RY
OPERATORS IN ITALY.
Michelangelo Leis and Alessio Martinelli
CIV Consorzio Italiano Vivaisti
Via Romea 116
44020 S. Giuseppe di Comacchio (Ferrara)
Italy
Since the nursery industry is an intermediate supplier, their needs and expectations depend on the needs of the entire horticultural chain. We therefore surveyed the various sectors of the horticultural chain in Italy to identify needs expectations for new products and processes.
Quality and healthiness, associated with longer shelf life and
lower cost, were common requirements listed by all respondents.
Nursery and production organizations, that did research on improving
varieties, were very concerned about patent protection. However
marketing organizations had little cognizance of this issue. The
"variety" as a key factor emerged as fundamental for
nurseries. Patent protection actions and sanitary control standards
were deemed essential by nurseries and plant breeders in public
institutions in order to ensure quality and to avoid unfair competition.
The nursery industry is an intermediate supplier in the horticultural
chain with a very important position as the developer of new varieties.
Nurseries traditionally play the role of taking new varieties
from the breeders to the growers, thus, playing a critical rolees
from the breeders to the growers, thus, playing a critical role
in their promotion and commercialization.
Dynamic changes occurring in the production and commercial components
of the horticultural chain are challenging nurseries and are forcing
them to evolve with the rest of the chain.
Innovation for the future is, therefore, essential; but in what
direction will it occur? Development of new, healthier products
with improved characteristics and better suitability for the new
production systems will certainly continue. Process innovations
will involve automation, cost reduction, and environmentally friendly
management systems.
Different components of the horticultural chain in Italy were
surveyed to identify priorities with particular regards to the
Italian situation. Although the direct beneficiaries of nursery
innovations are the growers, the final beneficiaries are consumers,
marketers and the processing companies.
The survey aimed at identifying the needs and expectations of
horticultural. research by Italian private operators with special
reference to fruits and vegetables. Attention was paid to goals,
economics, and private research.
2.1 Goals.
What are the factors in terms of product and process thought to
have major impacts on the future development of Italian horticulture?
Horticultural production in Italy is characterture?
Horticultural production in Italy is characterized by high technical
input, high costs, high productivity and good reputation; but
market results are often far different from growers' expectations.
In order to correctly direct future research it is important to
identify which innovations have the potential to make the biggest
impacts.
2.2 How sustainable will be the research and its applications.
There are two major pressures on the horticultural industry to
maintain both high quality (in broad terms) and low cost. Are
those two components compatible at least in most cases? Should
we place more emphasis on one or the other? Is our system able
and/or willing to pay for innovation?
2.3 Private research.
Both the big multinational chemical and seed companies, as well
as private Italian companies, are becoming more and more involved
in horticultural research. To complete the whole picture, it is
important to know their plans and expectations.
A questionnaire was prepared to survey research needs. The questionnaire, which was more descriptive than analytical, was sent to some of the most important operators and associations in the horticultural chain who were asked to identify, and provide input on, research trends.
The sectors contacted were :
Questions focused on future expectations for products and processes,
and on economics, research, and the impact of patents.
4.1 Innovation of products
4.1.1.Quality aspects of products.
Question
What are the aspects that will be most important in determining
the marketing quality of horticultural products in the next 10
years? This question was asked of all sectors, and they all agreed
on two main expectations: intrinsic quality and healthiness.
Different sectors disagreed on quality priorities; but flavor, appeal, shelf life, and freshness (meaning produce at the correct ripening point, "ready to eat," and fresh as just picked) were considered most important for the near future by most sectors dealing with fresh produce production and marketing. Uniformity, size standardization and continuous availability were important traits listed by fruit, vegetable and flower sectors.
Details will be analyzed and presented.
The most important priority regarding healthiness was for reduction
of both chemical use and chemical residues on produce. Also rated
highly was the need to increase the nutritional value of fresh
ce. Also rated
highly was the need to increase the nutritional value of fresh
produce.
Question
Which problems should be solved related to the previous aspects?
Examples include marketing fruits, especially pears and peaches
at the correct stage of ripening, insuring that produce is free
of chemical residues, and guaranteeing the quality of fruits and
vegetables that are used for processing.
Question
What are the research expectations regarding the above points?
4.1.2. Agronomic aspects of products<
4.1.2. Agronomic aspects of products.
These questions were asked only to growers, their associations,
producers and breeders.
Question
Improvements in which of the following agronomic aspects will
be most important in the next 10 years?
Question
Which of the above is the highest priority for research?
4.2. Process innovation
"Process" expectations were not very different from
"products" expectations and dealt mainly with eco-compatibility,
production efficiency, and produce-keeping quality. The need for
reduction of pesticide usage, lower labor and energy inputs, and
better techniques to ensure produce quality in the production
phase were emphasized.
Much importance was placed on post-harvest, handling and storage,
and transportation and marketing. Process innovation in these
three areas was a strong need. One example giveeting. Process innovation in these
three areas was a strong need. One example given was the need
for "natural" controlled atmosphere (CA) storage in
special bags.
4.3 Economic aspects
These questions were asked to help prioritize research needs based
on the assumption that it will be necessary to reduce future costs
to consumers.
Question
Which components of the horticultural chain (production, storage,
transport, packing, promotion and marketing
.) have the
most potential for cost reduction over the next 10 years?
The feeling was that both the costs of production and the producers'
earnings are already maximally compressed, and any further pressure
there would damage the entire horticultural chain. Future cost
reductions will, therefore, have to occur in packing, transport,
storage, promotion and marketing.
Question
What innovations would be most useful in reducing costs as indicated
above?
In terms of product, increasing both storage and shelf life and
the degree of automation in harvest and handling will be most
important.
In terms of process, research into post-harvest technology, development
of re-usable packing materials, and increasing the degree of automation
were deemed most important.
Question
How would innovations that improve the quality and healthiness
of horticultural products, while, however, also increasing thty and healthiness
of horticultural products, while, however, also increasing their
costs, be accepted?
Italian consumers will pay a premium for a "plus" (in
particular for healthiness), but this "plus" has to
be real and has to be communicated.
It was generally thought that this premium could not be too large,
and that the challenge is in communicating the real benefit to
the consumer. If the industry works towards these premiums, then
patent protection and careful management throughout all the horticultural
chain will be essential. The new European patent legislation that
will extend protection to the final product will help facilitate
the achievement of improved horticultural product and price.
4.4 Research
The different sectors were polled about their research and development,
both in-house and contracted, and about their research investment
as a percentage of their total budget.
Most research is in the production sector, with breeding and testing
new varieties representing the biggest investments.
Seed companies are the most advanced, with the biggest being branches
of large, multinationals, and not just Italian companies.
Fruit nurseries are increasing their research efforts, especially
in breeding and in automation.
Grower associations are involved mainly in variety evaluations.
Processing companies are doing both in-housvaluations.
Processing companies are doing both in-house and contract research.
Contracting to public institutions is the most common way of supporting
, innovation, but the biggest dealers do some of their own research
on packaging and post-harvest physiology.
There were strong feelings expressed that important research should
be integrated throughout all components of the horticultural chain.
4.5 Patents
The questions concerned the influence of intellectual property
protection on fundamental research, applied research, and commercial
development.
Breeders and nurseries were most knowledgeable about patents and
breeders' rights. Commercial operators and producers and supermarket
buyers knew little about this important area, while grower associations
were attempting to become more educated. This finding was not
surprising because in Italy only nurseries are involved because
only propagation and planting materials are protected.
The new European patent law, however, will influence retail sellers'
policies because the final products will be protected throughout
the chain, including the production, marketing, and processing
steps.
In general strengthening the patent protection was seen as a positive
by all the sectors because it will help the horticultural industry
to recover investments in research. Furthermore, patents were
seen as promoting innovation anesearch. Furthermore, patents were
seen as promoting innovation and stimulating integrated approaches
to development of new varieties and technologies.
An overriding conclusion supported by producers and nurseries
is that the market should drive research because, of course, the
products of research must be purchased by consumers. Research
thus dictated by consumers must be integrated throughout the horticultural
chain, and must be well coordinated between the public and private
sectors. An effort should be made to improve communication among
the different sectors of the horticultural chain, and between
them and the public research institutions. This effort should
be strongly supported by policymakers.
The final quality of an agricultural product is the sum of production
and services. Maximum efficiency in both components is essential
to optimize profits throughout the chain. Optimizing efficiencies
and integrating research throughout the chain will make it possible
to allocate adequate resources , to share risks, and to better
exploit the innovations in the future. Nurseries will play a major
role in the chain through development of new varieties (via collaboration
with breeders), testing of new genotypes, and development of new
production systems that can ensure plant health. New molecular
techniques will speed up development of the latter.
Italian and European companies must set and
Italian and European companies must set and maintain new phytosanitary
and quality standards; however, these will increase production
costs at the same time that they guarantee product quality.
Public institutions must play a key role by enacting, communicating,
and enforcing intellectual property (patent) and phytosanitary
laws.
As the horticultural market becomes more and more globalized,
international standards will become increasingly important for
ensuring business success and for minimizing situations of protectionism
and unfair competition (Fig. 1).
The new European Plant Patent Law will be a key factor in integrating
research throughout the horticultural chain. Previously, only
nurseries were interested in patents because they covered only
the propagation and sale of plants. Today, products (fruit) and
derivatives are also covered. Growers, processors, and marketers
are involved in the protection of, as well as the opportunity
to develop and exploit, new varieties. The first applications
are now in the pipeline: the apple variety Pink Lady® Cripps
pink*, and some peach varieties. One strong need is for tools
like molecular typing that can be used to protect patents.
Biotechnological applications--transgenic plants, molecular markers,
and new diagnositc tools--will also promote chain integration
because breakthroughs will require large investments in basic
and appughs will require large investments in basic
and applied research that will have to be spread throughout the
chain. Investment risks in biotechnology, especially in transgenic
plant development, are very high; and consumer acceptance is doubtful.
Although the nursery industry is interested in biotechnological
innovations, only research projects that involve both public institutes
and private operators throughout the horticultural chain can result
in significant breakthroughs.
Survery respondents stressed the importance close partnering between
public and private researchers in all areas. These partnerships
should be built on:
The ability of the Italian horticultural industry to respond to
challenges and to flourish over the next 10 years will depend
on how successfully they prioritize their research and integrate
their efforts. The most progressive nurseries are aware of the
need of research and of the need to get involved in implementing
co-operative research projects.
Figure 1.