Agribusiness in Tuscany Facts and figures

1. Agribusiness in Tuscany Facts and figures

2. INDEX

3. WHY INVEST IN AGRIBUSINESS IN TUSCANY Great tradition and high quality productions Tuscany is among the regional leaders in agribusiness in Italy The entire supply chain is present within region International leader in some excellence products Diversification of production Integration with tourism and cultural heritage Tuscany is leader in farm tourism in Italy and Europe Human capital and infrastructure Dense network of educational and research centers Excellent logistic localization and infrastructure assets

4. Overview of Tuscany’s Economy Top 10 Southern European Regions Overall for FDI (FDI Magazine 2010) Population: 3.65 mln Regional GDP: €106 bln (6.7% of Country GDP) GDP per capita: €28,300 Export on GDP: 25% regional value Export Δ 11/12: +14% Main Exports : Machinery, Chemicals, Pharma All data source: ISTAT 2013 (data refers to 2011) Foreign multinational companies in Tuscany (number), 2005- 2011 • Tuscany ranked 6th in Italy for attractiveness of multinational companies in 2011 • Its share of FDI has continuously grown since 2005 • Today the Region employees over 32,000 workers in multinational companies • In 2013, according to a regional database on multinationals, overall multinational companies accounted for 501 companies (421 foreign and 80 Italian) Source: Reprint Database and Politecnico University of Milan (2012) Source: IRPET on ISTAT data 2012; 1991=100; real value

5. Agribusiness sector in Italy: facts and figures Italian exports Agricultural products Italian share of agricultural goods World export: 1.7% Italian share of food products on World export: 3,8% Food and beverage Increasing average unit values of exports: towards quality

6. Agribusiness in Tuscany Tuscany accounts for 6% of Italian exports in agribusiness. Exports increased by 30% in period 2008-2013 Agribusiness sector contributes to the 3% of Regional Gross Domestic Product, producing a total added value of around 3.15 Euro billions. Value added of agribusiness Europe is the main market, with 60% of exports. However, USA are the biggest importer from Tuscany (23%), followed by Germany (17%), France (9%), UK (8%) Around 85000 labor units are employed in agribusiness Fishery 1% Food industry 27% Agricolture 72% 84650 Labor Units Labor units in agribusiness in Tuscany

7. Variety of production Tuscan agriculture is characterized by specialization in production from woody plants, which is linked with grapes, olive, wood and plant nursery activities Production of Tuscan agriculture The more relevant productions in terms of added value in agriculture are wine (45% of Tuscan value added), wheat (16%), oil (11%), potatoes (7%), grapes (6%)

8. Changes in Tuscan agriculture 1. Towards diversification • Increasing role of secondary activities on agricultural turnover. • Those include mainly: • Farm tourism • Direct food production Share of secondary activities on agricultural turnover Average export prices, agriculture (blue) and food industry (red) 2. Towards quality Increasing production in high quality products, as shown by increasing export prices Tuscany

9. Tradition & excellence Tuscany hosts: 463 traditional food varieties (Italian Census of traditional food products, Ministery of Agricolture, 2013) 22 EU quality branded products (10% of Italian branded products): 14700 firms 40 varieties of wines with warranty assurance labels awarded protected geographical indication (PGI) Protected Designation of Origin (PDO) 38 DOC wine typologies 17 DOCG wine typologies 5 IGT wine typologies

10. Excellences in Tuscan agribusiness: EU quality brands Protected designation of origin (PDO) It designs products which are traditionally and prepared, processed and produced in a specific territory and thus acquire unique properties 12 products awarded PDO status in Tuscany

11. Excellences in Tuscan agribusiness: quality brands Protected geographical indication (PGI) PGI status can be awarded to products that are traditionally prepared, processed or produced in a territory 10 Tuscan products awarded PGI status

12. Excellences in Tuscan agribusiness Organic farming Organic faming is developing across the region: Around 2400 firms are involved in organic farming (3.4% of total firms): -1860 firms produce organic olive oil - 960 firms produce organic wine Cultivated surfaces doubled between 2000 and 2010 Renewable energy 2165 farm business firms product renewable energy. Tuscany is the 2nd region after Trentino-Alto Adige in terms of firms producing renewable energy. 1760 firms produce solar energy 173 firms produce biomass 39 firms produce wind energy 350 firms produce other forms of energy (hydro, geothermal,…) 39 firms produce biofuel

13. 23 Excellent sectors in Tuscan agribusiness Plant nursery Wine Per ogniaffermazionediamocifredievidenza (+ 1 slide)d Olive oil Farm tourism Major R&D centers and Universities in Tuscany

14. Excellences in Tuscan agriculture: wine • Italy is one of the World leaders in wine sector, both considering production and consumption: • the second world producer and exporter (after France) • - the third world market (after France and USA) Tuscany is the 7th Italian region in terms of wine production, but the 3rd considering the value of production, and the 10th European region (Eurostat, 2012) 26 000 firms producing wine High quality productions (DOC, DOCG, IGT labels) represent 82% of total wine production

15. Wine exports Wine exports have grown by 31% in period 2008-2013 Main importes from Tuscany are USA (29%), Germany (18%), Switzerland (7%), Canada (7%), UK (6%), Japan (4%) Main importers Source: Istat(2014) Source: Istat(2014) Source: Istat(2014)

16. QUALITY BRANDING IN TUSCAN WINES; 60 varieties of Tuscan wines awarded quality assurance labels Controlled designation of origin (DenominazionediOrigineControllata, DOC) Typical Geographic Indication (IndicazioneGeograficaTipica, IGT) • Controlled designation of origin guaranteed • (Denominazione di Origine Controllata e Garantita, DOCG) 38 typologies of Tuscan wine awarded DOC brand Ansonica Costa dell'Argentario , Barco Reale di Carmignano , Bianco della Valdinievole, Bianco dell'Empolese , Bianco di Pitigliano, Bianco Pisano di San Torpè , Bianco Vergine della Valdichiana Bolgheri e Bolgheri Sassicaia, Candia dei Colli Apuani, Capalbio , Chianti,Colli dell'Etruria Centrale , Colli di Luni, Colline Lucchesi , Cortona , Elba, Montecarlo, Montecucco , Monteregio di Massa Marittima , Montescudaio , Terratico di Bibbona, Moscadello di Montalcino  Orcia, Parrina, Pomino, Rosso di Montalcino, Rosso di Montepulciano, San Gimignano, Sant'Antimo, Sovana , Tazio, Valdorcia, Terratico di Bibbona , Val d'Arbia , Val di Cornia  Vin Santo del Chianti Vin Santo del Chianti Classico  Vin Santo di Montepulciano  5 typologies of Tuscan wine awarded IGT brand: Alta Valle della Greve  Colli della Toscana Centrale  Maremma Toscana Toscano o Toscana  Val di Magra  17 typologies of Tuscan wine awarded DOCG brand: Brunello di Montalcino Carmignano Chianti Classico Chianti ColliAretini Chianti ColliSenesi Chianti ColliFiorentini Chianti CollinePisane Chianti Montalbano Chianti Montespertoli Chianti Rufina Chianti Superiore Montecucco MorellinodiScansano Suvereto Val diCornia Vernacciadi San Gimignano Vino Nobile diMontepulciano

17. Excellences in Tuscan agriculture and food industry: olive oil In the period 2008-2013 the value of exports increased by 40% 50 300 agricultural firms are operating in Tuscany 92 000 hectares cultivated, 15 million plants 18 000 tons annually produced 3.7% are organic farming 5 typical production brands High quality allows for higher price than competitors High integration between agriculture and oil production Source: Istat(2014) Source: Istat(2014) Source: Istat(2014)

18. Excellence in oil: Extra virgin olive oil Toscano IGP • The brand Olio Toscano IGP (Protected Geographical Indication) • Is a guarantee brand indicating that the oil responds to several requirements across the entire supply-chain. Quality is guaranteed by the Consortium for the protection of Tuscan extra virgin olive oil, which established the Disciplinary rules of Production, in order to protect the quality and the traceability of the oil. Main rules are: • Oil should be extracted exclusively and entirely from olive groves grown in Tuscany. All plants are registered. • Crushing operations should be done exclusively within Tuscany and mills should communicate operations to the inspection bodies. • Oil should pass several inspections and chemical and sensorial tests determined by the product regulation. • Bottling and packaging should be made within Tuscany. • Traceability: • Each bottle of Tuscan Extra Virgin IGP is labeled around the neck of the bottle with the alphanumeric code. This allows to track the supply chain. By entering the code on the website of the Consortium, one can have information on who cultivated the olives, who pressed them and who bottled them.

19. Excellences in Tuscan agribusiness: plant nursery and flower industry Tuscany is the main Italian region in plant nursery and flower production (15% of national production) Plant nursery accounts for around 30% of agricultural production in Tuscany, with around 5500 labor units. Strong performance on foreign markets: Tuscany is the Italian leader region in exports of plants and flowers (44% of national exports) Source: Istat(2014) Source: Istat(2014) Source: Istat(2014)

20. Excellences in Tuscan Agriculture: rural tourism Rural tourism has gained widespread diffusion in Tuscany, counting around 4200 firms and 57000 places available in structures. Nowadays Tuscany is the Italian leader in rural tourism, both in terms of supply of structures and tourist arrivals and overnight stays. Farm tourism hosts over 7% of total tourist presences in Tuscany (more than three millions nights in Tuscany). 65% of guest are non Italian Tuscany hosts 20% of Italian farm tourism structures and 30% of nights spent by tourists in Italian structures

21. Excellences in Tuscan Agriculture: rural tourism (2) Wine, oil and flavors of Tuscany Trails Is a network of 22 tracks within Tuscan territories characterized by high specialization in wine, oil, and other typical products. They represent an effective way of promoting territories and their high quality products, by means of dedicated web sites, smartphone and computer apps and specific initiatives within territories

22. 23 I Human capital and research in agribusiness Tuscany offers a wide network of institutions offering education and/or research applied to agribusiness GENOVA - FRANCE MILANO U Universities & Research • Universities • University of Pisa • Scuola Superiore Sant’Anna of Pisa • University of Florence • University of Siena • Research centres • Ibimet-CNR (Florence) • CRA (Council of Research and experiment in Agriculture, plant nursery branch) • INEA (National Institute of Agricultural Economics) • High Schools and professional training • 30 schools offer 74 technical and professional courses • on agribusiness studies, with 6000 students enrolled • Innovation poles • Poles on agribusiness industry (Grosseto) and on plant nursery (Pescia) will be launched soon S toaccess and distributefor major EuropeanMarkets U S S S S S S U S S S S U Per ogniaffermazionediamocifredievidenza (+ 1 slide)d S S S U S U S U S S S S S S U S I S Major R&D centers and Universities in Tuscany I S • Livorno harbor • Carrara harbor • Piombino harbor ROMA • A1 Highway Milan/Florence/Rome/Naples • A12 Highway to Genoa and France • Florence International Airport • Pisa International Airport

23. 23 Transport infrastructures Tuscany is strategically located in Central Italy GENOVA - FRANCE MILANO Highways • A1 the main Italian highway, linking North and South • A11 linking Florence with Pisa-Viareggio • A12 linking to Genova , Turin and France • Main markets and logistic centers • InterportoToscanoAmerigo Vespucci, Livorno • Interportodella Toscana Centrale, Prato • MercatodeiFioridiPescia • Harbors • Livorno, Carrara, Piombino • Airports • Pisa International Airport • Florence International Airport • Bologna Int. Airport is 100 km from Central Tuscany • Rome Fiumicino Airport is 300 km from Central Tuscany and 170 km from Southern Tuscany • Milan Malpensa Airport is 350 km from Central Tuscany toaccess and distributefor major EuropeanMarkets Per ogniaffermazionediamocifredievidenza (+ 1 slide)d Major R&D centers and Universities in Tuscany • Livorno harbor • Carrara harbor • Piombino harbor ROMA • A1 Highway Milan/Florence/Rome/Naples • A12 Highway to Genoa and France • Florence International Airport • Pisa International Airport

24. Regional policy • Main guidelines for policies carried out by Regional Administration are the following: • Promotion of branding, especially regarding high quality products • Promotion of investment, especially those regarding training, innovation and research • Promotion of private and public research • Promotion of multifunctional firms and integration between farming and tourism • Promotion of low environmental impact productions

25. The Promoter Under the President of Regione Toscana, the government of the Region, an investment promotion program was undertaken to facilitate investments from foreign companies in the field of Cultural Heritage Along with Toscana Promozione, we support foreign companies willing to locate in Tuscany Our service is free of charge and strictly confidential Our experts can help you do business in Tuscany by: • Providing investment opportunities • Scouting and groundwork for potential investors • Establishing leads • Assisting investors: assessment, contacts, negotiation and after-care services Services for investors • We provide information services for investors wishing to locate their business in our region on issues ranging from incentives and market information to location opportunities • The service is free of charge and confidential • Take advantage of our network. It is at your disposal to give you detailed information, including: • Availability of location opportunities • Macro - economic and sector data • Start-up information • Bureaucratic procedures • European, national and regional incentives and grants

26. ContactDetails: INVEST IN TUSCANY Region of TuscanyDirectorate General for PresidencyRegional policies for attracting inward investments Piazza Duomo, 1050123 Florence, Italy Tel: + 39.055. 438 2425 / 5033 / 4896Fax: + 39 055 4384135Email: info@investintuscany.com www.investintuscany.com