5. Factor conditions
location and climatic condition
• Sub-tropical climate
• Warm weather conditions, with infrequent
and short lasting frost periods
• Flat territories, to make easier the
macchinicization of the production
• Rainfall rating at an annual
height of 200/300mm
• Low umidity
6. Factor conditions
work force
• Family owned enterprises
• Long tradition and experience of workers
• Seasonal employment opportunities during winter time
• Large number of illegal workers
7. Factor conditions
technologies and infrastrucures
• Specialized mechanization plants for lying
posture, irrigation plants, harvest meccanization
• Traditional process vs continuos process
• High costs of technologies
capital
• Subsidies from both the European Union and the
Italian government
9. Demand conditions
internal demand
• Basic element in local nutrition and culture.
• 30% of global consumption is Italian.
• Extra-virgin and biologic oil trends
• Healty mediterranean diet
• Differentiated demand (several tastes, acidity levels, etc)
• Pockets of consumers seeking quality and certificated
products (PDO, PGI)
10. Demand conditions
internal demand
• 15% of italian demand is satified by foreign supply
(origins of imports):
11. Demand conditions
international demand
• 15% of italian production is exported
(destination of exports):
12. Demand conditions
demand trends
• Forecasted international consumption up 3.6%
• By 2015 EU production won’t satisfy domestic demand
• New consumers among developing countries
Chinese demand
• China consumes almost 8 thousands tons of olive oil
• Chinese demand expected to increase
14. Firms’ strategy, structure and rivalry
structure and strategy
• 6200 mills, concentrated in the South of Italy
• Mostly small family owned enterprises
• Agricultural cooperatives
• Companies specializing in quality-differentiated oils
(39 PDO, 1 PGI)
• Large-scale distributors agreements
15. Firms’ strategy, structure and rivalry
internal rivarly
• Large number of companies
• Low concentration of the industry
• High competition
• Differentiated products
21. Supporting and related industries
olive growers
•Farmers who work either on their
own or in business associations.
•Three types of olive growing:
traditional or extensive
farming, intensive farming and
super intensive farming.
22. Supporting and related industries
fertilizers
and pesticides
• Used on almost 100% of the total
cultivated land
• Great number of patents
• New cheaper mixtures
24. Supporting and related industries
refineries
• Only 18 olive refineries
• Innovative technologies
25. Supporting and related industries
packing plants
•Packing plants integrated into
refineries
•Packing plants belonging to large
mills or cooperatives
•Independent packing
plants, which pack all types of oils.
28. Supporting and related industries
distribution channels
and companies
•Different approaches to
distribution, marketing
communications and prices.
•Low concentration
•Secondary channels
30. Government policies
Italian government
• Regulation of the olive oil trades (DM 8077)
• Labelling restrictions
• Obligation of olive oil’s origin indication
• DOP and IGD certification standards
European Union
•CAP (Common Agricultural Policy)
•COAM (Common Organization of Agricultural Markets)
