Application of “unique payment” in Italian citrus market The introduction of a “unique payment” regulation in the citrus market by the Italian Minister of Agriculture (“Mipaaf” Law n. 3635 del 21/12/2007, art. 3) has brought a new calculation process and a new modality of assignment of the legal producing “title”. This regulation system looks like a very specific and strange model in certain sense. In scientific literature there is a large number of authors ( Frascarelli 2007, Scuderi 2008, etc.) that recognize that this system is a kind of compromise between technical rules and political reason structured together in order to support the actual “status quo ante” and the economic logical reason of the revenue aid (Canali 2007). In Italy, at the beginning of the reform process, The Minister of Agriculture Mr Paolo De Castro foresaw a unique linear payment, but the political pressures of some regional operators convince him in changing this hypothesis. The introduction of the revenue aid, replace the one directed to the agricultural product transformation industries. This aid was recognized like a solution against the ordinary activity of retiring products by AIMA agency that use to destroy it . For the production of citrus, the processing industries is not an economic eligible market but a kind of “come out” system, that demonstrate a failure of the farmer. At the same time, this system have stimulated many speculations in order just to obtain the aid of the European Community ( this is very present in literature). Probably a different application of unique payment system could constitute an opportunity to organize the market in a better way. In order to understand what result coming up from this process, even because the innovation involve effectively very different product, considering cultivation techniques and market organisation (lemon, pigment, and blond orange, small fruits), this paper present the first representation of the market evolution, taking in account the specific production characteristics, the agriculture sector dynamics and its evolution in relation to the measure of the pre-decoupling, fixing a base to analyse the effects of the “unique payment” system from 2008 year (Sotte, 2008). Furthermore, we present a study on the adopted calculation process and some projection of its applications according to AGEA and SIAN data explaining the potential distortions that cold be generated as a probably result considering the quality citrus disappear and the surviving activity to marginal farm ( like the Gresham law). The attention is focused on the citrus farms in Italy. The survey is made through historic series on prices, productive efficiency, products volumes for direct consumption and conferred products ( before to AIMA and after to industries).

Application of “unique payment” in Italian citrus market

RIZZO, MARCELLA;RAPISARDA, Placido
2010

Abstract

Application of “unique payment” in Italian citrus market The introduction of a “unique payment” regulation in the citrus market by the Italian Minister of Agriculture (“Mipaaf” Law n. 3635 del 21/12/2007, art. 3) has brought a new calculation process and a new modality of assignment of the legal producing “title”. This regulation system looks like a very specific and strange model in certain sense. In scientific literature there is a large number of authors ( Frascarelli 2007, Scuderi 2008, etc.) that recognize that this system is a kind of compromise between technical rules and political reason structured together in order to support the actual “status quo ante” and the economic logical reason of the revenue aid (Canali 2007). In Italy, at the beginning of the reform process, The Minister of Agriculture Mr Paolo De Castro foresaw a unique linear payment, but the political pressures of some regional operators convince him in changing this hypothesis. The introduction of the revenue aid, replace the one directed to the agricultural product transformation industries. This aid was recognized like a solution against the ordinary activity of retiring products by AIMA agency that use to destroy it . For the production of citrus, the processing industries is not an economic eligible market but a kind of “come out” system, that demonstrate a failure of the farmer. At the same time, this system have stimulated many speculations in order just to obtain the aid of the European Community ( this is very present in literature). Probably a different application of unique payment system could constitute an opportunity to organize the market in a better way. In order to understand what result coming up from this process, even because the innovation involve effectively very different product, considering cultivation techniques and market organisation (lemon, pigment, and blond orange, small fruits), this paper present the first representation of the market evolution, taking in account the specific production characteristics, the agriculture sector dynamics and its evolution in relation to the measure of the pre-decoupling, fixing a base to analyse the effects of the “unique payment” system from 2008 year (Sotte, 2008). Furthermore, we present a study on the adopted calculation process and some projection of its applications according to AGEA and SIAN data explaining the potential distortions that cold be generated as a probably result considering the quality citrus disappear and the surviving activity to marginal farm ( like the Gresham law). The attention is focused on the citrus farms in Italy. The survey is made through historic series on prices, productive efficiency, products volumes for direct consumption and conferred products ( before to AIMA and after to industries).
unique payment; farm analysis; OCM fruit
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/20.500.11769/102818
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