Elisa Manghi

Geographical indications (GIs), protected by the European Union with the collective marks of PDO (protected designation of origin), PGI (protected geographical indication), and TSG (traditional specialty guaranteed), play an important role in the social and economic system. They not only guarantee food needs, but promote correct consumer information, protect local food, and play a role in the environmental and social sustainability of rural areas. In Italy, Parmigiano Reggiano (PR-RE) PDO cheese is ranked second in foods with the GI protection mark by turnover. This research aims to assess the financial sustainability of the firms registered in the PR-RE PDO consortium using financial statement (FINSTAT) analysis. Financial ratios (FR) and the EM-Score were applied to assess firms’ performance, financial risk, and credit score. The analysis distinguished firms by legal form, cooperative and non-cooperative, and altitude range—plain hill and mountain. The main findings of the research were as follows: (1) a better performance of lowland non-cooperative firms and lower financial risk, (2) a longer duration of the inventory cycle of cooperative firms, and (3) a greater financial risk in mountain cooperatives. The results provide indications for improving firms’ performance and for designing financial instruments for the sector. To our knowledge, this is the first research to carry out an analysis of all the available FINSTATs of firms in the PR-RE PDO sector.

The biogas sector in Europe and Italy is attracting growing investment, combining agricultural activity, the circular economy, and renewable energy production. Firms in the sector widely use debt capital and, for this reason, there is a need to evaluate the structure of investments, financing, and debt service capacity calculated by applying interest coverage ratios (ICRs). ICRs are widely used by banks in granting loans, and calculation of ICRs allows managers and policy makers to correctly evaluate firms’ performance in the sector. In this research, based on a sample of 160 observations, the structure of investments and sources of financing of firms in the biogas sector, operating in northern Italy, are analyzed. ICRs are calculated with different approaches to establish which ICRs provide the most reliable results in the application. The research analyzes the correlations and highlights significant differences between ICRs. The research highlights some important findings: (a) the NWC is negative in 109 out of 160 observations and, therefore, constitutes a source of financing in the majority of observations; (b) ICRs based on EBITDA and CF are above the threshold value of “1” in 143 and 145 observations, respectively, while ICRs based on EBIT, OCF, and UFCF are above the threshold value of “1” in 132, 133, and 122 observations, respectively. The research allows the conclusion that the ICRs based on EBITDA and CF tend to overestimate results; ICRs based on EBIT, OCF and UFCF are preferable, and can therefore be applied by managers, banks, and policy makers and be used as debt covenants. For the calculation of the repayment of the NFP, the research has highlighted that ICRs in which the cost of the debt is deducted from the numerator are preferable. The research can thus be usefully applied and expanded to other territories, or by considering a larger sample with the aim of inferring conclusions of general validity.

Pork meat in Italy is one of the largest agri-food chains in Italy. In the swine production chain, slaughter plays an important role, because it has an impact on animal welfare, food safety and the sustainability of the agri-food chain. These companies also deal with pigs destined for typical Denomination of Origin products and therefore play an important role in the production chain of typical products and in the field of EU agricultural policy. In this context, the research aims to analyze the economic sustainability of the major pig slaughter firms in Italy, through data analysis of the annual account statement (AAS) on a sample of eight companies analyzed over a ten-year historical series. Financial ratios and margins (FRM) analysis is applied in the research. FRM analysis shows that firms have the largest absorption of financial resources in the net working capital cycle. The research highlights the high incidence of raw materials in companies in the sector. Consequently, the profit margins of the companies in the sample are modest and in some cases are lower than the cost of debt, suggesting a moderate capacity to attract capital. This result appears as a negative signal of the economic sustainability of the companies in the sector. The research, now limited to a small number of large companies, opens a line of research that can be developed by expanding the sample to small and medium-sized enterprises of the chain of Denomination of Origin hams in Italy to suggest improvement interventions, in particular for rural or marginal areas of production.