An overview of Italian agriculture and food industry

1. An overview of Italian agriculture and food industry Federica Piersimoni ISTAT - Italian National Institute of Statistics Agriculture Service piersimo@istat.it Joint UNECE/EUROSTAT/FAO/OECD Meeting on Food and Agricultural Statistics in Europe Rome, 29 June – 1 July 2005

2. Contents I/O tables Agriculture Agri - food Consumption Output Intermediate consumption Foreign trade Employment - NA Added value Gross fixed investments Industrial census Employment Agricultural census

3. Input-output accounts

4. Added value at basic prices • Italian economy: slowing down from 2002 • Agriculture: from 2000 a negative rate of growth till 2004 • Contribution to GDP almost constant from 1992  3% • Industry: quite positive growth in the nineties till 2001 • Food, beverages and tobacco: trend rather different; from 2001 a total increase of 6% • Contribution to GDP almost constant from 1992  2%

5. Output at basic prices • Italian economy: from 1994 always a positive rate of growth with a slowing down from 2001 • Agriculture: from 2000 a negative rate of growth • From 1999 a decrease of –8,4% • Industry: quite positive growth in the nineties till 2001 • Food, beverages and tobacco: in the second half of the nineties, worse trend; from 2000 a better performance • From 1999 an increase of +10,7%

6. Output, intermediate consumption and added value at basic prices Constant values Current values

7. Gross fixed investments • Agriculture: increases at the end of the nineties, then negative trend • In 2002 and 2003, greater rate of growth in comparison to total investments • BUT…. agriculture is loosing weight!!! In 1976, 7,2%, in the nineties 4-5%, last three years 4,3% on the total investments • Food, beverages and tobacco: in the nineties there have been high increases of the investments in this sector • FBT is gaining weight: in 1976 6,5%, in 2001 9,9% of the industrial investments

8. Investments in Agriculture: 58% machinery and 29% buildings Investments in Food, beverages and tobacco industries: 74% machinery

9. Employment (National Accounts) • Agriculture: -4,9% in last three years = more than 55.000 employees • In 2004, 51,8% subordinate and 48,2% self-employed (respectively 48% and 52% in 1992) • 6,9% of total employment in 1992, in last three years only the 4,4% • FBT: +9,3% in last three years with different rates for F or BT • In 2004, 76% subordinate and 24% self-employed (respectively 72% and 28% in 1992) • About 9% of industrial employment (growing in last three years)

10. Employment (National Accounts)

11. Import-export trade • Agriculture: imports almost constant in last five years (-0,6%) • exports (-1,8%) with an up and down trend • Fishery: imports +13% in last five years (above all EU-25 fish farming) • exports (-9%), above all to EU-25 • Manufacturing: imports +7,6% in last five years • exports +6,3% in last five years • FBT: imports +13% in last five years • exports +18% in last five years • Incidence of FBT to manufacturing about 6% • Almost 80% of imports comes from EU-25 • About 65% of export goes to EU-25

12. Import-export trade % composition of FBT in 2004 • For agriculture: • Imports: 36% cereals and other crops; 24% fruit • Exports: 51% fruit; 31% vegetables

13. Import-export trade • Variations in value for agriculture: • Imports and exports: variations of UAV (only in 2002 var. of quantity exchanged) Decomposition in quntity and unitary average values • Variations in value for fishing and fish farming: • Imports: variations of quantities • Exports: both UAV and quant. • Variations in value for FBT: • Same as for fishing but for exports, last 3 years UAV, in 2001 quantities • Variations in value for manufacturing: • Imports: variations of UAV • Exports:variations of UAV and quant.

14. Consumption Total consumption: 1996-2000 revival 2001-2002 stagnation 2003-2004 +2,3% FBT consumption: 2004 total decrease of 0,9% (from 1996), above all for fruit (-4,1%), sugar, jam, honey, syrups, chocolate and pastry (-3,0%), mineral water, sparkling drinks and juices (-2,9) and tobacco (-5,8%) (except bread and cereals (+0,8%), fish (+1,9%), milk, cheese and eggs (+0,6), other food products (+0,7%))

15. Consumption % incidence of FBT on total expenditure: 20,5% in 1992, 17,3% in 2004 Analyzing expenditure in current and in constant values, it can be observed that most of the variations of last years were due to inflation Consumption expenditure for FBT products (millions of euro)

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

17. Employment (censuses) 8-th industrial census (October 2001) 5-th census of agriculture (October 2000) Employment to October 2001 Employment to the agrarian year corresponding to 1/11/1999 – 31/10/2000 Information: number of working days carried out in the farm regards both for self-employed (i.e. the conductor and his family) and subordinate workers (i.e. the other farm labour force with regular or temporary contract)

18. In order to obtain an homogeneous measure with industrial census, the working days have been transformed in labour contracts, i.e. in number of jobs Labour contracts: proxi variable for employment Problem: different dates labour contracts have been estimated for October 2001 considering a combination of the agricultural labour force variation between the mean of the four previous October 2000 quarters and last quarter 2000 (Labour Force Survey), and the variation of the employment in agriculture from 2000 and 2001 (national accounts figures) For the 20 Italian regions ( NUTS 2) and for self-employed and subordinate workers

19. Both industrial census and census of agriculture communes (NUTS - LAU 2) figures have been classified by Labour Force Survey degree of urbanization: A densely populated area (at least 500 inhabitants/Km²); B intermediate urbanized area (between 100 and 499 inhabitants/Km²); C thinly populated area (less than 100 inhabitants/Km²). Then the about 4.400.000 businesses local units of industrial census have been classified into “agriculture” and “agri food industry”

20. Codes: • primary agriculture (from census of agriculture); • primary agriculture (from industrial census); • manufacture of food products, beverages and tobacco (from industrial census); • auxiliary suppliers (from industrial census); • services suppliers (from industrial census).

21. In 2001, agriculture and agri-food employment represented the 17,6% of the total of the employees: 8,5% agriculture and 9,1% agri food 48,3% of total agriculture and agri-food employment is relative to agriculture, with a range from 19,9% in densely populated area to 71,5% in thinly populated area The percentage of employment in agriculture is strictly correlated with the density of the population, both for labour in farms and in businesses, the second one much less important than the first one (only the 4%)

22. Only the 24,7% of employment in thinly populated area is in agriculture In absolute values the major part of agricultural employment is in intermediate urbanized areas. In densely populated areas, the most part (49,4%) of the agriculture and agri food employment is in services industries (4,8% of the total) In intermediate urbanized and thinly populated areas is in primary agriculture (the 50,6% and the 71,5% respectively) The 49,8% of employment in primary agriculture is in intermediate urbanized areas and the 39,6% in thinly populated areas The 48,8% of employment in food manufacturing industries and the 52,9% in auxiliary suppliers are in intermediate urbanized areas

23. Employment by area and sector (2001) Primary agriculture, food manfufacturing and services suppliers increase of importance from A to C