Samuele Trestini

The price premium for wine quality signals: does retailers' information provision matter?

Purpose – This research aims to explore whether quality signals, such as grape variety names explicitly used by “quality wines produced in specified regions”, affect wine retail prices in different ways in large‐scale retail and specialised shops.Design/methodology/approach – Tocai wine, which is produced in Northeastern Italian regions and is involved in a dispute with the Hungarian geographical indication Tokaj, is taken as a case study. A hedonic price model has been estimated based on retail prices observed in local markets.Findings – The research shows that consumers buying at large‐scale retailers are willing to pay a higher price premium for quality signals than those buying in specialised shops, ceteris paribus. For the latter, willingness to pay for quality signals is reduced by the information provided by the specialised shop retailer, which decreases the customers uncertainty about wine quality; quality signals appearing on wine labels generally have a more relevant positive effect on wine pri...

Assessing the risk profile of dairy farms: application of the Income Stabilisation Tool in Italy

Purpose This paper bridges the gap between theory and practice in the application of the Income Stabilisation Tool (IST). With an application to the dairy sector, the purpose of this paper is to propose methodology for the quantification of reference income when farm structural change occurs and estimate the role of farm attributes on the probability of income loss, offering an ex ante evaluation of farm resilience to risk. Design/methodology/approach Based on a balanced Farm Accountancy Network farm-level panel ranging from 2008 to 2014, three hypotheses of reference income calculation are tested to assess whether farms structural changes over the years significantly affect the level of IST indemnification. The role of farm characteristics on the probability of an income reduction is then evaluated by estimating a multinomial logit model. Findings Results show that farms’ structural changes significantly affect IST indemnities and need to be considered in calculating the reference income. The estimated model suggests that farm characteristics significantly affect the probability of a severe income drop and hence risk resilience. Extensive livestock systems seem to reduce the probability of an income drop, while farms in upland areas managed by young farmers seem to experience increased risk exposure. Originality/value The research provides one of the first attempts to define risk profile of dairy farms by modelling the probability of an income reduction on observable attributes. Indeed, among different sectors, dairy farms emerge as the main candidates for the application of the IST.

The economic implications of sylvatic rabies eradication in Italy.

After more than 10 years of absence, sylvatic rabies re‐appeared in Italy in 2008. To prevent disease spread, three oral rabies vaccination (ORV) campaigns targeting red foxes were performed through manual distribution of vaccine baits between January and September 2009. As these campaigns proved unsuccessful, at the end of December 2009, baits started being distributed using helicopters, allowing uniform coverage of larger areas in a shorter time period. From winter 2009 to autumn 2016, a total of 15 ORV campaigns (four emergency, four regular and seven preventive ORV) were implemented through aerial distribution of baits. In this study, we assessed the costs of the aerial ORV campaigns, which were aimed at eradicating the disease and reobtaining the rabies‐free status. Cumulative costs per km2 were estimated at €59.45 during emergency campaigns and ranged between €51.94 and €65.67 in the regular vaccinations. The main portion of costs for ORV programmes were related to baits supply and distribution: €49.24 (82.83%) in emergency campaigns and from €40.33 to € 43.35 in regular ORVs (71.97% and 66.02%, respectively). At the end of each ORV campaign, the efficacy of vaccination activities was estimated by assessing the proportion of foxes testing positive for tetracycline biomarker in jawbone, indicating bait intake. Results revealed that the proportion of foxes that ingested baits varied between 70.97% and 95.51%. Statistical analysis indicated that reducing the density of dropped baits could potentially lead to a cost‐saving of 22.81%, still maintaining a satisfactory level of bait intake by the fox population.

Re-adjusting risk management within the CAP: evidences on the implementation of the Income Stabilisation Tool in Italy

In order to contribute to the literature on the Income Stabilisation Tool (IST), this study investigates which is the better geographical dimension of a sector-specific instrument. In particular, the study focuses on Italian farms specialised in viticulture over the period of 2011-2014, estimating their income losses, the level of indemnification and the average fee due to farmers. We also compare the hypothesis of both a national IST and five different macro-regional funds, considering the threshold for indemnification at 30% and 20%. Results suggest a strategy to establish a double mechanism where macro-regional funds can guarantee more tailored fees for farmers (specific for different geographical areas and level of riskiness), whereas a national IST, being able to reduce the systemic risk and the variability of income losses more than smaller funds, can provide resources for the compensation of farm losses, in case of insolvency.

Understanding consumption choice of prosecco wine: an empirical analysis using Italian and German Homescan data

ABSTRACT This study analyses the degree to which wine consumers are truly able to intrinsically evaluate the meaning of a designation of origin certification or whether they generally consider such a certification to be a vague credence attribute. This issue was addressed through an empirical analysis of Homescan Panel data in the Italian and German markets, using a Heckman probit model to assess the role of consumers’ characteristics and habits in the choice of ‘Prosecco’ wines characterized by two different levels of the denomination of origin certification. Our results suggest that Prosecco sparkling wine is perceived as a product of medium-high positioning and is preferably purchased by households that buy wines with a higher unit price. In contrast, consumers who appreciate sparkling wine did not show any preference towards a specific type of Prosecco, especially outside the area of production, such as in the German market, which suggests that they still do not completely understand the difference between the certification levels.