.8UAA total 53,680 986,826 1,615,590 12,856,048 18.4 8.0 3.3 7.7Wood arboriculture 2,103 18,796 26,772 101,628 8.9 3.8 7.9 18.5Forests 16,098 141,675 328,358 2,901,038 8.8 8.8 4.9 4.9Non-utilised area 10,267 35,902 302,940 648,746 3.5 2.1 3.4 5.5Other area 43,637 46,362 945,829 573,638 1.1 0.6 4.6 8.1TAA total 54,189 1,229,561 1,619,228 17,081,099 22.7 10.5 3.3 7.2* Farms may involve more than one crop. Source: ISTAT - 6th General Agriculture Census.

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(54.8%). While long-term and occa-sional labour in Lombardy are equally divided among working days, at the national level the occasional compo-nent prevails.Women are underrepresented in farm

management compared to the na-tional average (19.8% compared to 30.7%), for reasons related to larger farm size. On the other hand, there is a higher presence of young farmers (14.5% versus 10%).

With regard to farmers’ educational level, few have university degrees (about 6%), while the percentage is lower in Lombardy of farmers with middle school diplomas than those with upper-middle school education.

% Breakdown of TAA in Lombardy and Italy, 2010

19.1%

2.9%

58.2%

3.0%

1.5%

11.5%

LOMBARDY ITALY

3.8%

0.6%

3.4%

41.1%

14.0%

17.0%

3.8%

20.1%

Arable crops

Tree crops

Permanent grasslands and pastures

Wood arboriculture

Forests

Non-utilised area

Other area

Source: ISTAT - 6th General Agriculture Census.

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Crop investments and livestock holdingsWith reference to land use, arable crops are the most common crop type, covering 58.2% of agricultural land, compared to 41.1% nationally. On the contrary, the share of tree crops to total surface is modest and decidedly

below the average. Permanent fodder crops extend over 19.1% of TAA, in line with the national average (20.1%), while woodlands account for 11.5%. The share of UAA to TAA is 80.3%, compared with 75.3% in Italy.Regarding livestock, 70% raise cattle, with an average herd size, expressed

in head, of more than double the na-tional average (101 as against 45). There are 8,463 dairy farms, 16.8% of those in Italy, with slightly more than one third of head raised in Italy.Pigs are raised on 2,642 farms, 10.1% of the national total, which alone ma-nage over 51% of the head raised in

Structural characteristics of livestock farms in Lombardy and Italy, 2010

Lombardy Italy Average size % Lombardy/Italy livestock head livestock head Lombardy head livestock head

Cattle 14,718 1,484,991 124,210 5,592,700 101 45 11.8 26.6- of which dairy cattle 8,463 546,320 50,337 1,599,442 65 32 16.8 34.2

Buffalo 86 10,209 2,435 360,291 119 148 3.5 2.8Sheep 1,659 105,759 51,096 6,782,179 64 133 3.2 1.6Goats 2,210 57,705 22,759 861,942 26 38 9.7 6.7Horses 5,664 30,196 45,363 219,159 5 5 12.5 13.8Pigs 2,642 4,758,963 26,197 9,331,314 1,801 356 10.1 51Poultry 2,396 26,512,923 23,953 167,512,019 11,065 6,993 10 15.8Rabbits 1,060 415,452 9,346 7,194,099 392 770 11.3 5.8Ostriches 31 980 244 5,246 32 22 12.7 18.7Total livestock 22,064 217,449 10.1 % livestock/total farms 40.6 13.4

Source: ISTAT - 6th General Agriculture Census.

61

Structural characteristics of farms in Lombardy by altitude zone, 2010

Mountains % to altitude Hills % to altitude Lowlands % to altitude Lombardy zone zone zone

Total farms (n.) 12,768 23.5 11,561 21.3 30,004 55.2 54,333UAA (ha) 173,578 17.6 91,962 9.3 721,286 73.1 986,826

- of which arable crops 7,123 1.0 49,666 6.9 658,473 92.1 715,263- of which tree crops 4,471 12.3 22,549 61.8 9,464 25.9 36,484- of which permanent fodder crops 160,766 69.2 19,541 8.4 52,061 22.4 232,368

TAA (ha) 316,238 25.7 115,982 9.4 797,341 64.8 1,229,561TAA average (ha) 24,8 10,0 26,6 22,6UAA average (ha) 13,8 8,0 24,4 18,4Total livestock farms (n.) 7,597 34.8 3,910 17.9 10,353 47.4 21,860% Livestock/farms 59,5 33,8 34,5 40,2Cattle (head) 77,820 5.2 107,722 7.3 1,299,449 87.5 1,484,991

- of which dairy cattle 38,467 7.0 36,649 6.7 471,204 86.3 546,320 cattle/livestock 16 45 176 101 Sheep (head) 59,134 55.9 14,014 13.3 32,611 30.8 105,759 sheep/livestock 49 53 163 64 Goats (head) 37,624 65.2 6,725 11.7 13,356 23.1 57,705 goats/livestock 25 19 41 26 Pigs (head) 6,789 0.1 113,032 2.4 4,639,142 97.5 4,758,963 pigs/livestock 11 283 2,813 1,801 Poultry (head) 1,365,813 5.2 5,158,916 19.5 19,988,194 75.4 26,512,923 poultry/livestock 1,756 8,941 19,201 11,065Source: ISTAT - 6th General Agriculture Census.

62

Area and output of main crops in Lombardy and Italy, 2011

Lombardy Italy Lombardy/ItalyCrops Total area Yield Harvest output Total area Yield Harvest output % % (ha) (t/ha) (000 t) (ha) (t/ha) (000 t) area outputCereals 430,807 9.1 3,932 3,432,652 5.7 19,504 12.6 20.2

- soft wheat 45,050 5.1 228 531,135 5.3 2,829 8.5 8.1- barley 17,357 4.8 83 269,675 3.5 949 6.4 8.7- rice 105,709 6.0 638 246,541 6.0 1,490 42.9 42.8- feed corn 242,436 11.9 2,880 994,831 9.8 9,753 24.4 29.5

Oily seeds 32,924 3.9 127 302,955 2.9 883 10.9 14.4- rape 3,267 2.6 8 18,834 2.3 44 17.3 18.9- soy 28,347 4.0 114 165,955 3.4 565 17.1 20.3

Dried legumes 1,505 3.8 6 68,269 1.9 133 2.2 4.3Tubers 949 30.6 29 62,091 24.9 1,547 1.5 1.9Outdoor vegetables 13,902 50.4 701 434,331 27.9 12,136 3.2 5.8

- industrial tomatoes 7,158 71.0 508 84,449 63.1 5,331 8.5 9.5- melons 2,264 28.2 64 23,173 23.1 536 9.8 11.9

Greenhouse vegetables 2,405 40.5 97 26,970 47.8 1,290 8.9 7.5Temporary fodder - fields 184,850 50.9 9,401 948,607 27.3 25,924 19.5 36.3

- waxy maize 131,325 58.7 7,711 297,452 52.5 15,621 44.1 49.4Temporary fodder - rotated fields 87,077 48.0 4,177 1,024,183 25.0 25,621 8.5 16.3

- alfalfa 65,247 48.4 3,155 683,010 29.0 19,836 9.6 15.9Permanent fodder 248,922 18.1 4,502 4,309,101 5.1 21,891 5.8 20.6

- permanent grasslands 128,942 32.3 4,165 927,819 15.7 14,570 13.9 28.6- pastures 119,980 2.8 336 3,582,373 2.4 8,678 3.3 3.9

Fresh and dried fruit and nuts 4,016 22.7 91 417,681 15.2 6,341 1 1.4- apples 1,782 28.4 51 54,067 44.6 2,411 3.3 2.1- pears 793 21.7 17 36,339 25.5 927 2.2 1.9

Wine grapes 21,331 8.7 185 661,935 8.9 5,903 3.2 3.1Olive trees 2,317 2.0 5 1,162,465 2.8 3,210 0.2 0.1Source: ISTAT and National Rice Board.

63

Italy. On the contrary, the share of sheep and goats is lower, while the region’s poultry represents a share of 15.8% of the total number of head raised in Italy. It’s interesting to note that, despite the general decline in farms since 2000, head raised have in-creased for pigs (+24%), sheep (+17%) and goats (+16.8%). Head of cattle, however, show a decrease of 7.6%

over ten years, less than the decline in farms.According to 2011 ISTAT economic data on surface planted and produc-tion volume, cereals occupy a signifi-cant portion of the regional UAA (over 430,000 ha, approximately 44% of UAA) and accounted for 12.6% of the entire Italian cereal surface; most of the cereal surface is planted to corn

(over 242,000 ha), a sharp increase compared to 2010 (+10%), and rice (105,000 ha). Lombardy supplies 29.5% of the national output of grain corn and as much as 42.8% of rice. Sur-face planted to oilseeds, stable compa-red to 2010, is led by soybeans (20.3% of national production), followed by rape (18.9% of Italian production).Among herbaceous crops, waxy maize

Herd size and output of livestock farms in Lombardy, 2011

Lombardy Italy Lombardy/ItalyLivestock Number Output Number Output % % of head (t) of head (t) head outputCattle - beef 1,578,976 369,500 5,897,525 1,427,100 26.8 25.9Pigs - pigmeat 4,164,452 833,800 9,350,781 2,082,600 44.5 40.0Sheep and goats - sheepmeat and goatmeat 145,426 900 8,902,556 62,700 1.6 1.4Poultry n.g. 320,200 n.g. 1,695,800 n.g. 18.9Cows and buffalo - Cow and buffalo milk (‘000 hl) 549,225 42,177 1,991,515 110,395 27.6 38.2Sheep and goats - Sheep and goat milk (‘000 hl) 121,896 31 7,920,616 5,675 1.5 0.5Eggs (million) n.g. 2,317 n.g. 13,166 n.g. 17.6Honey n.g. 1,700 n.g. 11,600 n.g. 14.7

Source: ISTAT.

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predominated (131,325 hectares) with 49.4% of the total national output. Among rotated fodder crops, alfalfa is the major crop, planted on over 65,000 hectares, and Lombardy pro-vides 15.9% of national output.51.8% of permanent fodder crops are represented by permanent grassland while the rest is pasture. In compa-rison with 2010, the areas planted to herbaceous crops increased by 7.8% (+9.2% for waxy maize), rota-ting pasture by 7.6% and permanent

grassland by 0.5%. Although tree crops are of particular importance and development at the regional level, their share of volume is modest. Output of fresh fruit is 1.4% of the Italian total, with slightly higher fractions only for apples and pears; the region also produces 3.1% of the na-tion’s wine grapes and 0.2% of its olive oil. Horticulture is practiced on about 14,000 hectares of open fields and 2,400 hectares of greenhouse space.Lombardy’s strong emphasis on live-

stock is confirmed by the data of stocks and livestock output in 2011. The region has a dominant role in the pigmeat sector (44.5% in stocks and 40% of output) and in cow’s milk (27.6% of total stock and 38.2% of output). The shares of beef (25.9%), poultry (18.9%), eggs (17.6%) and honey (14.7%) are also significant. Shares are much more limited, how-ever, for sheep and goat production, with 1.4% for meat and 0.5% for milk, respectively.

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As of the 2010 FADN1 accounting sur-vey, the new farm classification sys-tem has been applied, based on value

of production (standard output – SO) and no longer on total output (TO). Dealing with production, this places

more farms in higher size classes than previously: approximately 30% of Ital-ian farms have over 100,000 euro in

economic results of farms

Farm results by economic size class (ESU) in Italy and Lombardy, 2010

Class of ES % % SO Average Average AWU/ LSU/ Kw/ha TO/ha TO/AWU NI/FWU Current NI % farms share* UAA (ha) farm farm (€) (€) (€) costs % ITALY from 4.000 to 8.000 € 11.51 1.16 150.89 5.41 0.18 0.71 8.53 13,435 74,858 34,742 30.74 42.15 from 8.000 to 25.000 € 38.71 9.65 128.30 9.32 0.48 2.36 6.74 23,820 49,545 31,315 32.08 45.78 from 25.000 to 50.000 € 21.56 12.78 83.53 18.89 0.77 5.95 5.10 49,703 64,138 44,941 32.09 48.04 from 50.000 to 100.000 € 13.12 15.62 48.95 32.86 1.27 17.88 4.05 81,310 64,259 53,536 33.44 55.15 from 100.000 to 500.000 € 14.59 54.45 43.92 65.43 2.69 62.40 3.58 241,083 89,601 82,995 36.63 45.67 from 500.000 to 1.000.000 € 0.47 4.82 11.74 74.96 3.47 203.82 4.44 640,088 184,529 220,694 39.16 44.87 > = 1.000.000 € 0.04 1.51 1.00 117.32 6.72 643.65 3.22 1,477,252 219,720 402,166 49.27 39.38 Total 100 100 76.05 22.56 0.95 14.93 4.60 70,898 74,529 58,006 34.95 47.31LOMBARDY from 4.000 to 8.000 € 4.39 0.20 204.27 7.69 0.15 1.58 5.54 11,119 74,127 39,175 23.64 52.85 from 8.000 to 25.000 € 25.63 3.23 95.85 9.25 0.30 5.03 13.60 31,635 106,881 50,617 33.14 46.15 from 25.000 to 50.000 € 22.71 6.71 64.26 19.85 0.46 8.97 7.02 55,379 121,177 68,850 30.44 49.49 from 50.000 to 100.000 € 16.72 9.49 49.91 40.04 0.45 30.00 5.17 91,057 200,821 114,048 35.02 47.45 from 100.000 to 500.000 € 26.45 57.68 48.64 68.25 1.50 88.75 5.01 320,979 213,385 183,999 34.27 53.10 from 500.000 to 1.000.000 € 3.94 19.40 40.07 60.36 2.51 284.28 7.28 911,903 362,641 344,989 39.33 48.84 > = 1.000.000 € 0.16 3.29 1.00 97.50 3.73 1.095.93 5.81 1,270,604 340,574 321,518 51.80 39.90 Total 100 100 56.20 34.50 0.77 44.84 6.06 159,273 208,197 151,867 35.32 50.79* Expresses average number of farms in the universe represented by one farm in the survey sample. Source: FADN INEA figures expanded to the universe using base weights processed by INEA.

1. For information about the FADN survey see www.rica.inea.it.

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SO. These farms account for 60% of national SO, according to traditional comparisons, whereas at the regional level it emerges that Lombardy farms represent around 80% of regional SO.

In 2010, compared to 2009, Lom-bardy farms were of greater economic size on average. This brought about an increase in main indicators, such as utilised agricultural area (UAA) per

farm (+50%) and an increase in total output (TO) per hectare (+220%). In addition to these values, there was greater mechanisation per hectare (+30%), in the face of lower manpower

Average farm results in major EU countries (2007-2009 average) (euro)*

% n. % SGM SGM per TO per TO/AWU NI/ha NI/FWU % subsidies farm ESU farm farm /TOFrance 7.10 18.65 77.43 142,520 75,142 373 20,518 19.48Italy 14.78 16.48 32.90 56,806 41,460 1,590 26,357 10.01Spain 12.97 13.44 30.60 45,461 32,318 687 20,860 16.32Germany 3.73 12.39 97.95 213,753 86,401 344 23,011 17.92Netherlands 1.19 6.32 157.24 401,248 144,683 917 20,528 4.30United Kingdom 1.77 6.01 100.20 224,714 97,424 307 37,808 20.35Poland 15.26 5.21 10.07 25,902 14,801 451 5,361 17.95Greece 10.60 3.84 10.70 18,976 16,077 1,629 11,173 32.21Denmark 0.65 2.52 114.50 297,851 187,321 -345 -33,917 11.10Belgium 0.64 2.30 105.67 200,132 98,754 1,074 30,687 12.16Lombardy 0.71 2.25 92.74 483,833 100,131 3,195 64,619 9.26Romania 17.13 2.19 3.78 11,966 7,115 382 3,215 15.21Austria 1.46 1.65 33.37 72,761 46,052 889 20,599 28.08Ireland 2.13 1.61 22.20 42,822 37,896 417 17,767 46.97FADN EU 100.00 100.00 29.52 60,069 36,032 524 13,433 17.62* Ordered based on price of country. Source: FADN.

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Specialised cereal agriculture, average farm results in euro represented by major EU countries in FADN EU (three-year average 2007-2009)*

Country % n. SGM per TO/ha TO/AWU NI/ha NI/FWU subsidies % ha % ha other % ha % unplanted farms farm /TO cereals arable crops fodder crops UAAFrance 12.41 72.93 1,081 85,494 295 25,983 33.03 61.33 23.87 7.96 6.52Germany 3.08 108.83 1,143 104,653 182 31,827 29.88 61.58 24.21 10.93 3.27United Kingdom 3.47 96.50 1,107 114,812 317 51,653 29.33 54.71 17.60 18.64 7.15Spain 13.92 23.36 523 41,764 329 29,208 36.47 66.28 11.47 3.70 17.22Italy 13.18 19.80 1,369 37,492 584 17,833 31.77 78.63 9.17 5.18 5.81Romania 19.35 6.45 476 12,942 146 6,304 28.67 70.35 26.41 1.61 1.35FADN EU 100.00 29.74 846 44,703 252 18,987 32.57 65.66 20.05 6.94 6.53Lombardy 1.87 34.43 2,021 47,814 904 23,768 30.94 88.98 3.04 4.79 2.53* In the EU countries represent 77% of total SGM; in Lombardy farms represent 25% of Italy’s SGM.Source: FADN.

(-20%), and greater remuneration for family labour (+260%).There was a slight decrease, however, in the share of current costs to TO, fixed costs and net family income (NI); there was a similar gradual increase in the share of current costs and NI to t