The Italian Nursery Industry
WINE, VITICULTURE, VINE NURSERY – OUTLOOK MEDIUM TERM FORECASTS
"Man can as much as he knows" - Francis Bacon
Wine is culture
Globalization supply chain
Italy lacks agro-industry
Wine is in foreign hands
Economy in recession
Tourism is the most affected
Italy is a weak link in the EU
Lack of economic resources
The crisis may last for five years
Vine-nurseries and the economic crisis (Schumpeter)
The European world and its former colonies (the Americas, Oceania, and South Africa) have fundamental 'archetypes' in their Greco-Roman and Judaeo-Christian cultures, of which wine is a part. Whereas for the rest of the world, wine is not a 'social marker.'
The globalization of the economy has created supply chains.
Who has the financial phase in hand and the control of the large-scale retail trade leads the game, shifting the losses to the weaker stages of the chain, i.e., who produce 'commodities' at vile prices.
The cooperative sector has not created entrepreneurship or a free market due to EU and national government aid.
The "system of laws-regulations-laws" (4 kg. for 3,985 pages), ties, and strings is an obstacle to those who operate and encourages "shortcuts. One in the sector says: 'Who is without sin cast the first stone.
Foreign companies dominate the world wine market (see Appendix 2). While the Italian wine market is hetero-directed, i.e., conditioned by foreign countries: E & J Gallo Winery (La Marca); Constellation Brands (Ruffino); Rotkäppchen Mumm (Ruggeri), Henkel Group (Mionetto).
The world economy is in a 1929-type recession.
The tourism sector is the most affected because there is a lack of international connections.
Therefore, the HORECA channel is suffering.
With an enormous public debt estimated at 160% of GDP by 2020, compared to the euro area's 103%, Italy has a reduced blanket such as a postage stamp ("there's no tripe for cats"). At the same time, the holes multiply and widen due to the game of the various categories of people trying to pin private losses on the depleted public coffers—these due to recklessness and lack of foresight that borders looting.
Losses in the current crisis in the wine sector are estimated at 30 to 50% in volume and 50 to 60% in value.
The EU has left it up to the member states, within their respective budgets, to solve the problems arising from the current crisis.
According to Pedron , the wine will be between 20 and 25 €/hl, which means that wine growing is at a heavy loss. Let's calculate the loss: Wine at 23 €/hl corresponds to a price of 18 €/q grape. If we estimate that Italy produces an average of 48 million hectolitres or 65 million quintals of grapes, the 640,000 hectares of Italian vineyards have a production of 102 q/ha. Calculating the PLV is easy: 102 quintals/ha x 18 €/q, which makes 1,836 euros/ha. The real cost of production is between 4,000 and 5,000 euros/hectare. With a loss of 2,700 €/ha.
What to do? (Typical phrase of Vladimir Il'ič Ul'janov, known as Lenin)
The rebalancing of the wine market as the nurseryman has the inertia of the peasant mentality will be achieved in five years.
Alias the demand for rooted cuttings for both the Italian and foreign markets will return to levels estimated in the domain: http://www.devulpeetuva.com/C1/Tendenze%20del%20vivaismo%20Italia.html
For further analysis, see the chapter Economy and Nursery Market.http://www.devulpeetuva.com/C1/Accesso%20Capitolo.php
It was an Italian electricity company active in Campania and the rest of the South. In the 1930s, it passed to IRI, and from the 1960s, it made acquisitions in the agricultural and food sectors, becoming Italy's most prominent food group. In the nineties, Romano Prodi, IRI's president, dismembered the group.