Agribusiness in Tuscany

Facts and figures

Why Invest in agribusiness in Tuscany 3

Overview of Tuscany’s economy 4

Agribusiness in Italy 5

Agribusiness in Tuscany 6-8

Traditional and excellence products 9-12

Wine 14-16

Olive oil 17-18

Plant nursery and flowers 19

Rural tourism 20-21

Human capital and research 22

Infrastructures 23

Regional policy 24

Key Contacts 25

INDEX

2

Great tradition and high quality productions

Tuscany is among the regional leaders in agribusiness in Italy

The entire supply chain is present within region

International leader in some excellence products

Diversification of production

Integration with tourism and cultural heritage

Tuscany is leader in farm tourism in Italy and Europe

Human capital and infrastructure

Dense network of educational and research centers

Excellent logistic localization and infrastructure assets

3

WHY INVEST IN AGRIBUSINESS IN TUSCANY

Population: 3.65 mln

Regional GDP: €106 bln (6.7% of Country GDP)

GDP per capita: €28,300

Export on GDP: 25% regional value

Export Δ 11/12: +14%

Main Exports : Machinery, Chemicals, Pharma

Top 10 Southern European Regions Overall for FDI (FDI Magazine 2010)

Tuscany ranked 6th in Italy for attractiveness of multinational companies in 2011

Its share of FDI has continuously grown since 2005

Today the Region employees over 32,000 workers in multinational companies

In 2013, according to a regional database on multinationals, overall multinational companies accounted for 501 companies (421 foreign and 80 Italian)

Overview of Tuscany’s Economy

Source: IRPET on ISTAT data 2012; 1991=100; real value

Source: Reprint Database and Politecnico University of Milan (2012)

All data source: ISTAT 2013 (data refers to 2011)

362 363

374 374

390388

392

345

350

355

360

365

370

375

380

385

390

395

2005 2006 2007 2008 2009 2010 2011

Foreign multinational companies in Tuscany (number), 2005- 2011

Rank Region Country

1 Catalonia Spain

2Comunidad de Madrid Spain

3Lisbon Region Portugal

4 Andalucia Spain

5 Lombardy Italy

Rank Region Country

6Comunidad Valenciana

Spain

7 Piedmont Italy

8 Lazio Italy

9 Tuscany Italy

10 Aragon Spain

4

Italian exports

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120.0

20.0

40.0

60.0

80.0

100.0

120.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Average unit value index

Volumes index

Values of exports

Increasing average unit values of exports: towards quality

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120.0

20.0

40.0

60.0

80.0

100.0

120.0

0

5,000

10,000

15,000

20,000

25,000

30,000

Average unit value index

Volumes index

Values of exports

Agricultural products

Food and beverage

Italian share of agricultural goods World export: 1.7%

Italian share of food products on World export: 3,8%

Agribusiness sector in Italy: facts and figures

Labor units in agribusiness in Tuscany

Agricolture72%

Fishery1%

Food industry27%

84650 Labor Units

Agribusiness in Tuscany

Euro (millions) %

% over Italy

% over Tuscan Value added

Agricolture 1734 55.1 7 1.8

Fishery 58 1.8 3.9 0.1

Food industry 1353 43 5.4 1.4

Total 3145 100 6.1 3.3

Value added of agribusiness

Agribusiness sector contributes to the 3% of Regional Gross Domestic Product, producing a total added value of around 3.15 Euro billions.

Around 85000 labor units are employed in agribusiness

Tuscany accounts for 6% of Italian exports in agribusiness. Exports increased by 30% in period 2008-2013

20002001200220032004200520062007200820092010201120122013 1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

2,000,000,000

2,200,000,000

Europe is the main market, with 60% of exports. However, USA are the biggest importer from Tuscany (23%), followed by Germany (17%), France (9%), UK (8%)

United States

France

Switzerland

Japan

Netherlands

Austria

Australia

Sweden

Turkey

Russia

0 100000000 200000000 300000000 400000000 500000000

Variety of production

Production of Tuscan agriculture

Euro mil % % over Italyherbaceous plants 430 18.5 3.3Pastures 43 1.9 2.5Woody plants 1132 48.5 10.8Livestock 456 19.6 3.1Services 270 11.6 4.9TOTAL 2331 -- 5.1

Tuscan agriculture is characterized by specialization in production from woody plants, which is linked with grapes, olive, wood and plant nursery activities

The more relevant productions in terms of added value in agriculture are wine (45% of Tuscan value added), wheat (16%), oil (11%), potatoes (7%), grapes (6%)

Changes in Tuscan agriculture

Increasing role of secondary activities on agricultural turnover.Those include mainly:- Farm tourism- Direct food production

Share of secondary activities on agricultural turnover

0

100

200

300

Nord Ovest Nord Est Centro Sud Isole Toscana Italia

prodotti agricoltura prodotti industria alimentare

1. Towards diversification

2. Towards quality

Tuscany

Increasing production in high quality products, as shown by increasing export prices

Average export prices, agriculture (blue) and food industry (red)

Tradition & excellence

Tuscany hosts:

463 traditional food varieties (Italian Census of traditional food products, Ministery of Agricolture, 2013)

22 EU quality branded products (10% of Italian branded products): 14700 firms

40 varieties of wines with warranty assurance labels awarded

protected geographical indication (PGI)

Protected Designation of Origin (PDO)

38 DOC wine typologies

17 DOCG wine typologies

5 IGT wine typologies

Excellences in Tuscan agribusiness: EU quality brands

It designs products which are traditionally and prepared, processed and produced in a specific territory and thus acquire unique properties

12 products awarded PDO status in Tuscany

Protected designation of origin (PDO)

Excellences in Tuscan agribusiness: quality brands

Protected geographical indication (PGI)

PGI status can be awarded to products that are traditionally prepared, processed or produced in a territory

10 Tuscan products awarded PGI status

Excellences in Tuscan agribusiness

Organic faming is developing across the region:

Around 2400 firms are involved in organic farming (3.4% of total firms):-1860 firms produce organic olive oil- 960 firms produce organic wine

Cultivated surfaces doubled between 2000 and 2010

Organic farming

Renewable energy

2165 farm business firms product renewable energy. Tuscany is the 2nd region after Trentino-Alto Adige in terms of firms producing renewable energy.1760 firms produce solar energy173 firms produce biomass39 firms produce wind energy350 firms produce other forms of energy (hydro, geothermal,…)

39 firms produce biofuel

Excellent sectors in Tuscan agribusiness

Major R&D centers and

Universities in Tuscany

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Olive oil

Wine Plant nursery

Farm tourism

Tuscany is the 7th Italian region in terms of wine production, but the 3rd considering the value of production, and the 10th European region (Eurostat, 2012)

26 000 firms producing wine

High quality productions (DOC, DOCG, IGT labels) represent 82% of total wine production

Excellences in Tuscan agriculture: wine

Italy is one of the World leaders in wine sector, both considering production and consumption:

- the second world producer and exporter (after France)

- the third world market (after France and USA)

FranceItaly

SpainUSA

ChinaAustralia

ChileArgentina

South AfricaGermany

0 10000 20000 30000 40000 50000Main wine producers

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

100

200

300

400

500

600

700

800

Wine exports (trend)

Tuscany Italy

Wine exports

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012400000000450000000500000000550000000600000000650000000700000000750000000

Wine exports

Wine exports have grown by 31% in period 2008-2013

Main importes from Tuscany are USA (29%), Germany (18%), Switzerland (7%), Canada (7%), UK (6%), Japan (4%)

United StatesGermany

SwitzerlandCanada

United KingdomJapan

DenmarkNetherlands

FranceSwedenBelgiumAustriaRussiaChina

Norway

0 100000000 200000000

Source: Istat (2014)

Source: Istat (2014)

Source: Istat (2014)

Main importers

Controlled designation of origin guaranteed

(Denominazione di Origine Controllata e Garantita, DOCG)

Typical Geographic Indication (Indicazione Geografica Tipica,

IGT)

Controlled designation of origin (Denominazione di Origine

Controllata, DOC)

60 varieties of Tuscan wines awarded quality assurance labels

16

QUALITY BRANDING IN TUSCAN WINES;

17 typologies of Tuscan wine awarded DOCG brand:Brunello di MontalcinoCarmignanoChianti ClassicoChianti Colli AretiniChianti Colli SenesiChianti Colli FiorentiniChianti Colline PisaneChianti MontalbanoChianti MontespertoliChianti RufinaChianti SuperioreMontecuccoMorellino di ScansanoSuveretoVal di CorniaVernaccia di San GimignanoVino Nobile di Montepulciano

38 typologies of Tuscan wine awarded DOC brandAnsonica Costa dell'Argentario , Barco Reale di Carmignano , Bianco della Valdinievole, Bianco dell'Empolese , Bianco di Pitigliano, Bianco Pisano di San Torpè , Bianco Vergine della Valdichiana Bolgheri e Bolgheri Sassicaia, Candia dei Colli Apuani, Capalbio , Chianti,Colli dell'Etruria Centrale , Colli di Luni, Colline Lucchesi , Cortona , Elba, Montecarlo, Montecucco , Monteregio di Massa Marittima , Montescudaio , Terratico di Bibbona, Moscadello di Montalcino  Orcia, Parrina, Pomino, Rosso di Montalcino, Rosso di Montepulciano, San Gimignano, Sant'Antimo, Sovana , Tazio, Valdorcia, Terratico di Bibbona , Val d'Arbia , Val di Cornia  Vin Santo del Chianti Vin Santo del Chianti Classico Vin Santo di Montepulciano 

5 typologies of Tuscan wine awarded IGT brand:Alta Valle della Greve Colli della Toscana Centrale Maremma ToscanaToscano o Toscana Val di Magra 

50 300 agricultural firms are operating in Tuscany92 000 hectares cultivated, 15 million plants18 000 tons annually produced

3.7% are organic farming5 typical production brandsHigh quality allows for higher price than competitorsHigh integration between agriculture and oil production

Excellences in Tuscan agriculture and food industry: olive oil

2001200220032004200520062007200820092010201120120

50000000100000000150000000200000000250000000300000000350000000400000000450000000

Olive oil exports

United StatesGermany

FranceUnited Kingdom

CanadaSwitzerland

JapanBelgiumPolandPolonia

0 50000000

100000000

150000000

200000000

In the period 2008-2013 the value of exports increased by 40%

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

0

200

400

600

800

1000

1200

Olive oil exports

Tuscany ItalySource: Istat (2014)

Source: Istat (2014)

Source: Istat (2014)

The brand Olio Toscano IGP (Protected Geographical Indication)Is a guarantee brand indicating that the oil responds to several requirements across the entire supply-chain. Quality is guaranteed by the Consortium for the protection of Tuscan extra virgin olive oil, which established the Disciplinary rules of Production, in order to protect the quality and the traceability of the oil. Main rules are:- Oil should be extracted exclusively and entirely from olive groves

grown in Tuscany. All plants are registered.- Crushing operations should be done exclusively within Tuscany and

mills should communicate operations to the inspection bodies. - Oil should pass several inspections and chemical and sensorial

tests determined by the product regulation.- Bottling and packaging should be made within Tuscany.

Traceability:Each bottle of Tuscan Extra Virgin IGP is labeled around the neck of the bottle with the alphanumeric code. This allows to track the supply chain. By entering the code on the website of the Consortium, one can have information on who cultivated the olives, who pressed them and who bottled them.

Excellence in oil: Extra virgin olive oil Toscano IGP

Excellences in Tuscan agribusiness: plant nursery and flower industry

Tuscany is the main Italian region in plant nursery and flower production (15% of national production)Plant nursery accounts for around 30% of agricultural production in Tuscany, with around 5500 labor units.Strong performance on foreign markets: Tuscany is the Italian leader region in exports of plants and flowers (44% of national exports)

France

Germany

United Kingdom

Netherlands

Switzerland

Spain

Turkey

Belgium

Greece

Turkmenistan

0% 5% 10% 15% 20% 25% 30% 35%

Main importers

Tuscany44%

Sicily9%

Liguria17%

Emilia-Romagna

7%

Friuli-Venezia

Giulia5%

Others17%

Export shares by region

Source: Istat (2014)

Source: Istat (2014)

Source: Istat (2014)

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

0

50

100

150

200

250

Plant exports (euro millions)

Rural tourism has gained widespread diffusion in Tuscany, counting around 4200 firms and 57000 places available in structures. Nowadays Tuscany is the Italian leader in rural tourism, both in terms of supply of structures and tourist arrivals and overnight stays.

Excellences in Tuscan Agriculture: rural tourism

Toscana

Lombardia

Umbria

Emilia-Romagna

Sardegna

Abruzzo

Sicilia

Liguria

Puglia

Molise

0 1,000 2,000 3,000 4,000 5,000

Farm tourism structures

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,000

Tourist presences in farm tourism structures in Tuscany

Foreigners

Italians

Tuscany hosts 20% of Italian farm tourism structures and 30% of nights spent by tourists in Italian structures

Farm tourism hosts over 7% of total tourist presences in Tuscany (more than three millions nights in Tuscany).65% of guest are non Italian

Excellences in Tuscan Agriculture: rural tourism (2)

Wine, oil and flavors of Tuscany Trails

Is a network of 22 tracks within Tuscan territories characterized by high specialization in wine, oil, and other typical products.

They represent an effective way of promoting territories and their high quality products, by means of dedicated web sites, smartphone and computer apps and specific initiatives within territories

Universities & Research

• Universities• University of Pisa• Scuola Superiore Sant’Anna of Pisa• University of Florence• University of Siena

• Research centres• Ibimet-CNR (Florence)• CRA (Council of Research and experiment in Agriculture, plant nursery

branch) • INEA (National Institute of Agricultural Economics)

High Schools and professional training

• 30 schools offer 74 technical and professional courses• on agribusiness studies, with 6000 students enrolled

Innovation poles

• Poles on agribusiness industry (Grosseto) and on plant nursery (Pescia) will be launched soon

to access and distribute for

major European Markets

Major R&D centers and Universities in Tuscany

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MILANO

ROMA

U

U

UU

U

GENOVA - FRANCE

• A1 Highway Milan/Florence/Rome/Naples

• A12 Highway to Genoa and France

• Florence International Airport• Pisa International Airport

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I

U

S

Tuscany offers a wide network of institutions offering education and/or research applied to agribusiness

I

S

I

SS

S

S

S

S

S

S

S

S

S

S

• Livorno harbor• Carrara harbor• Piombino harbor

Human capital and research in agribusiness

S

SS

S

S

S

S

S

S

S

SU

U

Highways

A1 the main Italian highway, linking North and SouthA11 linking Florence with Pisa-ViareggioA12 linking to Genova , Turin and France

Main markets and logistic centersInterporto Toscano Amerigo Vespucci, LivornoInterporto della Toscana Centrale, PratoMercato dei Fiori di Pescia

HarborsLivorno, Carrara, Piombino

AirportsPisa International AirportFlorence International AirportBologna Int. Airport is 100 km from Central TuscanyRome Fiumicino Airport is 300 km from Central Tuscany and 170 km

from Southern TuscanyMilan Malpensa Airport is 350 km from Central Tuscany

to access and distribute for

major European Markets

Major R&D centers and Universities in Tuscany

Per ogni affermazione diamo cifre di evidenza (+ 1

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MILANO

ROMA

GENOVA - FRANCE

• A1 Highway Milan/Florence/Rome/Naples

• A12 Highway to Genoa and France

• Florence International Airport• Pisa International Airport

23Tuscany is strategically located in Central Italy

• Livorno harbor• Carrara harbor• Piombino harbor

Transport infrastructures

Main guidelines for policies carried out by Regional Administration are the following:

- Promotion of branding, especially regarding high quality products

- Promotion of investment, especially those regarding training, innovation and research

- Promotion of private and public research

- Promotion of multifunctional firms and integration between farming and tourism

- Promotion of low environmental impact productions

Regional policy

25

The Promoter

Under the President of Regione Toscana, the government of the Region, an investment promotion program was undertaken to facilitate investments from foreign companies in the field of Cultural Heritage

Along with Toscana Promozione, we support foreign companies willing to locate in Tuscany

Our service is free of charge and strictly confidential

Our experts can help you do business in Tuscany by:

Providing investment opportunities

Scouting and groundwork for potential investors

Establishing leads

Assisting investors: assessment, contacts, negotiation and after-care services

Services for investors

We provide information services for investors wishing to locate their business in our region on issues ranging from incentives and market information to location opportunities

The service is free of charge and confidential

Take advantage of our network. It is at your disposal to give you detailed information, including:

Availability of location opportunities

Macro - economic and sector data

Start-up information

Bureaucratic procedures

European, national and regional incentives and

grants

26

Contact Details:

INVEST IN TUSCANYRegion of Tuscany

Directorate General for PresidencyRegional policies for attracting inward investments

Piazza Duomo, 1050123 Florence, Italy

Tel: + 39.055. 438 2425 / 5033 / 4896Fax: + 39 055 4384135

Email: info@investintuscany.com

www.investintuscany.com