Entrepreneurial Skills of Farmers in Tuscany: Developing independent attitudes

Antonella Ara; Mara Miele; Terry Marsden; Selyf Morgan; Diego Pinducciu;

Cardiff University, Wales and Pisa University, Tuscany

RC- 40 Miniconference Wageningen

August 2007

Entrepreneurship and Farmers

• Shifts in Policy instruments to support farmers

• Process of developing proactive attitudes among farmers

• Developing Entrepreneurial Skills identified as a significant issue

EU ESoF: Developing the entrepreneurial skills of farmers www.esofarmers.org

6 Partners: UK, Italy, Finland, the Netherlands, Switzerland, Poland

General Objective of the project:

To identify conditions (social, economic, cultural and political) that can facilitate the development of entrepreneurial skills by farmers

Exploration of the significance of entrepreneurship in Agriculture.

In this EU-project entrepreneurship is considered in terms of entrepreneurial skills and these are used in a certain context

• Entrepreneurial skills are connected to capabilities, activities and tasks that are focused on starting, developing and continuing a profitable business.

• These skills are seen as higher order abilities that are deployed differentially to attain goals

BULKFarms without non-agricultural business concentrating on primary production

Added ValueFarms without non-agricultural business engaging in value adding activities (e.g. processing, niche marketing)

Non-Food DiversificationFarms with non-agricultural business (any non-food business)

The ESOF Typology: Farmer Business Strategies and Entrepreneurial Skills

3 sets of skills examined:• Creating and Evaluating a Business Strategy

• Networking and Utilising Contacts

• Recognising and Realising Opportunities

• Self Presentation; Interpretation; Comparison between groups

Are you good at networking and utilising contacts? Is this one of the most important skills, from your own perspective?

1. Interviewee report of own skill in networking and utilizing contacts

2. References by interviewee to networking and/or contact utilization : what kind of networking/contact utilization?

3. Reference to the purposes or reasons for networking or utilizing contacts, or about how networking or utilizing contacts should be done

4. References to the importance of these skills

Illustrating skills assessment: networking skillsIllustrating skills assessment: networking skills

Bulk AV Diversification

Nature of networks and contacts/environment

Farmer Trade Unions Associations organisations, Cooperatives

Female Association, farmers’ markets, farm-business, Sales Association, Organic Association,

Farm and agri-touristic business, several actors from civil society

Purposes Solutions to common problems: marketing, selling, innovation systems, findings, prices

Marketing, selling, exchange opinions, suggestions, innovation systems, common findings, short chain,

Improve selling, agri-tourism, growth of the area, promoting activities of diversification, activate Projects;

Example: Good Networking Skills

Farmer Appreciation of Strategy

• ‘We adapt. We check what there is to be done - it isn’t something planned....but how can you plan agricultural production?...Our dimensions (farm size) is small…’ (Farmer 4; NFD)

• ‘I pursued and am still pursuing a strategy to develop this farm and be able to keep on with this job…if I had continued with the same farm I had in 1997 and previous years today for sure I wouldn’t be here farming. The strategy I selected instead allows me to continue and my future perspectives are not so dark’ (Farmer 6;Bulk)

• ‘I store data on milk and cheese production for the year. The following one I verify what I did the previous one, so its not a real strategy…I just know what I’ve done and if things are well I keep on along the same way….We have in mind the idea of increasing the number of goats, but there is no real strategy. If this year 20 female goats are born then we increase by 20; if only 10 are born, we increase by 10..’ (Farmer 10; Bulk)

Farmer Appreciation of OpportunitiesStrategy coherent with local opportunities• ‘I have a business strategy, which is (about) how external

eyes see our image…I’ve always been convinced that any business…working in a social context necessarily highlights its original area. In this case we are in Tuscany and it’s obvious that you need to refer to your farm products. In this way you can create synergies with other businesses..’ (Farmer 1; NFD)

Strategy Coherent with values and visions• ‘To be successful you need also to know yourself, because

what you want is the basis or destiny of your life’ (Farmer 16)

Opportunism and Visions

• ‘..here mutifunctionality of farms is more alive that in other places…farming is connected to the territory here..with tourism…local administrations are very happy to incentivise us.’(Farmer 9, VA)

• ‘To be successful you need also to know yourself, because what you want is the basis or destiny of your life’ (Farmer 16)

Farmer as Entrepreneurs in Tuscany

The ‘Tuscan Model’: Main Features include:– A concentration of small and medium sized farms– An emphasis on quality products– Diversification in agricultural production and, to some

degree a greater appreciation of the role of women in this

– Developed marketing networks both locally and internationally

– Good quality physical environment and a valued agricultural landscape that is integrated into the agri-food offer

Practical indications of Tuscan Model

• 10 PDOs• 9 PGIs

– with a value in 2003 of around 100 million Euro• Over 451 traditional products; processing, preserving and

maturing methods carried on the territory for a period of at least 25 years’ (ARSIA)

• Direct selling on farm, farmers’ markets, • Wine routes• Purchasing consumer groups• Organic farming - 9% of the farmed land• Agri-tourism- on-farm tourist accommodation (3 250 farms)• Educational farms, Social-care farms

The Role of the Tuscan Region

The Rural Development Plan in Tuscany strongly promote new forms of Multi-functional agriculture and diversification

– Agri-tourism and Care activities– Organic agriculture– Specialised Agriculture (olive oil and wine production,

PDO/PGI Traditional/typical products)– International markets for niche products– Environmental concerns