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The Emilia-Romagna agroindustry cluster, The Emilia-Romagna agroindustry cluster, and the fruit and vegetable chainand the fruit and vegetable chain
Alessandro ZAMPAGNAAlessandro ZAMPAGNACenturia RIT – Romagna Innovazione TecnologiaCenturia RIT – Romagna Innovazione Tecnologia
General ManagerGeneral Manager
Adriatic Danubian ClusteringAdriatic Danubian Clustering
UdineUdine, 14 February 2011, 14 February 2011
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1. The cluster concept1. The cluster concept
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NOT top-down planning
But
Self-originated and self-sustaining concentration of enterprises
Fostered by local specialised services and funding
The local government does not “create” clusters but helps the start-up and growth of the cluster through a support system
composed of funding and especially services
Agro-food clusterAgro-food cluster
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NOT a simple concentration of food processing enterprises
But
COMPLETE FOOD CHAIN SEGMENTS
MACHINERY AND SERVICES
INTEGRATION
COMMON ROOTS
Agrofood agroindustry clusterAgrofood agroindustry cluster
The agrofood sector developmentThe agrofood sector development
1900-1
950 1
960
1900-1
950 1
960
1970
1970
Cereals, Beets, Fruits and Vegs
Animal husbandry
Feed production Sugar industry Fruits & Vegs trade Seeds and nurseries
Milk and cheese Processing
Wine
Meat
1950-1970 : The modernisation of the agrofood sector
GROWTH
1970 - 2
000
1970 - 2
000
1970-2000 :
The development of the
Agroindustry Cluster
INTEGRATION
Farm machinery
Processing machinery
Refrigeration plants
Packaging
Logistics
Biotechnologies (in vitro, biological control, fermentation, extractions)
Information technology
The agroindustry cluster developmentThe agroindustry cluster development
The R-EVOLUTION of the new millennium:
The fall of agricultural product prices
The farewell of the sugar industry
La “vanishing” community funds
The Transport industry rationalisation
The opening international food product market
The “media” crisis (BSE, flue, dioxin)
Growing strategy differences of the three steps of the food chain:
- Agriculture WHAT? What are we going to do?
- Food HOW? How to be more competitive?
- Machinery WHERE? Where to look for new markets?
The cluster r-evolutionThe cluster r-evolution
2000 - …
.2000 - …
.
The cluster re-engineeringThe cluster re-engineering
2000 - …
..2000 - …
..
The REACTION:
• The confusion of the farmers
• Mergers of food enterprises (especially coop)
• The new non-food chain
• The internationalisation of machinery enterprises
• Searching for integrated logistic
Which policy for the three segments of the chain?
Is it possible to re-integrate the cluster?
DOES THE AGROINDUSTRY CLUSTER STILL EXIST?
The cluster re-engineeringThe cluster re-engineering
2000 - …
..2000 - …
..
The 2000s cluster policy :
INNOVATIONINNOVATION
Organisation Technology
Agriculture Bigger farms Bigger farms New cropsNew crops
New networksNew networks
Processing New commercialNew commercial New processes, New processes, solutionssolutions consumer-tailored consumer-tailored products, products, ICTICT
Machinery International growthInternational growth High techHigh tech
A POLICY TO INTEGRATE THE CLUSTER?
Innovation & Services (information, networks, R&D, finance) Innovation & Services (information, networks, R&D, finance)
The regional Service Centres NetworkThe regional Service Centres Network
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Regional Administration
ERVET ASTER
Cluster environment
Centuria RIT
CRPV, CRPA
Experimental farms
University & Research Centres
Training Centres
Labs
Cluster environment
Centuria RIT
CRPV, CRPA
Experimental farms
University & Research Centres
Training Centres
Labs
Cluster A
Agricultural farms
Coops
Processing companies
Machinery companies
Service companies
…..
Cluster A
Agricultural farms
Coops
Processing companies
Machinery companies
Service companies
…..
Cluster B
Agricultural farms
Coops
Processing companies
Machinery companies
Service companies
…..
Cluster B
Agricultural farms
Coops
Processing companies
Machinery companies
Service companies
…..
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3. The role of cooperatives in 3. The role of cooperatives in Emilia-Romagna agrofood clustersEmilia-Romagna agrofood clusters
Emilia-Romagna agricultural gross product amounts at 4,000 millions Euro.
More than 50% of the agricultural produce is managed by cooperatives.
Cooperatives have had a primary role in the development of the cluster.
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Agricultural Coops in Emilia-RomagnaAgricultural Coops in Emilia-Romagna
FIRST-GENERATION COOPERATIVES
• «Defensive» objectives: to protect members from market risks and to reduce costs through scale economies• “Decision Centre”: Board of Directors, composed of farmers, and Assembly «one head one vote"• Evolution: Difficulties in maintaining margins Develop new higher valued added activities along the chain (new-generation cooperatives) Mergers or alliances to obtain greater scale economies
How Coops were bornHow Coops were born
NEW-GENERATION COOPERATIVES
• «Offensive strategy»: scale economies in activities closer to the consumers (processing, logistics, marketing), in order to get more value added. They try not to sell commodities but higher-value products.
• Complete vertical integration, to obtain control of the whole chain.• Or strategic alliances with companies (even non coops) with synergic expertise.
The evolution of CoopsThe evolution of Coops
• Agricultural prices comes from the market; it is not realistic to think of control the agricultural product price.• Value Added is present all along the chain; every step of the chain to the consumer, gets a higher quota of Value Added.• To get more Value Added, it is necessary to invest in activities along the chain and get closer to the consumer.• Farmer income = agricultural product price + return from the investment along the chain
The principles of New-generation CoopsThe principles of New-generation Coops
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Some examples in the fruit and Some examples in the fruit and vegetable clustervegetable cluster
Diversificazione e segmentazione
PIU’ GUSTO AL BENESSERE
• ricchi di fibre
• basso contenuto di grassi
Ricchi di:
• fibre
• vitamine
• composti antiossidanti
Il biologico e la tracciabilità
A bridge between the fruit and vegetable A bridge between the fruit and vegetable cluster and the Mediterraneancluster and the Mediterranean
To foster internationalisation of fruit and vegetable To foster internationalisation of fruit and vegetable cluster companies in the Mediterraneancluster companies in the Mediterranean
27 Italian companies (in majority from Emilia-Romagna) in 27 Italian companies (in majority from Emilia-Romagna) in
different businesses of the fruit and vegetable cluster, have different businesses of the fruit and vegetable cluster, have
decided to cooperate in order to promote their activities in the decided to cooperate in order to promote their activities in the
Mediterranean:Mediterranean:
Fresh fruit and vegetable production and marketingFresh fruit and vegetable production and marketing
PackagingPackaging
MachineryMachinery
ServicesServices
Mediterranean Fruit Company
M.F.C. offices
MFC Italy
MFC Egypt
MFC Tunisia
MFC Turkey
MFC Russia
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3. The role of Centuria RIT 3. The role of Centuria RIT Romagna Innovation TechnologyRomagna Innovation Technology
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CENTURIA-RIT IS A SCIENCE AND TECHNOLOGY PARK AIMED AT ENHANCING THE COMPETITIVENESS OF
THE TERRITORY AND OF LOCAL ENTERPRISES THROUGH INNOVATION
It is at the same time:
A crossway between institutions, enterprises and research to foster information exchange, technology transfer, contacts.
A system of relationships, fed with added value services, to provide better access to knowledge, innovation, markets and
capitals.
The mission of Centuria RITThe mission of Centuria RIT
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The environmentThe environment
sede di Faenza
sede di Cesena
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INNOVATION INFRASTRUCTURES
- University
Agriculture, Food Science, Engineering, Information Science, Economics, Languages, Architecture, Psychology
- Analysis and R&D Laboratories
- Research centres
- Training centres
- Specialised international exhibitions
- Available industrial facilities
The environmentThe environment
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All the innovation infrastructures are present in the territory:
No need for new incubators, laboratories, greenfield
investments, etc.
The need is to increase the relationship between the actors of
the territory to increase innovation.
Hence the “SOFT” solution:
Public private investment
Majority of private capital
No direct “hard” investment:
“Soft” activities only: networking, information, innovation
brokerage, R&D project, etc.
The “soft” solutionThe “soft” solution
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CompaniesLeading companies
Associations of entrepreneurs
Banks
65% shares
The stakeholdersThe stakeholders
Research & trainingLocal faculties of the University of Bologna
CNR, ENEA
Research centres
Laboratories
0% shares
Local governmentMunicipalities, Provinces, Chambers of commerce
Local health and environment authorities35% shares
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The logical frameworkThe logical framework
INFORMATION AND NETWORKINFORMATION AND NETWORK
PROJECTS AND SERVICESPROJECTS AND SERVICES
CO
MM
UN
ITY
CO
MM
UN
ITY
Workgroups
News
Patent & tech
monitoring
Info
Seminars conference
s
Area marketing
R&D Tech Transf
Finance
Intangibles
R&DTech
Transf
Finance
New entrepreneurship
Internationalisation
Publications
ME
MB
ER
SM
EM
BE
RS
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Information flow to the territorySelected information on patents and technology
Commercial and joint-venture opportunities
Selections of the competencies useful for the territory
Relationship inside the territoryBetween companies, laboratories, R&D centres, university, public
administration, financial institutions
Meetings, seminars, company open days
Management of shared projects: start-ups, R&D, various collaborations
Information flow from the territoryArea marketing
Relationship with investors
Common marketing operations
1st activity: relationships network1st activity: relationships network
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SME
SME
SME
SME
SME
SME SME
InstitutionsBanksSyndicates of entrepreneurs
UniversitiesR&D centres
S.T.P.
project managementdata miningmarket analysestechnology transfer research and developmentbusiness connectionsnew business start upventure capital connectionstrainingJV development
Big industrialgroups
2nd activity: Specialised services2nd activity: Specialised services
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Concrete outcomes (projects, funding, patents, new companies, etc.)
Satisfaction of the associates
Low cost (flexible and light structure)
No building(ex. laboratories, incubators), just offices
No ad hoc public funding
80% of the investment in professional personnel and Information and Communication Technology
The outcomesThe outcomes
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Thank you