1. No category

WP3 – Italian case study: local and global cured ham
chains
2014
sk 3.5)
Authors – Partner
Italian case study: local and global cured
ham chains (Task 3.5)
Kees de Roest – CRPA
Stefano Pignedoli – CRPA
Giovanni Belletti – University of Florence
Davide Menozzi – University of Parma
Filippo Arfini – University of Parma
www.glamur.eu
2
Contents
1.
Introduction ................................................................................................................................... 8
2.
Description of the three chains ....................................................................................................... 8
2.1.
Local Cinta Senese ham ....................................................................................................8
2.2.
Parma Ham .................................................................................................................... 10
2.3.
Generic cured ham ........................................................................................................ 12
2.4.
Characterisation, system boundaries and mapping ...................................................... 13
2.4.1.
Characterisation of the supply chains ................................................................... 13
2.4.2.
System boundaries and mapping .......................................................................... 17
2.4.3.
Local supply chain Ham of Cinta Senese meat PDO .............................................. 18
2.4.4.
Regional supply chain Parma Ham ........................................................................ 19
2.5.
3.
4.
Critical issues and relevant attributes/indicators.......................................................... 20
Research design ............................................................................................................................ 22
3.1.
Research Questions ....................................................................................................... 22
3.2.
Attributes and indicators selection process .................................................................. 22
Methods....................................................................................................................................... 33
4.1.
Added Value .................................................................................................................. 33
4.2.
Resilience ....................................................................................................................... 36
4.2.1.
Description of the attribute “resilience” and research questions......................... 36
4.2.2.
Contextualization in the Cured ham supply chain................................................. 39
4.2.3.
Methodology ......................................................................................................... 41
4.2.4.
Prices volatility indicators ...................................................................................... 45
4.2.5.
Pig farm indicators ................................................................................................. 45
Analytical indicators .............................................................................................................. 45
Synthetic indicators ............................................................................................................... 47
4.2.6.
Slaughtering indicators .......................................................................................... 47
Analytical indicators .............................................................................................................. 47
Synthetic indicators ............................................................................................................... 48
4.2.7.
www.glamur.eu
Ham processing indicators.................................................................................... 48
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Analytical indicators .............................................................................................................. 48
Synthetic indicators .............................................................................................................. 49
Cross-cutting indicators ......................................................................................................... 49
4.3.
Chain governance .......................................................................................................... 50
4.3.1.
4.4.
Territoriality ................................................................................................................... 54
4.4.1.
Description of the attribute ................................................................................... 54
4.4.2.
Indicators ............................................................................................................... 56
4.5.
Resource use and pollution ........................................................................................... 57
4.5.1.
Description of the attribute ................................................................................... 57
4.5.2.
Indicators ............................................................................................................... 58
4.6.
Affordability ................................................................................................................... 59
4.6.1.
Description of the attribute ................................................................................... 59
4.6.2.
Indicators ............................................................................................................... 60
4.7.
5.
Description of the attribute ................................................................................... 50
Data quality check ......................................................................................................... 61
Results (performances) ................................................................................................................. 67
5.1.
Value added ................................................................................................................... 67
5.2.
Resilience ....................................................................................................................... 72
5.2.1.
Prices volatility results ........................................................................................... 72
5.2.2.
Pig farming results ................................................................................................. 73
Analytical indicators .............................................................................................................. 73
Synthetic indicators ............................................................................................................... 73
5.2.3.
Slaughtering results ............................................................................................... 75
Analytical indicators .............................................................................................................. 75
Synthetic indicator ................................................................................................................. 75
5.2.4.
Ham processing results.......................................................................................... 77
Analytical indicators .............................................................................................................. 77
Synthetic indicators .............................................................................................................. 77
Cross-cutting indicators ......................................................................................................... 78
5.2.5.
www.glamur.eu
Performance comparison ...................................................................................... 81
4
5.3.
5.3.1.
Indicator "Trust based internal relationships" ...................................................... 84
5.3.2.
Indicator "Trust based external relationships"...................................................... 85
5.3.3.
Indicator "Self governance capacity" .................................................................... 86
5.3.4.
Indicator "Chain-based value governance" ........................................................... 88
5.4.
Indicator “Social cohesion and conviviality” ......................................................... 95
5.4.2.
Concluding remarks ............................................................................................... 98
Resources use and pollution ......................................................................................... 99
5.5.1.
Results ................................................................................................................... 99
5.5.2.
Conclusion ........................................................................................................... 108
5.6.
7.
Territoriality ................................................................................................................... 91
5.4.1.
5.5.
6.
Chain governance .......................................................................................................... 84
Affordability ................................................................................................................. 109
Discussion on the research questions .......................................................................................... 115
6.1.
Global-Local performance comparison (research question 1) .................................... 115
6.2.
Global-local interactions (research question 3) .......................................................... 119
6.3.
Methodological reflections (research question 2) ...................................................... 119
Annexes ..................................................................................................................................... 121
7.1.
Annex 1– Volatility indicators and Analytical indicators results ................................. 121
7.1.1.
Prices volatility results ......................................................................................... 121
7.1.2.
Pig farming analytical indicators results .............................................................. 124
7.1.3.
Slaughtering results ............................................................................................. 129
7.1.4.
Ham processing results........................................................................................ 130
7.2.
Annex 2 – Methodological approach used for LCA ..................................................... 134
7.2.1.
Parma pigs ........................................................................................................... 134
7.2.2.
Cinta Senese pigs ................................................................................................. 137
7.2.3.
Emissions............................................................................................................. 139
7.2.4.
Slaughtering for Parmapig and generic light pig ................................................. 139
7.2.5.
Slaughterhouse for Cinta Senese pig .................................................................. 140
7.2.6.
Ham factory for Parma and generic crude ham ................................................... 141
7.2.7.
Generic crude ham seasoning .............................................................................. 141
www.glamur.eu
5
7.2.8.
Ham seasoning company for Cinta Senese.......................................................... 141
7.2.9.
Transport and retail ............................................................................................. 142
7.3.
8.
Annex 3 – Dataset for Attribute Territoriality ............................................................. 143
References ................................................................................................................................. 146
8.1.1.
www.glamur.eu
List of the main sources ....................................................................................... 150
6
The research leading to these results has received funding from the European Union’s Seventh Framework
Programme for research, technological development and demonstration under grant agreement n° 311778
To be quoted as:
de Roest K., Pignedoli S., Belletti G., Menozzi D., Arfini F. (2014). Glamur project Italian
case study: local and global cured ham chains. CRPA.
www.glamur.eu
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
1. Introduction
Cured hams play a relevant role in Italian’s food habits. Italy is renowned worldwide for its
traditional hams protected by geographical indications (e.g., Parma, San Daniele, Toscano, which
are protected by a Protected denomination of origin – PDO), which play a very important role on
the consumer market.
These traditional hams are linked to restricted territories and to local traditions, but they are
produced on a large scale and largely manufactured according to intensive/industrial production
processes.
Next to these traditional hams on the market two main other types of hams are present. On
the one hand, hams cured in Italy but produced with fresh hams of foreign origin, very competitive
on price, and on the other hand, cured ham produced with traditional methods from local pig breeds
reared according to traditional criteria.
This report will examine the following three types of cured ham:
1.
2.
3.
Traditional cured ham obtained from the meat of the Cinta Senese pig, a native breed of
Tuscany;
Parma Ham protected by a designation of origin (PDO);
Generic non-PDO cured ham produced with fresh hams imported from abroad.
2. Description of the three chains
2.1. Local Cinta Senese ham
The Cinta Senese is an Italian native breed widespread in the region of Tuscany. This breed
after a long period of crisis that had brought almost to its extinction, is now recovered and out of
danger. Thanks to agro-environmental measures, technical assistance and a re-valorization of its
products on the market, farmers have reintroduced this native breed again spreading it throughout
Tuscany (and also in nearby regions) and preserving traditional ways of farming. In 2010, according
to ANAS, statistics report the presence in Tuscany of 120 farms with about 980 sows registered in
the official Herd Book.
The farming system is based on the pasturing of the pigs on meadows and/or in the forest.
However, there are farms that use buildings housing the sows during farrowing and weaning. The
Cinta Senese is characterized by the high quality of its fresh meat, which is both consumed fresh
and processed into high quality “salamis” and cured ham.
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
A PDO for the fresh meat of Cinta Senese was registered by the Reg. UE 217 (17.03.2012
published in the EUOJ L 75, 15.03.2012), long time after the first submission of the application
(06.09.2005). According to the product specifications, the PDO designate the meat of pigs of Cinta
senese breed reared in Tuscany region that are the offspring of pigs which are both registered in the
population register and/or the herdbook of the genetic type “Cinta Senese”. Pig farmers of Cinta
Senese from other regions where the breed is bred (in particular Umbria) have opposed this
geographical demarcation.
As far as the method of production is concerned, the PDO product specification states that
the animals intended for slaughter must be reared in the wild/semi-wild once they are four months
old. The maximum limit per hectare is 1,500 kg live weight. The pigs must be allowed to forage
daily in areas of land that are either fenced off or not, and that may include shelters for the night
and/or for inclement weather. Breeding sows and boars may be housed in appropriate structures
(pens) in the mating period and pre- and post-partum to facilitate health controls and farrowing.
It should be noted that some farmers breed Cinta Senese pigs bred outside the requirements
of the Product specifications. This fact, in principle, should prevent the opportunity to name the
product “Cinta senese”. In fact, according to a decree of the Italian Ministry of Agriculture, all the
breeders of Cinta Senese pigs in purity may indicate on the label "product obtained from pigs of
Cinta Senese", regardless of the place of rearing and of breeding technique used. In this way the
effectiveness of the designation of origin is greatly reduced.
Pasture in the forest is carried in more than half of the farms. The sows are kept outdoors
(65% of cases), but 75% farrow in boxes. The typical farm business (38% of farms) has a number of
sows that varies between 6 and 15 animals. 29% of the farms have a herd size of 1 to 5 sows. The
most significant class (16-50 sows) represents 21% of the farms. This is an economically
sustainable herd size, as the smaller farms rely primarily on income from other agricultural
activities (wine, olive oil). On farms with more than 50 sows (12%) the livestock activity is
considered an opportunity for capital investment. On these farms the processing of the fresh meat is
quite common.
The forest, if present, is used for pasturing during the whole year on 70% of the farms. The
natural and artificial pastures are less used: 50% of farms do not use them. The pigs are normally
slaughtered after 18-24 months, with a weight of about 150 kg.
Past studies have shown that, in some cases, the forest was considered to be a simple
container of pigs and not used as a supply of feed. During the fattening phase 80% of the energy
need is covered by concentrate feed and only the remaining 20% is covered in a natural way with
the acorns of forest.
According to Franci et al. (2011), four categories of farms can be distinguished:
1. The traditional farmer tied to the land and the environment that leads to sustainable
production with moderate number of animals.
2. The hobby farmer who wants to exploit the forest without having the necessary
knowledge to manage the profitable production.
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
3. The very experienced farmer, who looks for innovative solutions for example in the field
of genetic selection and knows how to exploit the commercial channels and care of the image of the
product.
4. The farmer-entrepreneur, paying less attention to environmental constraints, is involved in
the entire supply chain and looks for new potential markets.
According to these different models, some problems of negative environmental impacts in
the forests, due to an excessive load of animals, are reported.
The Cinta Senese meat is used for both fresh consumption and for the production of various
types of traditional Tuscan salami, Among these, the cured ham has a particular positive reputation
in Tuscany and outside. About 70% of the farmers join the Consortium of Cinta Senese and 60% of
the farmers is also processing the fresh meat.
The Consortium of the Cinta Senese meat PDO has registered a collective private quality
hallmark granted to the Consortium members to ensure sausage products and hams made using only
meat Cinta Senese PDO.
The cured of the Cinta Senese ham includes always the paw (like San Daniele ham).
According to these different models, some problems of negative environmental impacts in
the forests, due to an excessive load of animals, are reported.
2.2. Parma Ham
The production chain of Prosciutto di Parma PDO involves 4286 breeding farms, 129
slaughterhouses and 150 processors (Prosciutto di Parma PDO Consortium, 2013). The “Prosciutto
di Parma” (Parma Ham) PDO is produced in Parma, in Emilia-Romagna region; all Parma Ham
PDO authorized producers must be located within the geographical boundaries of the Parma
production area (i.e., 5 km south of the via Emilia, limited to the east by the river Enza and on the
west by the river Stirone, and up to an altitude of 900m). The pigs used in the production of Parma
Ham PDO must be bred in one of ten northern and central Italian regions. However, more than 85%
of the pigs are bred in only three Northern Italian regions (i.e., Lombardy, Emilia-Romagna and
Piedmont). Only three breeds of pigs can be used for Parma Ham: Large White, Landrace and
Duroc. The Parma Ham pigs are fed with cereal grains and, in some local cases, whey from the
production of Parmigiano-Reggiano PDO and Grana Padano PDO cheeses. The 150 processing
companies have produced 9, 087,000 branded hams in 2013. The value of the ‘‘Prosciutto di
Parma’’ is 740 million euro at wholesale prices and 1.56 billion euro at retail prices (Prosciutto di
Parma PDO Consortium, 2013). Overall, approx. 28% of the production is exported. Britain is the
largest international market for Parma Ham with more than 300,000 hams and over 18 million persliced packs sold annually (Prosciutto di Parma PDO Consortium, 2013).
Processing
During the last decades the ‘‘Prosciutto di Parma’’ production system has experienced a
deep technical innovation. Traditionally, the unique conditions of the Parma geographical area have
made it possible to produce the highest quality hams. The processing methods, first artisanal and
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
linked to rural traditions (e.g., curing ham during the winter season, salt from the wells of
Salsomaggiore, pigs fed with whey from the production of Parmigiano-Reggiano PDO cheese, etc.),
changed dramatically during the ‘70s with the introduction of the refrigerated holds (the cold
storage room) and new skilled, specialized and highly experienced workers (e.g., salters, de-boners,
etc.). The technical development involved also mechanical firms inside the Parma territory that
designed new machineries for the curing industry.
The breeding phases are defined as follows: suckling during first four weeks with the sow;
weaning, from the 5th to the 12th week; piglet fattening, from 30 to 80 kilograms of weight; and
fattening: from 80 to 160 kilograms of weight and above. The minimum slaughtering age is nine
months. Producers of Parma Ham PDO receive fresh legs from authorized slaughterhouses (from
the same ten Italian regions) on a weekly basis; the average weight is around 15 kg. The legs are
first salted by a highly trained skilled worker; the pigskin is covered with humid sea salt, while the
muscular parts are covered with dry salt. Salt is the only preservative used in the processing
method, no chemical elements are allowed. This is another big difference from other generic hams,
normally containing nitrites and nitrates.
Next the hams hang for 70 days in refrigerated, humidity-controlled rooms. The meat
gradually becoming darker and harder. Around seven months after the salting process the ham is
smeared with a mixture of rice flour, salt, and pork fat called ‘sugna’ to stop it drying too quickly
for the remainder of its maturation. After air drying the ham it is moved to the cellar to start the
maturation process. The designation of origin ‘Parma Ham’ is reserved for hams cured for at least
12 months from salting. It is checked with a long horse bone needle to assess its quality and
maturity. Once approved, it is branded with the authentic five-point Ducal Crown firebrand. Some
hams can be cured for up to three years.
The sliced and packaged in tray Parma Hams PDO represent the more recent innovation.
This process, that must be performed in authorized plants within the geographical boundaries of the
Parma production and under the supervision of independent certification body, now accounts more
than 10% of the total quantity produced.
The Parma Ham PDO Consortium and guarantee system
The Parma Ham Consortium was set up in 1963 by 23 ham producers (originally called
“Consorzio Volontario fra i Produttori del Prosciutto Tipico di Parma”, i.e., “Voluntary Consortium
of Typical Parma Ham Producers”). Its role is to ensure and certify product quality, authenticity and
production methods. The Consortium tasks involve the management and safeguard of the Parma
Ham PDO specification, management of the economic policy (strategies, trends and macroeconomic policies), definition and monitoring of quality control schedules (to check that hams meet
the quality requirements), protection and promotion of the denomination “Parma Ham” and brand
(Ducal Crown) world-wide, and assistance to associated companies through advisory services and
other support.
A rigorous traceability system has been set up to guarantee the authenticity of the Parma
Ham PDO (Mancini, 2003). Every stage of the quality control plan can be tested by brands and
seals, and proven by documents. The breeder puts a special tattoo on both legs of the young pig
within 30 days of birth, showing the breeder’s identification code and a code indicating the month
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
of the animal’s birth. In slaughterhouse every fresh trimmed leg is checked and branded with a
mark permanently identifying it, including the initials “PP” and the slaughterhouse identification. In
processing plants, the metal seal made up of a circular crown showing the C.P.P. (“Consorzio
Prosciutto di Parma”) initials and the date curing began. Finally, the five-point Ducal Crown brand
is stamped under the strict control of the independent organization inspectors (i.e., I.P.Q. Istituto
Parma Qualità) and is the final guarantee of the quality of the ham. The Ducal Crown also shows
the identification code of the producer. The I.P.Q. is an independent organization which objectively
controls and verifies the origin and traceability requirements, monitoring the compliance of raw
material quality and manufacturing process (Mancini, 2012).
The producers of Parma Ham PDO
The companies producing Parma Ham PDO are involved in competitive and cooperative
relations based on mutual trust (Arfini and Mora, 1997). During the last decades, new companies
entered the Parma Ham PDO Consortium and many organization members started to produce nonPDO hams within the same area (see Case 1: Global supply chain generic non-PDO cured ham).
Many companies complain about the lack of vertical quality differentiation within the PDO
specification. Although the possibility to define a higher regulated level of label differentiation
between the current PDO and a ‘‘higher quality’’ version of the PDO has been suggested by many
authors (see e.g., Mancini, 2003; Dentoni et al., 2012), this strategy still lacks of the Consortium
general consensus to be introduced in practice (Giacomini et al., 2013a). Thus, many companies
have developed their individual brand, often displayed next to the PDO label and the Consortium
brand, to differentiate their products from competitors. The individual brands often distinguish
specific attributes of the company’s ham, like the curing period length, since the PDO specification
set the minimum requirements that “Prosciutto di Parma” hams must meet. In other cases, however,
the individual brand does not provide any special guarantee to consumers, except those linked to the
company’s reputation. For these reasons, the PDO label (“Parma Ham”) and the Consortium
collective brand (the ‘‘five point Ducal Crown’’) generally overwhelm the marketing power of
companies’ individual brands (Mancini, 2003; O’Reilly et al., 2003).
Two types of companies coexist within the Consortium of the Prosciutto di Parma with
different business strategies (Dentoni et al., 2012): the small firms and the large groups and
corporations. The first concentrate their activity almost exclusively on the production of the
Prosciutto di Parma PDO, aiming to differentiate the quality of their product from the competitors,
whilst the latter consider the PDO ham as a part of their own product mix. The decisions that are
made within the Consortium are the result of the coexistence of these two kind of companies, which
may have very different positions (Giacomini et al., 2013a). This heterogeneity and its implications
have been discussed by Dentoni et al. (2012).
2.3. Generic cured ham
This supply chain refers to hams produced in the same geographical area as the Parma Ham
PDO, often by the same companies producing the PDO ham, but without meeting the requirements
set by the Parma Ham Consortium. During the last decades, new companies entered the Parma Ham
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Consortium and many members of this Consortium started to produce non-PDO hams within the
same area, using the same knowledge, skills and facilities of the Parma Ham production. The
decisions that are made within the Parma Ham PDO Consortium are influenced by these companies
too (Giacomini et al., 2013a).
Although there are no official figures about the non-PDO hams production and the number
and characteristics of the companies involved, it has been argued that the non-certified (by GI
designation) hams production has exceeded in quantity the PDO one (Giacomini et al., 2013a). It
has been estimated that approximately 15 million non-PDO hams were produced in 2009 within the
same territory of the Parma Ham (Parma Province). The firms producing some quantity of nonPDO Parma Hams within the traditional PDO area of production are approximately 190. Many of
these companies are producing both Parma Ham PDO and non-PDO hams. However, the
concentration ratio of the non-PDO production system is much higher than the PDO one. It was
estimated that 10% of the major companies involved in the production of non-PDO hams accounted
for, approximately, 60% of the total non-PDO production (compared to 33% of the PDO hams).
These non-PDO hams are produced mostly using foreign meat (i.e., the so-called “foreign
ham”) and in minimal part using residual meat of the PDO chain (i.e., the so-called “national ham”).
Many Parma Ham producers suffer the competition of the generic non-PDO hams, complaining that
this huge production negatively affects the market price of the Parma Ham PDO (Giacomini et al.,
2013a). This production aims to exploit the Parma Ham reputation while being marketed at lower
prices. In fact, the non-PDO production costs are around 20-25% lower than the PDO ones. The
slaughtering age of the pigs is lower than for the PDO chains: six-seven months, instead of at least
nine months. This shorter breeding period leads to lower breeding costs (e.g., labor, feeding costs,
etc.). The absence of certification and monitoring processes throughout the supply chain, typical of
the PDO specification, as well as the possibility to use chemical elements such as nitrites and
nitrates as preservative in the processing phase and the shorter curing period, reduce significantly
the overall production costs (both operating costs and financial exposure) of the non-PDO hams.
The distribution channels are similar to those of the Parma Ham PDO; moreover, in-store the nonPDO ham benefit from the consumers’ difficulty to distinguish between the two products
(Giacomini et al., 2013a). The non-PDO generic hams, being smaller than the PDO ones, can be
more easily sliced and packaged in a tray than the Parma Ham PDO.
2.4. Characterisation, system boundaries and mapping
2.4.1. Characterisation of the supply chains
The full description of the three chains Cinta Senese (local), Parma Ham PDO (regional) and
generic non-PDO cured ham (global) is presented in the table below.
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Table 2.1: Description of the tree chains of ham production in Italy
Local
Product
Scope of the
case study
Category of
product (should
be the same for
the 3 case studies
as they are
forming a pair)
Precise name of
the product
Arguments for
choosing this
case study
Controversy
addressed by the
producers, the
consumers,
and/or the public
opinion
Dimension(s) for
which the case is
most relevant
Exact definition
of the Product
Very short
characterisation
Regional
Cured Ham
Prosciutto di Cinta
Senese (Cinta Senese
Ham)
The ham is produced in
small companies with
the thighs of the Cinta
Senese pig in Tuscany.
Animals are kept
outdoors and fed mainly
with local foods.
- Producers’ have strong
influence on the
governance of the chain,
also by means of the
PDO
- Recovery of the race
Cinta Senese, but with
some environmental
problems due to
inappropriate breeding
techniques
- Great variability of the
raw material and
difficulty of ensuring
consistent production
standards
Creation and distribution
of added value
Biodiversity (Cinta
Senese breed
preservation)
Resource use (woods)
Animal wefare,
Health (fat with high
omega-3 content)
Prosciutto di Cinta
Senese (Cinta Senese
Ham)
See maps
Prosciutto di Parma
(Parma Ham PDO)
Prosciutto crudo (generic
non-PDO cured ham)
The ham is a PDO
product produced in a
small area, with fresh
meat from North and
Central Italy, and
marketed globally.
The ham is produced
with imported thighs,
cured in the same region
than the Parma Ham
PDO and marketed
globally
- Lack of collaboration
between producers,
slaughterhouses and
processors
(heterogeneity of
Consortium members)
- Tendency of large
processors to produce
Parma Ham PDO at the
lower edge of the
product specification, as
well as other generic
non-PDO hams
- Small firms specialized
in Parma Ham PDO
production, aiming to
differentiate the quality
- The huge production of
more competitive
generic hams could drive
down the price of the
PDO Hams
- Often the same
companies are producing
both the Parma Ham
PDO and the generic
non-PDO hams
(members of the Parma
Ham PDO Consortium
too)
- Consumers’ difficulty
to distinguish between
the Parma Ham PDO and
the generic non-PDO
hams, especially on
export markets
Environmental (intensive
pig farms) Economic
(distribution of value
added), Ethic (animal
welfare), Consumer
behavior (WTP for PDO,
and high quality PDO
hams, and generic
hams), Technological
innovation (pre-sliced
hams)
Environmental (intensive
pig farms), Economic
(distribution of value
added), Ethic (animal
welfare), Governance
(Consortium
heterogeneity,
traceability), Consumer
behavior (WTP for PDO,
high quality PDO, and
generic hams),
Technological
innovation (pre-sliced
hams)
Prosciutto di Parma
(Parma Ham PDO)
14
Global
Prosciutto crudo (generic
non-PDO cured ham)
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Supplychain
description
of the supplychain (flowchart)
Number and
characteristics of
farmers involved
(if known)
Number and
characteristics of
producers downstream in the
supply chain
Marketing
channels
Geographical
scope of the
supply chain
In 2010, according to
ANAS, statistics report
the presence in Tuscany
of 120 farms with about
980 sows of Cinta.
Out of them, around 80
farmers are registered in
the PDO system.
Around 30
slaughterhouses and
cutting plants (all in
Tuscany) registered in
the PDO system
4,286 pig farms (these
farms provide pigs not
only to the Parma Ham
PDO, but also to other
Italian PDOs – e.g., San
Daniele)
not available
129 slaughterhouses
150 processors
Sold directly to
consumers, supermarket,
small retailers
Feed arrives at least for
60% from Tuscany.
Sales 100% locally or by
short channels
Supermarkets, small
retailers, ho.re.ca.
N. slaughterhouses not
available
190 processing firms
(very concentrated
production: 10% of the
companies accounted for
60% of the total nonPDO production)
Supermarkets, ho.re.ca.
Governance of
the supply chain
(power relations,
collective
organization,
etc.)
Main
organizational
patterns
Imports of thighs from
N-Europe, processing in
delimited area,
marketing globally
no formal governance
‘
The farmers’ and
processors of Cinta
Senese are represented in
the “Consorzio di tutela
della Cinta Senese”
(Consortium for the
protection of the Cinta
Senese)
Supplychain
analysis
Feed primarily imported,
farms in 10 regions of
Italy and processors in
delimited area south of
Parma, marketing
globally
A third body INEQ
controls compliance with
the PDO product
specification for fresh
meat. The Consortium
controls the use of PDO
Cinta meat for sausages
and hams by the
associated firms,
guaranteeing the
traceability of the fresh
meat. The Consorzio
provides for a quality
hallmark for the
15
Consorzio Prosicutto di
Parma, is the association
of ham producers which
comply with the PDO
product specification
Other production phases
can also be represented
with the Consortium
(i.e., breeding farms,
slaughterhouses)
- An independent
organization (IPQ)
controls compliance with
the product specification
for fresh meat
- Strict traceability
system, along the supply
chain:
tattoo on piglets:
branded fresh meat:
no formal organization
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
processed products:
metal seal at the
beginning of the curing
period:
.
the five-point Ducal
Crown brand after 12
months:
Resources
(human/capital/
other) employed
in the production
process (generic
vs. territorial)
Relevant role of local
specific resources: the
local breed Cinta Senese
and breeding skills,
woods.
Knowledge
employed in the
production
process (generic
vs. territorial)
Extensive knowledge of
pasture management of
pigs in forests.
Long lasting experience
in processing meat of
this particular pig breed
Technologies
employed in the
production
process (generic
vs. territorial)
Extensive livestock
grazing, traditional
processing techniques
Role of the
territory (in all
dimension:
geographical,
cultural and
economic) in
defining the
identity of the
product
Role of public
policies and
institutions
Very relevant. The bred
Cinta Senese is typical of
the central hills of
Tuscany; the Tuscan
identity of the product is
recognized and protected
by means of the PDO.
The production of Parma
Ham is traditionally
associated with the
territory of Parma
Subsidies and technical
assistance for the
preservation of the
breed.
Subsidies for
investments, hygiene and
veterinary controls
Subsidies for
investments, hygiene and
veterinary controls,
subsidies from Rural
Development Plan (e.g.,
gourmet food route) but
not for farmers
16
Industrial organisation of
the production process
with certain specific
production phases
carried out by artisans,
highly experienced and
specialized workers
(e.g., salters, de-boners,
etc.)
Several processing phase
are performed manually
by artisans, highly
experienced and
specialized workers
(e.g., sugnatura, salters,
etc.)
Industrial processing (no
chemical additives in the
processing phase), sliced
and packaged in a tray
PDO hams
Fully industrial supply
chain
Same knowledge
employed in the Parma
Ham PDO production
(knowledge spillovers)
Industrial processing
(chemical elements used
in the processing phase,
e.g. nitrites and nitrates),
sliced and packaged in a
tray non-PDO hams
The cured ham produced
in the same territory than
the Parma Ham PDO is
promoted by the
company as a valid
lower priced substitute
of Parma Ham
Subsidies for
investments, hygiene and
veterinary controls
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Main dynamics /
trends
Increase in the number
of livestock reared.
Actually the demand for
Cinta Senese meat
exceeds supply.
Exports continue to
grow, but the domestic
market is declining
Reduction in the
number of processors
(increased concentration
ratio)
Domestic market is
declining, but exports
are increasing
Reduction in the
number of processors
(increased concentration
ratio)
In the following table the three chains are characterized on the basis of the four dimensions that,
according to the GLAMUR approach, characterizes local and global chains:
Table 2.2. Characterisation of the supply chains
Physical/geographical
distance
Governance/organizati
on (control by local
actors)
Technology and
knowledge
Identity of the product
Local
Cinta Senese Ham
PDO
Fresh meat from
Tuscany, in some cases
processed on farm, the
most part of feed local
or from Tuscany
Controlled by local
farmers and processors,
in some cases all the
production and
processing is made
inside the same firm
Traditional breeding
and processing.
Relevant role of local
specific resources: the
local breed Cinta
Senese and breeding
skills, wood
Ham of Cinta Senese
meat PDO
Regional
Parma Ham PDO
Global
Generic cured ham
Fresh meat from North
and Central Italy, local
processing,
consumption in Italy
and abroad
Governance role of the
Consortium (members’
heterogeneity, local
and global processing
firms involved)
Imported fresh meat
from Northern Europe
(e.g. NL), any origin
livestock feed, sales in
Italy and abroad
Supply chain
controlled by larger
global firms at
downstream level
(processing and retail
phase)
Modern technology,
industrialization in all
phases of the chain. No
role for local specific
resources.
Mixing of traditional
way of production
(processing phase, e.g.,
no additives, highly
skilled work) and
modern ones (breeding,
curing)
Parma Ham PDO
General non-PDO
cured ham (often sold
with companies’ brand
or private label)
2.4.2. System boundaries and mapping
The main phases in production process which delimit the system boundaries of the three supply
chain are presented below:
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
2.4.3. Local supply chain Ham of Cinta Senese meat PDO
Figure 2.1. Material and production flows in the local supply chain of Cinta Senese
Regional
pig
feed
workers
Agricultural Production
farms:
manure/slurry
INTEGRATED
pigs
Transport
Spatial Scale Production inputs
Local
land
water
Farm /
feed
local Feed
workers
Primary
processing
Secondary
processing
Distribution Retailing
Direct sales
Local stores
Restaurants
MODEL: On-farm processing (slaughtering committed to external firms)
Slaughterhouse:
evisceration
cutting
chilling
Transport
Ham factory:
trimming
salting
ageing
Consumption
Transport
Restaurants
Gourmet stores
Regional supermarkets
Direct Internet sales
National
energy
feed
machinery
equipment
Gourmet stores
Restaurants
Direct Internet sales
feed
equipment
machinery
energy
Gourmet stores
Restaurants
Direct Internet sales
Continental
Global
equipment
machinery
feed
18
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
2.4.4. Regional supply chain Parma Ham
Figure 2.2. Material and production flows in the regional supply chain of Parma Ham
The Parma Ham PDO area of production.
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Number of Pigs
< 100.000
100.000 - 200.000
200.000 - 1.000.000
1.000.000 - 2.000.000
> 2.000.000
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Figure 2.3. Material and production flows in the global supply chain of generic cured ham
2.5. Critical issues and relevant attributes/indicators
Several critical issues emerge from the analysis and will be analysed in the comparison of the three
supply chains. The most relevant ones are:




Provenance of the meat for ham production. The three supply chains have a very different
geographical scope and organizational models, with different associated impacts linked to
transportation costs and other environmental impacts.
Breeds of pigs used in the production process (agro-biodiversity). In the global chain the
meats are obtained by pigs of different international breeds. In the Parma Ham PDO chain
only three breeds of pigs can be used: Large White, Landrace and Duroc. In the case of
Cinta Senese there is a relevant contribution to biodiversity preservation.
Environmental impacts. Different kinds of impacts are associated to the three supply chains.
In the case of Cinta Senese, the breeding systems in the forestis in principle a low-impact
process, but some concerns emerge due to environmental damage in the forest in case of
excessive number of animals per hectare. In other two cases some problems emerge due to
the high concentration of animals per hectare.
Governance. In the global chain there is no formal definition of quality; meats are imported
from Northern Europe and processed locally, using industrial processing methods (e.g.,
adding chemical preservatives). In the Parma Ham PDO chain the product quality is set by
the PDO specification (e.g., no chemical preservatives used). The guarantee system is also
defined by law; the Consortium has a significant role in governing the quality system.
However, the heterogeneity of Parma Ham Consortium members characteristics, have
20
GLAMUR Report – Italian Case Study- Pork Chains –March 2015




important effect on the Consortium strategies. For example, several ham producers complain
about the lack of vertical quality differentiation within the PDO specification. In the Cinta
Senese supply chain there is a problem of quality variability of the meat produced by the
farmers, as they use different techniques and this affects the quality. It is a typical feature of
local artisanal products which also be considered an advantage compared to standard
products if the market is segmented properly.
Animal welfare. In the global chain the medium slaughtering age is six-seven months. They
are generally bred in highly mechanised livestock farms (intensive pig farming). In the
Parma Ham PDO chain, the breeding technique is also performed intensively in highly
mechanised livestock farms: piglets suckling during first four weeks with the sow; weaning,
from the 5th to the 12th week; piglet fattening, from 30 to 80 kilograms of weight; and
fattening: from 80 to 160 kilograms of weight and above. The minimum slaughtering age is
nine months. Health problems of the farming of the Cinta Senese seem to be lower than the
intensive rearing of improved breeds, while the well-being seems to be much higher.Some
limited problems emerge due to the contact with wild animals (wild boars and wolves).
Participation of farmers to the added value distribution. In the global chain the production
of non-PDO hams is highly concentrated in few large companies. While the product being
more competitive than the Parma Ham PDO, the value added is not evenly distributed.
Downstream stages (large scale processors and retailers) generally benefit from large share
of value added. In the Parma Ham PDO chain, the value added is not evenly distributed,
where downstream stages generally benefit from large share of value added. Large scale
slaughterhouses, processors and retailers are the players with higher bargaining power
throughout the supply chain. The PDO system in the case of Cinta Senese in principle allow
for a good farmers’ participation to the value added distribution. This is true in particular for
farmers which integrate all the phases of the chain in its own firm, up to the cured ham
production and its direct selling to consumers. For other farmers some problems emerge for
market prices, due also to some oversupply (high prices over the last few years pushed many
farmers to breed Cinta Senese, but without real marketing perspectives).
The role of public policies. In the global chain, processors in the Parma province benefit
from spillovers of the PDO production system, including public support for investments, etc.
In the Parma Ham PDO chain, the public support included subsidies for investments,
hygiene and veterinary controls. Indirectly, ham producers benefit from Rural Development
Plan (e.g., gourmet food route). For Cinta Senese public polices play a relevant role, first of
all for the recovery of the breed: both technical support and incentives paid in the
framework of agri-environmental measures in the Regional rural development plan (now
stopped).
Consumer preferences. In the global chain, the non-PDO hams have generally lower prices;
consumers in some cases (e.g., ho.re.ca) are not able to distinguish between the Parma Ham
PDO and the generic non-PDO hams. In the Parma Ham PDO chain, the consumer behavior
and preferences are relevant in shaping the WTP for PDO-labeled hams, high-quality PDO
hams, and generic hams.
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
3. Research design
3.1. Research Questions
Three general RQ common to all case studies
1. What are the key food chain performance issues with regards to a global-local comparison?
2. What is the methodological strength and weakness of overall applied pairwise comparative
analysis?
3. What are the specific interactions of the food chains under study and the policy settings?
Next to the three overarching research questions which are common to all case studies a set of
research questions have been formulated together with the NL team:
1. How to characterize and distinguish the 6 selected pork chains in terms of local versus
global in line with the criteria as agreed upon in GLAMUR?
2. How to characterize and distinguish the 6 selected pork chains in terms of local-global
dynamics?
3. What are most significant and meaningful dimensions, attributes and indicators to assess,
measure and compare the performances of the 6 selected pork chains?
4. How do the 6 pork chains perform on these indicators?
5. To what extent and in which ways do pork chain stakeholders agree or disagree about
relevant performance dimensions, -attributes and -indicators?
6. How are selected pork chains performances influenced by prevailing policy- and wider
regulatory frameworks?
7. What is the methodological strength and weakness of overall applied double pairwise
comparative analysis with its specific combination of quantitative and qualitative
approaches?
3.2. Attributes and indicators selection process
In line with point 3.3 “Indicators selection” of WP3 Guidelines for case studies, the relevant
attributes and indicators for Italian case studies were selected by means of experts and stakeholders
advice. Following the experts meeting held in Reggio Emilia on July 8th, a first list of attributes and
performance indicators for Italian case studies (Cinta Senese PDO, Parma Ham PDO and generic
ham) was defined, including 7 attributes and 21 indicators. This first provvisional list is provided in
the table below.
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
First provisional list of attributes
Attribute
Affordability
Added value
Resilience
Labour relations
Chain governance
Animal welfare
Territoriality
Indicators
Retail price
Dynamics in pork consumption
Dynamics of pig meat consumption
Added value at farm level/AWU
VA slaughterhouse/AWU
VA ham factory/AWU
Volattility of concentrate price
Volatility of live pig price
Volatility of fresh ham
Volatility of cured ham
Degree of diversification
Degree of downstream integration
Labour service coops
Non-EU workers
Labour scandals
Degree of self governance
Animal welfare level
Degree of artisanility
Effectiveness of PDO
Events organised in the territory related to the product
Links with local touristic activities
The list has been discussed on August 1st with relevant stakeholders. In particular, Davide Menozzi
( UNIPRt) had a meeting with two representative of the Parma Ham Consortium. The aim of the
meeting was twofold: first, to discuss and agree with stakeholders the list of relevant attributes and
indicators to characterize the global vs. local chains. Secondly, to gather additional information
about the case studies (in particular, Parma Ham and generic ham cases) and, as much as possible,
to collect data useful to populate the database. The following points summarize the main issues
resulted:

in general, the stakeholders found the proposed list of attributes and performance indicators
pertinent with the case studies aims;

among those attributes not selected, the only one that would be relevant for the purpose of
the case studies would be “Traceability”. This attribute would help to distinguish the
certificated food chains (Cinta Senese and Parma Ham PDOs) from the generic ham.
Possible performance indicators able to define this attribute could be the number of
inspections by the certifying body, or the number of nonconformities. These data should be
appropriately weighted, for example, by the quantity of certified product in order to account
for the differences between the Parma Ham (large-scale) and Cinta Senese cases (smallscale). The possibility to include this new attribute has been discussed by the experts
involved;

they also agree that the only official prices throughout the supply chain are those defined by
the Commodity Exchange, although not always in line with the actual prices defined by the
real transactions;
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015

the Parma Ham Consortium will provide data and information about prices, trends of the
certified production, composition Consortium Board of Directors, events linked to the
territory and related participation;

the Parma Ham Consortium will not provide data on individual companies, for privacy
reasons. For such information, the experts should rely on companies balance sheets and
individual interviews;

they do not have specific information about the extent to which the ham producers have
contract with labour cooperatives. However, stakeholders agree that such cooperative
contracts are important especially in certain phases (e.g., ham treatment with pig fat), both
for small and large companies. Leporati claims that about 80% of the work in these phases is
done by cooperatives. They do agree that unions should have more information about this
issue;

according to the stakeholders the Parma Ham and generic ham differ mainly for the use of
nitrates in the hams curing (which is banned by the PDO specification), and for the curing
period, which is lower for the generic ham, ranging from a minimum of 6 months to a
maximum of 9 months. The latter factor also affects the permanence of the ham in the
different seasoning cells: the cells and the temperatures are the same as the PDO ham, but
the time in cells changes in relation to the lower seasoning period.
The following people of Parma Gam supply chains were interviewed and collaborated in order
to collect data useful for the evaluation of selected indicators:




n. 2 representatives of the Parma Ham Consortium, who provided information about the prices
and the quantity consumed of Parma Ham PDO and generic ham (attribute “Affordability”),
the number of events and visitors (Indicator “Social cohesion and conviviality”, attribute
“Territoriality”), as well as the “Governance” of Parma Ham PDO, and “Resilience” of
Parma Ham PDO and generic ham.
the director of the Gourmet Food and Wine Route “Strada del Prosciutto e dei Vini dei
Colli di Parma” (“Road of Ham and Wines of Parma Hills”) who gave information about the
“Links with local touristic activities” (attribute “Territoriality”);
n. 8 in-person in-depth interviews with Parma Ham producers and n. 2 in-person in-depth
interviews with meat processors – slaughterhouses (secondary data, published in Giacomini
et al. 2010; Giacomini et al. 2013a; Dentoni et al., 2012); who gave information about the
Parma Ham PDO and global chains on attributes “Governance”, “Territoriality”, and
“Resilience”;
n. 1 focus group with 9 consumers, n. 20 in-depth direct interviews, and a survey with 250
consumers (secondary data, published in Capelli et al., 2014), who provided information
about the “consumers’ perception” of global and Parma Ham PDO chain (attribute
“Affordability”).
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
As far as Cinta Senese supply chain is concerned, three main sources of information were used
for identifying relevant attributes following the list provided by WP2 GLAMUR report:
1. Scientific literature analysis and other written sources: local newspapers (12 articles were
identified as relevant), grey literature and research reports, websites: a systematic analysis of
scientific literature and of local newspapers was developed in January-March 2014. See the
bibliography at the end of the Report.
2. Key informants interviews and exploratory interviews: a meeting with professors and
researchers of the Department of zootechnical sciences at University of Firenze prof. Oreste
Franci, dr.ssa Carolina Pugliese, and collegaues (Firenze, 06.02.2014), two meetings with
Cristina Santini president of the Consorzio di tutela della Cinta senese PDO (Firenze,
06.02.2014 and 23.04.2014), interviews to pig breeders and processors (Raymond Lamoth,
Castellina in Chianti; Fattoria di Pietrabuona, Pistoia; and Azienda Agricola Corboli, Prato).
The following people were interviewed and collaborated in order to collect data useful for the
evaluation of selected indicators:



the Director of the Cinta Senese PDO Consortium, who provided information about the
situation of the supply chain, the organization of the chain, market trends, and other main
issues relevant for the evaluation;
n. 3 in-person in-depth interviews with Cinta senese farmers and n. 3 with cured ham
processors, following a structured questionnaire: n. 3 They collaborate also to data
collection on costs and revenues of pig farming and processing;
n. 1 focus group (jointly managed with RETHNIK EU project) with representatives of firms
(farmers and ham processors: 7 people), PDO consortium (Director Chiara Santini), PDO
control body (president and Tuscan manager), public institutions (Toscana Region and
Province of Siena, 3 people), animal feed producers (1 people), researchers from Firenze
University (5 people).
A relevant contribution for the identification of critical attributes came from a Master thesis:
Lapenna M. (2014), “Valorizzazione dei prodotti tipici locali e effetti sulla sostenibilità ambientale:
il caso della DOP cinta senese, Laurea magistrale in Scienze dell’Economia, Università di
Firenze”. During the thesis work an analysis the local newspapers and 3 exploratory interviews to
farmers were developed, following the Glamur approach.
Thanks to these analysis, we have built the following matrix where relevant attributes are pointed
out according to different stakeholders categories who cited them.
Multi-criteria matrix of food supply chain performance
Stakeholders
Pig farmers
Economic
 Profitability
(level and
stability)
Social
 Product quality
Attributes
Environmental
 Landscape
preservation
 Wood
preservation
25
Health
 Food safety
 Animal welfare
Ethical
 Animal welfare
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Ham
processors
 Profitability
 Product quality
 Food safety
Scientists
Policy makers
 Profitability
(level and
stability)
 Economic
development
(both direct and
indirect: support
to development
of tourism)
 Local/rural
developemnt
 Landscape
preservation
 Wood
preservation
 Food safety
 Animal welfare
 Biodiversity
 Landscape and
wood
preservation
 Food safety
 Animal welfare
 Animal welfare
Fonte: Lapenna, 2014
The final selection of attributes has thus been based on an analysis of all attributes of the matrix
through literature review and participatory methods (interviews with stakeholders). The following
eight attributes have been analyzed. Some core attributes are common to both Country cases and
will be used for the comparison of the Italian and Dutch pork chains. Other attributes relate to just
one of the two cases.
Attribute
Italy
Netherlands
Added value
X
X
Territoriality
X
X
Resilience
X
X
Resource use and
pollution
X
X
Affordability
X
X
Chain governance
X
X
The indicators were selected considering the following issues: their scientific soundness; the
appropriateness to the chains characteristics, and the availability of data. In table 3.1 indicators
indicators are presented, by giving a short definition and the indication of the data source.
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
The relevance of the selected attributes for the three chains is argumented in the following Section,
where also indicators are presented in a detailed way.
Table 3.1. Indicators
Main
attribut
e
Name
Definition
Source
Value added per
Value
added
Value added at farm
level
kg of slaughter
CRPA elaboration of Interpig data and
weight on pig
data collected by UNIFI
farms
Value
Value added at
Value added per
CRPA elaboration on representative
added
processing industry
kg of cured ham
samples of firm balance sheets
Coefficient of
variation of
monthly feed
prices over 3 years
Resilien
V.1 - Feed prices
ce
volatility index
(concentrates
prices for heayy
and light pigs,
CRPA, Interpig, Chamber of commerce of
Siena data)
representative
agricultural
products for feed
for Cinta senese)
Coefficient of
variation of
monthly live pigs
prices over 3 years
Resilien
V.2 - Live pigs prices
(Heavy live Italian
ISMEA and Chamber of Commerce of
ce
volatility index
pigs for B; Cinta
Siena data)
senese live pigs for
A; Light live pigs
imported from NL
not relevant)
Coefficient of
variation of
monthly fresh ham
Resilien
V.3 - Fresh ham price
prices over 30
ce
volatility index
months (Fresh ham
14 kg for generic
ham ; Fresh ham
11-13 kg for
27
CUN data
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Parma PDO ; not
relevant for Cinta
senese)
Coefficient of
Resilien
V.4 - Cured ham price
variation of
ce
volatility index
monthly cured
Parma market data
ham prices
% of pig farmers
Resilien
A.1 - Farmers upstream
which self-produce
ce
integration by ownership the majority of
UNIFI-UNIPR-CRPA
feed
Part of pig
farmers involved in
A.2 - Farmers upstream
mid-long term
Resilien
integration by
upstream
ce
contractual
contractual
arrangements
arrangements with
UNIFI-UNIPR-CRPA
animal feed
producers
Relevance of
Resilien
A.3 - Farmers
farmers
ce
downstream integration
downstream
UNIFI-UNIPR-CRPA
integration
% of (light/
heavy/Cinta) pigs
Resilien
A.4 - Farmers product
for ham
ce
diversification
production on the
UNIFI-UNIPR-CRPA
total turnover of
farm
Resilien
A.5 - Farm-level
ce
resistance against price- the input and
volatility
Price volatility of
GLAMUR
output markets of
relevance for pork
production,
defined as the max
delta added value
per kg live weight
per year over the
periode 20092013
Resilien
ce
A.6 - Use of antibiotics
Use of antibiotics
in pig farms
Resilien
A.7 -
Part of
ce
Slaughterhouses/process slaughterhouses/p
28
Expert consultation
UNIFI-UNIPR-CRPA
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
ors upstream integration rocessors involved
in pig farming
and/or in long
term contractual
arrangements
Relevance of
Resilien
A.8 - Slaughterhouses
slaughterhouses
ce
downstream integration
downstream
UNIFI-UNIPR-CRPA
integration
Part of activity not
linked to
production of
Resilien
A.9 - Slaughterhouses
generic / Parma
ce
product diversification
PDO / Cinta senese
Expert consultation
ham on the total
turnover of
slaughtering firms
Share of
processing firms
with a share of
(generic / Parma
Resilien
A.10 - Processors
ce
product diversification
PDO / Cinta
senese) ham
UNIFI-UNIPR-CRPA
higher than 70% on
the total turnover
of processing
firms, on the total
number of firms
Degree of market
A.11 - Processors
diversification of
Resilien
marketing channels
ham processors, in
ce
diversification for cured
terms od
ham
marketing
UNIFI-UNIPR-CRPA
channels
Degree of market
A.12 - Processors
diversification of
Resilien
geographical market
ham processors, in
ce
diversification for cured
terms od
ham
geographical
UNIFI-UNIPR-CRPA
markets
Resilien
ce
A.13 - Product
differentiation for cured
ham
Degree of product
differentiation for
cured ham by
means of collective
29
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
labelling systems
Resilien
S.1 - Farm-level risk-
Risk-spreading by Synthesis of indicators B1,B2 and D1
ce
spreading
farm-level
diversification and
producing feed
Resilien
S.2 - Adaptation capacity Strength of
ce
of farmers through
interlinkages with
downstream actors
downstream actors
cooperation, integration
diversification
and diversification
strategies in terms
strategies
of productfolio -
UNIFI-UNIPR-CRPA
and marketing
Resilien
S.3 - Adaptation capacity Synthetic indicator
ce
of slaughtering firms
based on
through integration and
upstream,
diversification strategies
downstream and
UNIFI-UNIPR-CRPA
diversification
analytical
indicators
Resilien
S.4 - Adaptation capacity Synthetic indicator
ce
of ham processing firms
based on
through integration and
upstream,
diversification strategies
downstream,
diversification and
UNIFI-UNIPR-CRPA
differentiation
analytical
indicators
Resilien
C.1 - Supply chain
ce
attitude to diversification based on
and differentiation
Synthetic indicator
diversification and
differentiation
analytical
UNIFI-UNIPR-CRPA
indicators related
to all stages of the
supply chain
Resilien
C.2 - Intradiversity of
Diversity internal
ce
chain relations /
to the supply chain
configurations
can improve the
resilience of the
system, thanks to
a diversification of
risks. Indeed
specific crisis
factors may
30
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
embarrass some
models of chain
organization, but
not others
Resilien
C.3 - Chain-based
Chain actors'
ce
adaptation capacity
collaborative
through learning and
efforts to learn
innovation
and innovate
Resilien
C.4 - Ability to mobilize
Presence of
ce
public and societal
political and social
support
support activities
of various types, at
UNIFI-UNIPR-CRPA
UNIFI-UNIPR-CRPA
national, regional
and local level
Chain
Trust based internal
Level of trust-
Governa relationships
based relations
nce
between chain
UNIPR
actors, based on
(1) absence of
conflicts, (2) trust
among chain
partners, (3)
continuity of chain
relations
Chain
Trust based external
Level of trust-
Governa relationships
based external
nce
relationships
UNIPR
based on chain
partners' capacity
to mobilise
support from (1)
social movements),
(2) citizens and (3)
policy actors
Chain
Self governance capacity
Self-governance
Governa
capacity in terms
nce
of creation of
UNIPR
distinctiveness
Chain
Chain-based value
Overall value
Governa governance
governance
nce
characteristics
conform the
typology of Gereffi
et al. (2005)
31
UNIPR
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Pollutio
kg PO4-eq/kg live
CRPA for regional and local /CLM* for
weight
global
Pollutio
kg PO4-eq/kg
CRPA for regional and local /CLM* for
n
carcass weight
global
Pollutio
kg PO4-eq/kg
n
cured ham
Pollutio
kg PO4-eq/kg
n
sliced cured ham
n
LCA.1 - Eutrophication
CRPA
CRPA
Pollutio
LCA.2 - Carbon foot
kg CO2-eq/kg
CRPA for regional and local /CLM* for
n
print
live weight
global
Pollutio
kg CO2-eq/kg
CRPA for regional and local /CLM* for
n
carcass weight
global
Pollutio
kg CO2-eq/kg
n
curedham
Pollutio
kg CO2-eq/kg
n
slice cured ham
Resourc LCA.3 - Non renewabel,
e use
fossil
MJ/kg live weight
CRPA
CRPA
CRPA for regional and local /CLM* for
global
Resourc
MJ/kg carcass
CRPA for regional and local /CLM* for
e use
weight
global
MJ/kg curedham
CRPA
Resourc
e use
Resourc
MJ/kg slice cured
e use
ham
Resourc
CRPA
H2O m3/kg live
CRPA for regional and local /CLM* for
weight
global
Resourc
H2O m3/kg
CRPA for regional and local /CLM* for
e use
carcass weight
global
Resourc
H2O m3/kg cured
e use
ham
Resourc
H2O m3/kg slice
e use
cured ham
e use
Resourc
LCA.4 - Water footprint
CRPA
CRPA
m2/year/kg live
CRPA for regional and local /CLM* for
weight
global
Resourc
m2/year/kg
CRPA for regional and local /CLM* for
e use
carcass weight
global
Resourc
m2/year/kg cured
e use
ham
Resourc
m2/year/kg slice
e use
cured ham
e use
LCA.5 - Land use
CRPA
CRPA
Pig farms on total
Territori
ality
farms with
Association of product
livestock in the
with territory
territory (%)
32
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Pig meat
processing
Territori
ality
industries on total
Association of product
food industry in
with territory
the territory (%)
IPQ/INEQ, ISTAT, UNIPR
Is there a link
between the origin
Territori
of raw material
ality
(e.g. fresh meat,
Territori
ality
Territori
ality
Territori
ality
Association of product
feed) and the
with territory
territory?
UNIPR, UNIFI
Number of cultural
Social cohesion and
events in the
conviviality
territory
Parma Ham Consortium, UNIFI
Number of visitors
Social cohesion and
in cultural events
conviviality
in the territory
Parma Ham Consortium, UNIPR
Is there a Gourmet
Links with local touristic
Food and Wine
activities
Route involved?
UNIPR, UNIFI
% of farms
involved in onTerritori
farm touristic
ality
activities (agriLinks with local touristic
tourism, food
activities
tasting, etc.)
UNIPR, UNIFI
€ / kg
Parma Ham Consortium, UNIFI
Afforda
Retail price in
bility
supermarket
Afforda
bility
Parma Ham Consortium, Cinta Senese
Cured ham consumption
Tons
Consortium
4. Methods
4.1. Added Value
The capacity of producers and processors to add value to raw materials in order to
adequately remunerate their labour and capital is crucial for the economic sustainability of the
enterprise and of the production system. When producers and processors together compose the food
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
value chain, of importance is that a fair distribution of the total value added is achieved among the
economic actors of the chain.
Added value is calculated taking the difference between farm gate, wholesale and retail
prices and non-factor costs at each stage of the pork chain taking into account the valuation of the
pig carcass from producer to consumer.
When comparing local and global food chains one of the questions which emerge is to
which extent local food producers are able to capture more value added in the value chain in their
effort to directly reach the consumers. This argument may be used by the producers and processors
in the Cinta Senese chain.
A second hypothesis is that food products carrying a PDO label are able to generate more
added value than generic food products as PDO products can market also the “terroir” as food
attribute. Of interest is then to compare PDO Parma Ham with generic cured ham.
In global chains primary producers often complain to receive a minimal part of the value
added created in the chain because of asymmetric power relationships predominating in the chain.
The difference in value added per kg meat between Dutch light pig producers, which are at the basis
of the global pork chain, and Italian heavy pig producers, which dedicate their pigs to the PDO
Parma Ham circuit, is here of high interest.
Direct sales of processed Cinta Senese pork to consumers may affect value added as the
sales prices can be established without the influence of middlemen.
Within the Parma Ham chain different firm strategies coexist: those who point at large scale
production just complying with the minimum standards of the PDO product specification and sell
primarily to large retailers, a second group of companies who are specialized in a niche segment of
the Parma Ham chain producing high quality hams for small ‘boutique like” retailers and a third
group of companies who are operating on different market segments of Parma Ham. These features
have their influence on the creation of value added.
In the generic cured ham chain Dutch pig producers deliver their pigs to Dutch
slaughterhouses. The heaviest fresh hams are exported to Italy and the Dutch pig producers may
receive a price premium when a relevant part of their fresh hams are exported for the production of
Italian generic cured ham.
Added value is calculated taking the difference between farm gate, wholesale and retail
prices and non-factor costs at each stage of the pork chain taking into account the valuation of the
pig carcass from producer to consumer.
For each of the three chains added value has been calculated at two phases of the value
chain: at farm level and at the level of the processing company of ham.
The following farm types have been used for the calculation of value added:
1. Dutch pig farms specialized in the production of light pigs (117 kg liveweight). Fresh
hams of these pigs are exported to Italy and are there processed up to generic cured ham.
The calculation refers to the period 2009-2013 and the source used is Interpig (BPEX,
2013). Data refer to a representative sample of Dutch pig farms.
2. Italian pig farms specialized in the production of heavy pigs (166 kg liveweight). The
fresh hams of these pigs are destined to the production of Parma Ham. The calculation
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
refers to the the period 2009 – 2013 and the sources used are the yearly bulletins of CRPA
dedicated to the production costs of heavy pigs in Italy (CRPA, 2013). Data are derived
from a representative sample of Italian pig farms, which are certified for the production of
heavy pigs for the PDO Parma Ham value chain.
3. Three Cinta Senese farms which are either producing live pigs for further processing or
are integrared companies producing processed pork products among which Cinta Senese
ham. The calculation of value added is based on an ‘ad hoc data’ collection in these farms,
which produce PDO certified Cinta Senese pigs.
As the ham companies are concerned two samples of ham companies were composed for Parma
Ham and generic cured ham. The principal feature of these companies is the high degree of
specialization defined as either “prevalent mono production of dry-cured PDO Parma Ham" or “dry
cured generic hams”. Only companies of medium size have been chosen, since large companies in
the sector are unlikely to be "single product". Difficulties would then have been encountered in
processing the balance sheets of companies that produce a wide range of products.
Once the two samples have been constituted the data contained in the balance sheets have
been elaborated for the five year period 2009-2013. The non-factors costs, such as raw materials,
services and other direct processing costs, have been separated from the labour and capital costs and
taxes. As the prices of the fresh hams for Parma Ham are concerned, the price lists of the Chamber
of Commerce have been used in order to extract their value from the total non-factor costs. The
prices of fresh hams for the production of generic cured hams are derived from the export prices of
Dutch fresh hams plus transport costs to Italy. These price lists have been chosen because of the
difficulty to identify the purchase prices from the balance sheets. The added value calculated in this
way refers to the initial weight at the beginning until the end of the seasoning period of the fresh
ham with the bone. In other terms, the value added is expressed per kg of cured ham with the bone.
The two samples were made up of eight companies in the case of Parma Ham, and nine
companies in the case of generic cured ham. From the comparison of the main characteristics of the
two samples interesting differences emerge: the Parma Ham companies process a lower number of
fresh hams than the companies specialised in generic cured ham. The Parma Ham companies on
average season 80-90 thousand hams a year against an average of more than 300,000 hams per year
of the generic cured ham companies.
Table 4.1.Characteristics of the two samples of ham companies
PDO Parma Ham (n=8)
Generic cured ham (n=9)
n. hams
Sales value €
% turnover
n. hams
Sales value €
% turnover
2009
69,000
7,825,000
67
326,000
12,420,000
90
2010
80,000
9,538,000
71
351,000
14,775,000
96
2011
105,000
10,017,000
72
350,000
14,458,000
93
2012
87,000
9,506,000
71
290,000
11,681,000
84
2013
70,000
7,098,000
55
311,000
13,826,000
86
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
A second remark regards the percentage share of ham seasoning on the total turnover of the
company. For the examined Parma Ham companies this percentage share is on average 70% against
90% of the generic cured ham companies. This difference can be attributed to the fact that the
seasoning period of Parma Ham is much longer than that of generic cured ham. The longer
seasoning period implies a longer immobilization of capital which induces the Parma Ham
companies to carry out seasoning services for other Parma Ham companies in order to dispose of
more current liabilities.
The calculation of value added generated in Cinta Senese processing companies is based on
the selection of some enterprises according to a criterium of representativeness. Each firm is
analyzed by means of an in-depth interview and on an accounting analysis. Enterprises were
selected with reference to the two main organizational models:
1. The integrated model: integrated pig farmers which combine the production of live pigs
with the on-farm processing of their meats where slaugherings takes place in small
slaughterhouses which offer these services
2. The long chain model: processing companies which buy live Cinta pigs from the farms,
slaughter them in third companies and process the meats to the final high quality products
of the Cinta Senese These companies are not specialized in Cinta processed products,
which often at the contrary represent a marginal share of their turnover.
A total of four interviews were conducted: 2 downstream integrated pig farmers; one of the
bigger Tuscan ham processor involved in Cinta Senese processing which represent 15% of the total
turnover; one traditional pig farmer.
4.2. Resilience
4.2.1. Description of the attribute “resilience” and research questions
The concept of resilience was developed originally with reference to ecosystems.
Resilience is defined in different ways by different authors, coherently to the different problems
their deal with but also to their different theoretical backgrounds and systems of thinking. In the
context of socio-ecological thinking, resilience has been defined as “the capacity of a system to
absorb disturbance and reorganize while undergoing change so as to still retain essentially the same
function, structure, identity and feedbacks” (Walker et al. 2004, p. 4).
The concept of resilience can be referred to the capacity of a food system to withstand
and/or recover quickly from sudden or acute shocks (such as price fluctuations, disease outbreaks
and other risks factors) in order to be sustainable over the longer term. However, resilience does not
refer only to the capability of a system to absorb external disturbances or to recover from adversity,
but also more in general to the ability to cope with change and to evolve towards new equilibria but
without change its identity. Three main aspects of resilience can be pointed out: persistence, which
refers to the ability to buffer shocks and still maintain function; adaptability, which refers to the
ability to deal with challenges by means of re-organization, change, ability to adjust to a changing
context; and transformability, which implies the capacity to transform the existing system in a
fundamentally new one (Walker et al., 2004; Folke et al., 2010).
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Learning and capability to innovate, both at individual and at collective/system level, is a
key issue in making systems resilient.
According to Briano et al.(2009), in the business sector resilience refers to the ability of a
company to resist a serious damaging event. Christopher and Peck (2004) define resilience as the
ability of a system to return to its original state or move to a new, more desirable state after being
disturbed, while Fiksel (2003, p. 5333) proposed that resilient systems satisfy four major
characteristics, namely: diversity; efficiency; adaptability; and cohesion. As pointed out by Leat and
Revoredo-Ghia (2013), the notions of flexibility and adaptability are core ones. According to these
authors, “a company or supply chain that has developed its resilience is better able to support the
unpredictability of domestic or international trade, thereby achieving a competitive advantage
through being able to recover more quickly than competitors when an adverse event arises” (Leat
and Revoredo-Ghia, 2013, p. 221).
The analysis of resilience as an attribute of a food chain is complex. Resilience is the
result of many characteristics of a supply chain and of firms operating in it, and depends also on
collective action initiatives firms are able to develop. Resilience is linked to attributes belonging to
the economic sphere, such as profitability and competitiveness, but also to attributes linked to the
resource use and the possible limited availability of key resources in the future. Hence resilience
includes concepts like efficiency, resource use,
technological innovation, biodiversity
management, and governance. According to some authors (Soldevila et al, 2009) the organizational
system and governance instruments of the value chain are key premises for building resilient value
chains in pork industry. Other factors impact deeply on resilience, such as public policies – e.g.
market regulations – and consumers behaviours.
In this report a special focus is given to “economic resilience”, according to GLAMUR
National reports, also in order to avoid major overlapping with other attributes. Resilience in fact
can be considered as a key component of the sustainability of a business.
From a methodological point of view, the choice of the unit of analysis is a critical issue. In
fact the interrelationships between the resilience of a food supply chain, and the National food
system from one side, and single firms resilience from the other one, should be carefully analysed.
See in this regard the diagrammatic representation of the risks facing individual businesses and a
supply chain elaborated by Leat and Revoredo-Ghia (2013). As pointed out by the authors, “these
risks are clearly related. For example, the production risks of farmer producers will be part of the
supply risk faced by others further down the chain. Similarly, the market risk faced by the retailer
will ultimately represent the demand risk for the chain as a whole” (Leat and Revoredo-Ghia, 2013,
p. 222). Supply chain risks may ultimately represent systemic risks for the whole food system.
Figure 4.1 Mapping risks facing individual enterprises and the whole supply chain
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
The general aim is to understand how the supply chain participants, and in particular the pig
producers (considered as the more weak and less empowered actors, also due to their exposure to
biological risks), attempt to reduce their own individual and the collective supply chain risks,
thereby making the chain more resilient.
From a methodological point of view, it is clear that in order to analyse resilience it is
needed to start first from an overview of the difficulties affecting the pig sector, and second to
highlight the major risks. Resilience being a dynamic concept, an in-depth analysis asks for a longtime observation of the behaviour of the system after a specific crisis. The analysis of this attribute
aims to give a general evaluation of the degree of resilience of the three supply chains, the
methodology followed in this work included both quantitative and qualitative tools. The steps of
our analysis are the followings:
-
to identify some specific factors affecting the resilience at a local system / supply chain level
(e.g. the degree of market diversification of firms) on the basis of the economic literature
to find out appropriate indicators that can be calculated for the three food chains and to find
relevant data, according to different available sources
to identify strategies pursued individually by firms and collectively for improving resilience
in the three supply chains, by means of a case study approach
to discuss the main results.
The main research questions are:
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
-
which are the relevant aspects that should be analysed in order to compare local and global
food chains against resilience?
are local food chains more resilient than global ones?
which are the factors explaining different performances of local and global food chains?
what is the methodological strength and weakness of comparative resilience analysis?
are there specific interactions of the food chains under study and the policy settings?
4.2.2. Contextualization in the Cured ham supply chain
Relevance of the attribute “resilience” in the cured ham supply chain
As highlighted by EFFP (2009), the pig industry has been in a structural decline, due to a
vicious circle of poor profitability, lack of confidence, underinvestment, falling productivity and
increased production costs. The increase in the volatility of agricultural commodity markets has
exacerbated the cyclicality of the sector, and the economic downturn put pressure on prices of porkbased final products at a final consumption stage. The upstream and downstream parts of the supply
chain are exposed to different risk and pressures: the upstream part of the supply chain (i.e. farmers
and processors) are more exposed to price movements in feed, whilst downstream actors (i.e.
manufacturers and retailers) are more exposed to changes in consumer demand and to concentration
process at the stage of final distribution.
The pig population in Italy has fallen significantly (between 2010 and 2013 the pig
population in Italy declined by 8.1%) and the processing supply chain has slightly increased imports
of pig meat to meet processors and consumers demand. In recent times many Italian farmers have
protested against low-cost imports of live pigs and fresh hams from Northern and Eastern Europe
countries, asking for new legal rules about the indication of the provenance of the meat on the label.
In this framework, economic resilience became a key issue for the whole Italian pork and
cured ham supply chains. According to GLAMUR WP2 National reports, some relevant
characteristics are identified in order to build resilient food supply chains, like the following:
-
limited dependence of farmers (and of firms belonging to other stages of the supply chain)
on a single firm, or on a single geographical market, for their production factors purchases
diversity of marketing channels and geographical markets for selling their products, both for
farmers and for farmers and firms belonging to other stages of the supply chain
limited dependency of farmers income and other firm revenues on a single product or
activity
limited dependency of the supply chain on public sector support
capability to differentiate their products on the consumer market
strengthening economic and social connections between actors across the food chain
a strong level of vertical coordination among firms.
Specific local/global features of the chain affecting the attribute “resilience”
Many sources of information evidence that ham production systems (pigs producers,
slaughterhouses and processors) were facing a complex of significant and related business risks, and
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
in particular (Leat and Revoredo-Ghia, 2013; Protocollo di intesa della filiera suinicola italiana,
2007):
-
-
Production risks: danger of disease outbreaks and a tarnished image arising from disease
concern.
Market risks: reduction trend in final consumption; strong market competition from imports,
exacerbated by exchange rate movements; escalating feed costs (the major component of
production costs); increasing market power of big supermarket chains; slow and even
possible non-payments.
Institutional risks: like animal welfare legislation impacting adversely on competitiveness
and potential restrictions on waste disposal. These risks are linked to the perceptions social
actors have about the legitimacy of pig farmers (and other supply chain firms) in doing their
economic activities.
In particular the Generic cured ham supply chain is characterized by a globalized
production model, with an high market (and geographical) concentration in the hands of few big
firms which tend to specialize on specific stages of the chain. The opportunities for product
differentiation are poor and price competition is very strong. In addition, environmental negative
impacts are higher than in more traditional pig breeding systems. The dominant logic in the Generic
ham chain is based on high volumes, low labour intensity and high capital intensity, low added
value per head and per cured ham. In this context searching for scale economies inside the firm and
along the chain is the guiding criterion.
The Parma Ham PDO supply chain can be viewed as a response to the problems of the
generic ham chain. In fact the Product designation of origin allows for an origin-based
differentiation model, and the territorial boundaries fixed in the PDO Product specifications
facilitate a stronger coordination among supply chain actors and support collective actions
initiatives. The dominant logic in the Parma Ham chain is based on the search of high added value
per ham, in order to be able to recover higher costs due to production methods able to valorise the
links between the product and the territory. On the other side, this model can be threatened by the
economic crisis which reduces the purchasing power of consumers.
In the Cinta Senese ham supply chain the integrated model of production is the most
relevant, where a single firm provide both for breeding Cinta pigs and for processing and curing
ham, usually on a small scale and by means of artisanal processing methods. According to QBIC
research project (Regione Toscana, 2011), this integrated model cover roughly 25% of the PDO
Cinta Senese farmers and a lower percentage of the total PDO ham production. From the marketing
side, Cinta Senese supply chain is based on a differentiation model based on two main elements: the
link with the local breed Cinta Senese and the link with a specific territory (including both physical
and human factors, as rearing methods) from which fresh meat and cured hams derive its specific
characteristics. This differentiation model is supported by the legal recognition of a PDO for the
Cinta fresh meat, and its extension to the cured ham by means of a collective trademark managed by
the Cinta Senese Consortium. Both firm integration and origin differentiation are supposed to give
to farmers and processors the opportunity to escape pricing squeeze which characterize ham food
chains. Even if in recent years prices of animals are variable, processed products enjoy good prices
and lots of opportunities for differentiation on the market and channel diversification, thus
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
supporting resilience. In the Cinta Senese ham chain the value creation logic is based on small
volumes, high intensity in labour, high added value per head and per cured ham. Also the links with
local culture is strong (Cinta sense is an identitary product for many Tuscan rural people) and this
support social acceptance of breeding. Searching for scope economies inside the same firm
(between rearing, processing, and other service activities as agritourism) is a guiding criterion for
many firms.
In the light of these differences between the three supply chains, the hypothesis about
resilience is that firms, and in particular farmers, embedded in global chains tends to be more and
more subject to :
-
the effects of price volatility, both for inputs and intermediate outputs (pigs carcasses, fresh
hams and other parts), on national and international markets;
the squeezing by two powerful categories of actors, input suppliers on one side, and final
processors and the retail sector on the other one.
Moreover, firms tends to be strongly specialized in a single product and capital intensive,
thus increasing the exposure to risks.
Local chains seems to be less vulnerable to volatile prices and to risks in general, thanks to
higher levels of diversification and a greater ability to differentiate the product on the basis of
“irreproducible” factors linked to a specific territory. As pointed out by Leat and Revortedo-Ghia
(2013), improved resilience (in terms of reduced supply chain vulnerability to risks) arose also
through horizontal collaboration amongst producers, and vertical collaboration with the processor
and retailer. Their findings, related to a Scottish case-study, highlight that - thanks to a strong
collective action and governance - producers improved market and price stability and pig breeding
performances; for the processor and retailer the collaboration generated greater security of supply of
an assured quality, improved communication with suppliers, and reduced demand risk as they could
assure consumers on quality, animal welfare and product provenance – thanks to a better ability to
communicate with social stakeholders (public bodies, consumers, citizens, environmental
associations …). In principle territorial and cultural contiguity allows for better opportunities of
coordination, lowering transaction costs and easing common vision about different supply chain
actors.
4.2.3. Methodology
General approach and overview of indicators
From a methodological point of view the analysis of resilience of a supply chain asks firstly
to made an overview of the difficulties affecting the supply chain, and secondly to highlight the
major risks it faces. Resilience being a dynamic concept, an in-depth analysis asks for a long-time
observation of the behaviour of the system after a specific crisis.
The scope of this work is to give a comparative evaluation of the degree of resilience of
three supply chains in the cured ham sector. On the basis of a set of specific factors affecting the
resilience at a local system and supply chain level identified in the previous Section thanks to
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
literature analysis, in this Section we identify some indicators able to represent these specific factors
and for which relevant data are available at the needed level of detail.
Given the complexity of the attribute resilience, its analysis was decomposed in various
dimensions for each of which have been developed one or more indicators, divided in 4 categories.
-
-
-
Volatility indicators provide an overview of the level of price volatility for the different
inputs and outputs of the supply chains
Analytical indicators measure specific aspects of the chains and are calculated and
presented according to the different stages of the supply chain: pig farming, slaughtering,
and ham processing. The focus on the stages of the chain is justified by the fact that each
sector develops their own strategies for resilience; often these strategies are in conflict with
the other sectors.
To facilitate the comparison among the three supply chains and the interpretation of data,
some synthetic indicators – built on analytical indicators – have been developed for each of
the three stages of the supply chain.
Finally, a general evaluation of the degree of resilience of the supply chains as a whole is
given by means of some cross-cutting indicators.
Indicators are both quantitative and qualitative. Qualitative indicators are evaluated by
researchers on the basis of their direct knowledge, of the results of the direct surveys (data and
interviews) and of experts’ advices, using ordinal scales, for example: level 1 (very high, that is
supporting of resilience), level 2 Intermediate, and level 3 (low, that is reducing resilience). The
ordinal scale will be adapted to each indicator. The following table link indicators to research
questions and data collection methods.
Table 4.2. Resilience attribute: indicators, research questions and data collection methods
ATTRIBUTE: RESILIENCE (Economic/Social)
Brief attribute
Used indicators
description (cf.
Comparative Report)
Capacity of a food system Three categories of
to withstand and/or
indicators:
recover quickly from
- ANAYTICAL
sudden or acute shocks
INDICATORS
(such as price
- SYNTHETIC
fluctuations, disease
INDICATORS
outbreaks and other risks
- CROSS-CUTTING
factors) in order to be
INDICATORS
sustainable over the
See the following table
longer term. In this work for an analytical
the focus is on economic
presentation.
resilience.
42
Research questions
Data collection
methods
 which are the relevant
aspects that should be
analysed in order to
compare local and
global food chains
against resilience?
 are local food chains
more resilient than
global ones?
 which are the factors
explaining different
performances of local
and global food chains?
For all the indicators,
a mix of the following
techniques:
 Direct interviews to
supply chain actors
 Official data on
prices and other:
ISTAT (national
statistics bureau),
Chambers of
commerce, etc
 Previous inquiries
 Experts’ advices
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
The following table classify the analytical indicators according to both sectors of the supply
chains and the issues considered, and link them to the synthetic indicators.
Many indicators are linked also to other attributes, and in particular to Added value creation
and distribution, Governance, and Territoriality. These links will be discussed in a specific section
of the general Report.
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RESILIENCE
INDICATORS
VOLATILITY
INDICATORS
Upstream
integration
ANALYTICAL INDICATORS
Downstream
Diversification
Differentiation
integration
Pig farming
Feed prices index
(V.1)
Farmers upstream
integration by
ownership (A.1)
Live pigs price
index (V.2)
Farmers upstream
integration by
contractual
arrangements (A.2)
Live pigs price
index (V.2)
Slaughterhouses /
processors upstream
integration (A.7)
Farmers
downstream
integration (A.3)
Farmers product
diversification (A.4)
Slaughterhouses
downstream
integration (A.8)
Slaughterhouses
product
diversification (A.9)
Other
SYNTHETIC
INDICATORS PER
PHASE
Farm-level
resistance
against pricevolatility (A.5)
Farm-level risk-spreading
(S.1)
Use of
antibiotics
(A.6)
Adaptation capacity of
farmers through
downstream actors
cooperation, integration
and diversification
strategies (S.2)
Slaughtering
Fresh ham price
index (V.3)
Ham processing
Fresh ham price
index(V.3)
Cured ham price
index (V.4)
CROSSCUTTING
INDICATORS
Processors product
diversification (A.10)
Processors market
diversification for
Slaughterhouses /
Product
cured ham (A.11)
processors upstream
…
differentiation for
Processors
integration (A.7)
cured ham (A.13)
geographical market
diversification for
cured ham (A.12)
Supply chain attitude to diversification and differentiation (C.1)
Intradiversity of chain relations / configurations (C.2)
Chain-based adaptation capacity through learning and innovation (C.3)
Ability to mobilize public and societal support (C.4)
44
Adaptation capacity of
slaughtering firms
through integration and
diversification strategies
(S.3)
Adaptation capacity of
ham processing firms
through integration and
diversification strategies
(S.4)
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
4.2.4. Prices volatility indicators
As pointed out by a FAO study (2011), “in a purely descriptive sense volatility refers to
variations in economic variables over time … Here we are explicitly concerned with
variations in agricultural prices over time. Not all price variations are problematic, such as
when prices move along a smooth and well-established trend reflecting market fundamentals
or when they exhibit a typical and well known seasonal pattern. But variations in prices become
problematic when they are large and cannot be anticipated and, as a result, create a level
of uncertainty which increases risks for producers, traders, consumers and governments and
may lead to sub-optimal decisions. Variations in prices that do not reflect market fundamentals are
also problematic as they can lead to incorrect decisions” (FAO et al, 2011). Volatility is
determined by the speed of variation in prices. From a statistical standpoint, the greater the
magnitude of its rate of change (up or down), the greater the speed of such change and the more
changes there are in opposite directions, the more volatile a price will be.
Along pork chains the volatility can be measured at four stages:
-
Volatility of feed prices (concentrate and other)
Volatility of live pig prices
Volatility of fresh ham prices
Volatility of cured ham prices
The concentrate/feed price on the national/international market is not really under the
control of the pig farming system, instead it should be considered mainly as a “factor risk” able to
menace the supply chain resilience. Taking in account the relevance of costs of feed for pig farmers,
their upstream integration initiatives can be interpreted as a way to cope with the feed prices
volatility (see the following Indicators, in particular the indicator b).
The degree of volatility of live pig, fresh ham and cured ham can be hardly impacted by the
capability of the system (the supply chain) to manage prices.
In this study, volatility is measured by the coefficient of variation, given by the ratio of
mean and standard deviation of the current values of prices (Visciaveo and Rosa, 2012). In this way
it is possible to obtain a dimensionless index that allows comparison between different series.
4.2.5. Pig farm indicators
Analytical indicators
A.1 and A.2 - Farmers upstream integration
Concerning pig farming , the volatility of concentrate price, and in general of pig feed, is
one of the main risk factors menacing the supply chain resilience. This is true mainly for intensive
pig farming where net operating income per unit is very low and progressively eroded by the
growing monopsony power of large buyers and distributors. Integration, in different forms, allows
for lessen or eliminate the effects of volatility in feed prices. The direct upstream integration in feed
production by farmers (ownership integration) allows them for a stronger control on feed supply.
The efficiency of a pig farmer in feed production can be much lower than a specialized firm, and
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often structural conditions can impede feed production. This indicator is calculated as the share of
pig farmers which self-produce the majority of feed over the total number of pig farmers, for each
one of the three chains. Other indirect forms of integration, like contractual arrangements between
feed producers (farmers or specialized firms) and farmers, can be very relevant in order to stabilize
feed prices: another possible indicator is the presence and extent of mid or long-term contractual
arrangements (like interprofessional agreements). Indicators are collected by means of expert
consultation, except from Cinta Senese where a sample of firms was interviewed.
A.3 - Farmers downstream integration
The volatility of live pigs price affects farmers’ resilience. Downstream integration, in
different forms, allows for the reduction of volatility in pigs prices. The direct downstream
integration in processing by farmers (ownership integration) allows them for the stronger control.
Technical efficiency of a pig farmer in processing is normally much lower than a specialized firm,
and this imply economic inefficiency if not supported by appropriate marketing strategies. Farmers
integration can be pursued also by means of co-operative firms operating in slaughtering and/or in
processing. Other indirect forms of farmers downstream integration, like contractual arrangements
between pig farmers and downstream activities can be very relevant in order to stabilize live pigs
prices. Hence another possible indicator is the presence and extent of mid or long-term contractual
arrangements (like interprofessional agreements).
A.4 - Farmers product diversification
The production portfolio of a firm should be balanced along the trade-off between high
specialization with related scale economies on one side, and high diversification. Product
diversification allows for a diversification of risks but entails higher production costs, even if lower
economies of scale may be offset by greater economies of scope. This indicator is calculated as the
share of (light/ heavy/Cinta) pigs for ham production on the total turnover of farm. The hypothesis
is that the lower is this value and the higher the degree of diversification, the higher is the capability
of the firm to be resilient against shocks on the market. Two different typologies of product
diversification occur: the first one is a diversification linked to pork farming (like waste-flow
valorization, but also meat processing is a way of diversification), the other one is outside the pork
chain both on-farm (like developing agritourism activity on farm) and off-farm.
A.5 - Farm-level resistance against price-volatility
The resistance at farm level against price volatility of the input and output markets of
relevance for pork production can be expressed in a synthetic way by considering its economic final
result, that can be appreciated by means of added value. A proxy of the exposure of farmers to input
and output volatility is the delta of the added value per kg live weight calculated at farm level for
each year from 2009 to 2013. The higher this delta, the lower the ability of farmers to stabilize
prices and/or to transfer input prices increases in output prices increases.
A.6 - Use of antibiotics
A completely different indicator for resilience is the use of antibiotics in pig farming.
Intensive pig rearing systems are subject to epidemics and diseases, due to the high concentration of
animals in small spaces. For this reason antibiotics are administered also in order to prevent and not
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only for treat diseases. Therefore high levels of use of antibiotics are indicative of high exposure to
disease risks, and on the other side can generate negative effects on the meat quality and on human
health.
Synthetic indicators
In this section are presented some synthetic indicators per each of the three main stages of
the cured ham supply chains. Synthetic indicators are built on analytical indicators presented in the
previous section, integrated by other qualitative information and expert advice.
S.1 - Farm-level risk-spreading
Upstream coordination with feed production, farm diversification and product
diversification are key issues for farmers in order to escape the logic of mass market and be more
resilient. The indicator “farm-level risk-spreading” synthetizes three of the aforementioned
indicators, that is: Farmers upstream integration by ownership; Farmers upstream integration by
contractual arrangements ; and Farmers product diversification.
S.2 - Adaptation capacity of farmers through downstream actors cooperation, integration
and diversification strategies
This synthetic indicator take in account the strength of farmers interlinkages with
downstream actors diversification strategies in terms of productfolio and marketing, that can be
obtained thanks to coordination and adaptation to downstream actors or by means of direct vertical
integration in processing activities. Downstream integration in ham meat processing (ham and other
cold cuts) allows farmers for a better control on live pigs prices, escaping from monopsonistic
power of downstream actors, and give access to higher added value activities by valorizing specific
qualities of their pigs. This synthetic indicator is evaluated taking in account two analytical
indicators, farmers product diversification and farmers downstream integration, and other
qualitative evaluations based on empirical evidences and literature review. This indicator is
evaluated by means of an ordinal scale, that is: level 1 (high adaptation capacity: in favor of
resilience), level 2 (intermediate), and level 3 (very low adaptation capacity).
4.2.6. Slaughtering indicators
Analytical indicators
A.7 - Slaughterhouses/processors upstream integration
Slaughterhouses and processors through upstream vertical integration aims at control and
coordinate quantities, quality and prices of live pigs and/or fresh hams, in order to be able to better
meet intermediate and final demand needs.
A.8 - Slaughterhouses downstream integration
Similar problems are fronted by slaughterhouses with regard to fresh hams prices. Also in
this case downstream integration can be pursued by different tools, mainly by ownership and by
contractual arrangements.
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A.9 - Slaughterhouses product diversification
The production portfolio of a firm should be balanced along the trade-off between high
specialization with related scale economies on one side, and high diversification. Product
diversification allows for a diversification of risks but entails higher production costs, even if lower
economies of scale may be offset by greater economies of scope. This indicator is calculated as the
share of pigs slaughtered for production of generic / Parma PDO / Cinta Senese ham on the total
turnover of slaughtering firms. The hypothesis is that the lower is this value and higher the degree
of diversification, the higher is the capability of the slaughtering firm to be resilient against shocks.
Synthetic indicators
S.3 - Adaptation capacity of slaughtering firms through integration and diversification
strategies
Slaughterhouses are economically highly vulnerable as they operate in between two highly
volatile markets. This synthetic indicator takes into account the capacity of firms to adapt to the
evolution of market conditions by means of better integration with upstream and downstream
actors, and of the development of diversification strategies aimed at risk differentiation. The
indicator is evaluated taking in account some analytical indicators (volatility indexes,
slaughterhouses upstream and downstream integration, and slaughterhouses product diversification)
and other qualitative evaluations based on empirical evidences and literature review. This indicator
is evaluated by means of an ordinal scale, that is: level 1 (high adaptation capacity: in favor of
resilience), level 2 (intermediate), and level 3 (very low adaptation capacity).
4.2.7. Ham processing indicators
Analytical indicators
A.7 - Slaughterhouses/processors upstream integration
The same indicator than for slaughtering.
A.10 - Processors product diversification
The production portfolio of a firm should be balanced along the trade-off between high
specialization with related scale economies on one side, and high diversification. Product
diversification allows for a diversification of risks but entails higher production costs, even if lower
economies of scale may be offset by greater economies of scope. This indicator is calculated as the
share of processing firms with a share of generic / Parma PDO / Cinta Senese ham higher than 70%
on the total turnover of processing firms, on the total number of firms. The hypothesis is that the
lower is this value and hence the higher the degree of product diversification, the higher will be the
capability of the processing firm to be resilient against shocks on the market of cured ham.
A.11 – Processors marketing channels diversification
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In front of the increasing market power of large retail companies, the capability of cured
ham sellers to operate in different marketing channels and in different geographical markets is an
important factor of resilience. Being impossible to analyze the dependence from single purchasers,
the indicator of market diversification of cured ham sellers is calculated as the ratio between the
number of processing firms with a share of turnover from (generic/Parma/Cinta) ham higher than
66% in one marketing channel and the total number of the processing firms in the supply chain. For
generic ham and Parma Ham we considered four main types of marketing channels: Supermarkets
groups (GDO), Traditional retailers, Wholesalers, and Other.
A.12 – Processors geographical markets diversification
Geographical market diversification is an other relevant element able to increase resilience,
because it allows for a diversification of market risks. Market risks depend not only from consumer
demand, but also from sanitary reasons and other trade barriers.
A.13 – Processors product differentiation
The capability to differentiate the product on the final market in order to increase loyalty of
final consumers to own product is very relevant for cured ham producers in order to stabilize trade.
Reputed individual trademarks and collective marks, like designations of origin, play a relevant
role. In particular Designations of origin allow also to small producers access differentiation
strategies. The reputation of Designations of origin is based also on traceability and control systems,
that guarantee consumers about the compliance with product specifications and in particular about
the provenance of raw material.
Synthetic indicators
S.4 - Adaptation capacity of ham processing firms through integration and diversification
strategies
Ham processing firms play a key role in the three chains, they links pig farming and
slaughtering phases to the phase of distribution and to final consumption. This synthetic indicator
take in account the capacity of firms to adapt their supply to final demand but also to influence its
evolution, by means of better integration with upstream actors, diversification strategies and product
differentiation that are more and more relevant in order to contrast the increasing market power of
large retail companies. At the same time the capacity to orient, control and guarantee the even more
complex quality characteristics of fresh hams (both material and immaterial ones, like
environmental sustainability) is often a prerequisite for developing appropriate marketing strategies
on cured hams. The indicator is evaluated taking in account some analytical indicators (volatility
indexes, ham processing firms upstream integration, product diversification, market diversification
and product differentiation) and other qualitative evaluations based on empirical evidences and
literature review. This indicator is evaluated by means of an ordinal scale, that is: level 1 (high
adaptation capacity: in favor of resilience), level 2 (intermediate), and level 3 (very low adaptation
capacity).
Cross-cutting indicators
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C.1 - Supply chain attitude to diversification and differentiation
The overall level of the supply chain attitude to diversification and differentiation can be
evaluated by means of analytical indicators related to product differentiation in all the phases of the
supply chains, marketing channels and geographical market diversification for cured ham, and
product differentiation for cured ham. On the basis of these basic data expert can express an
evaluation on an ordinal scale.
C.2 - Intradiversity of chain relations / configurations
This indicator is based on the idea that an internal diversity of organizational and business
models and strategies can improve the resilience of the supply chain, allowing for a a diversification
of risks. Indeed specific crisis factors may prejudice some models of chain organization, but not
others. The evaluation of this indicator is based on expert consultation and on other information
collected during the survey.
C.3 - Chain-based adaptation capacity through learning and innovation
As pointed out in the introduction, the concept of resilience does not refer only to capability
of a system to absorb external disturbances but more in general to be able to cope with change and
to evolve towards new equilibria. In this perspective learning and capability to innovate, both at
individual and at collective/system level, is a key issue in making a supply chain resilient. The
evaluation of this indicator is based on expert consultation and on other information collected
during the survey.
C.4 - Ability to mobilize public and societal support
The ability to mobilize different types of public and societal support is a key feature of
resilient supply chains, in particular in time of rapid changes. Public support can take many
different ways, from national, regional and local public authorities: support to investments in the
field of rural development plans, technical assistance, public investment in research and genetic
improvement, support to develop systems to guarantee the origin and quality of products, and many
others. Even the societal support is very important as it gives social legitimacy to pig farmers and to
their activity them; social support constitutes an important prerequisite for the activation of public
policy support. The indicator is calculated by means of an ordinal scale, by analyzing the presence
of political and social support activities of various types and level (national, regional and local).
4.3. Chain governance
4.3.1. Description of the attribute
Governance covers a wide range of meanings (cfr. WP2 Deliverable), from concepts related
to the regulatory system (how food systems are regulated and decisions made), to more holistic
concepts of power and democracy (who has influence over food systems and policy).
Chain governance is a relevant attribute for both local and global chains where the PDO
producers are represented by a collective body (Parma Ham PDO Consortium). The action of this
collective organization distinguishes these regulated chains from the non-PDO generic ham chain, a
supply chain without formal governance, while benefiting from the reputation of the geographical
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indication Parma Ham. The functions of control and supervision were clearly separated, with
control to be carried out by a third party and the Consortia to supervise operations once the
certification body had laid down standards. On this basis, the PDO Consortium supported the
setting up of the certification body, the Istituto Parma Qualità (IPQ), which checks documentation
of inspections and tests carried out at all farms, slaughterhouses and producer firms. The
Consortium itself is active in supervising sales and has no hesitation in taking legal action against
counterfeiting and abuse. It is this complex system of supervision and governance of the network
which has helped to give the PDO product its widespread recognition for soundness
The PDO Parma Ham Consortium in 2004 has amended its statutes to ensure a more
balanced representation of the supply chain, as laid down by Law No. 526/99. The new statutes take
different roles into account; Article 1.1 allows for farmers, slaughterers, cutters and packers to join
the consortium and contribute to its budget as well as the processors themselves (Consortium
statutes give 66% of votes to producers, and the remaining 34% are divided among other supply
chain members, farmers, slaughterhouses, cutters and packers). The requirements for producers
have also been relaxed: it is no longer necessary for at least 75% of ham output to be Parma Ham.
PDO Parma Ham production is based on Consortium specification codes for each phase of
production, which are approved at EU level. The definition of these rules by the Consortium
members has built up an indissoluble link between product and district, with direct effects on
employment and income (Giacomini et al., 2013a).
The PDO Parma Ham Consortium is the central node of the network. Law No. 526/99 lays
down its functions as tutelage, enhancement and consumer information (Figure 4.2). In governance
it holds regular meetings where members are informed of strategy. The link is in two directions as
members elect the Board of Administration and other panels and thereby influence policy. The
Board is composed by 15 producers, 1 pig breeder, 1 slaughter house and 1 packager. All firms are
today eligible to vote regardless of the proportion of Parma Ham that they produce. This means that
big producers can influence the Board decisions more than small producers and this can affect the
Consortium strategies, especially those related to quality definition. The Consortium therefore
represents the interests of two types of producer of conflicting vocation and company strategy. On
one hand, there are the small producers, often producing exclusively Parma Ham PDO, and on the
other hand large and even multinational manufacturers for whom Parma Ham is simply a product to
place on the market. Consortium decisions are inevitably a compromise between these two
conflicting poles. Dentoni et al. (2012) also confirm that Parma Ham Consortium members have
highly and increasingly heterogeneous characteristics, assets and strategies and that higher
heterogeneity negatively affects members’ agreement on the future level of restrictiveness of Parma
Ham PDO as geographical indication and therefore the effectiveness of the collective action.
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Figure 4.2 – Governance and accreditation relationships in the PDO Parma Ham network.
One way link
Two ways link
Parma Ham PDO
Consortium
d
a
b
Istituto Parma
Qualità (I.P.Q.)
c
Parma Ham
PDO
producers
c
Retailers
a
e
a
c
Generic
cured ham
producers
Italian suppliers of raw
material (fresh hams)
Wholesalers
d
Italian farms –
certified pigs
Overseas
Source: Giacomini et al. (2013a).
For the generic non-PDO cured ham network (Figure 4.3) trade in resources is closely linked
to the Parma Ham PDO network, partly because some of the players are the same and partly
because generic cured ham takes advantage of the geographic and reputational spillover from the
PDO version (Giacomini et al., 2013a). Generic cured ham manufacturers also benefit from synergy
in the Parma Ham district, the widespread availability of information and know-how in production
techniques built up over decades, as well as parallel services supplied by firms in the Localized
Agri-Food System. It is mainly larger firms, often producing both types of ham, which benefit from
this geographical spillover. This overlapping creates a competitive advantage for those producers
trying to exploit economies of scale, instead of providing quality benefits. At the same time, small
producers attempting to create value and gain a competitive advantage through providing superior
product quality could be placed out when market prices are decreasing. The role of the Parma Ham
Consortium in the generic non-PDO cured ham network can be seen from two angles. On one hand,
the informational and enhancement carried out by the Consortium indirectly affects the generic ham
network as geographic and reputation spillover. On the other hand, Consortium policy is influenced
by its mixed membership (Dentoni et al., 2012).
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Figure 4.3- Trade in resource in the generic non-PDO cured ham network
Intangible flow
Tangible flow
One way link
Two ways link
Parma Ham
PDO
producers
Retailers
b
d
b
Mixed
producers
Italian suppliers of
raw material (fresh
hams)
Wholesalers
c
a
Italian farms –
certified PDO pigs
Foreign suppliers of
raw material (fresh
hams)
d
Generic
non-PDO
ham
producers
Overseas
Services suppliers
Source: Giacomini et al. (2013a).
Summarizing in the same Localized Agri-food System of the Parma province, two different
networks operate where agents, cooperating and competing at the same time, encourages the spread
of technological and market know-how and the generation of positive geographical and reputational
spillover. These latter generate the development of networks among firms, directly by way of
alliances, or indirectly through intermediaries. The comparison of the two networks shows the
relationships between operators acting inside and outside the district and particularly relationships
with institutions of governance affecting firm behaviour and markets.
Chain Governance of local supply chain of Cinta Senese relies on the action of the PDO
Consortium which represents local farmers and processors. The main body involved in the
governance of Cinta Senese PDO system is the Consorzio di Tutela della Cinta Senese, constituted
in 2000 with the support of the province of Siena. The membership base of the consortium is
composed by different groups of interest. Traditional farmers producing small quantities (40-60
pigs/year) of high quality Cinta Senese pigs in large extensions of land with forest;
entrepreneurs/farmers involved more recently in the chain and producing larger quantities of pigs
(100-800 pigs/year) and/or processing them into charcuterie products on farm; pork processors
certifying a minor part of their production under the PDO scheme. Decisions are supported also by
advice and information from representatives of the local government as regards for example the
formal process of acknowledgement of the PDO scheme and relationships with the Ministry of
Agriculture. The board of directors consists of representatives of farmers (5 members),
slaughterhouses (1 member) , sausage and slicing firms (3 members).
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Indicators used to monitor the chain governance attribute are mainly qualitative in nature and based
on literature review. The aim is to describe the specificity of chain management regarding the
capacity to manage internal and external relations and thus to adopt appropriate and effective
management actions. Indicators used to monitor the chain governance attribute are:
i)
ii)
iii)
iv)
trust based internal relationships: this indicator represents the level of trust-based
relations between chain actors, based on (1) absence of conflicts, (2) trust among chain
partners, and (3) continuity of chain relations. It is measured on an ordinal scale: value 1
(maximum level of trust), value 2 (intermediate level), value 3 (low level of trust);
trust based external relationships: it indicates the level of trust-based external
relationships based on chain partners' capacity to mobilise support from (1) social
movements, (2) citizens and (3) policy actors. It is evaluated by means of an ordinal
scale with value 1 (maximum level of trust), value 2 (intermediate level), value 3 (low
level of trust);
self governance capacity: this indicator represents the level of self-governance capacity
in terms of creation of distinctiveness. It is measured on an ordinal scale: value 1
(maximum level of distinctiveness), value 2 (intermediate level), value 3 (low level of
distinctiveness);
chain-based value governance: this indicator represents an overall value governance
characteristics conform the typology of Gereffi et al. (2005), that is market, modular
value chains, relational value chains, captive value chains, and hierachy.
4.4. Territoriality
4.4.1. Description of the attribute
The identity of several food products reflects the unique combination of local natural
resources (climate, soils, local breeds and plant varieties, traditional equipments, etc.) and cultural
ones (traditions, know-how and skills, some of which are transmitted through generations) in a
given territory, linking the product, the people and the place (Vandecandelaere et al., 2009).
Therefore, territory plays a relevant role in the production process considering the economic,
environmental and social aspects that characterize the area of productions. The attribute
territoriality can be considered the result of the interplay between characteristics and strategies of
local producers in their business activity, social relationship among producers and employees, and
environmental resources. The combination among these three dimensions (production, social
relationships and environmental resources) characterizes every single production system and the
related territory that support this activity.
Territoriality encompasses the capability of a supply chain to represent and promote the
localness of a product and its link with a specific terroir or place of production (GLAMUR WP2
definition). Sonnino (2007: 63) defined territoriality as “the ecological and cultural relationships
that a food system has with its territorial context”. The scientific debate around the role of the
territory in terms of contributing to the value creation process clearly underline the social aspects in
that it involves the protection of jobs, culture, traditions and indeed whole communities (Bowen and
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Zapata, 2009). Sociologists have used the concept of embeddedness to examine the relationships
between social networks, social capital, cultural and cognitive elements and the construction of
markets and production systems within a particular territory (Bowen, 2010, 2011). Much has also
been written within the scientific literature about the importance of developing food chains
associated with specific territories that can help to maintain and promote non-standardized food
products on new and existing markets, to preserve the associated socio-ecological system, to
valorise traditional and artisanal food production, and to maintain population activities in rural
areas. In this perspective, they can contribute from the production side to a territorial and integrative
approach for sustainable development in particular in fragile areas (Vandecandelaere et al., 2009).
The two main discourses in relation to territoriality include the protection of cultural
identity, traditions, territory and so on for their own sake, but also the ability of territorially-linked
produce to be able to add value and access markets as a result of increased distinctiveness. In this
context, the production of “local” commodities is nested in wider regional, national, and
international networks (Hinrichs, 2003). The other main discourse concerns the authenticity of the
message that is being communicated to consumers about the underlying 'territoriality' of the
produce they are buying. The resources of the region (landscape, cultural and historical resources
and local savoir faire) become embedded in the food product, thereby synthesizing the territorial
attributes in the product name (i.e. the geographical indication – GI).
In the specific case of cured ham production, territoriality becomes relevant to describe the
characteristics of the production system, the linkage with the local inputs and the level of
embeddedness of the supply chain in the territory. Information regarding the characteristic of the
production system allows to depict how and why the territory performs and manages its economic
and social growth and the management of specific governance actions. Similarly, within the
territory, other private sector actors, outside the production supply chain, can establish very useful
and successful alliances with GI systems, in particular tourism activities as a result of synergies
related to the territory reputation (Vandecandelaere et al., 2009). Finally, the product specification
linked to a specific product may provide rules for applying the quality to the GI producers located
in a delimited area. It defines the specific characteristics of the food product which are attributable
to its geographical origin, justifying the link between the product and the territory (the same product
cannot be elaborated in other territories). It must explain how a given quality (the specific attributes
that make the product different of the other of the same category), a reputation (history of the
product, past reputation, current reputation) or another characteristic (for instance know-how) are
linked to the origin (Vandecandelaere et al., 2009).
Therefore, the key elements defined within the territory affecting the supply chains are:

the structural characteristics of the territorially embedded agricultural units and food
industries;

the link of the product with the local input (as defined by the product specification);

the promotion activities by collective bodies and institutions (e.g., PDO Consortia);

the marketing strategies developed on the territory, as a result of the cooperation between
farms, food industries, PDO Consortia and other territorial actors (e.g., Gourmet Food and
Wine Routes).
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
The successful management of these specific elements can improve the competitiveness of the food
system and, as a consequence, the improvement of the whole territory.
4.4.2. Indicators
Seven main indicators, belonging to the three main areas Association of product with
territory, Social cohesion and conviviality, and Links with local touristic activities, were measured
to depict the territorial dimension of the local, regional and global chains analyzed. The idea is that
those indicators can be considered as proxy of the specific characteristics of territorial attribute
(Table 1).
Table 4.3: Attribute Territoriality (Social dimension)
Indicator
Measurement
Unit
Data Source
Association of product
with territory - Pig
breeding importance
Pig farms on total farms with
livestock in the territory (%)
Percentage
IPQ/INEQ, ISTAT
Association of product
with territory - Pig meat
processing importance
Pig meat processing industries
on total food industry in the
territory (%)
Percentage
IPQ/INEQ,
UNIPR
Association of product
with territory - Origin of
raw materials
Is there a link between the
origin of raw materials (e.g.
fresh meat, feed) and the
territory?
Ordinal scale: level 1 (strong
link with the territory), level 2
(intermediate link with the
territory), and level 3 (weak link
with the territory)
UNIPR, UNIFI
Social cohesion and
conviviality - Number of
events
Number of socio-cultural
events in the territory
Pure number
Interviews, secondary
data (Parma Ham
Consortium, UNIFI)
Social cohesion and
conviviality - Number of
visitors
Number of visitors in sociocultural events in the territory
Pure number
Interviews, secondary
data (Parma Ham
Consortium, UNIPR)
Links with local touristic
activities - Gourmet
Food and Wine Route
Is there a Gourmet Food and
Wine Route involved?
Binary scale: 1 = yes, 0 = no
Interviews, secondary
data (UNIPR, UNIFI)
Links with local touristic
activities - On-farm
touristic activities
% of farms involved in onfarm touristic activities (agritourism, food tasting, etc.)
Ordinal scale: level 1 (more
than 40%), level 2 (from 10% 40%), level 3 (less than 10%)
Interviews, secondary
data (UNIPR, UNIFI)
ISTAT,
The dimension “Association of the product with territory” has been assessed by three
indicators, considering both the rural and the industrial dimensions. First we assessed the number of
pig farms involved in the supply chain as a percentage of total farms with livestock in the territory.
The indicator shows the relative importance of pig breeding on total livestock breeding in the
territory. These data were gathered by province (NUTS 3 level) from the Italian Census data of
Agriculture (ISTAT, 2010) and from the third certification body of the PDO chains (INEQ for Cinta
Senese PDO, and IPQ for Parma Ham PDO). The second indicator considered the number of pig
meat processing industries involved in the supply chain as a percentage of total food industry in the
territory. The indicator shows the relative importance of pig processing industries involved in the
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
supply chain on total food industry. These data were gathered by province (NUTS 3 level) from the
Italian Census data of Industry and Services (ISTAT, 2011) and from the third certification body of
the PDO chains (INEQ for Cinta Senese PDO, and IPQ for Parma Ham PDO). Finally, we
considered whether there is a link between the origin of raw material (e.g., fresh meat, feed) and the
territory. This indicator is measured on an ordinal scale based on qualitative evaluations considering
the specific chain's features and the product specification eventually applied, with level 1 indicating
a strong link with the territory, level 2 an intermediate link and level 3 a weak link of raw materials
with the territory.
The dimension “Social cohesion and conviviality” was assessed by two indicators used to
identify the socio-cultural relations and externalities linked with food chains, contributing to create
social cohesion within the territory. First we considered the number and type of socio-cultural
events favoured by the chain in the territory; secondly, we assessed the number of visitors in these
socio-cultural events on the territory. These two indicators are based on information provided by
Consortia and other local sources (e.g., direct interviews with stakeholders).
Finally, two indicators were used to assess the chain “Links with local touristic activities”. In
this case, we first qualitatively considered whether there is a Gourmet Food and Wine Route
involved in the territory related with the food supply chain. This is basically a binary qualitative
indicator. Secondly, we have assessed the percentage of farms within the territory involved in onfarm touristic activities, such as agri-tourism, food tasting, etc. These two indicators are based on
information provided by Consortia and personal interviews with key stakeholders.
4.5. Resource use and pollution
4.5.1. Description of the attribute
Resource use concerns the use and management of the flows of available resources in the
global and local food chains. Pollution encompasses any input into the natural environment which
causes adverse changes to ecosystems.
Global chains are presumed to pollute more and to use more resources compared to local
chains because of the long distance transport of the raw materials and the end products. This
common assumption generates the high interest of conscious consumers to purchase more local
food than global food. It is however relevant to measure the different environmental impacts of
global and local chains, as the nature of the production systems plays an important role in the final
environmental assessment.
The nature of the production system affects resource use and pollution significantly and
much more than transport of raw materials and of end products. Several studies have demonstrated
that transport only plays only a minor role in the overall environmental impact of food chains. A
local food system based on highly intensive production systems may perform worse than a global
food system in which an extensive use of resources predominates. Of course the total impact has to
be broken down in the different impact categories such as carbon footprint, water footprint,
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
eutrophication and land use and the final judgment will depend on which impact category will be
chosen.
The metodology of Life Cycle Assessment (LCA) has been developed according to to the
ISO 14040 and 14044[standards. LCA is a method to evaluate the environmental impact during the
entire life cycle of a product. Generally, two types of LCA methods are used: attributional and
consequential LCA.
In attributional modelling upstream emissions and resource extraction are allocated
wherever multi-product processes occur. In consequential modeling the emissions amd resource
extraction of marginal products that could substitute the co-products are subtracted from the product
life cyle.
In this study we have chosen attributional modeling since most of the inputs are directly
attributed to the production. We have studied all the impacts generated throughout the various
phases of production of the ham, from the breeding phase to the phase of slaughtering, seasoning
down to retail.
LCA joints the environmental impact to a unit function, which is the main reference of a
production system. We have calculate all impacts per kg of cured ham at retail level. In different
phases of production we have considered the kg of live weight (breeding), kg of carcass
(slaughterhouse), kg of ham (seasoning) and at the end kg of slice ham (retail).
One important aspect is related to the allocation issue in the case of supply chains that they
have more than one type of product. In these situations, the environmental impact of the production
system must be allocated to different outputs. Three main allocation methods exist (ISO, 2006):
economic allocation, physical allocation and system expansion.
We have adopted a physical allocation in function of the mass of the various output products
from the processing steps. The impacts are based on the weight of the various products that
gradually came out of the production cycle. Breeding: we have considered the live weight, selecting
only the inputs necessary for the production of pig and ignoring all the inputs for other productions.
Slaughterhouse: we have attributed all the impact at carcass mass (80% of live pig weight).
Seasoning: we have attributed the impacts considering the fresh ham mass as carcass part (cured
ham yield 70%), for retail we attributed the impact as part of ham really sold (slice yield 55% of
cured ham).
4.5.2. Indicators
In this study the following environmental impacts (indicators) have been calculated with the
program SimaPro 8.0.3.
1.
Climate change, carbon foot print (CO2 eq/UF)
Climate change describes changes in the global, average surface-air temperature and
subsequent change of various climate parameters. This effects things such as storm frequency and
intensity, rainfall intensity and frequency of flooding. Climate change is caused by the greenhouse
effect which is induced by emission of greenhouse gases into the air (CO2, CH4, N2O). Factors are
expressed as Global Warming Potential for time horizon 100 years (GWP100), in kg CO2-eq.
(IPCC 2007 method developed by the International Panel on Climate Change)
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
2.
Land use (m2/year/UF)
Land use is related to use (occupation) and conversion (transformation) of land area by
product related activities such as agriculture, roads, housing, mining etc. Land occupation considers
the effects of the land use, the amount of area involved and the duration of its occupation. The
amount of either agricultural land or urban land occupied for a certain time are expressed as
m2*year (ReCiPe midpoint method: agricultural land occupation impact category)
3.
Cumulative energy demand (MJ/UF)
Cumulative energy demand aims to investigate the energy use throughout the life cycle. It
describes the total amount of energy that is needed for the product. The method to calculate
Cumulative Energy Demand (CED) is based on the method published by Ecoinvent version 1.01
and expanded by PRé for energy resources available in the SimaPro database. Characterization
factors are given for the energy resources divided in 5 impact categories: among these we have
considered: non renewable fossil energy calculate in MJ/UF.
4. Water resource depletion (m3/UF)
Water resource depletion is caused by the consumption of water resources, which lowers
their availability for nature and future generations. The method used is based on the publication
Hoekstra et al (2012) (Water Scarcity) This water scarcity indicator (WSI) is based on a
consumption-to-availability ratio (CTA) calculated as the fraction between consumed (referred to as
blue water footprint) and available water. The indicator is applied to the consumed water volume
and only assesses consumptive water use.
5. Eutrophication (kg PO4-eq/UF)
Eutrophication (also known as nutrification) includes all impacts due to excessive levels of
macro-nutrients in the environment caused by emissions of nutrients to air, water and soil.
Nutrification potential (NP) is based on the stoichiometric procedure of Heijungs (1992), and
expressed as kg PO4/UF. calculate by EPD 2013 method. This method is the successor of EPD
(2008) and is to be used for the creation of Environmental Product Declarations (EPDs), as
published on the website of the Swedish Environmental Management Council (SEMC). An EPD is
always created according to a Product Category Rule. Eutrophication impact categories are taken
directly from the CML-IA baseline method.
4.6. Affordability
4.6.1. Description of the attribute
Affordability is essentially a consumer-oriented perspective attribute, and has to do with
“accessibility to food by middle and lower income consumers” (cfr. GLAMUR WP2 Deliverable).
Affordability applies to individuals / households but also to communities and groups (usually those
with middle and low income). It is an increasing feature of public debate and relates directly to food
security. It is referred to in terms of “the cost of food to the consumer” or described as “the price
level that the product has for the final consumer”, related to various conditions and factors that
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
influence the value chain “from farm to fork”, and is often connected to the issue of income
distribution along the chain and among citizens.
The Italian WP2 Deliverable asserts that price competitiveness of the supply chain
influences the price of food to the final consumer. The WP2 Deliverable shows that local food
products are often perceived as more expensive (e.g., Latvia, the UK, Belgium, Senegal) than those
provided through global supply chains. The main discussion is about the ability of global food
chains to cut costs by, for instance, outsourcing and hence offering affordable prices to consumers.
Some reports argue that large scale production and distribution chains are more able to cope with
economic risks/shocks, which allows global food chains to offer lower and more stable prices.
Global food chains are thus perceived as more efficient and better at cutting down costs in order to
provide affordable prices to consumers. However, the issue of economic and environmental tradeoffs is often recalled; for instance, the case of pork meat carries several criticisms about the lack of
‘real cost pricing’ methods that more adequately succeed to include its negative externalities in
terms of environmental problems, overconsumption threats, food related health problems, etc.
In the case of Italian cured ham, affordability attribute is relevant since the local, regional
and global supply chains have completely different level of price on the marketplace, serving
different market segments and consumers. Affordability, interpreted as the price level that the
product has for the final consumer, is affected by the following items:
 production methods and costs; the global chain (generic ham) is characterized by
foreign meat (cheaper meat, mostly because of the lower age and weight of the pigs),
industrial production methods (chemical elements used in the processing phase) with
exploitation economies of scale, absence of certification costs (control, monitoring,
documentation), etc. The regional chain (Parma Ham PDO) is also characterized by huge
production and economies of scales exploitation, but with higher costs from certification
and traceability guarantee system, including supply with meat from heavier pigs
slaughtered in certified plants and bred in controlled farms. The local chain (Cinta
Senese PDO) is characterized by small production, local feed usage, traditional breed
preservation and breeding methods (extensive livestock grazing), stronger linkage and
integration with downstream sectors (e.g., slaughterhouses and cutting plants, agritourisms and short channels, etc.).
 consumers’ perception of quality, preferences and willingness to pay (WTP); market
evidence and choice experiment studies show different consumers' quality perception,
preferences and willingness to pay for Parma Ham PDO compared to generic cured ham
(Capelli et al., 2014). At the moment, there are few official retail data on prices and no
experimental studies about consumers WTP for Cinta Senese PDO hams.
4.6.2. Indicators
Three indicators were used to assess “Affordability” attribute, considering quantity
consumed, retail price trends and consumers preferences and WTP (Table 1).
The first concerns the consumption of pork meat. This indicator was measured collecting
data about per capita and total pork meat consumption in Italy (ISTAT and Eurostat data) and
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
quantity consumed on domestic market of the three considered products. Parma Ham PDO and
generic non-PDO cured hams data on consumption are derived from Nielsen and Qualivita data.
Cinta Senese PDO data are provided by the Consortium of Cinta Senese.
The second indicator considers average retail prices (€/kg) on domestic market for the three
products. Parma Ham and generic non-PDO cured hams prices have been provided by the Parma
Ham PDO Consortium (Nielsen data) using time series for the period 2007-2013. The Cinta Senese
PDO prices have been provided by interviews with key stakeholders and direct survey in retail
outlets.
The third indicator takes into consideration the consumers’ quality perception of hams
measured on an ordinal scale with value 1 (high quality perception), value 2 (intermediate quality
perception), and value 3 (low quality perception). This information was retrieved from an
experimental study comparing generic non-PDO hams and the Parma Ham PDO (Capelli et al.,
2014). No direct surveys or experimental studies were found on the consumers’ quality perception
and WTP of Cinta Senese PDO ham. Nevertheless, key stakeholders and experts interviews allowed
us to infer relevant information about this indicator.
Table 4.4: Attribute Affordability (Economic dimension)
Indicator
Cured
consumption
Retail
price
supermarket
Consumers’
perception
Unit
Data Source
ham Tons
Nielsen, Parma Ham Consortium
and Cinta Senese Consortium
in Euro/kg
Nielsen, Parma Ham Consortium,
interviews, secondary data
quality Ordinal scale: level 1 (high quality Interviews,
secondary
perception), level 2 (intermediate quality (Capelli et al., 2014)
perception), level 3 (low quality perception)
data
4.7. Data quality check
Given the high heterogeneity between different attributes and indicators, it is not possible to present
in general the methodology followed for the calculation of indicators. In the next sub-sections all
indicators are presented in a detailed way, also in order to explain theiur relevance for the
evaluation of the selected attributes.
As far as data quality check is concerned, the method provided by the WP3 case study guidelines
has been followed. The guidelines offer a data pedigree matrix method, which assigns numerical
scores to the type of data collected in respect of each of the indicators used in the case studies The
sum of these scores allows researchers to rank their data on an A-E scale, where A represents a
quality class range linked to a high level of ‘real’ quality data. E represents a lower ‘real’ quality of
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
data, indicating that data have been collected from lower-tier or unverified sources; the lower the
QS score, the higher the quality class.
The following table provides for all the indicators the unit of analysis, a short presentation of the
method used for data collection, and the quality classifications for the data used.
Table Indicators, Unit of measeure, method of data collection and quality scoress
INDICATORS
Name
Quality score
Chain Chain
Chain
Method
A
B
C
Quantitative
A
A
A
Quantitative
A
A
A
pure number
Statistical
A
A
A
pure number
Statistical
A
A
A
pure number
Statistical
A
A
A
pure number
Statistical
A
A
A
%
Statistical
B
B
A
Qualitative
B
B
B
B
B
A
Unit
Five year average (20092013) for global and
Value added at farm level
regional chain. Year 2013
for Cinta senese,
average of 3 pig farms
(range 0,26-2,46 €/kg)
Five year average (20092013) for global and
Value added at processing
regional chain. Year 2013
industry
for Cinta senese,
average of 3 ham firms
(range 19-39 €/kg)
V.1 - Feed prices volatility index
V.2 - Live pigs prices volatility
index
V.3 - Fresh ham price volatility
index
V.4 - Cured ham price volatility
index
A.1 - Farmers upstream
integration by ownership
ordinal 1,2,3: level 1
(very high part of farmers
A.2 - Farmers upstream
integration by contractual
arrangements
is involved: in favour of
resilience), level 2
Intermediate, and level 3
(very small part is
involved: unfavourable to
resilience)
A.3 - Farmers downstream
integration
Ordinal 1, 2, 3: level 1 (a
very high part of farmers
develops downstream
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Quantiative
/ Qualitative
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
integration), level 2
Intermediate, and level 3
(very small part of
farmers develops
downstream integration).
A.4 - Farmers product
%
diversification
A.5 - Farm-level resistance
€/ kg
Quantitative
against price-volatility
Ordinal scale: level 1
A.6 - Use of antibiotics
(very low use), level 2
(some use), 3 (significant
use)
B
B
A
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
A
A
A
B
A
A
B
B
B
Quantitative
/
Qualitative
ordinal 1,2,3: level 1
(very high part of
A.7 -
slaughterhouses/process
Slaughterhouses/processors
ors is involved), level 2
upstream integration
Intermediate, and level 3
Qualitative
(very small part is
involved)
Ordinal 1, 2, 3: level 1 (a
very high part of farmers
develops downstream
A.8 - Slaughterhouses
integration), level 2
Quantiative
downstream integration
Intermediate, and level 3
/ Qualitative
(very small part of
farmers develops
downstream integration).
Ordinal scale: level 1
(high product
A.9 - Slaughterhouses product
diversification), level 2
Quantiative
diversification
Intermediate, and level 3
/ Qualitative
(very low product
diversification).
A.10 - Processors product
%
diversification
Ordinal scale: level 1
A.11 - Processors marketing
channels diversification for cured
ham
(high marketing channels
diversification), level 2
Quantiative
Intermediate, and level 3
/ Qualitative
(very low marketing
channels diversification).
A.12 - Processors geographical
Ordinal scale: level 1
Quantiative
market diversification for cured
(high geographical
/ Qualitative
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
ham
market diversification),
level 2 Intermediate, and
level 3 (very low
geographical market
diversification).
Ordinal scale: level 1
(high product
A.13 - Product differentiation for differentiation), level 2
Quantiative
cured ham
/ Qualitative
Intermediate, and level 3
B
B
B
C
C
C
C
C
C
B
B
B
B
B
B
B
B
B
C
C
C
(very low product
differentiation).
S.1 - Farm-level risk-spreading
Ordinal scale: level 1
Qualitative /
(high risk-spreading),
Participatory
level 2 Intermediate, and
level 3 (very low riskspreading).
S.2 - Adaptation capacity of
Ordinal scale: level 1
Qualitative /
farmers through downstream
(high adaptation
Participatory
actors cooperation, integration
capacity), level 2
and diversification strategies
Intermediate, and level 3
(very low adaptation
capacity).
S.3 - Adaptation capacity of
Ordinal scale: level 1
Qualitative /
slaughtering firms through
(high adaptation
Participatory
integration and diversification
capacity), level 2
strategies
Intermediate, and level 3
(very low adaptation
capacity).
S.4 - Adaptation capacity of ham Ordinal scale: level 1
Qualitative /
processing firms through
(high adaptation
Participatory
integration and diversification
capacity), level 2
strategies
Intermediate, and level 3
(very low adaptation
capacity).
C.1 - Supply chain attitude to
Ordinal scale: level 1
diversification and differentiation (high attitude: in favor of
Qualitative /
Participatory
resilience), level 2
Intermediate, and level 3
(very low attitude).
C.2 - Intradiversity of chain
Ordinal scale: level 1
relations / configurations
(high intradiversity), level Participatory
2 Intermediate, and level
3 (very low
intradiversity).
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Qualitative /
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
C.3 - Chain-based adaptation
Ordinal scale: level 1
capacity through learning and
(high adaptation
innovation
capacity), level 2
Intermediate, and level 3
C
C
C
B
B
B
C
A
B
C
B
B
C
A
B
C
B
B
(very low adaptation
capacity)
C.4 - Ability to mobilize public
Ordinal scale: level 1
Qualitative /
and societal support
(high ability: in favor of
Participatory
resilience), level 2
Intermediate, and level 3
(very low attitude)
Trust based internal
ordinal 1 (maximum level Qualitative /
relationships
of trust), 2
Participatory
(intermediate),3 (low
level of trust)
Trust based external
ordinal 1 (maximum level Qualitative /
relationships
of trust), 2
Participatory
(intermediate),3 (low
level of trust)
Self governance capacity
ordinal 1 (maximum level Qualitative /
of distinctiveness), 2
Participatory
(intermediate),3 (low
level of distinctiveness)
Chain-based value governance
nominal: 1,2,3,4,5
Qualitative /
Participatory
LCA.1 - Eutrophication
LCA.2 - Carbon foot print
LCA.3 - Non renewabel, fossil
LCA.4 - Water footprint
LCA.5 - Land use
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Association of product with
territory
pure number
Quantitative
A
A
A
pure number
Quantitative
A
A
A
percentage
Quantitative
n.a.
A
A
percentage
Quantitative
A
A
A
Ordinal scale: level 1
Qualitative /
(strong link with the
Participatory
A
A
A
Association of product with
territory
territory), level 2
Intermediate, and level 3
Association of product with
(weak link with the
territory
territory)
Social cohesion and conviviality
pure number
Quantitative
A
B
B
Social cohesion and conviviality
pure number
Quantitative
A
B
B
Links with local touristic
Binary scale: 1 = yes, 0 =
activities
no
Qualitative
A
A
A
Ordinal scale: level 1
Qualitative /
(more than 40%), level 2
Participatory
Links with local touristic
(from 10% - 40%), level 3
activities
(less than 10%)
n.a.
B
A
Retail price in supermarket
pure number
Quantitative
A
A
B
Cured ham consumption
pure number
Quantitative
A
A
A
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
5. Results (performances)
5.1. Value added
According to the calculations carried out on the Interpig data of the years 2009 – 2013 the
value added of pigs raised an fattened in the Netherlands ranges between 0.16 and 0.22 € / kg
liveweight. light pigs. The added value of heavy pigs (160 kg) used in Parma Ham circuit has an
added value which oscillates between 0.19 and 0.32 €/ kg liveweight. The Italian pig farms are thus
on average to add more value per kg pig meat than the Dutch pig farmers.
The Italian heavy pig farmers have to face higher feed costs because:
1. The product specification imposes the use at least 60% of cereals on dry matter basis;
2. The feed conversion rate deteriorates significantly in the phase between 120 and 160 kg.
On the Dutch pig farms 2.60 kg of feed is needed to produce one kg of pig meat,
whereas on the Italian heavy pig farms this feed conversion ratio is 3.68. The average feed price
for fattening pigs for Dutch pig farms in the period 2009-2013 has been 254 € /ton as against
258 €/ton for the Italian pig farms.
Unlike the higher feed costs the pig farmers fattening pigs for Parma Ham do enjoy a
higher value added per kg of meat, as the sales price of the heavy pigs more than compensates
the structurally higher feed prices. The other non factor costs such as energy costs and
veterinary costs do not differe significantly between the two groups of pig farms.
Table 5.1 Value added per kg of Dutch light pigs (€/kg live weight)
Sale price
Feed costs
Other non factor
costs
Value added
2009
1.02
0.60
0.24
0.18
2010
1.03
0.61
0.22
0.20
2011
1.10
0.76
0.22
0.12
2012
1.26
0.81
0.23
0.22
2013
1.26
0.85
0.25
0.16
Source: Elaborated by CRPA on Interpig data
Table 5.2.Value added per kg of heavy pig (€/kg live weight)
Sale price
Feed costs
Other non factor
costs
Value added
2009
1.21
0.76
0.22
0.23
2010
1.22
0.81
0.22
0.19
2011
1.41
0.92
0.22
0.27
2012
1.49
0.94
0.23
0.32
2013
1.51
0.96
0.24
0.31
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Source: CRPA
The results show a higher added value for the heavy pigs used for Parma Ham compared to
the Dutch live pigs. On average, the added value of the Parma pigs is about 50% higher than the
added value of Dutch live pigs.
The added value per kg of liveweight of Cinta Sense pigs in the three farms interviewed was
calculated for the year 2013. It varies between 0.26 and 2.45 €/kg, due to the different feeding
systems and number of heads, with an average value of 1,51 €/kg. The high value added depend on
the high need of labour per head, which derives from the small dimension of the farms, from the
method of breeding and from the low productivity of Cinta Senese breed.
Table 5.3.Value added per kg of Cinta Senese pig (€/kg live weight), year 2013
Sale price
Feed costs
Other non
factor costs
Value added
Az. A
3,63
1,12
0,21
2,30
Az. B
3,5
2,99
0,25
0,26
Az. C
4
1,16
0,38
2,46
Average
3,71
1,75
0,28
1,67
Source: direct survey
Figure 5.1.Value added per kg pigmeat of Dutch light pigs and Italian heavy pig (€/kg live weight)
Value added per kg liveweight
0,35
0,3
Euro/kg
0,25
0,2
Dutch light pigs
0,15
Italian PDO pigs
0,1
0,05
0
2009
2010
2011
2012
2013
Source: Elaborated by CRPA on Interpig and CRPA data
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
The higher value added per kg of pig meat destined to the PDO Parma Ham certainly can
be attributed to the quality distincteveness of meat of heavy pigs which according to the product
specification are slaughtered at a minimum age of 9 months. At this age the meat reaches a
higher level of maturity which makes this pigs suitable for a series of high quality processed
meat products like Parma Ham, but also products like salamis, mortadella, zampone etc. which
are governed by PDO product specification as well. Meat of pigs slaughtered at an age of about
6 months do not contain these particular quality characteristics. Most of the cuts of their
carcasses are destined to the consumption of fresh meat and very few custs are used for
processed meats.
In order to establish the value added in the processing of imported Dutch hams and of
Parma Ham two groups of companies have been selected either specialized in generic cured
ham or in the production of Parma Ham. The production process show a series of similiarities.
The figure below shows the main features of the production process of Parma ham.
Table 5.4.Main step in production process of Parma ham
°C
Cooling under salt for 6/7 days
1–4
Cooling at ° C (2-3 weeks)
Resting period 60 – 90 days
Pre-seasoning until month 7
Greasing
Final seasoning until at least 12
months
1-4
1–5
18 °C
16°C
1.
2.
3.
4.
5.
The fresh hams for Parma Hams need to be cured for at least one year;
After trimming both fresh hams stay in refrigerated cells under salt for 6/7 days
A second period under salt for 15-18 days according to the weight of the hams
The pre-seasoning period until the 7th month
At the 7th month the uncovered meat part of the hams are covered with a mixture of
cereals and fat
6. From the 7th until the 12th months the Parma Ham are cured at 16 °C
The generic cured hams follow the same steps of the production process, but as the fresh
hams are lighter and smaller all steps have a shorter duration.
From the calculations based on the company balance sheets made the results show a higher
added value in the case of Parma Ham compared to generic cured ham On average, the added value
of the PDO Parma Ham, 0,41 €/kg, is 30% higher than the added value of generic cured ham, which
registers an added value of 0,28 €/kg.
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Table 5.5.Value added per kg of fresh Parma Ham with bone (€/kg)
Sale price
Purchase price
Cost of processing
Value added
2009
8.03
3.04
4.37
0.62
2010
8.47
3.82
4.32
0.33
2011
6.76
4.03
2.35
0.38
2012
7.79
4.06
3.36
0.37
2013
7.26
4.07
2.82
0.37
Average
7.66
3.80
3.44
0.42
Source: Elaborated by CRPA on company balance sheets
As can be seen from the tables described the difference varies widely ranging from a
minimum of 4% found in 2010 to a maximum of 48% found in 2009, while in 2012 and 2013, the
difference tends to conform around 25%Curing ham demands a high energy input related to the consumption of electricity for air
conditioning the curing cellars. The variable processing costs related to the Parma curing process
clearly appears 67% higher than the costs of curing generic ham. If we examine the price difference
between the sales price of Parma Ham with the purchase price of fresh hams destined to Parma
Ham we end up with 3.58 €/kg, whilst this price difference for generic ham is 2.34 €/kg, which is
64% lower. Although both products operate on the cured ham market, the price difference between
the two products is significant. At wholesale level Parma Hams are sold at 90% higher prices than
generic cured hams, whereas the fresh hams are purchased at more than twice the price of fresh ham
used fo generic cured hams.
Table 5.6.Value added per kg of fresh generic ham with bone (€/kg)
Sale price
Purchase price
Cost of processing
Value added
2009
3.72
1.60
1.80
0.32
2010
4.11
1.66
2.13
0.32
2011
4.03
1.69
2.13
0.21
2012
3.95
1.65
2.04
0.26
2013
4.35
1.85
2.21
0.29
Average
4.03
1.69
2.06
0.28
Source: Elaborated by CRPA on company balance sheets
Figure 5.2.Value added per kg of cured ham (€/kg ham)
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
0,70
0,60
Euro/kg ham
0,50
0,40
Generic cured ham
0,30
Parma ham
0,20
0,10
0,00
2009
2010
2011
2012
2013
Source: Elaborated by CRPA on company balance sheets
The case of Cinta Senese cured ham is very specific, because of the great variability of
processing and marketing models, which are completely different from those of the Parma and
Generic hams: the ham processing is often made on farm in small laboratories, the production scale
is small, and all enterprises process and market all the Cinta Senese head. The analysis of three
processing firms representing the two main models (the integrated one, and the long chaan one),
even if indicative because of the complexity of the calculation process, highlights a variability of
value added (year 2013):
-
-
39.8 €/kg for the smaller company, a family pig farmer and processor which produces 100
Cinta Senese pigs and process 70 of them per year (with some other pigs), marketing all the
products by direct selling channels
25.9 €/kg for the bigger pig farmer-processor, which produces 220 Cinta Seense pigs per
year and process 180 of them
23 €/kg for the professional ham processor, that process 180 Cinta Senese heads per year
representing the 15% of the total turnover. The contribution of the Cinta Senese processed
products to the overall reputation of the enterprise is very relevant. The value added is very
variable accaroding to the type of processing and to the type of marketing channel. The firm
sell the cured ham also on supermerkets channel, where the value added is lower.
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
5.2. Resilience
See Appendix 1 for a detailed presentation of volatility indicators and of analytical indicators.
5.2.1. Prices volatility results
Indicator
Definition
Coefficient of variation of monthly feed
prices over 3 years (concentrates prices
V.1 - Feed prices
for heayy and light pigs, representative
volatility index
agricultural products for feed for Cinta
Senese)
Coefficient of variation of monthly live
pigs prices over 3 years (Heavy live
V.2 - Live pigs prices
Italian pigs for B; Cinta Senese live pigs
volatility index
for A; Light live pigs imported from NL
not relevant)
Coefficient of variation of monthly fresh
ham prices over 30 months (Fresh ham
V.3 - Fresh ham price
14 kg for generic ham ; Fresh ham 11volatility index
13 kg for Parma PDO ; not relevant for
Cinta Senese)
V.4 - Cured ham
Coefficient of variation of monthly
price volatility index cured ham prices
72
Global Region Local
chain al chain chain
Unit
Source
pure
number
CRPA,
Interpig,
Chamber of
commerce of
Siena data)
0,081
0,086 0,099
pure
number
ISMEA and
Chamber of
Commerce of
Siena data)
n.r.
0,103 0,013
pure
number
CUN data
0,053
0,051 0,013
pure
number
Parma market
data
0,049
0,04
n.a.
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
5.2.2. Pig farming results
Analytical indicators
Indicator
Definition
A.1 - Farmers
% of pig farmers which
upstream
self-produce the majority
integration by
of feed
ownership
Part of pig farmers
A.2 - Farmers
involved in mid-long
upstream
term upstream
integration by
contractual arrangements
contractual
with animal feed
arrangements
producers
Unit
Source
%
UNIFIUNIPRCRPA
Global Regiona Local
chain l chain
chain
100
90
70
3
2
3
UNIFIUNIPRCRPA
3
2
2
UNIFIUNIPRCRPA
100%
90%
53%
ordinal 1,2,3: level 1 (very high
part of farmers is involved: in
UNIFIfavour of resilience), level 2
UNIPRIntermediate, and level 3 (very
CRPA
small part is involved)
Ordinal 1, 2, 3: level 1 (a very
high part of farmers develops
downstream integration), level
2 Intermediate, and level 3
(very small part of farmers).
A.4 - Farmers % of (light/ heavy/Cinta) %
product
pigs for ham production
diversificatio on the total turnover of
n
farm
A.5 - FarmPrice volatility of the
€/ kg
level
input and output markets
resistance
of relevance for pork
against price- production, defined as
volatility
the max delta added
value per kg live weight
per year over the periode
2009-2013
Ordinal scale: level 1 (very low
A.6 - Use of
Use of antibiotics in pig
use), level 2 (some use), 3
antibiotics
farms
(significant use)
A.3 - Farmers
Relevance of farmers
downstream
downstream integration
integration
GLAM
UR
Expert
consulta
tion
0,10
0,13
3
n.a.
3
1
Synthetic indicators
S.1 - Farm-level risk-spreading
On the basis of the value of the indicators related to farmers upstream integration in feed
production and of product diversification, which are reported in the table below, a qualitative
synthetic evaluation about the level of risk-spreading was formulated on a three-levels scale.
Farmers upstream integration by
ownership (self-production of feed)
Farmers upstream integration by
contractual arrangements with feed
producers
Farmers product diversification
Generic ham (global)
0%
Parma PDO (regional)
10%
Cinta S. PDO (local)
30%
3
2
3
0%
10%
47%
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Results of the comparison are expressed in the following table. Cinta Senese pig farmers are
in general quite able to deal with input and output price volatility thanks to vertical integration
strategies : a) in upstream feed production, and b) in downstream ham processing activities.
However these are strategies at firm-level, therefore there is a varied range of farm-level resistance.
According to analytical indicators, local supply chain performs better than the other for two of the
three indicators considered in the analysis. Cinta Senese chain can be considered more resilient due
to the direct control of feed supplying and to their high diversified in many different activities than
production of pigs. In fact many pig farmers produce other agricultural products like olive oil, wine,
cereals, and/or practice forestry, and/or diversify in agritourism activities. Additionally, often the
members of the family work also in non-agricultural sector.
On the other side generic ham pork farmers are the lower degree of risk-spreading due to
their high specialization and dependence on market for their supplying. The regional chain is in an
intermediate position.
Farm-level risk-spreading
Indicator S-1
Cured ham chain
Value Notes
Risk-spreading by farm-level diversification and
Generic ham (global)
3
Qualitative-participatory
producing feed.
Parma PDO (regional)
2
Qualitative-participatory
This indicator synthesizes indicators B1,B2, and D1.
Cinta S. PDO (local)
1
Qualitative-participatory
NOTE: the ordinal scale is the following: Ordinal scale: level 1 (high risk-spreading: in favor of resilience), level 2
Intermediate, and level 3 (very low risk-spreading).
Source: our findings
S.2 - Adaptation capacity of farmers through downstream actors cooperation, integration
and diversification strategies
This indicator take in account two analytical indicators, farmers product diversification and
farmers downstream integration, integrated by other qualitative evaluations made by researchers on
the basis of their direct knowledge, literature analysis and interviews with supply chain actors.
Global supply chain presents very low levels of adaptation capacity, there are very few
initiatives by farmers aiming at downstream integration, and there are not opportunities to develop
collaborative initiatives with downstream actors of the generic cured ham chain. This is also due to
the geographical distance between pig farmers (mainly the Netherlands and other northern
countries) and ham processors, but mainly because differentiation strategies in the generic ham
chain are based only on individual processors trademarks.
For the Regional supply chain the situation is not much better, despite the strong
diversification strategies linked to Parma Ham PDO. In fact the real degree of involvement of pig
producers in PDO is low, and heavy pigs farmers are not able to really connect actively to these
strategies and to develop vertical integration and diversification strategies.
In Cinta Senese chain there is a very heterogeneous situation. Some pig farmers process
their own pigs developing downstream integration at firm level; this allow them for a good
valorization of their pigs also by means of marketing strategies centered on the full control by
farmer of all the process and on the artisanality of process and products (hams and other could cuts).
For Cinta Senese farmers who sell their pigs to downstream firms the situation is diversified: some
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
pig farmers are linked by means of contractual arrangements to ham processors, while other farmers
act in a completely disconnected way from ham processors, without any coordination. In general,
despite the PDO the actors complain however the lack of systemic initiatives at the collective level.
Adaptation capacity of farmers through downstream actors cooperation, integration and
diversification strategies
Indicator S-2
Strength of interlinkages with downstream actors
diversification strategies in terms of productfolio and marketing
Cured ham chain
Generic ham (global)
Value
3
Parma PDO (regional)
Cinta S. PDO (local)
3
2
Notes
NOTE: the ordinal scale is the following: Ordinal scale: level 1 (high adaptation capacity: in favor of resilience), level 2
Intermediate, and level 3 (very low adaptation capacity).
Source: our findings
5.2.3. Slaughtering results
Analytical indicators
Indicator
Definition
Unit
Source
Part of
ordinal 1,2,3: level 1 (very
A.7 –
slaughterhouses/processor high part of firms
Slaughterhouses /
s involved in pig farming involved), level 2
processors upstream
and/or in long term
Intermediate, and level 3
integration
contractual arrangements (very small part)
Ordinal 1, 2, 3: level 1 (a
A.8 very high part of farmers
Relevance of
Slaughterhouses
develops downstream
slaughterhouses
downstream
integration), level 2
downstream integration
integration
Intermediate, and level 3
(very small part of farmers).
Part of activity not linked Ordinal scale: level 1 (high
A.9 to production of generic / product diversification),
Slaughterhouses
Parma PDO / Cinta
level 2 Intermediate, and
product
Senese ham on the total
level 3 (very low product
diversification
turnover of slaughtering
diversification).
firms
Global Regional
chain
chain
Local
chain
UNIFIUNIPRCRPA
3
2
1
UNIFIUNIPRCRPA
3
2
3
Expert
consultati
on
2
3
1
Synthetic indicator
S.3 - Adaptation capacity of slaughtering firms through integration and diversification
strategies
Slaughtering sector plays very different roles in the three supply chains considered. In the
global chain the slaughtering sector is dominated by big firms which have a strong market power
and pursue their own conglomerate strategies; slaughtering activities are managed outside the
region where the cured ham is processed, in Netherlands or in other EU Northern countries (see the
Dutch report for more details on the characteristics of slaughtering sector in the Netherlands).
Conversely, in the Cinta Senese sector slaughtering firms are very small (because breeding has
become an activity of secondary importance in Tuscany region) and merely play a role of
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
slaughtering service of Cinta Senese pigs on behalf of pig farmers or of pig meat processors; their
role in the strategic management of the chain is very limited even if very relevant from a technical
point of view (also because of the relevance of transportation costs of live Cinta Senese pigs from
farms to slaughterhouses).
The strategic involvement of slaughtering firms in the cured ham is very different among
different local, regional and global chain. Cured ham is only one of many markets for the
slaughtering firms in the global chain; the same, but for different reasons, happens in Cinta Senese
chain, where the slaughtering of Cinta Senese pigs is a very marginal and episodic activity, and
often perceived by firms as a burden than as a business. On the contrary, slaughtering firms in PDO
Parma Ham area are very involved in the cured ham chain with the aim of increase resilience by
capturing the value added generated in the processing industry. By means of take overs and mergers
the main Italian slaughterhouses control more than 50% of the production of Parma Ham.
Big slaughtering firms in both global and regional chains develops strategies aiming at
control and coordinate quantities, quality and prices of live pigs also through upstream vertical
integration, in order to be able to better meet intermediate and final demand needs. In particular
vertical integration is increasing in heavy Italian pigs sector; this allows an increased resilience for
the whole Parma Ham chain, but can create unbalanced market relationships. In Parma Ham chain
also downstream vertical integration is increasing, by means of direct ownership of farms, but
primarily through long term contracts with pig farmers .
Summarizing these results in the synthetic indicator “Adaptation capacity of slaughtering
firms through integration and diversification strategies” is not a simple task, because of the
complexity of the issues and partly conflicting indications that come from the analytical indicators.
According to the Glamur expert team, Cinta Senese and Parma Ham chains have both an
intermediate level adaptation capacity, but for different reasons. In the Cinta Senese chain the result
comes mainly from the diversification of slaughterhouses, which, however, are not dynamic and
able to develop proactive strategies. Instead in the regional chain there is an the high dependence of
firms from the chain of Parma Ham PDO, but some firms are able to develop strategic initiatives
seeking for a better product qualification. Heavy pigs slaughtering is concentrated in a few large
companies (about 10), compared with about 120 certified slaughterhouses. The resilience of these
large slaughtering companies is based on economies of scale and on vertical integration strategies
implemented both by slaughterhouses towards cured ham factories, and by feed mills towards
slaughterhouses by means of agistment contracts with pigs farms.
Adaptation capacity of slaughtering firms through integration and diversification strategies
Indicator S-4
Synthetic indicator based on upstream, downstream and
diversification analytical indicators
Cured ham chain
Value
Notes
Generic ham (global)
3
Parma PDO (regional)
2
Cinta S. PDO (local)
2
NOTE: the ordinal scale is the following: Ordinal scale: level 1 (high adaptation capacity: in favor of resilience), level 2
Intermediate, and level 3 (very low adaptation capacity).
Source: our findings
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
5.2.4. Ham processing results
Analytical indicators
Definition
Indicator
A.7 Slaughterhouses/proc
essors upstream
integration
Part of
slaughterhouses/processor
s involved in pig farming
and/or in long term
contractual arrangements
A.10 - Processors
product
diversification
Share of processing firms
with a share of (generic /
Parma PDO / Cinta
Senese) ham higher than
70% on the total turnover
of processing firms, on
the total number of firms
A.11 - Processors
marketing channels
diversification for
cured ham
Degree of market
diversification of ham
processors, in terms od
marketing channels
A.12 - Processors
geographical market
diversification for
cured ham
Degree of market
diversification of ham
processors, in terms od
geographical markets
A.13 - Product
differentiation for
cured ham
Degree of product
differentiation for cured
ham by means of
collective labelling
systems
Unit
Source
ordinal 1,2,3: level 1
(very high part of
slaughterhouses/processor UNIFIs is involved), level 2
UNIPRIntermediate, and level 3 CRPA
(very small part is
involved)
%
UNIFIUNIPRCRPA
Ordinal scale: level 1
(high marketing channels
diversification), level 2
Intermediate, and level 3
(very low marketing
channels diversification).
Ordinal scale: level 1
(high geographical market
diversification), level 2
Intermediate, and level 3
(very low geographical
market diversification).
Ordinal scale: level 1
(high product
differentiation), level 2
Intermediate, and level 3
(very low product
differentiation).
Global Region
chain al chain
3
Local
chain
2
1
33% 49,50%
0%
UNIFIUNIPRCRPA
1
2
1
UNIFIUNIPRCRPA
2
2
3
UNIFIUNIPRCRPA
2
1
2
Synthetic indicators
S.4 - Adaptation capacity of ham processing firms through integration and diversification
strategies
Ham processing firms are at the heart of the cured ham chains. Data about volatility indexes
highlight that Parma supply chain have a volatility, for both fresh hams and cured hams, lower than
generic ham chain. This may be the result of a greater adaptation capacity of Parma Ham PDO
processing firms. These firms in fact are dependent on ham production, but they are able to
differentiate their products on the market by means of PDO collective mark which is very reputed
on Italian and foreign markets, also thanks to collective marketing initiatives carried out by the
Parma Ham Consortium. The level of geographical market and marketing channel diversification is
good. What is relevant to say is that some Parma Ham processing firms have increased their
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
adaptation capacity through the entry in the segment of generic ham. According to Glamur expert
evaluation, the adaptation capacity of Parma Ham processing sector is high.
In local (Cinta Senese) supply chain PDO on fresh Cinta Senese meats play a relevant role,
even if its reputation is lower than in the Parma Ham also because not supported by strong
collective marketing initiatives. A number of firms processing Cinta ham are farmers which
integrate downstream; specialized Cinta ham processors are not dependent from Cinta Senese
because it represent only a small part of their business. Ham processors more involved in Cinta
Senese and interested in high quality products tend to a strong control over pig farming, by means
of ownership or agreement with pig farmers mainly based on trust. According to Glamur expert
evaluation, the adaptation capacity of Cinta ham processing sector is intermediate, also compared
to the Parma Ham chain.
The capacity of adaptation of generic ham processing firms is more linked to marketing
channels diversification and rest on the development of individual trademarks, which only may
allow to escape a very strong price competition, and on the reputation of Italian traditional hams
(like the Parma PDO). The development of the chain of generic ham is born as a strategy of
differentiation of some Parma Ham producers, in order to have in their product portfolio a low-price
cured ham (very attractive in times of crisis of domestic demand). Generic cured ham is interesting
for firms because of faster a faster capital disinvestment cycle (thanks to the shorter period of
maturation). Generic ham consumption is now increasing also because it feed the sector of presliced ham sold under the umbrella marks of supermarkets.According to Glamur expert evaluation,
the adaptation capacity of generic ham processing sector is close to Parma Ham.
Adaptation capacity of ham processing firms through integration and diversification strategies
Indicator S-4
Cured ham chain
Value Notes
Synthetic indicator based on upstream,
Generic ham (global)
1
downstream, diversification and differentiation Parma PDO (regional)
1
analytical indicators
Cinta S. PDO (local)
2
NOTE: the ordinal scale is the following: Ordinal scale: level 1 (high adaptation capacity: in favor of
resilience), level 2 Intermediate, and level 3 (very low adaptation capacity).
Source: our findings
Cross-cutting indicators
C.1 - Supply chain attitude to diversification and differentiation
The overall level of the supply chain attitude to diversification and differentiation can be
evaluated by means of related analytical indicators, which are synthesized in the following graph.
Firms belonging to the local supply chain are more oriented to product diversification, while the
regional supply chain is strongly oriented to product differentiation in order to escape from market
competition by consumer loyalty; the high level of specialization of firms in the regional chain
tends to limit the degree of resilience.
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Figure 5.3 Analytical indicators related to diversification and differentiation
D.1 - Farmers product
diversification
100
80
G - Product differentiation for
cured ham
60
D.2 - Slaughterhouses product
diversification
40
20
0
F - Processors geographical
market diversification for
cured ham
D.3 - Processors product
diversification
E - Processors marketing
channels diversification for
cured ham
Global (Generic ham)
Intermediate (Parma Ham PDO)
Local (Cinta Senese PDO)
Source: our findings
Supply chain attitude to diversification and differentiation
Indicator C.1
Cured ham chain
Value Notes
Synthetic indicator based on diversification and
Generic ham (global)
2
differentiation analytical indicators related to all
Parma PDO (regional)
2
stages of the supply chain
Cinta S. PDO (local)
1
NOTE: the ordinal scale is the following: Ordinal scale: level 1 (high attitude: in favor of resilience), level 2
Intermediate, and level 3 (very low attitude).
Source: our findings
C.2 - Intradiversity of chain relations / configurations
In the Cinta Senese supply chain there are three main types of organization, that is the fully
integrated firm (a pig farmer that produces part of feed and process their own pigs selling them to
final consumers), the contract model (an ham processor buy Cinta pigs from farmers on the basis of
– written or not – mid-term agreements), and the market model (where the coordination is left to
interaction between supply and demand on single basis). These three models are complementary
and each of them has specific abilities to resist against different risk factors.
In both Parma and generic ham chains there is a lower degree of intradiversity. Some more
artisanal firms exist close to very “industrial” big firms (often slaughterhouses and processing firms
operating in Parma PDO chain process also non-Parma Hams), but the dominant model is based on
big firms pursuing scale economies and marketing mainly to big supermarkets firms.
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Intradiversity of chain relations / configurations
Indicator C.2
Intradiversity of chain relations / configurations
Cured ham chain
Value Notes
Generic ham (global)
2
Parma PDO (regional)
2
Cinta S. PDO (local)
1
NOTE: the ordinal scale is the following: Ordinal scale: level 1 (high intradiversity: in favor of resilience), level 2
Intermediate, and level 3 (very low intradiversity).
Source: our findings
C.3 - Chain-based adaptation capacity through learning and innovation
In the Cinta Senese supply chain there is a limited ability of pig farmers in learning and
innovation, also due to the very limited dimension of farms. The large majority of pig farmers are
disconnected from a technical assistance system and they are not able to really innovate; indeed
often a resistance to change was detected, as well as to communicate or collaborate with other
firms. The same happens for firms (vertically integrated farmers and specialized firms) involved in
ham (and pig meat) processing. At the same time the Cinta local production system (with the
support of local administrations and breeder organizations) was able to elaborate the application for
a PDO and now is capable to support the collective reputation of the product on the market. As a
conclusion, chain-based adaptation capacity seems more developed for market issues than for
technical issues.
In the Parma Ham supply chain the adaptation capacity through learning and innovation at
farm level is quite low, primarily because of the lack of a common and unique direction of the
breeding program. A lack of collaboration in the chain does not allow the emergence of a common
future vision on the Parma Ham chain, for example with reference to internal quality grading. At the
ham factory level instead learning and innovation are at a good level: in this stage of the chain
attitude to innovation is supported by a strong collaboration between firms, by technical assistance
provided by the Experimental Research Station for Processed Food, and also by the local
mechanical industry (mainly small and medium enterprises) highly specialized in providing
equipment to ham factories.
The global chain benefits from the spillover effects coming from the Parma chain, also
because of some important firms operates simultaneously in both chains. Differently than the Parma
Ham, this learning and innovation capacities are not really chain-based, because of the lack of
involvement of (foreign) pig breeders and slaughtering firms.
Chain-based adaptation capacity through learning and innovation
Indicator C.3
Chain-based adaptation capacity through learning
and innovation
Cured ham chain
Value Notes
Generic ham (global)
2
Parma PDO (regional)
1
Cinta S. PDO (local)
2
NOTE: the ordinal scale is the following: Ordinal scale: level 1 (high adaptation capacity: in favor of resilience), level 2
Intermediate, and level 3 (very low adaptation capacity).
Source: our findings
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C.4 - Ability to mobilize public and societal support
According to the analysis of policies, to interviews and researchers’ direct knowledge, the
ability to mobilize different types of public and societal support is more developed in both Cinta
Senese and Parma Ham supply chains.
Cinta Senese has benefited greatly from incentives and technical assistance measures for the
recovery of the breed, which in the 90s was considered at risk of genetic erosion. Regional and local
public authorities (Provincia of Siena) contributed to the PDO registration. Also regional
Universities (Pisa and Firenze) contributed to developing relevant knowledge about the breed and
rearing systems. Cinta Senese is perceived as an identitary product, and also local population in
many rural areas are available to support this pig breed. On the other hand the system representation
of the supply chain is not so strong, representative and organized to orient in their favor local public
policies in a systematic way.
Parma PDO ham enjoys a similar situation of interest by public authorities. Given the strong
economic role Parma Ham plays in the territory of Parma and near Provinces, local authorities are
available to support this supply chain. The Parma Ham Consortium is well organized and
representative, and is able to play their lobbying role at local level.
Generic ham supply chain is less able to mobilize public and societal support, also because
the companies are not organized in a specific Consortium Many companies though adhere to the
association of meat processors (ASSICA), which lobbies at national and international level for
policies favorable for this sector . Moreover, it can benefit from trickle down effects from the Parma
Ham chain, considering that some firms operating in Parma Ham produce also generic cured ham.
Ability to mobilize public and societal support
Indicator C.4
Presence of political and social support activities of
various types, at national, regional and local level
Cured ham chain
Value Notes
Generic ham (global)
2
Parma PDO (regional)
1
Cinta S. PDO (local)
1
NOTE: the ordinal scale is the following: Ordinal scale: level 1 (high ability: in favor of resilience), level 2
Intermediate, and level 3 (very low ability).
Source: our findings
5.2.5. Performance comparison
Resilience is a multifacetted and complex attribute, which can be evaluated at firm, sector
and supply chain level; it should not be considered only as the capability of a system to absorb
external disturbances but also in a dynamic way. The ability to evolve towards new equilibria
without change its identity is a key feature of resilient supply chains.
Our analysis put in evidence that cured ham pork chains undergo the pressure of many
factors and are embedded into a context that evolves rapidly. Price volatility is one of the major
factors of instability. An overview of the different indicators of volatility does not allow to draw
general and uniform conclusions about the performance of the three supply chains. The local supply
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chain present higher values of volatility for feed, due to the narrowness of the market which derives
from the obligation of local purchasing, but a very low volatility of live pigs prices; due to the niche
character of the final market it is not possible to calculate volatility on the final market. The global
chain is less exposed to volatility than the regional one (Parma) in the upstream phases of the chain,
and more exposed in the downstream phases. These evidences should be interpreted on the basis of
actors’ (individual and collective) behaviour. A working hypothesis is that the Regional supply
chain can better control prices of the final product thanks to the PDO differentiation strategy.
Volatility Indexes : overview
Supply chain
Generic ham (global)
Feed
Indicator V.1
Live pigs
Indicator V.2
Fresh ham
Indicator V.3
Cured ham
Indicator V.4
0.081
N.R.
0.053
0.049
Parma PDO (regional)
0.086
0.103
0.051
0.040
Cinta S. PDO (local)
0.099
0.013
0.013
Very low
Source: our findings
Synthetic indicators and cross-cutting indicators evaluated for the three chains are depicted
in the following graph, that highlights the good performance of the local chain, the Cinta Senese
one, while the worst performance is from the global chain (generic cured ham).
Figure 5.4 Analytical indicators related to diversification and differentiation
S.1 - Farm-level risk-spreading
100
C.4 - Ability to mobilize public and
societal support
S.2 - Adaptation capacity of farmers
through downstream actors
cooperation, integration and
diversification strategies
80
60
40
20
C.3 - Chain-based adaptation
capacity through learning and
innovation
S.3 - Adaptation capacity of
slaughtering firms through
integration and diversification
strategies
0
S.4 - Adaptation capacity of ham
processing firms through
integration and diversification
strategies
C.2 - Intradiversity of chain relations
/ configurations
C.1 - Supply chain attitude to
diversification and differentiation
Global (Generic ham)
Intermediate (Parma Ham PDO)
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Local (Cinta Senese PDO)
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The resilience performance profiles of the three cured ham supply chains can be synthesized
as follows
-
-
-
Regional supply chain: Parma cured ham chain have an high level of resilience, mainly
thanks to ham processing firms that are the core actors in the chain. The chain is
characterized by a good adaptation capacity through learning and innovation. This
satisfactory level of resilience is obtained partly at the expenses of pig breeders, who seems
to be the weak stage of the chain. The ability to mobilize public support is a relevant feature
in Parma Ham chain. Two interconnected factors helps chain resilience: the Product
designation of origin link the product to the territory to one side and to consumers on the
other, and the strong governance system (Parma Ham consortium) that helps collaboration
between firms and interaction with other local stakeholders.
Local supply chain: Cinta Senese ham chain have an high resilience in terms of recovering
from shocks but intermediate in terms of search for new equilibria. The performance is good
in particular in terms of diversification, differentiation and intradiversity of chain
organizational configurations, allowing for risk-spreading. This good performance originates
from a low dimension and a subsequent low level of specialization of firms, which on the
other side causes an intermediate performance in terms of adaptation capacity and learning
and innovation. The Product designation of origin, even if it cover only the fresh meat, play
a relevant role.
Global supply chain: the generic cured ham present the lower degree of resilience. It
presents an high exposure to risk and low opportunities for collaboration between different
phases of the chain. Considered the territorial contiguity and the fact that many PDO ham
firms produce also generic ham, the global supply chain benefit from spillover effects from
Parma Ham sector and helps the level of resilience of the Parma Ham chain.
Local and regional chains seems to be less vulnerable to volatile prices and to risks in
general, for the following main reasons:
-
-
-
regional and local supply chains are more diversified, both at single firm level, in terms of
market diversification and product differentiation, and at a whole supply chain level, in
terms of intradiversity of business models and chain relations
pig breeding is more centered on local resources and then less dependent on world markets,
in particular for feed provision
local and regional chains more able to raise consumers prices thanks to strong differentiation
initiatives centered on regional non-reproducible factors. The ability to differentiate the
product on the basis of “irreproducible” factors (as breeds, rearing methods, specific
processing abilities, …) can have a relevant impact on resilience. Some of these factors are
linked to specific territories in their physical and cultural identity, giving a potential
advantage to local and regional cured ham chains. Institutional tools for the protection and
assurance of food quality, like Protected designations of origin, play a key role in building
these product regional identities
firms in local and regional chains are more motivated to develop collaborative relationships
with other firms: in principle territorial and cultural contiguity allows for better
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-
opportunities of coordination, lowering transaction costs, easing common vision about
different supply chain actors and generating awareness about the interdependence with other
firms operating in the area defined according to the PDO. In the case of the Parma Ham is
possible to identify a real organizational model of the type “agrifood industrial district”
(Mora and Mori, 1995; Arfini and Mora, 1998; Giacomini et al., 2013b). ).
Horizontal collaboration amongst producers and vertical collaboration between different
stages of the chain is more developed, in particular in the case of the Parma Ham, arising
from collective action and governance developed by means of the Consorzi di tutela.
5.3. Chain governance
5.3.1. Indicator "Trust based internal relationships"
Internal relationship is considered one of the main aspects responsible of quality
management and transmission of quality and price signals to the market. Trust plays a fundamental
role since the quality of the meat is not evaluated by objective criteria but instead by subjective
criteria of chain agents and since the organisation of the chain that imply to procure raw material
from suppliers that are far from the processing area. Level of trust-based relations between chain
actors, is based on the observation of three parameters: i) absence of conflicts, 2) trust among chain
partners, 3) continuity of chain relations.
Table 5.7 Indicator “Trust based internal relationships”
Supply chain
Global chain:
Name
Generic cured
ham
Value *
Notes
3 Direct interview to supply chain operator
Regional chain:
Parma Ham
PDO
2 O’Really et al. (2003), Dentoni et al. (2012)
Local chain:
Cinta Senese
PDO
2 Direct interview to supply chain operator
* Ordinal scale: level 1 (maximum level of trust), level 2 (intermediate level of trust), and level 3 (minimum level of
trust).
Source: our elaborations.
On the basis of interview to economic actors appear evident as the “Global chain cured
ham” present the lowest level of trust due to the variability in quality and the continuous research of
lowest price of pig cuts. In this chain do not exists specific certifications systems and coordination
system at institutional level thus problems related to the quality of the meat have to be managed by
ham factories located in Parma district and elsewhere in Italy where the generic ham companies
operate.
Regional chain present a lower level of conflict with respect the global chain but research in
this filed (O’Really et al., 2003; Dentoni et al., 2012) and direct interviews shows the presence of
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conflicts between farmers and slaughterhouses and between slaughterhouses and PDO ham
processor. According to the PDO product specification quality is standardized, nevertheless fresh
ham characteristics could differ according to pig breed, feed quality, farm management systems and
ham weight. Slaughterhouses differentiate meat quality of the fresh ham according to the quality
strategies of their costumer. Relationship are based on trust between actors but sometime
slaughterhouses may favour some costumer instead of other clients. The presence of the PDO
Consortia and the regional dimension of fresh and cured ham market create the condition of a social
control between economic actor increasing the level of trust.
Local chain of Cinta Senese present a strong social control process along the chain.
Interviews of pig producers and processor shows some conflict arise between actors due to
presences of “new” pig farmers that, have started the breeding of Cinta Senese pigs due its market
success, but have modified the equilibrium among the chain actors. In particular they have an
impact on prices and on quality to a more intensive breeding technique in pig managements. For
this reason, even though the presence of common rules and the active participation of local actors,
the presence of conflicts is reduced without resetting.
5.3.2. Indicator "Trust based external relationships"
External relationships plays a relevant role for manage the political and social dimension of
the food chain in each area of production. This indicator consider the ability to create the ability to
connect with territorial and policy stakeholders (at local, national and European level) with the aims
to develop appropriate actions of local development of marketing promotion but also to create a
political and social consensus for adoption of appropriate policy intervention that support the chain.
Trust plays a fundamental role since the perception of stakeholders is based on the reputation and
lack of opportunistic behaviours of chain members. External relationship indicator is then evaluated
on the chain partners' capacity to mobilise support from: i) social movements, ii) citizens and iii)
policy actors. This indicator is evaluated by the use of quality approach mainly based on direct
interviews to relevant stakeholders and by specific publication.
Table 5.2 Indicator “Trust based external relationships”
Supply chain
Global chain:
Name
Generic cured
ham
Value *
Notes
3 Direct interview to supply chain operator
O’Really et all., 2003; Parma Ham PDO
Consortium, Annual Yearbook, several years;
Regional chain:
Parma Ham
PDO
2
Local chain:
Cinta Senese
PDO
Direct interview to supply chain operator; Cinta
1 Senese Consortium: Annual Yearbook, several
years; Website;
* Ordinal scale: level 1 (maximum level of trust), level 2 (intermediate level of trust), and level 3 (minimum level of
trust).
Source: our elaborations.
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On the base of interview to economic actors the “Global chain cured ham” presents the
lowest level of trust due to the main reason that this chain is “hidden” to most of territorial social
actors and local policy makers. In the past this chain was a minor production of the Parma Ham
district but nowadays the size of this production is greater of the PDO hams. Local policy actors
consider positively the presence of a global chain for the link with the economic growth and for the
implication of employment inside the indsutrial district, but they recognize the presence of negative
externalities specially at environmental level. In addition, the same local policy actors are worried
about the possible of negative economic impact on the economic performance of the Regional
chain. As consequence the trust on global external relationship is considered very low.
Meanwhile Regional chain present a higher trust level among social and economic actors
and on policy makers too. Reputation come from Parma Ham Consortium, the relevance of the
economic sector and the strong culinary tradition of Parma area. At the same time PDO Parma Ham
Consortium show high ability to cope with policy actors by means of a strong lobbing activity.
Members of PDO Parma Ham consortium are present in different national and international
organisation aiming to protect and promote PDO products include Parma Ham. PDO Parma Ham
Consortium shows high capacity to talk with public institution at local, regional and national level.
A partial drawback is due to the “distance” between local consumers and local producers. Even if
the product is very well know and used, PDO producers are not know at the outlet and is difficult
for consumers distinguish small producers of artisanal PDO Ham respect larger producers of more
industrial PDO ham. In addition, PDO Parma Consortium shows low interest to initiative aimed to
promote local economy by means of territorial marketing actions as the participation to the Quality
route of wine and Ham that collect local producers.
Considering the local chain of PDO Cinta Senese, analysis conducted by interview of local
stakeholders and members of PDO Consortium appear evident as the whole is very rooted in the
territory of production by the strong involvement of local stakeholders. Local administrations (like
Siena Province and some Municipalities) play an important role in developing and supporting the
governance of the PDO system. This feature underline the territorial governance that surround the
activity of the Consortium that, in turn, influence the governance of the PDO chain. The link with
local policy makers is reinforced by the initiative of the Consorzio di Tutela della Cinta Senese,
which is asking for its acknowledgement by the Ministry of Agriculture, in order to be able to act
according to the “erga omnes” criterion, allowing to extend control activities to farms and
companies not associated within the consortium. In sum, external trust on PDO Consortia and on its
members by local stakeholders is very high and is the result of the strong territorial approach of the
Chain governance.
5.3.3. Indicator "Self governance capacity"
Self governance capacity is considered as the capacity of the chain to adopt appropriate
policy and strategies for create, maintain and increase distinctiveness on the product and on the
producers. This indicator deal with the capacity of the chain to create the condition of market
success by offering the appropriate quality to costumers trough different retails models. This
indicator is strongly related to the previous indicators and reproduce how the presence of trust,
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combined with management capacity, is able to solve conflict and adopt appropriate governance
strategies with respect intrinsic and extrinsic feature of the goods sold by different retail systems.
This indicator is evaluated by the use of quality approach mainly based on direct interviews to
relevant stakeholders and by specific publication.
Table 5.3 Indicator “Self governance capacity”
Supply chain
Global chain:
Regional chain:
Local chain:
Name
Generic cured ham
Value *
Notes
3 Direct interview to supply chain operator
Parma Ham PDO
O’Really et al. (2003); Parma Ham PDO
1 Consortium, Annual Yearbook, Istituto Parma
Qualità Certification body; Dentoni et al. (2012)
Cinta Senese PDO
Direct interview to supply chain operator; Cinta
2 Senese Consortium: Annual Yearbook, several
years; Website;
* Ordinal scale: level 1 (maximum level of distinctiveness), level 2 (intermediate level of distinctiveness), and level 3
(minimum level of distinctiveness).
Source: our elaborations
The Global value chain do not have governance bodies (such as Consortia or producers'
associations); thus, apparently, the definition of rules and distinctiveness strategy are left to the
initiative of the single producers. These latter initiatives follow as a “guide”: i) the quality standards
of the PDO Parma Ham (since producers adopt procedures very similar to those used for the Parma
Ham PDO and with the same technologies); ii) others marketing signals or labels, such as retailer
private labels (producers must meet their customers standards, in particular those of the large scale
retailers, especially if hams are sold sliced in trays with commercial brands).
Considering the regional chain of the Parma Ham PDO, the PDO Consortia has demonstrate
along the time a strong capacity to define and manage the quality system for the whole chain coping
possible quality variability with respect: i) the territorial distribution of the chain – pigs can be
breed in 10 Italian regions -; ii) the dimension of the chains – more than 4000 pig farmers are
registered in the Parma Ham Control plan -; iii) the innovation systems along the chain both at
farmers level – introduction of new breeding systems that has innovate the animal welfare
standards, the feeding techniques, etc.. - and at processor level – ham producers have to comply
with new hygienic regulations from UE and have introduced new technologies for refrigerate and
ripen meat -; iv) market innovation – the segment of sliced ham sold in food trays is increasing
every year and represents the most innovative market segment for the Parma Ham PDO chain. The
capacity to manage quality and to produce distinctiveness is due to the composition of the PDO
Consortia board –the Board composition reflect the structure of the PDO chain and include
representatives of farmers, and ham producers differentiated by size of productions – and by the
presence of a effective marketing office that cover the necessity of the domestic and international
market. Giving this structure, the PDO Parma Ham Consortium is able to manage the image and the
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reputation of Parma Ham - also by effective advertising campaign using different media channels
and by participation on food fairs at national and international level – and support their members to
implement promotional campaign in outlets. The self-governing capacity is strengthened by the fees
that members pay to the PDO Consortium for all its activities, and allow to employ efficient and
capable managers that represent adequately the whole PDO chain.
Finally the local food chain represented by the Cinta Senese PDO is show also a good selfgovernace capacity by means of a representation of the chain in the PDO Consortia. Most of the
producers of Cinta Senese pigs are member of the Consorzio, as well as many firms involved in
processing - traditional farmers, entrepreneurs/farmers and pork processors – and provide effective
strategies for increase the quality and the reputation too. The activity of the PDO Consortium is
supported by INEQ that is the PDO Control body, which control the conformity of PDO fresh meats
to the PDO Product specifications. It is an independent body (3rd party certification), according to
the EU PDO-PGI rules. The objectives of the PDO Consorzio di Tutela della Cinta Senese is
changing over the time. In the 90s was to prepare the necessary information and documents for the
application of the PDO label on Cinta Senese meat, and after the PDO registration to assemble all
interested actors in one organisation having the objective to defend the interest of its members,
safeguarding the breed, developing marketing activities. Nowadays there are different strategic
visions between those who want to keep a close rural dimension (enhancing both the product and
the territory) and who wants to promote primarily the product separating, in part, from the territory.
Because the PDO Consortium is “small”, “local and agricultural dependent” do not have the
economic independence and the economic strength to develop “alone” effective strategies that
increase distinctiveness on the market by promotional campaign. In addition the self-regulation
capacity is influenced by the difficulties to find a common strategic vision for “old” and “new”
chains members.
5.3.4. Indicator "Chain-based value governance"
Overall value governance characteristics are conform the typology described by Gereffi et
al. (2005) in its paper on governance typologies of value chains. Gereffi and his colleagues consider
the presence of 5 governance typologies and the basis of the characteristics of transactions: Market,
Modular value chains, Relational value chains, Captive value chains, and Hierarchy.
Table 5.4 Indicator “Chain-based value governance”
Chain governance model
Market
Modular
Relational
Captive
Hierarchy
Global chain
Generic cured ham
Regional chain
Parma Ham PDO
high
medium
absent
high
medium
low
low
high
medium
low
Source: our elaborations on Gerffi et al. (2005).
88
Local Chain
Cinta Senese PDO
low
absent
high
medium
absent
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The three chains do not present a single governance model since the each phase of the chain
(breeding, slaughter and processing) present different networks, dynamics and governance
strategies. Table 5.4 reproduces for the chain the intensity of each governance model in each chain.
Regarding to the global chain the dominant governance models are the Market model and
the Captive model. Both are present at farmers and processing level since is observed the lack of
stability in trade relationships and the strong influences of larger buyer. Nevertheless, modular and
hierarchy models are present for some ham processing companies.
The regional chain is the most fragmented one since the three chains phase present own
specificity in trade and quality relationships among chain members. The dominant governance
model is the Relational model given the presence of complex interactions between buyers and
sellers, which often creates mutual dependence and high levels of asset specificity. It should be
noted the presence of Captive governance model due to the strong activity control by private
certification body that act for guarantee quality to big retailer. Even in the Parma Ham PDO system
other governance form are present, even if do not involve the majority of companies.
Finally, the local chain present a dichotomy of governance model: the relational and the
captive model. The first one is due mainly to the strong connections between the members of the
chains between them and with their customers. This model involve mainly the old members of the
Cinta Senese Chain. On the other hand, the “new” members adopt a strategy more close to the
Captive model since they are dependent from market signal and larger buyers. Even so, a small part
of pig producers sell their pig on the “free” market without any type of agreement.
A graphical overview of the three indicators with difference in performance is described in
Figure ***
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Figure 5.5 : Difference of performance of local, intermediate, global chains for “Chain Governance” attribute.
Global (Generic ham)
Intermediate (Parma Ham PDO)
Local (Cinta Senese PDO)
Trust based
internal
relationships
100
80
60
40
20
0
Trust based
external
relationships
Self governance
capacity
Note: all the measurement indicators have been linearly transformed on a 0-100 scale.
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5.4. Territoriality
The “Association of the product with territory” dimension has been measured by three
indicators. We fist considered the rural dimension, measuring the relevance of the farming system
associated with each product on the territory. Therefore, we have measured the number of pig farms
involved in the supply chain as a percentage of total farms with livestock in the territory.
Unfortunately, this data was only available for Cinta Senese PDO and Parma Ham PDO
supply chain, since no precise data or information is available on the farming system supplying the
generic non-PDO ham production.
The production chain of Parma Ham PDO involves 4,199 breeding farms located in ten
Italian regions. The pigs bred in these farms were approximately 8 million in 2013 (IPQ, 2014) 1.
However, 70% of these farms are located in only ten provinces within four Italian Regions
(Lombardia, Emilia-Romagna, Piedmont and Veneto), where 78% of the pigs are bred (Annex Table
A1). On the other hand, the Cinta Senese production represents a small quota of the overall pig
production in Tuscany. In fact only 81 pig farms are at the moment enrolled in the Cinta Senese
Consortium (INEQ, 2014) and about 100-150 farms are breeding Cinta Senese pigs (Annex Table
A2). The average size of the pig farms is much lower in the Cinta Senese PDO supply chain
(average value of 46 pigs per farm, Annex Table A2), than in the Parma Ham PDO one (average
value of 1,922 pigs per farm holding, Annex Table A1). These figures depict a completely different
picture between these two supply chains: on the one hand, the Parma Ham PDO chain is mainly
based on an industrial livestock production and an intensive animal farming, whereas the Cinta
Senese PDO chain is mostly based on extensive livestock farming systems.
Figure 1 shows that the percentage of farms with pigs on total farms with livestock on the
territories (i.e. Italian provinces, NUTS 3 level) is much higher within the Parma Ham PDO supply
chain (the blue bars) than for the Cinta Senese PDO one (the green ones).
1
It has to be considered that these pigs are supplying not only the Parma Ham PDO producers, but also those of the
main other Italian PDO hams (i.e., San Daniele Ham PDO, Modena Ham PDO, Toscano Ham PDO, etc.).
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Figure 5.6: Indicator "Association of product with territory - Pig breeding importance", Pig farms on total farms with
livestock within the territory (%) by territorial unit (Italian provinces, NUTS 3).
Parma Ham PDO
Verona
Modena
Pavia
Bergamo
Reggio Emilia
Lodi
Cuneo
Cremona
Mantova
Brescia
Cinta Senese PDO
Massa-Carrara
Siena
Prato
Pistoia
Pisa
Lucca
Livorno
Grosseto
Firenze
Arezzo
9,7%
4,0%
8,6%
9,7%
2,9%
11,2%
25,9%
9,1%
21,0%
17,5%
9,9%
0,8%
0,0%
3,3%
1,0%
0,2%
0,8%
0,1%
0,5%
0,6%
1,1%
0,4%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
Note: Cinta Senese PDO provinces are displayed in green colour, Parma Ham PDO provinces in blue.
Source: our elaborations on data of the 2010 Agriculture Census (ISTAT, 2010), INEQ (2014) and IPQ
(2014).
On average, the score for the Parma Ham PDO supply chain shows that 9.7% of farms with
livestock on the considered territory2 are breeding pigs within the PDO system (Table 2);
nevertheless, some provinces score higher than this average value (e.g., Lodi 26%, Cremona 21%,
Mantova 17.5%).
In Tuscany the average score shows that only a very small share of farms with livestock is
breeding Cinta Senese PDO pigs (0.8%), with only a peak in the Siena province (3.3%) (Table 2).
2
This is the average value of the first ten provinces within the PDO system in terms of pigs bred (i.e., Brescia,
Mantova, Cremona, Cuneo, Lodi, Reggio Emilia, Bergamo, Pavia, Modena and Verona).
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Table 5.5: Indicator “Association of product with territory - Pig breeding importance” measured aspig farms on total
farms with livestock in the territory (average value, %)
Supply chain
Name
Global
Generic cured ham
Value
Not available Foreign production
Notes
Regional
Parma Ham PDO
9.7% Average value of the 10 more relevant provinces
Local
Cinta Senese PDO
0.8% Average value of all provinces in Tuscany
Source: our elaborations on data of the 2010 Agriculture Census (ISTAT, 2010), INEQ (2014) and IPQ (2014).
We have then considered the industrial dimension of the “Association of the product with
territory” indicator by measuring the relevance of the ham processing system associated with each
product on the territory (Indicator "Association of product with territory - Pig meat processing
importance"). Therefore, we have measured the number of pig meat processing industries involved
in the supply chain as a percentage of total food industry in the territory. This index shows the
relative importance of pig processing industries involved in the supply chain on total food industry.
This data was available for the three considered supply chains.
The production chain of Parma Ham PDO involves 150 processors (ham producers) within
the Parma province, that have produced approximately 9 million hams in 2013. According to the
estimations made by Giacomini et al. (2013a), the generic non-PDO ham producers, within the
same territory, are 190 and are producing around 15 million hams every year. The Cinta Senese
PDO processors within the traditional territory are 27..
Table 5.6 shows that the percentage of pig meat processing industries on total food industry
on the territories is quite relevant for the global chain (15.7%) and for the regional one (12.4%),
whilst is almost non significant for the local chain (0.7%). These data show the importance of the
pig processing industry within the Parma territory, where both generic non-PDO hams and Parma
Hams PDO are produced. This has been also demonstrated by other authors showing a high level of
specialization in the territory, also in terms of employment in the meat sector on total manufacturing
within the Parma territory (Giacomini et al. 2013b). On the other hand, these data show the almost
non-significant role of the pig meat processing industry within the Tuscany territory (traditional
territory of the Cinta Senese PDO), if compared to other food sectors.
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Table 5.6: Indicator “Association of product with territory - Pig meat processing importance”, measured as pig meat
processing industries on total food industry in the territory (average value, %).
Supply chain
Name
Global
Generic cured ham
Regional
Parma Ham PDO
Local
Cinta Senese PDO
Value
Notes
15.7% Based on estimates made by Giacomini et al (2013a)
12.4%
0.7% Average value of all provinces in Tuscany
Source: our elaborations on data of the 2011 Industry and Services Census (ISTAT, 2011), INEQ (2014), IPQ
(2014) and Giacomini et al (2013a).
Finally, we have considered whether there is a link between the origin of raw material (e.g.,
fresh meat, feed) and the territory. This is measured with an ordinal scale based on qualitative
evaluations considering the specific chain's features and the product specification applied.
The case of the generic non-PDO hams chain shows a very weak territorial embeddedness,
since genetics, pigs, feeds and raw legs come from all Europe and are only processed in the local
production system of the Parma Ham PDO. This suggests a weak link of raw materials with the
territory.
For the Parma Ham PDO chain genetics, pigs and row legs come from other 10 Italian
regions, and feed are purchased from different sources, included a large share of imports (e.g.,
soybean). Only the processing phase of hams is made within the traditional Parma territory.
Therefore, we can conclude indicating in this case an intermediate link of raw materials with the
territory.
In the Cinta Senese PDO chain most of the inputs come from the region giving it a strictly
rural dimension. This is especially true for the genetic material pigs and for feeds which, according
to the product specification, have to be produced at least for 60% in Tuscany. Moreover, for this
supply chain all the territorial dimensions are embedded in the local food chain: from the
production of inputs to the consumption in local restaurant or local outlets. This shows a strong link
of the supply chain with the territory.
Table 5.7: Indicator “Association of product with territory” – Origin of raw materials “Is there a link between the
origin of raw material (e.g. fresh meat, feed) and the territory?”.
Supply chain
Name
Global
Generic cured ham
Regional
Parma Ham PDO
Local
Cinta Senese PDO
Value *
Notes
Level 3 (weak link) No limits to the origin of raw material
Level 2 (intermediate link) Fresh meat from delimited area
Level 1 (strong link) Fresh meat and feed from delimited area
* Ordinal scale: level 1 (strong link with the territory), level 2 (intermediate link), and level 3 (weak link with the
territory).
Source: our elaborations.
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5.4.1. Indicator “Social cohesion and conviviality”
The “Social cohesion and conviviality” dimension has been measured with two indicators.
We fist considered the number and type of socio-cultural events favoured by the chain in the
territory and then the number of visitors in these socio-cultural events in the territory. These
cultural events organized around products representing a region, link together traditions, culture and
gastronomic itineraries.
We couldn't retrieve any socio-cultural event linked to the global chain, i.e. the generic cured
ham.
At least two main events have been found for the Parma Ham PDO case: the "Festival del
Prosciutto di Parma" ("Parma Ham Festival") and the "Finestre Aperte" ("Open Windows") events.
These two events are directly organised and sponsored by the Parma Ham PDO Consortium. The
"Parma Ham Festival" presents a full calendar of events dedicated to gastronomy, entertainment and
culture organized in the 13 municipalities within the traditional area of production of Parma Ham.
According to the Parma Ham Consortium, about 70,000 people have participated in this event in
2013. Over 6,000 visitors have joined the “Open Windows” event where they could attend the
processing of Parma Hams in selected ham factories.
In Tuscany there are a number of festivals and fairs (named “sagre”) which focus on Cinta
Senese as main product. We counted at least seven small town festivals that refers explicitly to
Cinta Senese in their denomination3, but there are many others festivals and fairs where Cinta
Senese products play an important role. However, it is impossible to determine the exact number of
these events, since there is no an official census. These events are often organized by local
communities (e.g., non-profit associations of citizens), mainly in small towns and mainly in the
Siena province. In many cases, these small-scale events are capable of attracting only few hundred
of visitors, mostly local people and tourists.
Table 5.8 Indicator “Social cohesion and conviviality” – Number of events measured as “Number of socio-cultural
events in the territory”.
Supply chain
Name
Global
Generic cured ham
Regional
Parma Ham PDO
Local
Cinta Senese PDO
Value
0
Notes
2 " Parma Ham Festival " and " Open Windows "
10 Small town festivals managed by local communities
Source: our elaborations on Consortium data and other local sources.
3
The festivals explicitly focused on the Cinta Senese are: Sagra della Cinta Senese e del Maiale Brado - San Casciano
dei Bagni (Siena), Sagra della Cinta Senese a Celle sul Rigo (Siena), Sagra della Cinta Senese e maiale brado (San
Casciano dei Bagni), Sagra della Cinta Senese – Ville di Corsano, Sagra dello Stringozzo alla Cinta – Buti (Pisa), Sagra del
Maiale Cinto a Casole D'Elsa (Siena).
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Table 5.9 Indicator “Social cohesion and conviviality” – Number of visitors measured as Number of visitors in sociocultural events in the territory”.
Supply chain
Name
Value
Global
Generic cured ham
0
Regional
Parma Ham PDO
Local
Cinta Senese PDO
Notes
76,000 Approximate number of participants
6,000 Few hundred visitors for each festival
Source: our elaborations on Consortium data and other local sources.
Finally, two indicators were used to assess the “Links with local touristic activities”. We first
considered whether there is a Gourmet Food and Wine Route involved in the territory related with
the food chain, and then we assessed the percentage of farms within the territory involved in onfarm touristic activities, such as agri-tourism, food tasting, etc.
There is no Gourmet Food and Wine Route dedicated to the global generic non-PDO cured
ham.
The Parma Ham product has a dedicated Gourmet Food and Wine Route named “Strada del
Prosciutto e dei Vini dei Colli di Parma” (“Road of Ham and Wines of Parma Hills”) involved in the
circuit “The Roads of Wines and Flavours” of the Emilia-Romagna region4. This itinerary covers
the low hills crossed by vineyards and the foothills of the Apennines in the Southern part of the
Parma province. The Road of Ham and Wine of the Parma Hills offers five different routes of taste
among art, culture, nature and local products. For instance, in Langhirano, the center of the cured
ham district, it is also possible to visit the Museum of Parma Ham and Charcuterie. Several castles,
fortresses and strongholds of the ancient Duchy of Parma and Piacenza can also be visited on the
route combining in this way the pleasure of food with art and history.
In Tuscany there is a system of “Tuscan wine routes”, defined as “itineraries for the
enjoyment of the wine, olive oil and good food of Tuscany” which are recognized by a Regional
Law as integrated touristic local systems focused on a typical wine and/or other agri-food typical
products5. There are 22 Gourmet Food and Wine Routes recognized in Tuscany. Even if there is not
any typical product route focused on the Cinta Senese meat and salami, these products are an
important part of the basket of goods promoted by many of these Routes, explicitly recalled in the
basket of goods of 5 out of the 22 wine routes. The symbolic value that the Cinta Senese has for
Tuscany is evidenced, for example, by the silhouette of an animal of this breed that has been
adopted as emblem of the typical products of Tuscany in the recent edition of the “Salone del Gusto
– Terra Madre”, organized by Slow Food.
4
5
The Roads of Wines and Flavours of Emilia Romagna: see http://strade.emilia-romagna.it/web/.
The Wine Roads of Tuscany Federation: see http://www.stradevinoditoscana.it/.
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Table 5.10: Indicator “Links with local touristic activities” – Gourmet and Wine Route measured by “Is there a
Gourmet Food and Wine Route involved?”.
Supply chain
Name
Global
Generic cured ham
Value *
0 (No)
Regional
Parma Ham PDO
1 (Yes)
Local
Cinta Senese PDO
1 (Yes)
Notes
Binary scale: 1 = yes, 0 = no.
Source: our elaborations on Consortium data.
Unfortunately, it was not possible to gather data or information about the percentage of
farms of the global chain involved in on-farm touristic activities.
Similarly, very few information is available about the percentage of farms of the Parma Ham
PDO chain involved in on-farm touristic activities. However, as noted before, the Parma Ham PDO
chain is mainly based on intensive animal farming, which is not particularly suited for parallel
touristic activities. Therefore, although some experiences of agri-tourisms managed next to the
heavy pig breeding activities exist, these represent less than 10% of the overall number of breeding
farms.
On the other hand, the rearing of Cinta Senese pigs and in particular the processing of Cinta
meats are very often linked to agri-touristics activities managed inside the same firm (recognized by
a National and Regional Laws) and to other touristic activities managed by members of the family
farm. In fact the extensive rearing method are compatible with on-farm tourism activities, and the
Cinta Senese breed as its products (ham, salami and fresh meat) are important elements of attraction
mainly in the hilly area in the center of Tuscany. In a sample of 57 farms enrolled in the Consortium
of Cinta Senese PDO (out of the total 81 farms), 20 farms manage agri-tourism activities (35%),
and 6 more managed food and wine tasting and/or didactic activities (10%). Thus, we can conclude
that almost half of the Cinta Senese PDO farms are carrying out on-farm diversification activities in
the field of tourism and hospitality.
Table 5.11: Indicator “Links with local touristic activities - On-farm touristic activities”, measured as % of farms
involved in on-farm touristic activities (agri-tourism, food tasting, etc.).
Supply chain
Name
Global
Generic cured ham
Value *
Notes
Not available Foreign production
Regional
Parma Ham PDO
Level 3 (less than 10%)
Local
Cinta Senese PDO
Level 1 (more than 40%)
* Ordinal scale: level 1 (more than 40%), level 2 (from 10% - 40%), level 3 (less than 10%).
Source: our elaborations on Consortium data and personal interviews with key stakeholders.
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5.4.2. Concluding remarks
The attribute territoriality can take different forms and specificity in relation to the structure
of the supply chain which directly influences some specific territorial elements. These have been
shown by the seven indicators that we have considered (Figure 2).
In the case of chains completely embedded in the territories (as is Cinta Senese PDO), most
of the inputs (especially genetic material pigs and feeds – which have to be produced at least for
60% in Tuscany) come from the region of origin denoting a strong link with the territory. Although
the Cinta Senese pig breeding and processing activities are not numerically relevant, as compared to
other traditional food chains in Tuscany (e.g., olive oil, wines, cheese, beef, etc.), they represent a
niche produce which is part of a strictly rural dimension. Thus, the “quality concept” is not only
referred to the product characteristics, but consider also all the territorial dimensions that are
included in the local food chain: from the production of inputs to the consumption in local
restaurant or local outlets. The economic agents who benefit from this system are all the actors of
the food chain: pig farmers, local trader, local butchers, local restaurants and local food shops.
Figure 5.6: Difference of performance of local, regional/intermediate, global chains for “Territoriality” attribute.
Note: all the measurement indicators have been linearly transformed on a 0-100 scale.
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In case of chains that are partially embedded in the territory, as is Parma Ham PDO,
genetics, pigs and row legs come from other 10 Italian Regions. The product specification oblige
PDO producers to process the hams within the traditional Parma territory. The specificities of this
latter are set in the local environment characteristics, in the skills of workers in the ham curing
phase and in the ability of PDO ham processing industries to develop efficient strategies in the
marketing, individually or collectively. The economic agents that benefit from this system are
mainly PDO ham companies and others companies which offer services to them (specific technical
operations and logistics). The quantitative indicators combined demonstrate a high level of
concentration and specialization of companies involved in the pork industry in the Parma territory,
as also reported in other studies demonstrating the industrial district of Parma province (O’Reilly et
al., 2003; Dentoni et al., 2012; Giacomini et al., 2013a, 2013b). Similarly, the farming stage is often
based on an industrial livestock production and an intensive animal farming in the related
territories. Others economic agents, as those involved in Gourmet Food and Wine Routes, benefit
only indirectly from the efficiency of the PDO market and from reputation that PDO ham generate
on the territory.
The global generic cured ham represents a chain not at all embedded in the territory;
genetics, pigs and row legs come from all Europe and are processed in the local production system
of the PDO Parma Ham. The global chain takes advantage from the externalities of the Parma Ham
PDO system. Their producers are mostly the same that are producing the PDO Hams and their
strategies is to maximize the production capacity of their technical structures simultaneously
following a strategy of scale and scope (Dentoni et al., 2012; Giacomini et al., 2013a). Who benefits
from this specific chains are the global ham producers and the service companies which contribute
to improve the efficiency of plant structures. Local pig farmers and economic agents involved in
quality routes can have a negative feedback both in economic terms and in loss of reputation of the
territory. By the contrary, the entire region can benefit only for the economic growth that the
combination of PDO and global chains can generate in economic terms.
5.5. Resources use and pollution
5.5.1. Results
Three supply chains producing cured ham have been analysed comparing the global supply
chains with local ones. In particular it concerns the production of generic global cured ham, PDO
Parma Ham and the local supply chain of the Cinta Senese ham.
Several studies concerning the environmenal impact of pigmeat supply chains have been
carried out in the recent years. Williams et all (2006) have analyzed the environmental impact of
pig meat in terms of tons of slaughter weight of four different supply chains: heavy pigs, indoor and
outdoor breeding and conventional light pigs: GWP (Global Warning Potential) ranges from 6,0806,420 kg CO2-eq/t slaughter weight, nutrients or eutrophication potential 95-119 kg PO4-eq t
slaughter weight, land use 6900-7500 m2/ t and 15.5-16.7 MJ/ t.
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In an other study Basset-Mens and Van der Werf (2005) use live weight as denominator
instead of slaughter weight and obtain a GWP in a range of 2.3-3.5 kg CO2-eq/kg live weight,
nutrients 0.021-0.017 kg PO4-eq/kg, 5.4-6.3 m2 of land occupation/kg and an energy consumption
of 16-18 MJ/kg.
Also Blonk et al (1997) use as functional unit the pig live weight obtaining the follows
results: GWP 3.7 kg CO2-eq/ kg live weight, nutrients 0.018 kg PO4-eq/kg and energy
consumption 16 MJ/ kg.
Zhu-XueQin and Van Ierland (2004) adopted a different functional unit: t of protein and
obtain in a conventional breeding system 2.3 kg CO2-eq/ t protein, 2,491 N-eq (eutrophication),
land use 55 m2/t protein and energy consumption 397,252 MJ/t protein.
In a more recent Danish study Nguyen et al (2011) obtain: 3.1-3.4 kg CO2-eq/ kg of pork
delivered by the slaughterhouse.
J.Y. Dourmad et al (2014) in a study on evaluating environmental impact of contrasting pig
farming system they obtained for GWP values between 2.3-3.5 kg CO2-eq/kg live weight, nutrient:
0.016-0.034 kg PO4-eq /kg LW, CED 16-24 MJ/kg LW, land use 4.1-10.6 m2/kg LW.
It must considered that it is very risky to compare directly different LCA studies as different
functional units are used, different inputs, different methods and different allocations systems. So
the data reported should not be compared with the results of the present study, but they can serve
just to have an indication of the range of the impacts achieved.
In this study the environmental impacts of cured ham production have been calculated:
breeding, slaughtering, seasoning and retailing of the three chains: Generic cured ham, Parma Ham,
Cinta Senese ham. The first two chains are fully realised and analysed in Italy. In the third supply
chain (generic) the fresh hams are imported from the Netherlands and for the phase of breeding and
slaughtering we have used data from a CML Dutch study.
We have studied all the impacts generated throughout the various phases of production of
the ham, from the breeding phase to the phase of slaughtering, seasoning and retail.
We have calculate all impacts up to the sales of cured ham in the retail shop. In different
phases of production we have considered the kg of live weight (breeding), the kg of carcass
(slaughterhouse), the kg of cured ham (seasoning) and at the end kg of slice ham (retail).
The impacts are based on the weight of the various products that come out of the different
phased of production. Breeding: we have considered the live weight selecting only the inputs
necessary for the production of the heavy pigs and ignoring all the inputs for other productions.
Slaughterhouse: we have attributed all the impacts to the carcass mass (80% of live pig weight).
Seasoning: we have attributed the impacts considering the fresh ham mass as carcass part (fresh
uncured ham yield is 70% of the ham cut) , for retail we attributed the impact as part of cured ham
really sold and consumed (slice yield is 55% of cured ham).
We calculated the following impacts
-
Eutrophication (kg PO4-eq/UF)
Climate change, carbon foot print (CO2 eq/UF)
Consumption of fossil energy (MJ/UF)
Water footprint (m3/UF)
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-
Land use (m2/year/UF)
These five environmental impacts have been calculated with the program SimaPro 8.0.3.; for
the methodological approach and for the inventory phase see annex 1 chapter 13.1.
Livestock phase
The environmental impact of the livestock phase of the three supply chains are reported in
table 5.12 and in figure 5.7 The functional unit used for the breeding phase is 1 kg of pig live
weight at farm gate.
Table 5.12 - Environmental impact of livestock phase
Environmental
Unit/kg
Cinta Senese
Parma
Light
impacts
L.W.
pig
pig
pig
Eutrophication
kg PO4-eq
0.0285
0.0278
0.0249
Carbon foot print
kg CO2-eq
3.55
3.92
2.24
Non renewable, fossil
MJ
18.10
20.14
17.85
Water footprint
m3 H2O
1.93
2.06
2.60
Land use
m2/year
9.12
4.85
5.21
Figure 5.7– Comparison of the impacts of the livetsock phase(maximaal 100%)
Livestock (Live weight)
120,0%
100,0%
80,0%
60,0%
40,0%
20,0%
0,0%
Eutrophication
Carbon foot
print
Cinta Senese pig
Energy demand Water footprint
Parma pig
Land use
Light pig
The livestock phase generates the highest environmental impacts. In particular, the duration
of the fattening period, which differs significantly among the three production chains (about 15
months for the Cinta Senese pig, 9 months for the Parma pig and 6 months for the light pigt)
influences significantly the results. The length of the growing cycle influences all impacts as a
decisive factor for the production efficiency.
Cinta Senese and Parma pigs have a higher eutrophication potential, probably depending on
feed and to a lesser extend due to manure management; in the Cinta Senese pig the manure
deposited by animals during grazing is not managed.
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From a eutrophication point of view, environmental impact per kg product may not be
sufficient for making a fair decision. Cederberg (2002) suggests that assessment of eutrophication in
animal production systems should be made both per unit product, but also per unit area.
Impact breeding system
Eutrophication
Unit
g PO4/m2
Cinta
Senese pig Parma pig
3.13
5.74
Light pig
4.77
By dividing the eutrophication for m2 of land occupation we obtain a quantity of PO4 eq,
expressed in grams per m2. In this case we have a different situation where Cinta Senese has the
best results regarding eutrophication.
In the case of greenhouse gas emissions the results between Parma and Cinta Senese is
reversed. The breeding of the heavy Parma pigs requires a higher energy consumption then in the
case of the Cinta Senese pig that also takes advantage of the resources of the forests. The much
lower GHG emissions of the Dutch pigs are explained by the shorter length of the of the production
cycle.
For the energy demand impact category the Cinta Senese pig is approximately equal to the
light pigs in the Netherlands, while the Parma pig has the highest impact, but in comparison to the
other impacts the differences are less evident.
Water consumption is higher for the Dutch light pigs, while the Cinta Senese pig has the
lowest values. This depends mainly on the different water requirements of the feeds that make up
the rations.
Land use in Cinta Senese breeding included the pasture area (wood) and therefore it is
higher in the Cinta Senese pig production. This area is quantified taking account of livestock
density laid down in the PDO product specification of the Cinta Senese: 1,500 kg liveweight per
hectare. We have not calculated an allocation between wood and pigs because they are marginal
forests with insignificant timber production. This forest are in fact dedicated to pasture to make it
productive. The small advantage of the Parma pig compared to the light pig can be explained by the
different components of the feed ration: for example in the feed of the light pig tapioca is included,
a crop that has a lower yield/ha compared with other components of the ration.
Slaughterhouse phase
The functional unit at the end of the slaughterhouse phase is 1 kg carcass weight. A 80%
slaughter yield has been hypothesized. Environmental impacts are shown in table 5.13 and in figure
5.8
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Table 5.13 - Environmental impact of slaughterhouse phases.
Environmental
impacts
Eutrophication
Carbon foot print
Non renewabel, fossil
Water footprint
Land use
Unit/kg Carcass
PO4-eq
CO2-eq
MJ-eq
H2O m3
m2/year
Cinta Senese pig
0.0360
4.63
27.74
2.45
11.48
Parma pig
0.0349
5.05
27.82
2.71
6.13
Ligth pig
0.0311
2.86
23.51
3.24
6.52
Figure 5.6.1.2.1 – Comparison of the impacts of the slaughterhouse phase (maximaal 100%)
Slaughterhouse (carcass)
120,0%
100,0%
80,0%
60,0%
40,0%
20,0%
0,0%
Eutrophication
Carbon foot
print
Cinta Senese
Energy demand Water footprint
Parma
Land use
Generic
The results after the slaughter phase reflect the results already obtained for the livestock
phase except for the consumption of fossil energy equivalent where the Cinta Senese pigs equal the
values of Parma pigs. In fact slaughtering of the Cinta Senese pigs takes place in small local
slaughterhouses that are usually less energy efficient.
In the following graphs are showed the different impacts, after breeding and slaughterhouse
phases, divided by feed, on farm and slaughterhouse.
The impacts derived mainly from the feed production from in all the cases.
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GWP kg CO2/kg carcass
Eutrophication kg PO4/kg carcass
4,00
0,04
3,00
0,03
2,00
0,02
1,00
0,01
0,00
0,00
Cinta pig
Feed
Parma pig
On Farm
Light pig
Cinta pig
Slaughterhouse
Feed
CED MJ/kg carcass
Parma pig
On Farm
Light pig
Slaughterhouse
LU m2/year/kg carcass
25,00
12,00
10,00
8,00
6,00
4,00
2,00
0,00
20,00
15,00
10,00
5,00
0,00
Cinta pig
Feed
Parma pig
On Farm
Light pig
Cinta pig
Slaughterhouse
Feed
Parma pig
On Farm
Light pig
Slaughterhouse
WSI mc/kg carcass
4,00
3,00
2,00
1,00
0,00
Cinta pig
Feed
Parma pig
On Farm
Light pig
Slaughterhouse
When the feed is produced, there are environmental impacts from the fields, the processing and
transport. The slaughter and the “On farm” stages are less significant, but the impacts from feed
production can be seen to have a far greater impact.
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Seasoning phase
The functional unit after the seasoning phase is 1 kg ham weight. A 70% cured ham yield
has been hypothesized. Environmental impacts are shown in table 5.14 and figure 5.9
Table 5.14- Environmental impact of seasoning phases.
Environmental
impacts
Eutrophication
Carbon foot print
Non renewabel, fossil
Water footprint
Land use
Unit/kg Ham
PO4-eq
CO2-eq
MJ-eq
H2O m3
m2/year
Cinta Senese
Parma
Generic
0.0525
0.0511
0.0457
7.68
8.56
5.41
54.25
64.56
56.94
4.89
5.48
6.07
16.49
8.85
9.40
Figure 5.9 – Comparison of the impacts of the seasoning phase (maximum is 100%)
Seasoning (ham)
120,0%
100,0%
80,0%
60,0%
40,0%
20,0%
0,0%
Eutrophication
Carbon foot
print
Cinta
Energy demand Water footprint
Parma
Land use
Generic
The consumption of fossil energy equivalent returns higher in the Parma pig. The generic
cured ham and the Cinta Senese ham have a production process with a much shorter maturation
period than the Parma Ham (from a minimum of 6 months to a maximum of 12 months). This factor
determines a longer stay of the hams in the various seasoning cells.
The Cinta Senese energy demand impact ham is slightly lower than the light pig ham due to
the transport (from the Netherland to Italy) of the fresh thighs at the sausage company.
Retail phase
The functional unit in the retail phase is 1 kg of edible slice of ham. The average yield from
the whole ham to ham slice is very low: 55%. Environmental impacts are shown in table 5.15 and in
figure 5.10
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Table 5.15- Environmental impact of retail phases.
Environmental
impacts
Eutrophication
Carbon foot print
Non renewable, fossil
Water footprint
Land use
Unit/kg slice
ham
kg PO4-eq
kg CO2-eq
MJ
m3 H2O
m2/year
Cinta
Senese
Parma
0.0956
14.01
99.35
8.91
29.99
Generic
0.0931
15.71
119.54
10.03
16.09
0.0831
9.91
104.70
11.06
17.10
Figure 5.10 – Comparison of the impacts of the retail phase (maximum 100%)
Retail (slice ham)
120,0%
100,0%
80,0%
60,0%
40,0%
20,0%
0,0%
Eutrophication
Carbon foot
print
Cinta
Energy demand Water footprint
Parma
Land use
Generic
The results after this last step reflect the data obtained in the livetsock phase except for the
consumption of fossil energy which is higher for the slice of ham of the generic light pig than in
that of the Cinta Senese pig (less transport operations).
Impact in different phases
In the following graphs (Figure 5.11, 5.12, 5.13) the share of the different impacts at the
different production phases is shown.
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Figure 5.11 – Parma: comparisons of the different phases.
Parma
120,0%
100,0%
80,0%
60,0%
40,0%
20,0%
0,0%
PO4-eq
CO2-eq
Livestock
MJ-eq
Slaughterhouse
H2O m3
Seasonig
m2/year
Retail
Figure 5.12 – Cinta Senes: comparisons of the different phases.
Cinta Senese
120,0%
100,0%
80,0%
60,0%
40,0%
20,0%
0,0%
PO4-eq
CO2-eq
Livestock
MJ-eq
Slaughterhouse
H2O m3
Seasonig
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Retail
m2/year
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Figure 5.13– Generic : comparisons of the different phases.
Generic
120,0%
100,0%
80,0%
60,0%
40,0%
20,0%
0,0%
PO4-eq
CO2-eq
Livestock
MJ-eq
Slaughterhouse
H2O m3
Seasonig
m2/year
Retail
In all cases the livestock phase is predominant in the eutrophication and land use impacts.
Fote the livestock phase most relevant are eutrophication, the carbon foot print, the water foot print
impacts and land use. The seasoning phase instead is very important for energy use.
The phase of slaughter is relatively high for the Cinta Senese pig due to the small size of the
local slaughterhouses.
5.5.2. Conclusion
A first important difference between the Cinta Senese, Parma Ham and Generic Ham chain
regards the age at slaughtering of the pigs and hence the length of the period they live on the farm.
In the Dutch cases the pigs are slaughtered at 6 months, while the Italian Cinta Senese pigs are
slaughtered at about 15 months and the Parma pigs at least 9 months. As shown by the results of the
LCA the feed given to the pigs has the major impact on the differences. Furthermore, if pigs are
kept longer on the farm (i.e. the daily growth is lower) more feed will be administered per kg of
meat.
Another difference concerns how the pigs are housed. Pigs can be housed in stables as in pig farms
of the Generic Cured Ham and Parma Ham chain. Pigs can however also be kept outdoors as is the
case of the Italian Cinta Senese pigs that live outdoor and in the forests. This influences land use,
feed and manure management.
Production efficiency, the energy intensity and the input of technical resources are crucial in
the determining the emissions: with the same technical inputs, a higher productive performance
permits to get significant reductions in emissions, because these are diluted on larger quantities of
product. When we look at the subsequent phases of further processing of the ham only the
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seasoning phase has a significant impact on the carbon footprint, the consumption of energy and the
water footprint.
Drawing up a kind sort of ranking starting from lowest impacts we have:
Eutrophication (by unit product): 1 Generic ham, 2 Parma, 3 Cinta Senese
Eutrophication (by unit area): 1 Cinta Senese 2 Generic ham, 3 Parma.
Climate change: 1 Generic ham, 2 Cinta Senese, 3 Parma
Cumulate energy demand: 1 Cinta Senese, 2 Generic ham, 3 Parma
Water footprint: 1 Cinta Senese, 2 Generic ham, 3 Parma
Land use: 1 Parma, 2 Generic ham, 3 Cinta
The generic cured ham supply chain has the lowest environmental impact in terms of eutrophication
and contribution to climate change, the local Cinta Senese pig chain is the best in saving water and
use of energy and in the calculation by unit area, while the Parma Ham chain is the one that has the
lowest land use. About the eutrophication if this impacts is calculated per unit area and not per
product unit the Cinta Senese breeding get the best result.
The extensive livestock production like that of the the Cinta Senese occupies a larger area of
land, but on the contrary allows for higher water savings and less consumption of fossil resources.
The intensive livestock production (Parma pig and light pig) has usually better performances with
benefits in the climate change, land use and eutrophication impacts.
5.6. Affordability
Indicator “Cured ham consumption”
The price level that the product has for the final consumer is related to various conditions
and factors influencing the value chain from farm to fork. The dynamics in pork meat consumption
in Italy during the last decade is shown in Figure 5.14 In the considered period, the overall pork
meat consumption increased by 8%, from 2,259 thousand tons in 2003 to 2,442 thousand tons in
2013. The per-capita apparent pork meat consumption in Italy ranges from a minimum of 38
kg/person to a maximum of 42 kg/person (average value 40.2 kg/person).
Figure 5.14 Dynamics in pork consumption in Italy, overall (.000 tons) and per-capita consumption (kg/person).
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Source: our elaborations on ISTAT and Eurostat data.
The main dynamics in Parma Ham PDO and generic ham consumption from 2007 to 2013
are shown in Figure 5.14. The consumption of Parma Ham PDO in Italy steadily stands upon the
consumption of generic cured ham. However, it is quite evident that the gap between the
consumption of the two products is variable, ranging from a maximum of 6,700 thousand tons in
2009 to a minimum of 4,700 tons in 2013. In fact, the Parma Ham PDO consumption declined by
5% since 2009, while generic ham consumption increased by 1% in the same period. Overall, the
consumption of generic ham seems more stable than the consumption of Parma Ham PDO.
The production of Cinta Senese cured ham is very limited, due to difficult production
conditions and limited profitability. The production under PDO is even lower, because of strict rules
on feeding and production and of related costs. Recall that the Cinta Senese PDO protects meat and
not processed products, but Consortium developed a collective mark assuring consumers that fresh
ham are PDO certified.
There are not available data on Cinta Senese pork ham and salami consumption. Ham
consumption can be estimated from the number of slaughtered certified PDO. On average in 20092012 3.539 PDO pigs were slaughtered, and about 7.000 cured hams produced. The average weight
of a Cinta Senese cured ham is about 8 – 9 kilos (bone included). Therefore, it is possible to
estimate a Cinta Senese PDO ham annual production and consumption of approximately 600 q (60
tons).
The average consumption of Parma Ham PDO is approximately 32 thousand tons, while the
average consumption of generic cured ham is about 26.6 thousand tons.
Figure 5.15 Dynamics in pork consumption in Italy – domestic market Parma Ham and generic ham
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Dynamics in pork consumption - domestic market
35.000
8.000
Tons (overall consumption)
31.471
32.037
32.130
32.837
7.000
32.156
31.168
30.000
6.000
5.000
27.037
26.530
26.155
26.527
26.884
26.765
26.437
4.000
3.000
25.000
Tons (gap)
32.881
2.000
1.000
20.000
0
2007
2008
Consumption gap
2009
2010
2011
2012
PDO Parma ham
2013
Generic cured ham
Source: our elaborations on Parma Ham Consortium, Nielsen data.
Table 5.16: Cinta Senese estimated production and consumption
PDO certified heads
PDO ham Certified production (kg)
Hams produced (n.)
Estimated PDO cured hams (kg)
2009
3,452
2010
3,386
2011
3,454
2012
3,862
435,376
434,605
464,247
494,228
6,904
6,772
6,908
7,724
58,684
57,562
58,718
65,654
Source: our elaborations on Cinta Senese Consortium data.
Table 5.17: Indicator “Cured ham consumption”, tons.
Supply chain
Name
Global
Generic cured ham
Regional
Parma Ham PDO
Local
Cinta Senese PDO
Value
Notes
26.619 National representative retail survey (Nielsen data)
32.097 National representative retail survey (Nielsen data)
60 Estimated on the basis of production data
Source: our elaborations on Parma Ham Consortium, Cinta Senese Consortium, Nielsen data.
Indicator “Retail price in supermarket”
Local food products are often perceived as more expensive than those provided through
global supply chains. Figure 5.16 shows the average retail price in Italy of the Parma Ham PDO and
generic cured ham. The dynamics reveal a higher average price of the Parma Ham PDO (on average
24.4 €/kg) and a lower price of the global generic cured ham (average price 18.2 €/kg).
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In this case, as also argued by Giacomini et al. (2013a), the global chain (i.e. the generic
ham chain) seems more competitive because of a higher flexibility in the procurement of less
expensive raw material (i.e. fresh hams), mostly imported (e.g., from Northern European countries
like Germany and the Netherlands), and because of a shorter curing period and financial cycle, as
well as absence of certification costs. Moreover, the larger companies involved in the production of
generic hams achieve scale economies more than the Parma Ham PDO producers (Dentoni et al.
2012; Giacomini et al. 2013a), which allows global food chains to offer lower and more stable
prices.
It is also evident that the price gap between the two product is declining, from 7.1 €/kg in
2009 to 5.3 €/kg in 2013. It can be presumed that, as also shown by Figure 5.16, demand switched
to the less expansive generic ham, which indeed experienced a more steady demand, strengthening
firms’ interest in a product positioned in a lower price band (Giacomini et al. 2013a). From these
considerations, the global food chain is more efficient and hence better at cutting down raw material
costs in order to provide affordable prices to consumers.
Figure 5.16: Retail price in Italy, Parma Ham PDO and generic ham, domestic market (€/kg).
Source: our elaborations on Parma Ham Consortium, Nielsen data.
Due to its limited production and very high production costs, the Cinta Senese ham is not an
everyday product, so it is hardly comparable with the other cured hams. The price of Cinta Senese
ham is variable according to different marketing channels and selling types. The most expensive is
the pre-sliced ham packaged in controlled atmosphere, sold in supermarkets at a price between 120
and 140 €/kg (increasing trend). Sliced Cinta Senese ham (not pre-packed) is sold in supermarkets
(not very common) or gourmet groceries at a prices between 65 and 75 €/kg. Marketing of vacuum
packaged pieces of ham or of whole hams is not very common. In these cases the price takes in
account the non edible parts (25% of the total weight). In these cases the price may drop to 35 €/kg
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for hams sold directly on-farm. Therefore an average retail price of 70 €/kg can be estimated for the
Cinta Senese ham.
Table 5.18: Indicator “Retail price in supermarket”, €/kg.
Supply chain
Name
Global
Generic cured ham
Value
Notes
18.1 National representative retail survey (Nielsen)
Regional
Parma Ham PDO
24.4 National representative retail survey (Nielsen)
Local
Cinta Senese PDO
70.0 Based on direct retail observation
Source: our elaborations on Parma Ham Consortium, Nielsen data, direct retail observation.
Indicator “Consumers’ quality perception”
Finally, we have considered the consumers’ quality perception of cured hams of the three
chains in Italy.
Recently, an on-line choice experiment was conducted on a sample of 250 Italian consumers
to test for the relative importance of quality attributes of cured ham, by applying a multinomial logit
model (Capelli et al., 2014). Although its sample was not fully representative of the Italian
population, this study provides several important insights on consumer’s quality perception of
Parma Ham PDO and generic non-PDO cured ham. In particular, the survey has shown a higher
quality perception of the Parma Ham PDO as compared to the generic non-PDO ham. In particular,
it was estimated that consumers in general are willing to pay and average 5.0 €/kg extra for the
PDO labelled Parma Ham compared to the product without quality signals. This result is similar to
the retail price gap shown in Figure 5.16. However, the study shows that consumers would
appreciate an enhanced quality strategy by the Parma Ham PDO Consortium, for instance by means
of a “High Quality – PDO label”; it was estimated that consumers would be willing to pay an extra
9.7 €/kg for the high quality PDO label compared to the generic non-PDO ham. These results
suggest a low quality perception by consumers for the generic cured hams and an intermediate
quality perception for the Parma Ham PDO.
Although no surveys or experimental studies are available on the consumers’ quality
perception and WTP for Cinta Senese PDO ham, we can argue from key stakeholders and experts
interviews that the Cinta Senese PDO ham, mostly sold in local markets and restaurants, is
perceived by consumers as a top quality product. This also justifies the extremely high market price
of the product.
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Table 5.19: Indicator “Consumers’ perception”.
Supply chain
Name
Global
Generic cured ham
Value *
Notes
3 Based on secondary data (Capelli et al., 2014)
Regional
Parma Ham PDO
2 Based on secondary data (Capelli et al., 2014)
Local
Cinta Senese PDO
1 Based on secondary data (interviews)
* Ordinal scale: level 1 (high quality perception), level 2 (intermediate quality perception), and level 3 (low
quality perception).
Source: our elaborations on interviews and secondary data (Capelli et al., 2014).
Concluding remarks
It is quite evident that the global food chain is more efficient and hence better at cutting
down raw material costs in order to provide affordable prices to consumers. This is also shown by
the quantity of generic cured hams consumed in Italy which, from 2009 to 2013, has increased by
1% whereas the Parma Ham PDO consumption declined by 5% in the same period. In this way, the
gap between the consumption of the two products has gradually declined to the minimum of 4,700
tons in 2013.
On the other hand, the Cinta Senese PDO ham is hardly comparable from this point of view
with the other cured hams since, while carrying features of superior quality, it is sold on the market
at extremely high price; therefore it is not affordable for all consumers, especially for low income
consumers.
Figure 5.17: Difference of performance of local, regional, global chains for “Affordability” attribute.
Note: all the measurement indicators have been linearly transformed on a 0-100 scale (a higher value denotes
a more “affordable” feature).
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6. Discussion on the research questions
6.1. Global-Local performance comparison (research question 1)
The following table synthezises the results of the comparison with regard to the six attribues
analysed and contains the main conclusions of this study. For each attribute was then given a score,
expressed by researchers on the basis of the mearuse performances on a three-level qualitative
scale, on which was built a radar chart.
In the next steps of the project a participatory evaluation by stakeholders involved in the
three chains is planned.
Table 6.1 Performance profiles of Italian cured ham cases and synthetic evaluation (1: high; 2: intermediate); 3: low)
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VALUE ADDED
Value added
RESILIENCE
Resilience
CHAIN
GOVERNANCE
Generic ham (global)
Low value added, large
pig farms and large
companies in cured ham
production. Relatively low
priced product which
competes on the global
relevant market of cured
hams
3
Lower resilience. High
exposure to risk and low
opportunities for
collaboration between
different phases of the
chain. Disconnected from
public and societal
support.
3
Coordination managed
only by chain members
without a formal
intervention of chain
members. High flexibility
and indirect effect on the
Parma PDO chain.
Parma PDO (regional)
Average value added is
moderately high both at
farm and industry level.
Allows the coexistence of
small and large processing
companies within the
Parma Ham supply chain
Cinta S. PDO (local)
Very high added both at
farm and at processing
industry level which can
be attributed to the market
having typical niche
market characteristics.
Very small volumes with a
very high quality product
meets high income
consumers in Tuscany and
adjacent regions
2
1
High resilience, mainly
High resilience in terms of
thanks to ham processing
recovering from shocks
firms that are the core
but intermediate in terms
actor in the chain,
of search for new
characterized by a good
equilibria. The
adaptation capacity
performance is good in
through learning and
particular in terms of
innovation. This
diversification,
satisfactory level of
differentiation and
resilience is largely
intradiversity of chain
obtained at the expenses of organizational
pig breeders, who seems to configurations, allowing
be the weak stage of the
for risk-spreading. This
chain. The ability to
good performance
mobilize public support is originates from a low
a relevant feature. Two
dimension and a low level
interconnected factors
of specialization of firms,
helps chain resilience: the which on the other side
Product designation of
causes an intermediate
origin link the product to
performance in terms of
the territory to one side
adaptation capacity and
and to consumers on the
learning and innovation.
other, and the strong
The Product designation of
governance system (Parma origin, even if it cover
Ham consortium) that
only the fresh meat, play a
helps collaboration
relevant role.
between firms and
interaction with other local
stakeholders.
1
High coordination
activities, mainly thanks to
ham processor firms. They
show a good capacity to
cope with quality
management,
technological innovations,
marketing strategies and
political lobbying to
institutional stakeholders.
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1
Good management activity
especially in the process of
quality construction of the
PDO Product
specifications, but which
refers only to the fresh
meat and not to the cured
ham. Nowadays the supply
chain suffer the action of
new members more
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
This satisfactory level of
chain management
supporting the whole
quality chain.
Chain governance
3
TERRITORIALITY The chain is not embedded
in the territory. Raw
materials om from all
Europe. It takes
Territoriality
RESOURCE USE
AND POLLUTION
Resource use and
pollution
AFFORDABILITY
1
The code-of-practice
vacated to market Cinta
senese meat instead the
territory. The system got
the strong support of local
Institutions that consider
this model relevant for the
rural area.
2
The Cinta Senese PDO is
completely embedded in
the territories, since most
of the inputs (including
advantage from the
feeds) come from the
positive externalities of
region of origin (Tuscany).
the Parma Ham PDO
The “quality concept”, in
system. Risk of loss of
this case, is not only
reputation of the
referred to the product
territory. The region can
characteristics, but
benefit for the economic
consider also all the
growth (e.g.,
territorial dimensions that
occupation).
are included in the local
food chain: from the
production of inputs to the
consumption in local
restaurant or local outlets
3
2
1
Because of the higher
The carbon footprint, the
The Cinta Senese supply
efficiency level in pig
fossil energy consumption chain has the lowest
production, the shorter life and the water footprint of
consumption of fossil
time of the pigs and the
the Parma Ham supply
energy and water, but the
shorter seasoning period of chain are the worst of all
highest use of land. The
hams the generic cured
three chains, because of
carbon footprint is better
hams chain has the best
the lower production
than in the Parma chain
performance related to
efficiency of heay pigs, the because of the shorter
eutrophication and carbon extensive use of water on
seasoning period of the
footprint.
farms and the high
hams, but the level of
electricity use during the
eutrophication is the worst
long seasoning process.
of all three supply chains
Land use instead is the
lowest in the Parma chain
2
3
1
The global chain is more
efficient and hence
better at cutting down
raw material costs in
order to provide
affordable prices to
consumers. Low quality
perception of
consumers, but lower
prices as compared to
forces PDO producers to
process the hams within
the traditional Parma
territory, but fresh meat
comes from 10 Italian
regions (partially
embedded). High
concentration of pig
meat industry in Parma.
High reputation benefits
other actors (e.g.,
turistic operators
involved in Gourmet
Food and Wine Routes)
The regional is inbetween
in providing hams at
prices higher than generic
cured ham (+34%) but at
higher perceived quality.
However, these high
prices are moving
consumption from Parma
Ham to generic hams.
117
The local chain is hardly
comparable from this
point of view with the
other cured hams since,
while carrying features
of superior quality, it is
sold on the market at
extremely high price;
therefore it is not
affordable for all
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Parma Ham.
Affordability
1
consumers, especially
for low income
consumers.
3
2
Figure 6.1.Overall evaluation of attributes for local, regional and global supply chain
Value added
100
80
Affordablity
60
Resilience
40
20
0
Resource use and pollution
Chain governance
Territoriality
Global (Generic ham)
Intermediate (Parma Ham PDO)
Local (Cinta Senese PDO)
The comparison of the three cured ham supply chains highlights the very low performance
of the global ham supply chain, which is the worst one for all the 6 attirbutes excluded Affordability
(1st position) and Resource use and pollution (2nd position). The globalization of the production
process allows for a control of costs, obtained by means of economies of scale and not (only) by
means of the worsening of environmental impcts of production, which anyway remain critical. At
the local level of the processing phase (the Italian province of Parma and neighbouring provinces,
trhe delolcalisation of super-intensive pig farming allows for an improvement of environmental
impacts resulting in a greater social acceptability. The low level of value added per Kg is partly
compensated by the large scale of production and processing. The low level of resilience is perhaps
the most cirtical issue, even if some big processing enterprises operate on both generic ham and
PDO Parma ham chains, obtaining in this way a good level of resilience at the enterprise level.
On the other side there is the local chain, the Cinta senese PDP one, that seems to have the
better performance. The low level of affordability is inherent to the identity of the product itself; at
the same time is thanks to the high prices of the cured ham that it is possible to create an high value
added and to remunerate actors involved a production process able to preserve a traditional, low118
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productivity breed, and to respect the environment in terms of low animal densities per hectare. The
Cinta senese is a good example of the “virtuous economic model” of origin-based products
(Vandecandelaere et al, 2010).
The regional Parma ham chain performs in a similar manner to the Cinta Senese one, but
with a bad level of resource and pollution impacts and with a good level of resilience.
6.2. Global-local interactions (research question 3)
Global and local food chains interact at different levels. From our empirical analysis many
points of contact between different logics (global and local) and different chains emerge.This is
particularly clear when we consider resilience. Resilience of the Parma Ham PDO system is based
non only to the strong link with the territory, but also on the existence of strong contact points with
the generic cured ham chain. In fact many Parma Ham firms process both Parma and generic cured
ham. In this way Parma Ham processing firms can work on multiple markets, characterized by
different trends and exposed to different risks. In this time of economic crisis, this allows for some
Parma Ham processors to diversify in a low-price market segment in order to recover the lost sales
in the Parma Ham market (characterized by higher prices).
The Generic Cured ham exploits the image of Parma Ham being the low cost alternative, but
at the same produced primarily in the same production area. This interaction enables the generic
cured ham to be sold at slightly higher prices than when this positive interaction with the territory
would not have taken place,
The implementation of individual and collective strategies allowing for a strong resilience
may involve a transformation of the real identity of the Parma ham supply chain, that can lose some
key features of localness. As a result, global and local logics coexists in the same chain.
The local Cinta Senese chain influences in its turn the Parma Ham chain when some PH
companies invest in small outdoor pig facilities in order to create an image of localness to their
products.
6.3. Methodological reflections (research question 2)
The methodology was based on an integration between quantitative (indicators selection and
measurement) and qualitative (mainly in-depth interviews) approaches, allowing for a better
understanding of the cases.
However, some critical points emerged:
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- the three products are not perfect substitutes and they are characterized by different ways of
consumption, in particular Cinta senese ham is a speciality food, while Parma and generic hams
are daily products
- the different dimension and level of organization of the three chains entails a different availability
of data. Cinta senese chian is characterized by a higher level of informality
- hybridities between different chians emerges, and inside each chain (Parma, generic and Cinta
Senese hams) there are different models more or less inspired by a local or by a global approach.
The three chains partly overlap
- participatory approaches had a secondary role and was applied only partially. The analysis relied
on qualitative data collection by means of interviews and expert conclustions. Indicators were
identifies thanks to an informed judgment. A very participatory approach ask too much time
compared to that available for this research.
- the choice of indicators was restricted to the indicators available or quickly computable, being
impossible to make long observations. In addition, some indicators should be measured for a long
time in order to observe some supply chain attributes (like resilience)
- the differences in perfomances of the three chains cannot always be attributed directly and
certainly to the global and local character, due to the presence of many “disturbance factors”
impacting on attribute poerfoamnces but not being directly attributable to the local or local
chacaracter of the chains.
- some indicators, like resilience, are multifacetted and complex. In this work resilience was
decomposed in some key aspects, in order to give an empirically-based evaluation. For each of
them one analytical indicator was built. Subsequently, synthetic and cross-cutting indicators were
calculated in order to provide a general overview of the performance of the three chains in terms
of resilience.
- there are interrelationships and contradictions between attributes at sector level (pig farming,
slaughtering, ham processing) and at the whole supply chain level. This is for example the case of
resilience. One sector can gain higher levels of resilience by transferring risks and losses to other
weak sectors of the chain. This seems to be the case of the Parma Ham chain, where ham
processors succeeded in transferring risks to farmers
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7. Annexes
7.1. Annex 1– Volatility indicators and Analytical indicators results
7.1.1. Prices volatility results
Results are presented according to the four stages:
- Volatility of feed prices (concentrate and other)
- Volatility of live pig prices
- Volatility of fresh ham prices
- Volatility of cured ham prices
V.1 - Feed prices volatility
Feed prices evolution measure a pressure from global markets on the pork system, and they cannot
be interpreted per se as an indicator of system resilience. For Dutch light pigs and Italian heavy pigs
the monthly average price of finishing feed is considered. For Cinta Senese, due to the small market
and to the rule of the PDO Product specification which oblige to feed animals with at least 60% of
feeds from Tuscany, the average price of national feed is not representative; we used instead the
average price on local market of some ingredients for pigs feeding, that is barley, oat, maize and
broad bean.
Trends of feed prices are illustrated in the following graphs. Volatility indexes (coefficients of
variation) shows that the local supply chain is the more exposed to feed volatility, probably due to
the restrictiveness of the regional market, while the less exposed is the global one (Netherlands pigs
production).
Average price of finishing pigs feed
500,00
€/tons
400,00
300,00
200,00
100,00
jan-09
apr-09
jul-09
oct-09
jan-10
apr-10
jul-10
oct-10
jan-11
apr-11
jul-11
oct-11
jan-12
apr-12
jul-12
oct-12
jan-13
apr-13
jul-13
oct-13
0,00
Netherlands
Italy
Source: CRPA / Interpig
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Raw materials for Cinta Senese feeding, prices on local
market
€/tonn.
300
250
200
Oat
Barley
set
nov
lug
mag
mar
gen-13
set
nov
lug
mar
mag
gen-12
set
Maize
nov
lug
mar
mag
gen-11
150
Broad bean
Source: Chamber of Commerce of Siena
Volatility Index for feed prices
Indicator V.1
Type of chain
Coefficient of variation of
monthly feed prices over 3
years
Generic ham
(global)
Parma PDO
(regional)
Cinta S. PDO (local)
Volatility
index
Years
Notes
0.081
2011-13
0.086
2011-13
0.099
2011-13
Av. price of finishing pigs
feed (concentrates)
Av. price of finishing pigs
feed (concentrates)
Av. price of representative
agricultural products for feed
Source: our elaboration on CRPA and Chamber of Commerce of Siena
V.2 - Live pigs price volatility
Trends of live pigs prices are illustrated in the following graphs. Data on light pigs are not available
because there is a limited import of live animals from Northern Europe (global chain).
According the interviewed farmers, Cinta Senese actual prices are more differentiated than the
official ones surveyed by the Chamber of Commerce of Siena, depending on the rearing and feeding
systems. Were reported prices up to 4 Euros per kilo for the pigs of better quality.
The volatility (measured by the coefficient of variation, given by the ratio of mean and standard
deviation of the current values of prices) is much lower for Cinta Senese than for Heavy Italian pigs
for the production of Parma PDO, as illustrated by the following table.
Weekly pigs prices 156/176 kg - at farm gate
2,0
Euro/kg
1,8
1,6
1,4
1,2
1
3
5
7
9
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1,0
2012
2013
Source: Ismea
122
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3,5
Monthly Cinta Senese PDO live pigs prices - at farm gate
Euro/kg
3,4
3,3
3,2
3,1
2011
2012
dic
nov
ott
set
ago
lug
giu
mag
apr
mar
feb
gen
3,0
2013
Source: Chamber of Commerce of Siena
Volatility Index for live pigs prices
Indicator V.2
Type of chain
Coefficient of variation of
monthly live pigs prices over
3 years
Generic ham
(global)
Parma PDO
(regional)
Cinta S. PDO (local)
Volatility
index
n.r.
Years
Notes
n.r.
0.103
2012-2013
Light live pigs are imported
from NL: not relevant
Heavy live Italian pigs
0.013
2012-2013
Cinta Senese live pigs
Source: our elaboration on CRPA and Chamber of Commerce of Siena
V.3 - Fresh ham price volatility
Fresh ham prices are quoted officially for both heavy pigs (fresh hams for the production of Parma
Ham and other PDO Italian cured hams) and other national pigs (non-PDO hams. Prices of fresh
hams for PDO are systematically higher than those of the non-PDO, but the two volatilities are
comparable over the period examined. Fresh ham prices are not quoted for Cinta Senese pigs,
because there is no a market for fresh hams but only for pigs as whole; the volatility for Cinta
Senese PDO fresh ham prices can be approximated by the price of live pigs..
€/kg
Fresh ham prices
4,50
4,00
3,50
3,00
2,50
2,00
Fresh ham for Parma PDO (11-13 kg)
Fresh ham for generic ham (14 kg)
Source: our elaboration on CUN data
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Volatility Index for fresh ham prices
Indicator V.3
Type of chain
Coefficient of variation of
monthly fresh ham prices
over 30 months
Generic ham
(global)
Parma PDO
(regional)
Cinta S. PDO (local)
Volatility
index
0.053
0.051
0.013
Years
Notes
06/2011 –
12/2013
06/2011 –
12/2013
2012-2013
Fresh ham for generic ham (14
kg)
Fresh ham for Parma PDO
(11-13 kg)
Cinta Senese live pigs
Source: our elaboration on CUN data
V.4 - Cured ham price volatility
Cured ham prices are measured at the final stage of the supply chain, that is selling from producer
to the final seller / distributor. According to our elaborations, volatility is higher in the global chain
than in the regional one. It is not possible to calculate a price representative for the Cinta Senese
cured ham at the final stage of the chain, because the high variability between marketing channels
and also because of there is not really a wholesale market for this niche product.
set-13
nov-13
lug-13
mag-13
gen-13
mar-13
set-12
nov-12
lug-12
mag-12
gen-12
mar-12
nov-11
set-11
lug-11
mar-11
mag-11
12,00
10,00
8,00
6,00
4,00
gen-11
€/kg
Cured ham prices
Cured Parma ham PDO, <16 months, 9-11 kg, from producer to
final seller
Generic cured ham, >9Kg, from producer to final seller
Source: our elaboration on Parma market data
Volatility Index for cured ham prices
Indicator V.4
Type of chain
Years
Notes
Generic ham (global)
Volatility
index
0.049
Coefficient of variation of
monthly live pigs prices
over 3 years
2011-2013
Parma PDO (regional)
0.040
2011-2013
Cinta S. PDO (local)
N.A.
N.A.
Generic cured ham, >8Kg, from
producer to final seller
Cured Parma Ham PDO, <16
months, 9-11 kg, from producer to
final seller
N.A.
Source: our elaboration on Parma market data
7.1.2. Pig farming analytical indicators results
A.1 and A.2- Farmers upstream integration
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As far as farmers upstream integration by ownership is concerned the following considerations can
be made. The Dutch pig farmers raising light pigs often have a limited land area which are both
pasture and arable land for the production of maize silage. Self production of feed on these farms is
therefore negligible. The Italian heavy pig farms often dispose of some arable land for the
production of cereals which is either sold on the market or used as self produced feed. Moreover
many large pig farms do have their own feed mill and buy the raw materials directly on the market.
In the Cinta Senese PDO chain many farmers feed their animals with its own products, but it is not
possible to estimate the percentage of feed produced directly by farmers. The traditional rearing
system was based on a seasonal pasture in the woods, and the Product specification imposed a
maximum limit on the amount of feed that can be bought on the market: feed should be provided
primarily by forests and pastures, and supplementary feeding is allowed up to a maximum of 2% of
live weight, or 3% of live weight when adverse weather conditions occur. In addition, this
supplementary feed shall for at least 60% be produced in Tuscany.
What is happening, also in response to increasing prices of concentrate and other feed raw
materials, is that many Cinta pig farmers are trying to produce on their own the feed. On the basis
of our enquiries on a sample of 11 farmers, approximately 30% of Cinta Senese farmers selfproduce the majority of feed they need. Another 40% buys raw materials for producing feed instead
of concentrates.
Farmers upstream integration by ownership
Indicator A.1
% of pig farmers which
don’t self-produce the
majority of feed
Cured ham chain
Generic ham
(global)
Parma PDO
(regional)
Cinta S. PDO (local)
Value
100%
Notes
Expert consultation
90%
Expert consultation
70%
Sample of 11 Cinta Senese farmers
Source: our findings
Concerning the presence and extent of mid or long-term contractual arrangements, in Parma PDO
chain Italian heavy pig farmers primarily buy their feed on the free market, except for those pig
farmers which are part of an integrated company such as Veronesi-Montorsi group, Martini and
other smaller companies. These companies represent about 12% of the market.
Contractual arrangements are not spread in global supply chain. In Cinta Senese PDO system up to
now there are not formal contractual arrangements between pig farmers and farmers growing
cereals or oilseeds for animal feeding, but Cinta Senese consortium is trying to support the
development of these kind of arrangements but up to now without tangible results.
Farmers upstream integration by contractual arrangements
Indicator A.2
Part of pig farmers involved
in mid-long term upstream
contractual arrangements
with animal feed producers
Cured ham chain
Generic ham
(global)
Parma PDO
(regional)
Cinta S. PDO (local)
Ordinal scale
3
Notes
Expert consultation
2
Expert consultation
3
Expert consultation and direct interviews/focus
group
NOTE: level 1 (very high part of farmers is involved: in favour of resilience), level 2 Intermediate, level 3 (very small
part is involved: unfavourable to resilience).
Source: our findings
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A.3 - Farmers downstream integration
As far farmers downstream integration is concerned, in the local chain (Cinta Senese) a number of
farmers process their own pigs and produce cured ham and other cold cuts. This allows them a
better control on prices and gain higher added value. On 58 farms of Cinta analyzed (out of a total
of about 80 entered in PDO), 26 are engaged in processing and sale of Cinta Senese PDO meat
products (45% of firms). However in terms of quantities the weight of products processed by
farmers is much lower.
In global and regional chains, downstream integration is pursued mainly by means of farmers’
cooperatives or producers organizations. Dutch pig farmers operate on the free market, even if one
big cooperative (Vion) was created by a regional producers’ association. The large majoity of pig
farmers operate on the free market in Italy too, however some producer organizations are able to
concentrate supply and their role increased significantly in recent years. Organizations like OPAS,
ASSICOM and ASSER aggregated in the national organization UNAPROS now represent about
10% of the market. Pig farmers delegate their market power to these organization which sell the
pigs to slaughterhouses on behalf of their members.
Due to lacking exhaustive quantitative data, downstream integration is evaluated by means of
qualitative indicators based on a comparison between the three chains (scale from 1 = very high to 3
= very low or absent).
Farmers downstream integration
Indicator A.3
Relevance of farmers downstream
integration
Cured ham chain
Ordinal scale
Notes
Generic ham (global)
3
Expert consultation
Parma PDO (regional)
2
Expert consultation
Cinta S. PDO (local)
2
Qualified sample of Cinta firms.
NOTE: level 1 (a very high part of farmers develops downstream integration: in favour of resilience), level 2
Intermediate, and level 3 (very small part of farmers develops downstream integration).
Source: our findings
A.4 - Farmers product diversification
The Dutch light pig farmers are very specialized in pig rearing, so their product diversification is
almost completely absent. The Italian heavy pig farmers may produce some cereals and maize
silage on their arable land and sell these products on the market. Their share in the total receipts of
the pig farm does not go beyond 10%.
In the Cinta Senese chain the situation is very different. Traditionally, the rearing of Cinta Senese
represent for farmers an integration of their income, although after year 2000 - because of the fame
and commercial success of Cinta Senese ham, salami and other cold cuts – some farmers have
specialized in Cinta Senese rearing making this their main activity. Even in these cases, firms must
still comply with the rules established by the PDO Product specification, that is the maximum
density of 1.500 kg of live weight per hectare and the limit of feed purchased in the market.
The Cinta Senese pig farms are in most cases highly diversified and their income relies on many
different activities than production of pigs. According to our enquiries on a sample of 11 farmers,
approximately 47% of the total turnover deriving from farming comes from Cinta Senese pigs
(value calculated on the basis of the price for live pigs). This high level of diversification is often
due also to the fact that many farmers manage agritourism activities and other services activities,
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and/or developed downstream integration, managing Cinta Senese meat processing activities and
selling their products directly to consumers
Farmers product diversification
Indicator A.4
% of (light/ heavy/Cinta)
pigs for ham production on
the total turnover of farm
Cured ham chain
Generic ham
(global)
Parma PDO
(regional)
Cinta S. PDO (local)
Value
100%
Notes
Expert consultation
90%
Expert consultation
53%
Sample of 11 Cinta Senese farmers. The value is
calculated on the basis of the price for live pigs.
Agritourism revenues are non considered in the total
revenue.
Source: our findings
A.5 - Farm-level resistance against price-volatility
Added value is calculated taking the difference between farm gate, wholesale and retail prices and
non-factor costs at each stage of the pork chain taking into account the valuation of the pig carcass
from producer to consumer. For Dutch pig farms data refer to a representative sample of Dutch pig
farms, source of data is Interpig (BPEX, 2013). For Italian pig farms source is the yearly bulletins
of CRPA dedicated to the production costs of heavy pigs in Italy (CRPA, 2013), making reference
to a representative sample of Italian pig farms, which are certified for the production of heavy pigs
for the PDO Parma Ham value chain.
Price volatility of the input and output markets of relevance for pork production, defined as the max
delta added value per kg live weight per year over the period 2009-2013, points out a better
performance of the global chain (0.10 €/kg added value delta) than the regional chain (0.13 €/kg).
No data are available for Cinta Senese pig farmers for the years considered.
Farm-level resistance against price-volatility
Indicator S-1
Maximum delta of added value per
kg live weight per year
Cured ham chain
Generic ham (global)
Parma PDO (regional)
Cinta S. PDO (local)
Value
0.10
0.13
n.a.
Years
2009/13
2009/13
2009/13
Notes
Interpig data
CRPA data
Quantitative data not
available
Source: our calculations on Interpig and CRPA data.
The interpretation of this delta is not easy, also due to the short period, but if we look at the
components of value added in Parma Ham chain (see the graph) it seems that the trend of sale price
of heavy pigs compensate the increasing trend in feed costs. The comparison between the trend of
the added value of Dutch light pigs and Heavy pigs shows a greater variability of the value added of
the Dutch live pigs not that of heavy pigs, even though the former has a smaller difference between
the maximum and minimum values.
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Value added and its components per Kg of heavy pig ((€/kg live weight)
1,6
1,4
1,2
Sale price
1
0,8
Feed costs
0,6
Other non factor costs
0,4
Value added
0,2
0
2009
2010
2011
2012
2013
Source: CRPA
Value added per kg of Dutch light pigs and Heavy pigs (€/kg live weight)
0,35
0,3
0,25
0,2
Dutch live pigs
0,15
Heavy pigs
0,1
0,05
0
2009
2010
2011
2012
2013
Source: CRPA
A.5 - Use of antibiotics
The very high productive results of both Dutch light pigs and Italian heavy pigs raised in very large
production units are supported by a significant use of antibiotics. In particular pigs until the age of 2
months are treated. According to an expert consultation of veterinarians there is no significant
difference in the use of antibiotics between Dutch and Italian pig farms.
Cinta Senese pig farms do not use or use antibiotics only to a very limited extent. This local
autochtonous pig breed is rather resistant against diseases. Moreover, the pigs are raised in small to
very small groups, where the sanitary pressure is quite low
Use of antibiotics in pig farms
Indicator A.5
Use of antibiotics on pigs
Cured ham chain
Value Notes
Generic ham (global)
3
Expert consultation
Parma PDO (regional)
3
Expert consultation
Cinta S. PDO (local)
1
Expert consultation
NOTE: the ordinal scale is the following: level 1 (low use of antibiotics), level 2 Intermediate, and level 3 (high use of
antibiotics).
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7.1.3. Slaughtering results
A.7 - Slaughterhouses/processors upstream integration
Vertical integration for heavy Italian pigs tends to increase. After market crisis and price
shocks a growing number of pig farmers adhere to agistment contracts proposed by downstream
firms. As stated above these interest about 15% of the pigs marketed. This allows to the whole
Parma Ham chain to increase resilience at one side, but introduces at the other side also unbalanced
market relationships.
In Cinta Senese supply chain, two important ham processing firms manage directly a pig
farm. It is also common for ham processors to have ongoing relationships, though often not formal,
with the farmers to secure animals fit their needs.
Slaughterhouses/processors upstream integration
Indicator A.7
Part of
slaughterhouses/processors
involved in pig farming and/or
in long term contractual
arrangements
Cured ham chain
Generic ham
(global)
Ordinal scale
3
Parma PDO
(regional)
Cinta S. PDO
(local)
2
Notes
There are no contracts between Dutch pig
farmers and Italian slaughterhouses.
Expert consultation
Direct surveys and expert consultation
1
Relevant both by ownership and by means of
long term arrangements (often informal)
Direct survey and expert consultation
NOTE: the ordinal scale is the following: level 1 (very high part of slaughterhouses/processors is involved: in favour of
resilience), level 2 Intermediate, and level 3 (very small part is involved).
Source: our findings
A.8 - Slaughterhouses downstream integration
In Parma PDO supply chain downstream vertical integration is increasing, mainly by means direct
ownership. According to a survey on 94 ham processors (out of 150 in the Parma district)
representing the 55% of the PDO Parma cured ham production (Dentoni et al, 2012), 14 firms
(14,9% out of the 94 interviewed) were vertically connected to upstream firms (both owners of a
slaughterhouse and/or a pig farm). These 14 firms produce the 34,0% of the total PDO Parma cured
ham production. The main reason for downstream integration of slaughterhouses is to increase their
resilience by capturing the value added generated in the processing industry, as the value added of
slaughterhouses is very limited. Moreover, slaughterhouses are economically highly vulnerable as
they operate in between two highly volatile markets. Dutch slaughterhouses do not present
significant degrees of downstream integration, also because most of the meat of light pigs is sold
unprocessed and directly on the retail market In Cinta Senese PDO supply chain slaughterhouses
are not specialized in Cinta Senese. There are not cases of downstream integration.
Due to lacking exhaustive quantitative data, downstream integration is evaluated by means of
qualitative indicators based on a comparison between the three chains (scale from 1 = very high to 3
= very low or absent).
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Slaughterhouses downstream integration
Indicator A.8
Relevance of slaughterhouses downstream
integration (qualitative)
Cured ham chain
Ordinal scale Notes
Generic ham (global)
3
Parma PDO (regional)
2
Cinta S. PDO (local)
3
NOTE: the ordinal scale is the following: level 1 (a very high part of slaughterhouses develops downstream
integration), level 2 Intermediate, and level 3 (very small part of slaughterhouses develops downstream integration).
Source: our findings
A.9 - Slaughterhouses product diversification
No quantitative official data are available on Dutch and Parma PDO district slaughterhouses, but in
general they are very specialized firms and, also according to expert advice, their degree of
diversification is very low.
On the other side, pigs – and Cinta Senese pigs – represent only a small part of the activity of
Tuscan slaughterhouses. In Tuscany the slaughtering phase is fragmented and there are not big
firms unlike Emilia Romagna and other Northern Italian regions. Anyhow slaughtering firms in
Tuscany don’t play a strategic role in the supply chain.
Slaughterhouses product diversification
Indicator A.9
Part of activity not linked to production of generic / Parma
PDO / Cinta Senese ham on the total turnover of slaughtering
firms
Cured ham chain
Generic ham (global)
Value
3
Notes
Expert
consultation
Parma PDO (regional)
3
Expert
consultation
Cinta S. PDO (local)
1
Expert
consultation
NOTE: the ordinal scale is the following: level 1 (high product diversification: in favour of resilience), level 2
Intermediate, and level 3 (very low product diversification).
Source: our findings
7.1.4. Ham processing results
A.7 - Slaughterhouses/processors upstream integration
The same than Slaughtering.
A.10 - Processors product diversification
On average, in the Parma Ham district the share of hams production on total production is higher
for firms producing Parma Ham (60.1%) than for firms producing generic ham (50.5%) (see table
below).
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Share of ham production on total production in Parma Ham district
% of Parma Ham on total production (mean)
% of Parma Ham on total production (median)
% of Parma Ham on total production (std dev)
% of generic ham on total production (mean)
% of generic ham on total production (median)
% of generic ham on total production (std dev)
60,1%
68,0%
33,3%
50,5%
46,2%
37,9%
Source: Elaboration UNIPR on Parma Ham consortium and AUSL
Out of 216 processors in the district of Parma Ham (year 2013), 178 were producing Parma Ham
while 38 were specialized in the only production of generic ham. Out of the 178 firms producing
Parma Ham PDO, in 23 cases Parma Ham production is marginal (<10%), while for a large part of
firms Parma Ham is very important (51 out of 178 produced almost exclusively Parma) (see table
below).
Degree of specialization in the production of Parma Ham PDO
Share of Parma Ham PDO on total production Number of firms % of firms
0 - 10%
23
12,9%
10% - 20%
10
5,6%
20% - 30%
11
6,2%
30% - 40%
10
5,6%
40% - 50%
9
5,1%
50% - 60%
14
7,9%
60% - 70%
13
7,3%
70% - 80%
14
7,9%
80% - 90%
23
12,9%
90% - 100%
51
28,7%
Total
178
100,0%
Source: Elaboration UNIPR on Parma Ham consortium and AUSL
In the Cinta Senese supply chain, the PDO covers only fresh meat and not processed products, but
the Cinta Senese Consortium has created a collective mark for ham and other cold cuts made from
Cinta Senese PDO certified meats. In Cinta Senese supply chain the situation is very different, first
of all because of, unlike that in Parma district, here processors transform the whole carcass
producing not only cured ham but all types of meats: this allows for a first type of diversification.
Secondly, we observe two distinct groups of processors:
-
The first group consists of pig farmers who manage also meat processing, by means of a
downstream integration: in this case normally the vast majority of the production is of Cinta
Senese products, even if in some cases farmers breed also other kind of pigs.
The second group consists of firms (more or less) specialized in processing pigs meats. It’s a
very composite group: together with some bigger industrial firms there are some artisanal
firms, and also some small butchers shops. In this group the share of Cinta Senese processed
products over the total turnover is low, but the contribution of Cinta Senese ham and other
cold cuts is often very high because of they improve the perceived quality of the whole
assortment of the firm.
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Processors product diversification
Indicator A.10
Share of processing firms with a share of
(generic / Parma PDO / Cinta Senese)
ham higher than 70% on the total
turnover of processing firms, on the total
number of firms
Cured ham
chain
Generic ham
(global)
Parma PDO
(regional)
Cinta S. PDO
(local)
Value
Notes
33.0%
49.5%
0%
Due both to the fact that firms process also
meats different from the Cinta Senese one,
whether over the Cinta ham also other Cinta
cold cuts are produced.
Source: our findings
A.11 – Processors marketing channels diversification
Data on market diversification for Generic cured ham producers are not available. For Parma Ham,
as far as marketing channels are concerned, a recent survey done by University of Parma on the
Parma Consortium firms (94 respondents). On average, firms make 28% of sales with Supermarkets
groups, 30% with traditional retailers, 3% wholesalers with and 40% in other ways (eg. direct
channels, export, catering). Considering single firms data, 52% of firms depend for more than 66%
from a single market channel out of the four considered.
Number of processing firms with a share of turnover higher than 66% in one marketing channel
Marketing
channels
Number of firms
In %
Supermarkets
chains
13
13,8%
Traders
Whoelsalers
Other
9
9,6%
0
0,0%
27
28,7%
Total
firms not diversified
49
52.1%
Total firms
interviewed
94
100,0%
Source: UNIPR
Cinta Senese ham and other processed products are niche products, and they are sold on more
fragmented marketing channels. Small producers, both integrated pig farmers and small processing
firms, follows a range of marketing channels: direct selling (both on-farm and on farmers’ markets),
local restaurants and butcher shops, consumer purchasing groups, delicatessen shops, and in some
cases also supermarkets. The few bigger processors sell normally most of their Cinta products to
supermarkets, but they keep also a distribution network directly managed.
Processors marketing channels diversification for cured ham
Indicator A.11
Cured ham chain
Value Notes
Degree of market
Generic ham (global)
1
Expert consultation
diversification of ham
Parma PDO (regional) 2
Based on quantitative data
processors, in terms of
Cinta S. PDO (local)
1
Data from direct survey and expert consultation
marketing channels
NOTE: the ordinal scale is the following: level 1 (high marketing channels diversification: in favour of resilience), level
2 Intermediate, and level 3 (very low marketing channels diversification).
Source: our findings
A.12 – Processors geographical markets diversification
Generic cured ham is produced almost exclusively from imported fresh hams. Most of the cured
ham is sold on the domestic market, but a significant share is exported both to EU and non-EU
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countries. On the retail market this product often enjoys and exploits the reputation of PDO Parma
Ham.
Parma Ham, thanks also to PDO and collective promotional efforts, is exported in many EU and
non-EU countries and interest almost 30% of the total production. The main export countries are the
USA, Germany and France.
Cinta Senese ham is sold mainly in Tuscany and on niche channels in Northern regions of Italy.
Some firms sell small quantities of ham on foreign markets, while important are sales made to
foreign customers who spend their vacation in Tuscany.
Processors geographical market diversification for cured ham
Indicator A.12
Degree of market diversification of ham processors, in terms of
geographical markets
Cured ham chain
Value Notes
Generic ham (global)
2
Parma PDO (regional)
2
Cinta S. PDO (local)
3
NOTE: the ordinal scale is the following: level 1 (high geographical market diversification: in favour of resilience),
level 2 Intermediate, and level 3 (very low geographical market diversification).
Source: our findings
A.13 – Processors product differentiation
In both regional (Parms PDO) and local (Cinta Senese) supply chains collective marks play a
relevant role. In particular Parma PDO is very reputed on Italian and foreign markets, also thanks to
promotion campaigns.
On the other side Cinta Senese cured ham enjoys a collective trademark that link the cured ham
production to the PDO on fresh Cinta Senese meat, guaranteeing consumers about the provenance
and quality of the raw material. Cinta Senese ham is less known by consumers, and it suffers from
the competition of labels which made a generic reference to the Cinta Senese breed.
Generic ham differentiation is based only on individual trademarks and cannot count of an
collective “umbrella” trademark. Large companies exploiting economies of scale are able to
promote their company trademarks. Moreover, they enjoy the positive reputation of PDO Parma
Ham.
Product differentiation for cured ham
Indicator A.13
Degree of product differentiation for cured ham by
means of collective labelling systems
Cured ham chain
Value Notes
Generic ham (global)
2
Parma PDO (regional)
1
Cinta S. PDO (local)
2
NOTE: the ordinal scale is the following: level 1 (high product differentiation: in favour of resilience), level 2
Intermediate, and level 3 (very low product differentiation).
Source: our findings
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7.2. Annex 2 – Methodological approach used for LCA
The methodological approach adopted for each of the production chains is based on the data
collection at some typical farms, slaughterhouses, ham curing companies and retailers which were
representative of the different chains.
7.2.1. Parma pigs
To choose the type of farm of heavy pigs for the production of Parma we have collected
data from the recent CRP study that analyzed data from regional Nitrate Database (Emilia Romagna
and Lombardia). These regions are highly representative of the pig population, in particular for the
64% and 89% for Italian pigs respectively.
For the Parma Ham supply chain we identified a typical farm size of 3,200 fattening pigs
with a housing system with fully-slatted floors following the EU legislation.
In Figure 13.1.1 are included the main input data typical of the farm for the production of
heavy pigs for the production of Parma Ham.
Figure 13.1.1 – Pig breeding farm for heavy pigs destined to Parma Ham
Region
Parma Ham area
Area
plain
n° animals (25-160 kg)
3 200
Starting weight [kg]
25
Final weight [kg]
160
Fattening period [d]
192
Period for the cleaning of the structures [d]
10
N* of cycles per year
1.8
Mortality [%]
3.3
Feed conversion index [kg feed / kg meat]
3.1
Meat production per year [t live weight]
925
Pig housing
fully-slatted floor
Crop area [ha]
58
Tyoe of crop
Maize
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Feed extra needed [t/y]
2066
Slurry [t/y]
9444
In the case of fattening breeding the inputs of the piglets must also be considered. The calculation of
the impact of the piglets have been obtained using methodology similar to the fattening breeding,
(figure 13.1.2.
Figure 13.1.2 – Pig breeding farm for Parma piglets destined to Parma Ham
Region
Parma Ham area
Area
Plain
n° calving sows
128
n° pregnancy sows
473
n° weaning piglets (0-12 kg)
1370
n° weaning piglets (12-25 kg)
1155
n° growing sows
60
n° boars
13
Mortality [%]
Variable in the different phases (from
9.9 to 1 %)
Piglets per year, live weight [t(y]
Housing piglets
Housing farrowing sows
Housing growing adn pregnancy sows
241
In the box, fully slatted without
defecation external passage and the
storage pit
In the box crate with storage pits and
removal slurry at end of cycle
Fully slatted without defecation
external passage and storage pit
Crop area [ha]
21.4
Type of crop
Maize
Feed extra needed [t/y]
1003
Slurry [t/y]
5892
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The ration is a primary element for the assessment of environmental impacts of farming.
In the table 13.1.3 are reported rations adopted in this farming system.
Figure 13.1.3 – Composition of the pig rations
Ration (%)
amount
[kg/d]
composition [%]
Maize
meal
Barley
meal
Soy
meal
Bran
Soy oil
Supplement
Whey
Piglets 0-12 kg
0.38
43.0
23.5
14.5
5.0
3.5
3.0
7.5
Piglets 12-25 kg
0,89
45,2
24,7
13,4
8
3,5
2,6
2,6
Pigs 25-50 kg
1,5
45.5
21.0
17.5
10.0
2.5
3.5
Pigs 50-100 kg
2,4
42.0
23.0
18.0
14.0
3.0
Pigs 100-160 kg
3,1
50.0
25.0
16.0
6.0
3.0
Pregnancy sows
2,3
30.8
29.0
14.2
24.5
1.5
Lactating sows
5,5
32.8
28.0
15.7
18.5
Boars
2,3
30,8
29
14,2
24,5
3.0
2.00
1,5
The feeding of pigs is based largely on maize. The 57.4% of maize was product in local
farm: 21.4 ha of local production with a yield of 13 t/ha. We included the impact of maize milling.
For the remaining part of the diet components consist of barley, soy, supplements etc.
In the Figure 13.1.4 you find data for Electric consumption for pig and piglets, that have
been collected in a CRPA research named “RE Sole”.
Figure 13.1.4 – Electricity consumption for pigs and piglets
Electric consumptions
Fattening pigs
Piglets
KWh/year/LU
KWh/year/LU
Feed milling
14.32
27.87
Feed distribution
61.31
20.14
Ventilation and heating
95.08
85.12 + 70.84 termic
Slurry removal
10.01
8.4
Slurry treatment
10.06
6.03
Slurry distribution
31.08
19.35
Lighting
2.85
6.47
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Other input
We have also considered: washing agents 0.17 kg/pig (CRPA data); packaging and others
0.18 kg/pig (CRPA data); transports (transport feed 50 km, transport piglets 70 km) and water
consumption: pig: 10.347 m3/farm/year; piglets 6.863 m3/farmyear.
7.2.2. Cinta Senese pigs
We identified a typical farm also for Cinta Senese pig, representative of the supply chain
raised indoor/outdoor.
We have chosen a typical farm: breeding confined indoors for lactating and weaning,
breeding with commercial feed during growth and fattening, exclusive grazing in the forest in the
final stage (four last months).
Exclusive outdoor breeding with poor dietary supplementation or only indoor breeding can
be ignored because is not conforming to the classic Cinta Senese pig production.
According to the product specification of the breeding Cinta Senese pig: in outdoor breeding is
allowed a maximum of 1,500 kg of liveweight per hectare. During the grazing additional feed is
permitted with quantities not exceeding 2% of the live weight of the animal. Based on the data
collected in the publications of the Tuscany Region about specific studies on Cinta Senese we opted
for a breeding a closed cycle with 21 sows.
In the Figure 13.1.5 5 are included the main input data
Figure 13.1.5 – Base data for the Cinta Sense pig farm
Region
Tuscan Region
Area
Hill area
n° calving sows
4
n° pregnancy sows
17
n° of weaning piglets [0-12 kg]
28
n° of weaning piglets [12-25 kg]
24
n° of weaning piglets [25- 50kg]
37
n° of fattening pigs [50-130 kg]
115
n° of grazing fattenig pigs [130-150 kg]
53
n° boars
2
Final weight [kg]
150
Fattening period [d]
448
Weaning mortality [%]
10
Feed conversion index [kg feed / kg meat from-to]
137
4.5-9.3
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Meat production per year [t live weight]
31.5
In cages with multiple storage
pits below
Housing piglets
In the box crate with storage pits
and removal slurry at end of cycle
Housing farrowing sows
Other pigs
Outdoor breeding and grazing
In the Cinta Senese breeding the supplementary feed must derive at least 60% of the total weight
coming to the geographical area of production. For these additions are allowed the following
products:
-
Energy products: all grains, EN 8.7.2011 Official Journal of the European Union C 200/17
-
Protein products: oil (with the exception of soy and derivatives) and all legumes grains,
-
Fibers:
fodder,
fruit
and
vegetables,
It also allowed the use of vitamin and / or mineral.
cereal
milling
byproducts.
In Figure 13.1.6 is described the rations composition of Cinta Senese pig.
Figure 13.1.6 – Feed ration of the Cinta Senese pigs
Ration (%)
amount
[kg/d]
composition [%]
Maize
Barley
Protein
peat
Bran
Rape
oil
Supplement
Fava
bean
Piglets 0-12 kg
0.38
43.0
23.5
14.5
5.0
3.5
3.0
7.5
Piglets 12-25 kg
0,89
45,2
24,7
13,4
8
3,5
2,6
2,6
Pigs 25-50 kg
1,4
28.0
40.0
15.0
1.0
16.0
Pigs 50-130 kg
2,55
28.0
40.0
15.0
1.0
16.0
Pigs 130-150 kg
10
(Acorns)
Pregnancy sows
2,4
30.8
29.0
14.2
24.5
1.5
Lactating sows
5,1
32.8
28.0
15.7
18.5
Boars
2,4
30,8
29
14,2
24,5
138
3.0
2.00
1,5
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
For the other input energy and more are estimating the same input for Parma in proportion to the
size of the Parma in particular with a lower energy consumption farm outdoors livestock.
7.2.3. Emissions
For the ammonia emissions we used a methodology included in the calculation file for the NH3
manure
management
from
EMEP/EEA
emission
inventory
guidebook
2013
(http://www.eea.europa.eu/publications/emep-eea-guidebook-2013)
For the nitrous oxide emissions we adopted the IPCC emission factor N-N2O 0.001 (indoor) and
0.02 N-N2O (grazing).
N2O= N excreted x 0.001 (0.02 grazing) x 44/28
For the quantification of the enteric pig emissions CH4 (methane) we used the emission factors
adopted in the Italian national inventory (1.5 kg CH4/pig/year).
For the manure/slurry management CH4 emissions we adopted the IPPC Tier 2 that it is included in
the calculation tool CoolFarm, a software developed by the University of Aberdeen, Unilever and
Sustainable Food Lab (http://www.coolfarmtool.org/CoolFarmTool.
The leaching from manure/slurry is included in the production of the feed where transportation and
application of manure is included.
Emissions of the application of surplus manure are allocated to the receiving crop (so; in our case it
is not included because the receiving crop is no feed for the pigs).
7.2.4. Slaughtering for Parmapig and generic light pig
For the phase of slaughter data were collected at the Italcarni swine slaughterhouse in the
Parma Ham central zone where pigs are slaughtered for Parma Ham and for the generic crude ham.
Founded in 1987 Italcarni Sca is the leading company in Italy for meat pork butchering and
processing.
The activity of Italcarni covers the entire processing range : butchering, boning and
portioning of fresh meats - offers of the various types of cuts - and the production of meat portions
and products. Italcarni distributes its products throughout the entire Country and abroad; the main
sales channels are Industry and Supermarkets. Italcarni is dedicated to innovation in terms of
technologies and production processes, in order to protect consumers, collaborators and their work
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
environment.
The slaughterhouse in 2013 slaughters about 750,000 pigs with 167 kg average heavy live; the
carcass yield is about 80%. In the figure 13.1.7 the data collected in Italcarni Slaughterhous are
reported
Figure 13.1.7 –Italcarni slaughterhouse data
Input
Electricity kWh
Natural gas m3
Tap water m3
Well water m3
Detergents kg
Kraft paper kg
Plastic kg
Disposable material kg
Pallet n°
Lubricating oil
Transport pig tkm
Per Year
Per Pig
15,265,803
1,415,682
200,163
200,096
39,191
421,608
193,183
1,668
2,517
2,355
37,575
20,354
1,888
0.267
0.267
0.052
0.562
0.258
0.002
0.003
0.003
50
7.2.5. Slaughterhouse for Cinta Senese pig
For the Cinta Senese pig we have collected data at the slaughterhouse “Macelli di San Miniato
Srl” located in the Cinta Senese area. This slaughterhouse is recognized and authorized to operate
in accordance with the procedures of the specification for the DOP of Cinta Senese.
The slaughterhouse slaughters in 2013 about 750 Cinta Senese pigs with 120 kg average heavy live;
carcass yield is about 80%.
Figure 13.1.7 –San Miniato slaughterhouse data
Input
Electricity kWh
Natural gas m3
Tap water m3
Well water m3
Detergents kg
Transport pig tkm
Diesel fuel l
Per Year
Per Pig
250
4500
540
1100
40
5400
3000
140
0.33
6
0.72
1.47
0.053
7.2
4
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
7.2.6. Ham factory for Parma and generic crude ham
After slaughtering, the fresh thighs are transported to the next stage for processing and seasoning at
the ham factory. As a reference we used data from a ham company for the exclusive production of
Parma Hams: Monica & Grasso S.p.A. work in the food industry currently produces about 90,000
hams per year, he works and seasonig exclusively prosciutto di Parma DOP.
The data are obtained from average of nine years of data collection and derived from the
Environmental Statement in May 2010 (figure 13.1.8).
Figure 13.1.8 –Monica&Grasso SpA company data – average of the last nine years
Input
Electricity kWh
Natural gas m3
Tap water m3
Detergents kg
Packaging kg
Sugna (fat) kg (greasing mix)
Salt kg
Transport fresh ham tkm
Per kg of ham fresh
1.29
0.114
0.011
0.0004
0.0254
0.0049
0.0718
0.08
Weight of fresh hams: fresh hams trimmed, weight preferably ranges between 12 and 14
kilograms, must not in any case weighing under 10 kilograms (DOP). We have considered an
average weight of 12.86 kg of fresh ham and a final weight at the end of seasoning of 9 kg with a
weight loss of 30% during the seasoning
7.2.7. Generic crude ham seasoning
For transport we estimated a distance between the Dutch slaughterhouse and the Italian ham
Company of 1,200 km. The generic cured ham you get with the conventional technique, based on
dry salting, and seasoned (no more than 22 ° C) for a total production time of at least 7 months
(hams smaller) or 9 months (weigh more than 8 kg).
For the curing of ham generic calculations we considered a ham with weight of 8 (30%
weight loss, fresh ham 11.43 kg). We have estimated nine months of seasoning with lower energy
consumption by 25% and increased use of estimated amount of salt in 25% more compared to the
Parma Ham processing.
7.2.8. Ham seasoning company for Cinta Senese
The data for the curing of Cinta Senese ham derived from the Sapito srl company from
Montaione (FI). That produces about 1500 hams per year (Figure 13.1.8). The 60% of the 1500 pig
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GLAMUR Report – Italian Case Study- Pork Chains –March 2015
slaughtered are the Cinta Senese pig hence has been applied an allocation of 60% on all input
factors. The average cured ham weight is of 7-8 kg and is about 10-11 kg of fresh hams.
Figure 13.1.8 –Sapito srl company data
Input
Electricity kWh
Tap water m3
Detergents kg
Packaging kg
Sugna (fat) kg (greasing mix)
Salt kg
Transport fresh ham tkm
Per kg fresh ham
1.06
0.075
0.0004
0.0254
0.0057
0.1143
0.04
7.2.9.Transport and retail
At the end of the seasoning the product is transported to the sale. We considered impacts
from transport and refrigeration. For transportation we estimated a medium transport in Italy. For
Parma Ham we esstimated a transport of 400 km is approaching at a distance of distribution media
in Italy. For generic ham , who is seasoned in many geographical areas, we estimated a transport
medium of 200 km. For Cinta Senese ham which includes a distribution generally local a transport
operation we estimated 100 km. For the impacts resulting from conservation of the ham in the
refrigerator store we used the data from the Ecoinvent database; supermarket for Parma and Generic
and small store for Cinta Senese.
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7.3. Annex 3 – Dataset for Attribute Territoriality
Table A1: Parma ham PDO farming system
Province
Brescia
Mantova
Cremona
Cuneo
Lodi
Reggio Emilia
Bergamo
Pavia
Modena
Verona
Total 10
provinces*
Other Italian
provinces
Total Italy
Region
Lombardia
Lombardia
Lombardia
Piemonte
Lombardia
EmiliaRomagna
Lombardia
Lombardia
EmiliaRomagna
Veneto
N. pigs within the
PDO a
N. pigs /farms
within the PDO a
545
448
338
672
158
1,267,264
1,178,149
999,329
922,795
424,026
2,325
2,630
2,957
1,373
2,684
5,524
2,557
1,613
7,363
610
Pig farms on
farms with
livestock (%)
9.9%
17.5%
21.0%
9.1%
25.9%
235
365,633
1,556
2,099
11.2%
104
94
317,925
279,149
3,057
2,970
3,632
968
2.9%
9.7%
186
256,353
1,378
2,151
8.6%
142
255,776
1,801
3,574
4.0%
2,922
6,266,399
2,145
30,091
9.7%
1,277
1,805,327
1,414
187,358
-
4,199
8,071,726
1,922
217,449
-
Pig farms within
the PDO a
* first 10 provinces within the PDO system in terms of pigs bred.
Sources: our elaborations on data of a) the IPQ (2014) and b) the 2010 Agriculture Census (ISTAT, 2010).
143
Farms with
livestock b
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Table A2: Cinta Senese PDO farming system
Province
Arezzo
Firenze
Grosseto
Livorno
Lucca
Pisa
Pistoia
Prato
Siena
Massa-Carrara
Total
Region
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Pig farms within
the PDO a
5
14
13
2
1
8
1
2
35
0
81
N. pigs within the
PDO a
N. pigs /farms
within the PDO a
336
623
581
86
43
367
43
86
1,546
0
3,709
Sources: our elaborations on data of a) the INEQ (2014) and b) the 2010 Agriculture Census (ISTAT, 2010).
144
67
45
45
43
43
46
43
43
44
0
46
Farms with
livestock b
1,308
1,294
2,182
384
1,197
959
442
196
1,051
887
9,900
Pig farms on
farms with
livestock (%)
0.4%
1.1%
0.6%
0.5%
0.1%
0.8%
0.2%
1.0%
3.3%
0.0%
0.8%
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Table A3: Parma ham PDO ham processing industry
Province
Parma
Region
EmiliaRomagna
Parma PDO
processing
industries a
Generic ham
processing
industries b
150
Food Industry c
190
1,209
Parma PDO
processing
industries on food
industry (%)
12.4%
Sources: our elaborations on data of a) the IPQ (2014), b) Giacomini et al. (2013a) ,and c) the 2011 Industry and Services Census (ISTAT, 2011).
Table A4: Cinta Senese PDO ham processing industry.
Province
Region
Arezzo
Firenze
Grosseto
Livorno
Lucca
Pisa
Pistoia
Prato
Siena
Massa-Carrara
Total
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Tuscany
Cinta Senese PDO
a
5
6
1
1
0
2
3
0
9
0
27
Food Industry
b
355
773
330
362
412
338
333
203
341
253
3,700
Cinta Senese PDO
processing industries on
food industry (%)
1.4%
0.8%
0.3%
0.3%
0.0%
0.6%
0.9%
0.0%
2.6%
0.0%
0.7%
Sources: our elaborations on data of a) the INEQ (2014), and b) the 2011 Industry and Services Census (ISTAT, 2011).
145
Generic ham
processing
industries on food
industry (%)
15.7%
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
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Giacomini, C., Arfini, F., Menozzi, D. (2013a). Qualification and spillover effects for geographical
indications: the case of Prosciutto di Parma PDO. Revista de la Facultad de Agronomìa, La Plata 112
(SIAL), 11-22.
Giacomini, C., Mora, C., Menozzi, D. (2013b). Applying the concept of industrial district to companies
active in the processing of pig meat in Emilia-Romagna. Sviluppo Locale, XVI, 40, pp. 19-46.
Guinée, J.B.; Gorrée, M.; Heijungs, R.; Huppes, G.; Kleijn, R.; Koning, A. de; Oers, L. van; Wegener
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on life cycle assessment. Operational guide to the ISO standards. Part III: Scientific background. Kluwer
Academic Publishers, ISBN 1-4020-0228-9, Dordrecht, 692 pp.
Huijbregts, M.A.J.; Breedveld L.; Huppes, G.; De Koning, A.; Van Oers, L.; Suh, S. 2003. Normalisation
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the World (1990 and 1995). Journal of Cleaner Production 11 (7): 737-748.
IPCC (2007) Intergovernmental Panel on Climate Change. 2007. IPCC Fourth Assessment Report. The
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IPCC, 2006. Egglestone, S., Buendia, L., Miwa, K., Ngara, T., Tanabe, K. (Eds.). In: Guidelines for National
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ISTAT (2011). Data warehouse of the 9th Industry and Services Census 2011, Available at http://daticensimentoindustriaeservizi.istat.it/
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PorkLink supply chain in Scotland. Supply Chain Management: An International Journal, 18(2), 219-231.
Mancini, M.C. (2003). Le produzioni alimentari tipiche. L’impatto economico e organizzativo della
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Mancini, M.C. (2012). Protected Designation of Origin: an instrument of consumer protection? The case of
Parma Ham. Progress in Nutrition 14 (3), 161-176.
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8.1.1. List of the main sources
Reference
CINTA SENESE
Disciplinare di produzione della Cinta Senese
Franci O. (2004), La Cinta Senese, gestione
attuale di una razza antica, ARSIA – Regione
Toscana, Firenze
Franci O., Crovetti A., Esposito S., Sirtori F.
(2011), La realtà della Cinta Senese,in: Regione
Toscana (2011), “Il progetto europeo QUBIC
attualità e prospettive della razza suina Cinta
Senese”, Pacini Editore, pp. 21-48
Regione Toscana (2011), “Il progetto europeo
QUBIC attualità e prospettive della razza suina
Cinta Senese”, Pacini Editore
Description
Production Regulations: shows
the standards which must be met
to obtain the protected
designation of origin (PDO),
which is reserved exclusively for
fresh pork.
This book describes the
characteristics of the Cinta Senese
of farming systems, the market
and the situation of farms
Results of a survey of the Cinta
Senese supply chain
It 'a photograph of the reality of
the supply chain of the Cinta
Senes. It’an project funded by the
EU (MED programme) centered
on 7 typical Mediterranean pigs
breeds
Data available
Description of the
chain, actors, labelling
schemes
Survey on firms in
different stages of the
supply chain;
definition of good
practices
Websites
http://www.cintasenese.org
http://www.mattonedue.it/consorziosuini.html
http://www.cintasenese.eu/I_nostri_prodotti.html
http://www.sergiofalaschi.com/lista.php?idCateg
oria=4
http://www.renieri.net/cinta-senese.html
http://cintasenese.blogspot.it/
PARMA HAM PDO
Prosciutto di Parma (Parma Ham) Protected
Designation of Origin
Dentoni, D., Menozzi, D., Capelli, M.G. 2012.
Group heterogeneity and cooperation on the
geographical indication regulation: The case of
the ‘‘Prosciutto di Parma’’ Consortium. Food
Policy 37, 207–216.
Giacomini, C., Arfini, F., Menozzi, D., 2010.
Processi di qualificazione ed effetti spillover: il
caso del Prosciutto di Parma Dop. QA – Rivista
dell’Associazione Rossi-Doria 3, pp. 55–80.
O’Reilly, S., Haines, M., Arfini, F., 2003. Food
SME networks: process and governance. the case
of Parma Ham. Journal on Chain and Network
Science 3, 21–32.
Mancini, M.C., 2003. Le produzioni alimentari
tipiche. L’impatto economico e organizzativo
Consortium for the protection of
the Cinta Senese
Website of the farmers and
processors
Specifications and Dossier,
including all standards to obtain
the protected designation of origin
(PDO),
Study aiming to analyze the
heterogeneity of Parma Ham
Consortium members
characteristics, and the effect on
the Consortium strategies
Study analyzing and comparing
the Parma Ham PDO network and
the non-PDO network
Study analyzing the Parma Ham
PDO network
This book provides a detailed
description of the governance of
150
Product parameters
(e.g., moisture, salt)
Feed admitted during
the breeding phase
Primary data available
about the firms
characteristics (n=79)
and questionnaire
items
Primary data available
about the Parma Ham
production and prices
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
della normativa europea. Monte Università
Parma, Parma, Italy.
Capelli, M.G. 2014. Indicazioni Geografiche,
Strategie di Differenziazione e Politiche per il
Consumatore. Phd Thesis, Department of
Economics, University of Parma
Websites
http://www.prosciuttodiparma.com/
http://www.parmaqualita.it/chi_siamo.php
http://www.parmacotto.com/
http://www.grandisalumificiitaliani.it/
http://www.negroni.com/
Parma Ham PDO and related
traceability system
Phd dissertation aiming to analyze
the consumers preferences and
willingness to pay for different
quality labels associated with the
designation Parma Ham PDO
Primary data available
on the consumers
WTP an questionnaire
items
Consortium of the Parma Ham
PDO
Independent organization I.P.Q.
(Istituto Parma Qualità)
Websites of the processors
http://www.borsamerci.pr.it/
Mercantile Exchange of Parma
Prices of the PDO
hams and certified
meat
GENERIC NON-PDO HAM
Giacomini, C., Arfini, F., Menozzi, D., 2010.
Processi di qualificazione ed effetti spillover: il
caso del Prosciutto di Parma Dop. QA – Rivista
dell’Associazione Rossi-Doria 3, pp. 55–80.
Study analyzing and comparing
the Parma Ham PDO network and
the non-PDO network
Primary data available
about the non-PDO
ham production and
prices
Websites
http://www.assica.it/
http://www.borsamerci.pr.it/
Italian association of pig meat
producers
Mercantile Exchange of Parma
151
Prices of the non-PDO
hams
GLAMUR Report – Italian Case Study- Pork Chains –March 2015
Attribute
Indicator
Detailed indicator
Source of indicator
Affordability
Retail price
Retail price in supermarket
CPP
Retail price
Retail price in supermarket
ASSICA/Infoscan
Retail price
Retail price at speciliased retailer shop
Interviews
Dynamics in pork consumption
Domestic market and exports
CPP,ASSICA, CCS
VA at farm level/AWU
Price of pigs- non factor costs
ISTAT
CRPA Notizie, Interpig
Interviews
VA slaughterhouse/AWU
Price of fresh PDO ham-non factor costs
Bilance sheets
VA ham factory/AWU
Price PDO Parma Ham-non factor costs
Balance sheets
Price of generic ham - non factor costs
Balance sheets
Dynamics of pig meat
Added value
Resilience
Price of Cinta ham-non factor costs
Interviews
Volatility of concentrate price
Concentrate price
Interpig
Volatility of live pig prices
Price of live heavy pigs,light and Cinta pigs
CCIAA
Volatility of fresh ham
Price of fresh hams
CCIAA
Volatility of cured ham
Price cured ham
CCIAA
Degree of diversification
% heavy pigs on total turnover of farm
Sample of farms
% light pigs on total turnover of farm
Sample of farms
% Cinta pigs on total turnover of farm
Sample of farms
% heavy pigs on total slaughterings
% light pigs on total slaughterings
Balance sheets
% Cinta pigs on total slaughterings
Interviews
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% of Parma Ham on total turnover
Balance sheets
% of generic ham on total turnover
Balance sheets
% of Cinta ham on total turnover
Degree of downstream integration
Labour relations
Qualitative analysis
Chain governance
Degree of self governance
% ham by integrated companies
CPP, CCS
% pigs marketed by producer orgn
% composition of CPP
Animal welfare
Level of animal welfare
% composition of CCS
Risk assessment
Territoriality
Degree of artisanality
% AWU in artisanal phases of production
Effectiveness of PDO
% feed produced within PDO
Events organised in the territory
related to the product
Number of events and number of visitors
CPP/Local authorities
Number of events and number of visitors
CCS
Links with local touristic activities
Ham routes; agritourism
Province of Parma
Use of water
LCA m3/kg carcass weight/fresh ham/cured ham
Farm and company data
Use of fossil energy
LCA MJ/ kg carcass weight/fresh ham/ cured ham
Farm and company data
Use of nutrients
LCA kg NO3-eq/carcass /fresh hamd/cured ham
Farm and company data
Pollution
Greenhouse gas emissions
(Carbon footprint)
LCA kg CO2-eq/carcass /fresh ham/cured ham
Farma and company data
Biodiversity
Presence of local breeds
Saving of local breed
Interviews
Landscape conservation
Conservation of forests
Interviews
Resource use
CCS
EFSA
(water footprint)
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Land use
LCA m2 land/carcass/fresh ham/cured ham
154
Farm and company data