With a GDP contribution of about 2.1%, agribusiness is among Italy’s major economic fields. The northern and southern partition of the European Union is reflected in the farming of Italy. While the southern region of Italy is known for its flour, the northern region of the country is known for its cereals, soy, beef, and dairy items.
Even though agriculture is not feasible in much of the country’s rugged topography, agriculture nonetheless employs about 4% of the inhabitants. The total and per-person production of Italy’s production sector is equivalent to those of France and the UK.
Guide on Italian agribusiness
Agriculture is presently among the best-growing fields in the nation, making it a good option for international firms looking for the most alluring aspects of the local economy. Nevertheless, starting an Italian agribusiness does not immediately imply one should only grow grains or leafy greens. The entrepreneurs can create agricultural industries in the fishery or forestry industries. Below are listed the prerequisites and steps for starting an agriculture industry.
The agricultural industry is mainly concerned with farming the land, caring for the woodland, rearing livestock, and related operations, as defined by Italian legislation in article 2135 of the Basic Law. Presently, there are two categories of agro-producers recognized by Italian law:
- Direct cultivator
A local firm owner who devotes themselves directly and regularly to physical land management.
- Expert (IAP)
An individual who spends at least 50% of their waking hours engaged in farming derives at least 50% of their total income from this industry.
Possessing expert abilities and talents is a prerequisite for being regarded as a specialist. These can be acquired if you meet at least one of the requirements below:
- Acquisition of an academic degree in agricultural sciences;
- He formerly worked in agriculture; and
- Acquisition of a diploma attesting participation in an agricultural expert learning program.
Requirements for agribusiness
For any sort of farming venture, it is crucial to register for VAT status with the Revenue Agency and the Corporate Directory at the local Association before officially starting the operation. The ‘expert’ certification is even open to businesses. However, these companies must primarily pursue agricultural activities as their only goal.
Tips for agricultural firm success
Here are six suggestions to help your firm succeed if you want to enter the agriculture industry by founding your organization.
- Select the products you will provide
You should specify the commodities you will offer before you initiate business. You can think of this as your corporate model. You should also entail the revenues you anticipate generating over a specified time, the materials you will need, and the appropriate licenses you require to make your farming legitimate.
- Obtain funding
Look for the best type of funding for your agricultural firm. Numerous fundraising sources might help you launch your syndicate successfully.
Try farm financing if your company already sends supplies to customers. Farming finance will assist your company in managing cash flow during periods when there may be more money flowing out than getting in.
- Obtain the necessary licenses
You will be required to obtain particular licenses to run your firm under the laws of your jurisdiction. Make sure to fill out the appropriate request forms and provide documentation to the state authorities where you plan to trade. The basic license required for farming is IAP (as mentioned above). This license must be obtained to function as an agribusiness in the country.
- Hire personnel
When your business model is working well and you are gaining new customers, you should think about employing staff. It takes a team to complete orders for your agricultural business. Get the assistance you require to leave a memorable impression on your potential customers.