The Italian vinegrowing economy

GIANFRANCO TEMPESTA
MONICA FIORILO

2. THE VINEGROWING AND WINE-PRODUCING SUPPLY CHAIN

In short, private and public players enter the system and interact (from research right through to the market), all with different magnitudes and economic relations. Illustrated in figure 2.1 The vinegrowing and wine-producing supply chain.

Figure 2.1 The vinegrowing and wine-producing supply chain shows a “horizontal” interaction from research to the market, with the relative dimensions, which may be misleading for the Italian situation, this model and the words “supply chain” are more relevant to an English-speaking system (of Common Law) or a Cartesian one (French) where the responsibilities of the players are well-defined and the powers of attorney arise from the lower down.

fig2.1

 

The reality is more difficult to interpret, as shown in figure 2.2 Interpretation of the Systems; a mathematical matrix where the market is influenced by political factors (games rules, restrictions and incentives), which are often incalculable and make such a model more measurable with fractal mathematics (1).

figII

 

The weighty body of rules, mentioned above, and the financial incentives of support schemes put into effect by the EU (a political moment highlighted as Polis in the above-mentioned figure) condition the system.

The rules aim primarily to protect typicity (local, loyal and constant), interpreted and adopted by the collective brand of DOs and GIs (see Paradigms and Models  http://www.devulpeetuva.com/Paradigmi e Modelli.html ).

foto2It is basically a question of public brands that only emerged in Italy late in the day, in an elaborate system to protect producers, and have often created laws and costly bureaucratic burdens that are sometimes not claimed by producers.

This superstructure is based on the concept that the protection of the sector and the value of the collective brand is down to the public workers, in order to safeguard the consumer, and it is not the self-responsibility of producers to protect the sector they belong to and thus the value of their brand.

The question is: who owns the brand? And the Goodwill(2)?

In countries like France, it belongs to the operators; in Italy it is the State.

The intention of European politicians and legislators is to defend the system within WTO agreements (3)

It is a complex apparatus including the EU (laws, varietal registers, etc), member states (reception of the laws, directives, DO and GI production regulations, etc), the regions (planting rights, vineyard renewal and management of support schemes), certification bodies (controlling the supply chain, certification and qualification of future DO wines), consortia for promotion and protection (controlling the markets) etc etc.

 

 


(1) Benoit B. Mandelbrot “Eadem Mutata Resurgo: Why is geometry often described as “cold” and “dry”?. One reason lies in its inability to describe the shape of a cloud, a mountain, a coastline or a tree. Clouds are not spheres, mountains are not cones, coastlines are not circles, and the bark is not smooth, nor does lightning travel in a straight line”.  Fractals are geometrical shapes that repeat themselves to infinity, with the pattern getting smaller and smaller. This is the most intuitive definition that can be given to shapes that occur surprisingly frequently in nature but which still do not have a precise mathematical definition.

(2) It means the positive image of a company built up during a long period of proper management, supplying their customers with high-quality products and services. It is registered in the balance sheet among capital assets, for example in the financial statement of the multinational Constellation Brands (wine sector) this entry amounts to 31.5% of its asset value.

(3) The World Trade Organization was created with the aim to supervise numerous trade agreements between member states.

logoGIANFRANCO TEMPESTA
MONICA FIORILO

 

Proof-reading: PAOLO ANTONIAZZI
Translation: JANE UPCHURCH & MATTEO MARENGHI

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