Evolutionary insights

The value of Made in Italy in the agri-food sector and fraudulent phenomena

In 2019, Italian agri-food exports recorded a total value of 44.6 billion euros, representing a growth of 7% compared to the previous year, with the wine sector leading the way with sales of 6.43 billion euros and an increase of 3.1% compared to 2018[1].

However, while these figures are very relevant and fully demonstrate the enormous potential of our agri-food sector in markets (with 310 certified quality products with DOP, IGP, and STG labels, and 525 DOP and IGP wines), even more concerning is the value that the market for fake “Made in Italy” products has reached, which according to a joint investigation by Coldiretti and Filiera Italiana[2], amounts to 100 billion euros, i.e., more than twice the market value of genuine Italian products.

The problem is of considerable relevance: in fact, we often witness fraudulent practices regarding the quality of products, with counterfeit or adulterated foods that, in some cases, can even be harmful to the consumer’s health, or usurpations of trademarks, distinctive signs, and denominations, which are either used without any authorization or claimed in violation of the related production regulations.

The most significant phenomena, which have also found their legislative definition[3], are constituted by acts of piracy and the well-known Italian Sounding phenomenon, consisting of the practice of using a name that somehow recalls Italy for a non-Italian product, perhaps also using tricolor symbols and imitating protected denominations and indications, with the clear intent of confusing the consumer who, knowing the quality of Italian products, is also willing to pay higher prices than what they would have paid for that product if it had not been associated with our country.

Protection needs

The damages caused by these phenomena touch various aspects, starting from the damage to the image that not only the individual imitated product may suffer but the entire Italian production; commercial damages, as these foods, being able to count on more aggressive pricing policies, occupy significant market shares; finally, the obvious economic damages that affect the entire supply chain.

From the picture so far presented, it is clear that there is an urgent need to intervene strongly in the sector[4], first of all, by intervening on consumers, ensuring that they have easy access to all the information about the product, especially its health aspects, so that they can make their choice in complete safety and awareness, and, of course, it is necessary, in second place, to protect the producer who wants to make the quality of their products, the company’s production philosophy, and the strength of their brands known to consumers.

Blockchain as a Tool for Transparency and Protection

Protecting these aspects is not simple, but new technologies can probably introduce new, more direct, and effective forms of protection. In this context, blockchain is becoming increasingly prominent due to its unique characteristics of data security and immutability. This allows for precise and accurate information on the entire supply chain of a product, from field to table.

The implications that this technology can have on the entire agri-food sector can be numerous, as:

• The producer can provide consumers with all necessary information about the production and processing of the product. This can convey many messages that are often not well-communicated, such as corporate sustainability and organic or biodynamic production. This makes the consumer truly aware of the quality of the product and can create rapid customer loyalty, making them a valuable ambassador over time.
• By making the supply chain transparent, the producer can become aware of trademark violations and take action before the damages become too significant.
• Consumers can use a secure and simple technology, often manageable through their smartphone app, to satisfy their need for knowledge about the quality of products and know exactly what they are eating.
• Blockchain can also become a valuable ally for consortia and certification bodies that can better control the production chain, intervene in a targeted manner, and optimize time and resources.

In conclusion

The potential of blockchain technology is still to be fully explored, but it is undoubtedly a tool for transparency and protection that could significantly change the Italian agri-food market, bringing security and greater awareness to all players in the production chain.

[1] https://www.coldiretti.it/economia/record-storico-per-lexport-di-cibo-italiano-a-446-mld;

[2] https://www.coldiretti.it/economia/tuttofood-100-miliardi-falso-cibo-made-italy-nel-mondo;

[3] Article 144 of the Industrial Property Code, Acts of Piracy: “For the purposes of the provisions contained in this section, obvious counterfeiting of registered trademarks, designs and models, and intentional systematic violations of others’ industrial property rights are acts of piracy.

For the purposes of the provisions contained in this section, Italian Sounding practices are practices aimed at falsely evoking the Italian origin of products.”;

[4] This has led the Legislator to take action since 2015 with the establishment of a Parliamentary Commission, chaired by Dr. Caselli, but to date, the reform of agri-food crimes is still under examination by the Senate of the Republic.