Abstract

Marginal rural areas are undergoing major pressures from the effects of globalization, especially when no alternative has been found to conventional extensive agriculture and a lack of investments and vision squeezes the income of farmers. The objective of the paper is to show how Integrated Supply Chain Projects (Progetti Integrati di Filiera (PIF)), Italian rural policy tools funded in the framework of EU’s Rural Development Policy, can integrate supply chain innovation and territorial integrated strategies, fostering a multifunctional development of marginal rural areas towards a newly discovered identity. The case study is the PIF “Flora Aromatica Santa Luce” funded by the Tuscany Regional Administration RDP in 2016. The project aims at creating a new supply chain of organic aromatic plants in the Santa Luce Valley (PI). The integration is based, on the one side, on the creation and valorization of the new supply chain product, represented by an organic cosmetic line made with lavender essential oil, and, on the other side, on the territorial development of the Valley, in an economic, social, environmental and touristic perspective. From a theoretical point of view, the approach used was based on the new rural development paradigm, assuming that the processes of broadening, deepening and regrounding, together compose the main axis of rural development. The canvas model was used in order to identify a business model for the new supply chain and the territorial development of the area, while, at the methodological level, a participatory action research (PAR) approach was adopted. Results show how a supply chain project (like a PIF) can enhance innovation and stable commercial relationships within the supply chain and support processes of vertical and horizontal coordination, but also stimulate extended territorial strategies supporting the integration processes between agriculture, processing and other economic activities following a territorial multifunctional development logic. At the same time, key benefits for the policymaker and local administrations can also be identified in particular for marginal rural areas where farmers and other local actors are weaker and collective action is more difficult. Thanks to the PAR approach, a PIF can stimulate participation of farmers to relevant RDP measures but also allow convergence of individual actions towards wider regional and local strategic objectives.

Highlights

  • IntroductionMarginal rural areas are undergoing major pressures from the effects of globalization, especially when no alternative has been found to conventional extensive agriculture and a lack of investments and vision squeezes year by year the income of farmers.The EU’s Rural Development Policy 2014–2020 identifies as main strategic objectives the improvement of the competitiveness of agriculture, a sustainable management of natural resources and climate action and a balanced territorial development of rural economies and communities, including the creation and maintenance of employment (Reg. (EU) n. 1305/2013).In order to increase the competitiveness of the agri-food and forestry system, Italy, in its 2014–2020 partnership agreement, has defined a strategy based, on the one hand, on the support for the organizational and structural growth of the single enterprises and, on the other hand, on the increase in investments in the agricultural, agri-food, forestry, aquaculture and fisheries supply chains (Dipartimento per lo Sviluppo e la Coesione economica 2014)

  • Special attention is paid to the creation and consolidation of supply chains, which emphasizes the intention to give continuity to the positive experience of integrated supply chain design, the tool for the implementation of rural development interventions introduced by the National Strategic Plan (NSP) for the programming period of 2007–2013 (Cristiano and Tarangioli 2010)

  • The objective of this paper is to show how an Integrated Supply Chain Project (Progetto Integrato di Filiera (PIF)) can stimulate innovation in the supply chain, but at the same time activate a process of multifunctional development of a marginal rural area towards a newly discovered identity, as a tourist destination

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Summary

Introduction

Marginal rural areas are undergoing major pressures from the effects of globalization, especially when no alternative has been found to conventional extensive agriculture and a lack of investments and vision squeezes year by year the income of farmers.The EU’s Rural Development Policy 2014–2020 identifies as main strategic objectives the improvement of the competitiveness of agriculture, a sustainable management of natural resources and climate action and a balanced territorial development of rural economies and communities, including the creation and maintenance of employment (Reg. (EU) n. 1305/2013).In order to increase the competitiveness of the agri-food and forestry system, Italy, in its 2014–2020 partnership agreement, has defined a strategy based, on the one hand, on the support for the organizational and structural growth of the single enterprises and, on the other hand, on the increase in investments in the agricultural, agri-food, forestry, aquaculture and fisheries supply chains (Dipartimento per lo Sviluppo e la Coesione economica 2014). Marginal rural areas are undergoing major pressures from the effects of globalization, especially when no alternative has been found to conventional extensive agriculture and a lack of investments and vision squeezes year by year the income of farmers. Special attention is paid to the creation and consolidation of supply chains, which emphasizes the intention to give continuity to the positive experience of integrated supply chain design, the tool for the implementation of rural development interventions introduced by the National Strategic Plan (NSP) for the programming period of 2007–2013 (Cristiano and Tarangioli 2010). The objective of this paper is to show how an Integrated Supply Chain Project (Progetto Integrato di Filiera (PIF)) can stimulate innovation in the supply chain, but at the same time activate a process of multifunctional development of a marginal rural area towards a newly discovered identity, as a tourist destination. In Santa Luce, old traditions and many forgotten professions are still present, while the importance of tourism is very marginal, though being geographically positioned very close to Pisa and coastal marine resorts

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