scholarly journals A SAM-Based Analysis of the Economic Impact of Frauds in the Italian Wine Value Chain

Author(s):  
Donato Romano ◽  
Benedetto Rocchi ◽  
Ahmad Sadiddin ◽  
Gianluca Stefani ◽  
Raffaella Zucaro ◽  
...  

AbstractThe objective of this paper is twofold: firstly, it analyzes the evolution of frauds in the Italian wine value chain over the period 2007–2015, and then, using a properly disaggregated social accounting matrix (SAM) of the Italian economy, it simulates the impact of wine frauds on the national economy in terms of growth, employment, value added and income. The wine industry is the sector most exposed to frauds within the Italian agro-food system accounting for 88% of total value of seized agro-food outputs. Most irregularities (95%) are made by only three agents, specifically individual wineries, bottlers-wholesalers and retailers. We estimated industry-specific SAM multipliers to assess the share of the Italian economy depending on irregular wine production. These activities account for 11.5% of specialized permanent crop farms output and over 25% of wine industry output. This is a sign of vulnerability of the wine industry: should a food scandal/scare determine a drop in consumers’ demand, the negative effect on production activities of these sectors may be large. The SAM was also used to perform an impact analysis adopting a counterfactual approach. Results show a slightly positive increase of value added (6 million euro) along with an overall decrease in the activity level (an output loss of 406 million euro and more than six thousand full time jobs lost). This contractionary effect can be explained with fraud rents. Indeed, the extra-profits from frauds do not activate the economy circular flow as most of them leak out to exogenous accounts such as the public administration and the rest of the world.

2020 ◽  
Vol 12 (1) ◽  
pp. 99-108
Author(s):  
Sebastian Hadinata ◽  
Maria Merry Marianti

Cocoa is one of Indonesia’s plantation commodity that is important for the national economy. Cocoa plays a role in encouraging regional development and agro-industry. The purpose of this study was to find out the cocoa value chain in Indonesia and find out the impact of the downstream cocoa processing industry in Indonesia. The method used is literature study. The results of the analysis show that the downstreaming of the cocoa processing industry has a positive impact on Indonesia, the benefits of which are getting value added of raw material products, strengthening industrial structures, providing employment, attracting investors, and providing business opportunities in Indonesia.


2021 ◽  
Author(s):  
Laura Massano ◽  
Giorgia Fosser ◽  
Marco Gaetani

<p>In Italy the wine industry is an economic asset representing the 8% of the annual turnover of the Food & Beverage sector, according to Unicredit Industry Book 2019. Viticulture is strongly influenced by weather and climate, and winegrowers in Europe have already experienced the impact of climate change in terms of more frequent drought periods, warmer and longer growing seasons and an increased frequency of weather extremes. These changes impact on both yield production and wine quality.</p><p>Our study aims to understand the impact of climate change on wine production, to estimate the risks associated with climate factors and to suggest appropriate adaptation measurement. The weather variables that most influence grape growth are: temperature, precipitation and evapotranspiration. Starting for these variables we calculate a range of bioclimatic indices, selected following the International Organisation of Vine and Wine Guidelines (OIV), and correlate these with wine productivity data. According to the values of different indices it is possible to determine the more suitable areas for wine production, where we expect higher productivity, although the climate is not the only factor influencing yield.</p><p>Using the convection-permitting models (CPMs – 2.2 horizontal resolution) we investigate how the bioclimatic indices changed in the last 20 years, and the impact of this change on grapes productivity. We look at possible climate trends and at the variation in the frequency distribution of extreme weather events. The CPMs are likely the best available option for this kind of impact studies since they allow a better representation of surface and orography field, explicitly resolve deep convection and show an improved representation of extremes events. In our study, we compare CPMs with regional climate models (RCMs – 12 km horizontal resolution) to evaluate the possible added value of high resolution models for impact studies. To compare models' output to observation the same analysis it carried out using E-OBS dataset.</p><p>Through our impact study, we aim to provide a tool that winegrower and stakeholders involved in the wine business can use to make their activities more sustainable and more resilient to climate change.</p>


Botany ◽  
2016 ◽  
Vol 94 (3) ◽  
pp. 147-163 ◽  
Author(s):  
Anna Li-Mallet ◽  
Amélie Rabot ◽  
Laurence Geny

The grapevine (Vitis vinifera L.) is a widely cultivated species of major economic importance for wine production. The quality and quantity of grapes are criteria of prime importance to the wine industry, but they are highly variable from year to year. Unlike many perennial plants, cluster formation unfolds in two seasons: season 1 takes place in the bud until dormancy, and season 2 starts after budbreak in the following year. Season 1 corresponds to the initiation and differentiation of inflorescence primordia, controlled by many exogenous and endogenous factors, which explains up to 60% seasonal variation in yield. Season 2 consists of flowering and fruit development, which explains, respectively, 30% and 10% of seasonal variation in yield. It is therefore essential to understand the impact of these factors to better control the yield. This review aims to summarize past and present knowledge concerning the physiology of latent buds relating to their fruitfulness, and to assess the impact of environmental, hormonal, and regulation factors on the final yield. Avenues of further research to understand physiological, biochemical and molecular regulatory mechanisms of initiation and differentiation of clusters will be then proposed.


Author(s):  
MT Uddin ◽  
MM Islam ◽  
M Nasrin

The goal of the study was to analyze the different actors involved in the dairy products value chain with their value addition activities and estimate the demand for livestock products through measuring the availability of milk, meat and egg at individual level. With this goal, the study was conducted in four districts namely Sirajganj, Bogra, Rangpur and Narsingdi which were selected purposively for this study based on concentration of dairy farming and the presence of dairy processing plants/companies. The simple random sampling technique was followed to select a total of 240 from six types of stakeholders/ actors i.e., input suppliers, dairy farmers, milk traders, processing plants/companies including their branches/agents, credit organizations and service providers, and consumers of livestock products. Data and information were analyzed by using descriptive statistics, mathematical techniques, enterprise analysis, SWOT analysis and value chain analysis followed by graphical presentation. Cost of milk per litre was highest in Narsingdi (Tk. 25.33) and lowest in Sirajganj (Tk. 19.66). Dairy farmers in Narshingdi derived highest net return per cow per day (Tk. 109.48). Investment in dairy farming was highly profitable since BCR per day per cow in all the districts were more than one. Collection point/processing plants added highest value (35.5%) to a product followed by farmers (25.2%), milk traders (28.3%) and retailers (11.0%). The availability of milk, meat and egg was higher in all the study areas than the national average. The impact of price and income on quantity demand was statistically significant for all the products. The demand for milk and egg was price elastic whereas demand for meat was price inelastic. On the other hand, the demand for livestock products was found as income inelastic. However, in spite of various problems and threats, there is a great export potential for value added dairy products along with satisfying the unmet consumer demand in the domestic market for such products. Bangladesh J. of Livestock Res. 21-25: 45-55, 2018


2020 ◽  
Vol 12 (3) ◽  
pp. 387-407 ◽  
Author(s):  
Yumei Zhang ◽  
Xinshen Diao ◽  
Kevin Z. Chen ◽  
Sherman Robinson ◽  
Shenggen Fan

PurposeThe purpose of this study is to assess the potential economic cost of the COVID-19 pandemic on China's macroeconomy and agri-food system and provide policy recommendations to stimulate economic growth and agri-food system development.Design/methodology/approachAn economy-wide multisector multiplier model built on China's most recent social accounting matrix (SAM) for 2017 with 149 economic sectors is used to assess the impact of COVID-19 on China's macroeconomy and agri-food system. SAM multiplier analysis focuses on supply chain linkages and captures the complexity of an interconnected economy.FindingsThe paper finds that both the macroeconomy and agri-food systems are hit significantly by COVID-19. There are three main findings. First, affected by COVID-19, GDP decreased by 6.8% in the first quarter of 2020 compared with that in 2019, while the economic loss of the agri-food system is equivalent to 7% of its value added (about RMB 0.26 trillion). More than 46m agri-food system workers (about 27% of total employment) lost their jobs to COVID-19 in the lockdown phase. The COVID-19 affects the employment of unskilled labor more than that of skilled labor. Second, when the economy starts to recover during the second and third quarters, the growth rate in the value added of the agri-food system turns positive but still modest. Many jobs resume during the period, but the level of agri-food system employment continues to be lower than the base. The agri-food system employment recovery is slower than that of other sectors largely due to the sluggish recovery of restaurants. Agri-food system employment drops by 8.6m, which accounts for about 33% of the total jobs lost. Third, although the domestic economy is expected to be normal in the fourth quarter, external demand still faces uncertainties due to the global pandemic. The agri-food system is projected to grow by 1.1% annually in 2020 with resuming export demand, while only by 0.4% without resuming export demand. These rates are much lower than an annual growth rate of 4.3% for the agri-food system in 2019. The results also show that, without resuming export demand, China's total economy will grow less than 1% in 2020, while, with export demand resumed, the growth rate rises to 1.7%. These rates are much lower than an annual GDP growth rate of 6.1% in 2019.Practical implicationsThe results show that continuously reducing economic dependency on exports and stimulating domestic demand are key areas that require policy support. The agri-food system can play an important role in supporting broad economic growth and job creation as SMEs are major part of the AFS. Job creation requires policies to promote innovation by entrepreneurs who run numerous SMEs in China.Originality/valueThis paper represents the first systematic study assessing the impact of COVID-19 on China's agri-food system in terms of value added and employment. The assessment considers three phases of lockdown, recovery and normal phases in order to capture the full potential cost of COVID-19.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhushan Praveen Jangam ◽  
Badri Narayan Rath

Purpose This paper aims to examine the relationship between global value chains (GVCs) and domestic value-added content (DVA) in a panel of 58 countries for the period 2005–2015. Design/methodology/approach First, the authors quantify the refined measures of GVC linkages by using the Borin and Mancini (2019) decomposition technique. Second, the authors apply the feasible generalised least squares method to test the relationship between GVCs and DVA empirically. Findings First, the authors find that GVC links are crucial to the enhancement of DVA. Second, a study at the sectoral level reveals that GVC links in the primary sector raise DVA whilst reducing DVA in the services sector. Third, the authors find that only upstream activities enhance value-added content. Fourth, the authors note the augmenting role played by national policies in mediating the gains associated with GVCs. Finally, the authors note that the outcomes associated with GVCs are consistent when the sample of countries is divided into groups based on income. Practical implications The results lead us to urge policymakers to promote greater integration of business activities into GVCs to reap their benefits. Originality/value This paper contributes to the research on the impact of GVCs on DVA by emphasising the significance of the types of GVC activities and policies that improve DVA.


2019 ◽  
Vol 10 (9) ◽  
pp. 795-810
Author(s):  
Riccardo Gallo ◽  

This paper offers an analysis of the main industrial policy measures adopted by the three Italian governments following each other on from 2013. The first focused its industrial policy on boosting the creation of innovative start-ups and fostering small-scale enterprises in order to acquire new equipment. The second of these governments stimulated public aggregate demand and passed the reform known as the Jobs Act (2014). The industry’s capacity utilization rate rose in 2016, as did the value added of the companies to their net revenues. In 2017, the third government initiated a project aimed at driving the Italian economy into the Fourth Industrial Revolution. Up to now there have indeed been positive signals from the viewpoint of capital expenditure on plants and equipment, but not yet from that of knowledge and training for new jobs.


2018 ◽  
Vol 45 (3) ◽  
pp. 610-637 ◽  
Author(s):  
Carmen Díaz-Mora ◽  
Rosario Gandoy ◽  
Belen Gonzalez-Diaz

Purpose Drawing on the literature that has shown the prevalence of short-lived trade relationships, the purpose of this paper is to provide further understanding about this issue by exploring the impact of engaging in Global Value Chains (GVCs) on the chance of export survival at product-country level, paying special attention to the differences between advanced and developing countries. The authors also investigate whether the type of GVC participation (backward or forward) matters for export survival. Design/methodology/approach To capture to what extent a country’s exports are integrated in GVCs, the authors use the OECD Inter-Country Input-Output database to estimate value added incorporated in exports. Through the estimation of a discrete-time duration model, the authors explore the impact of engaging in GVCs on export survival using highly disaggregated trade data from the CEPII’s BACI database. Findings The findings endorse the hypothesis that deeper participation in GVCs is a key factor in explaining stability in trade relationships, mainly for developing countries where the trade flows are especially fragile. The authors also find different effects depending on the type of GVC involvement and on whether the value chain partners are advanced or developing. Originality/value The paper contributes to the literature by extending the understanding on the factors that promote the stability of exports, including among them, involvement on GVCs (and its forms) which is one of the most relevant factors to explain recent behavior of trade.


2019 ◽  
Vol 121 (2) ◽  
pp. 466-478
Author(s):  
João Pedro Ferreira ◽  
Pedro Nogueira Ramos ◽  
Luís Cruz ◽  
Eduardo Barata ◽  
Michael Lahr

Purpose The purpose of this paper is to offer an insight into the fundamental changes taking place in Port wine production value chains. Specifically, the authors examine two distinct production regimes: when Port is aged and sold in the Greater Oporto and, alternatively, when it is produced, aged and sold in Douro. Design/methodology/approach The authors apply a tri-regional input–output model (Douro, Greater Oporto and rest of the country) for Portugal’s economy. This framework comprises a significant level of detail, with 431 products and 136 industries, the corresponding supply and demand for the products, by industry (for intermediate consumption) and final demand. Findings This study shows that the two regimes generate noteworthy, but quite heterogeneous, regional impacts. In both cases, the distribution of value added generates international and interregional trade flows. Moreover, the study reveals a greater capacity to capture national value added by getting the supply chain more intensive in localised services and by using state-of-the-art production techniques. Originality/value Using detailed regional data, the authors use disaggregated information, both for industries as well for territories, overcoming a common limitation in similar works that are grounded in international databases. Additionally, the approach integrates the trade interactions among industries and regions, which proves essential to uncovering spillovers resulting from the (direct and indirect) use of inputs from other regions and other countries.


2016 ◽  
Vol 11 (1) ◽  
pp. 139-149 ◽  
Author(s):  
Nathalie Ollat ◽  
Jean-Marc Touzard ◽  
Cornelis van Leeuwen

AbstractClimate change will have a profound effect on vine growing worldwide. Wine quality will also be affected, which will raise economic issues. Possible adaptations may result from changes in plant material, viticultural techniques, and the wine-making process. Relocation of vineyards to cooler areas and increased irrigation are other options, but they may result in potential conflicts for land and water use. Grapes are currently grown in many regions around the world, and growers have adapted their practices to the wide range of climatic conditions that can be found among or inside these areas. This knowledge is precious for identifying potential adaptations to climate change. Because climate change affects all activities linked to wine production (grape growing, wine making, wine economics, and environmental issues), multidisciplinary research is needed to guide growers to continue to produce high-quality wines in an economical and environmentally sustainable way. An example of such an interdisciplinary study is the French LACCAVE (long-term adaptation to climate change in viticulture and enology) project, in which researchers from 23 institutes work together on all issues related to the impact of climate change on wine production. (JEL Classifications: Q1, Q5)


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