Typical products and local development: the case of Parma area

The purpose of this study is to check the presence of reciprocal synergies between typical and traditional products and local development. The area in question is the province of Parma, where the presence and intensification of relations between the primary and secondary sector were, in the first fifty years of the century, the deciding factors of the economic development (Basini and Forestieri, 1989; Giacomini and Mora, 1996). To analyse this case we used the method of the chain-analyses, to study Parmigiano Reggiano Cheese (PR), and the idea of agro -industrial districts to examine Parma Raw Ham case. 1. THE LOCAL ECONOMY 1.1 The development: an outline Parma faced the first fifty years of the century with a renewed agriculture , from a technological point of view, and a large number of firms which undertook the processing of agricultural products, even if they still had artisan peculiarities. Moreover, at the end of the First World War, the chief ? Filippo Arfini is responsible for § 2 and Cristina Mora for § 1 and 3. 1 In 1890 the processing of agricultural products used 30% of the employed workers, milling industries more than a half and cheese dairies 23% of the whole. The first industry census in 1911 showed that a good 245 firms out of 594 were interested in the processing of agricultural products. In 1927 “the most important industries of the province were those which were based on the processing of agricultural products: food preservation, dairy , milling, and pork industry.” (Lo Monaco, 1930). 2 On this subject it is important to underline the privileged relation that has always characterised the agricultural world and the most important local banking company (Cassa di Risparmio of Parma, today of Parma and Piacenza). (Basini G.L., Forestieri G., 1989). Filippo Arfini, Cristina Mora Zanetti 12 food-industries had to increase production to meet the rising demand by stimulating the expansion of agricultural cultivation: the production of sugar-beets increased: 8,000 tons in 1918 and 24,500 in 1920; in 1924 the production of tomatoes tripled, compared to the production of 1919. The chief industries were those which were based on the processing of agricultural products: food preservation industry, dairy industry, milling and pork industry, etc. These are typical local industries not only because they are based on the processing of local agricultural products, but also because they are grounded on local capitals . After a long period of crisis (1930-1945), Parma, which had come out of the war conflict less damaged than other cities and with a production system specialised in agro -food, lived more intensely than other provinces the period of fast development of the Italian economy which is named “economic miracle”. Since the first years of the post-war the local economic growth had been faster than the national and regional one, to the point that during these years the income per person was higher than the national one by 20,5 % and by 15,6% compared to the regional datum. Development was favoured especially by the rapid growth of the secondary and the services sector. From 1936 to 1961 the assets of the primary sector passed from 59,6% of the total amount to 32%, and the agricultural added value passed from 60% to 32%. In 1951 the economy of Parma was more bounded to the primary sector than the regional economy (34%) and the national one (23%); however, 25 years later the relative economic prominence passed from agriculture to industry, which recorded one of the most important growths in the country. During these years Parma lived a period of real change, in the economic and social field, which had a weigh upon the features of the primary sector and upon its importance in the local production system. Moreover, the Sixties recorded a rapid and general improvement of the living standard and of the private income, and this caused a rapid growth of the demand of foodstuffs and agricultural products, followed by positive effects upon the income of the sector. However, the real development of this area took place during the last years of the Sixties, when the country was taking the road of the great economic growth, and it was stirred at first by the big business, then by a characterisation at local level (North-East and Centre area) and with sectorial peculiarities; from the traditional manufacturing industry (textile-clothing, shoe-manufacturing, food industry) to sectors characterised by mechanical specialisation. 3 The industry census of 1927 is the only source of information about the industrial structure of this period. Typical products and local development:the case of Parma area 13 Tab. 1: Food industry and its manufacturing equipment Year 1995 Sales (billions £) Employed* Export (billions £) Pasta and baking, pastry, cereals, sugar, soups, frozenfood 6,200 6,500 382 Dairy products, milk, ice-creams 2,600 2,000 37 Animal preserves and butchering 1,600 4,000 170 Vegetable and fruit preserves 450 1,255 185 Drinks: mineral waters, non alcoholic drinks, wines, spirits. 80 300 6 Other sectors: fishing industry, feeding, etc. 340 150 59 Food Equipment 2,200 8,700 1,187 Total (food and equipment) 13,470 22,905 2,026 Total (industry and handicraft) 23,900 65,000 3,747 Source: Unione Parmense Industriali, 1996 * ISTAT, 1991 Census. SALES FOOD INDUSTRY, 1995 Pasta and baking 52% Milk and dairy products 23% Drinks 1% Animal conserves 14% Others 6% Vegetable conserves 4% Filippo Arfini, Cristina Mora Zanetti 14 Parma represents 1/4 of the workers of the regional food industry, which is second at national level, and 3.5% of the national total amount. Tab.2: Local unity (Ul) and employed (Ad), food industry and other connected industries 1951 1961 1971 1981 1991 Ul Ad Ul Ad Ul Ad Ul Ad Ul Ad Tot. 1 083 5 097 1 133 7 957 1 484 11 133 1 849 14 550 1 352 13 960