La Granda: How a Farmers’ Cooperative Changed the Destiny Of a Cow

Small-scale farming has important economic and environmental functions, especially in rural areas. By using local resources and traditional knowledge, small farms preserve natural surroundings and protect biodiversity. Even so, small-scale farmers are continuously facing serious challenges that make it difficult to earn a sufficient income. Issues such as price instability and competition, brought about by globalization and industrial farming, are making it more difficult for these farmers to find a market for their products. In addition, European farmers rarely have any financial support from government institutions, so they often lack the capital and access needed for financial credit.

Facing these challenges is not an easy task unless farmers decide to join a co-operative, pool their resources and work together. However, there happen to be a lot of farmers who just run away with the slight mention of the word co-operative. But until farmers understand that their strength lies in unity, we are destined to see more farmers belly up.

Such conviction took me to the small municipality of Genola in the province of Cuneo in the Italian region of Piedmont, where I met Dr. Sergio Capaldo, the director of the Piedmontese cattle breeders’ cooperative, La Granda. He explained how the co-operative managed to save the occupation of numerous local farmers and a hardy cattle breed from extinction.

The Piedmontese Cattle

The Piedmontese cattle, as the name suggests, originated in Piedmont. There are many theories surrounding its origins but perhaps the most compelling is that by Professor Maletto.[1]Through evidence obtained from cave writings and fossil remains, he concluded that this breed is a descendent of the ancient cow, Aurochs, and the Pakistan cow, Zebu. According to his theory, the Zebu breed immigrated to Piedmont in the 1600s and, trapped by the Alps Mountains and rivers, settled in the same area of the Aurochs.

This breed immediately caught the attention of farmers and Italian agricultural institutions due to its groppa doppia or double-muscle characteristic. However, not everyone was in favour of its diffusion since some perceived this characteristic as a weakness. In fact, according to Dr. Sergio Capaldo, around 100 years ago, farmers used to kill this kind of cow as soon as it was born, as they thought it had a defect. Consequently, in the beginning, this breed was only used by farmers to help them in their work.

Then, after World War I, as demand for meat consumption increased, breeders changed their rearing methods to make the breed suitable for milk production and meat consumption. However, it was not until 1976 that the Italian Ministry of Agriculture declared this breed apt for meat production.[2]

Another important contribution to the development of this breed was the foundation of the National Association of Piemontese Cattle Breeders (ANABORAPI) in 1960.[3] This association works to establish selection criteria, it keeps records in the herd book and it runs a genetic station. Today, the meat of Piedmontese cattle is protected by the Consorzio di Tutela della Razza Piemontese (COALVI) quality label, which gives traceability and added value.

Compared to other European breeds such as the Chianina in Tuscany or the Charolais in France, the Piedmontese is still relatively unknown. Despite dramatic improvements in quality and promotion, Italians still prefer other breeds, with the sales of Piedmontese meat reaching slightly less than 5% in the Italian market in 2009.^[4] Piedmontese meat is not even popular in its homeland, as less than one-third of Piedmont residents purchased this meat during that same year.^[5] With such low sales, there is hardly any space for price improvements and so breeders are faced with the dilemma of whether to continue raising this breed or switch to other more profitable ones. Indeed, Dr. Sergio Capaldo explained how until some years ago, breeders wanted to stop raising the Piedmontese cattle as there was no difference between the price of good and poor quality meat production. The fact that the breed is still relatively unknown shows the struggle these breeders are facing to promote, market and distribute their products.

Furthermore, the breeders have to cope with the increased pressures of globalization. In Europe, while indigenous and regional breeds are struggling to find a place in the local market, the latter is being flooded by imports from Brazil (65.5%), Argentina (17.2%) and Uruguay (7.2%).^[6] In Italy, 45% of bovine meat is imported from France, Germany and Ireland.[7] Hence, the Piedmontese breeders, besides struggling among the local competition (such as the highly regarded Chianina meat), they must also compete with the international market.

Another problem is the fragile market that cattle breeders operate in. The outbreak of diseases has the potential to temporarily wipe out demand for meat as people will fear consumption. Case-in-point was the bovine spongiform encephalopathy (BSE) and the foot-and-mouth disease crises in 2000, which caused a sharp decline in meat consumption. It took several years for the market to return to its original levels of consumption and during this period, demand for meat in Italy fell by more than half.[8]

La Granda: How it works

In the light of all these problems, the Piedmontese breed population started to decline as farmers preferred to either abandon or replace the breed.[9] It was then that Dr. Sergio Capaldo decided to set up La Granda; a cooperative, made up of sixty-five small to medium-sized breeders, with the aim of giving value to the breeders’ role in raising the Piedmontese breed. La Granda purchases the whole animal and does the slaughtering and butchering itself. Some of the meat is transformed into a pre-packed product under the label La Granda Pronta, giving additional value to the product. La Granda offers its members a fixed price, irrespective of market fluctuations. The price is set at the beginning of every year after consultation with breeders and butchers.

Also, La Granda works with a traceability system, providing a label with the name and address of the breeder. Unlike other traceability systems, it is possible for the customer to know the exact provenance of the meat. In this way, the breeder is not being replaced by a number or by the name of the retailer, but is being recognised for his work.

Quality is another important factor for La Granda. According to Dr. Capaldo, quality meat depends on rearing practices that emphasize animal welfare and product quality. Being an experienced veterinary, he takes care of the health and well-being of all the cattle; he makes sure not to use antibiotics in the first six months, using herbs instead. The breeders of La Granda raise mostly females and castrates. Every cattle is born within the farm and all are registered in the Piedmontese herd book. Another determinant of quality at La Granda is the cattle feed, where every breeder grows different cereals to feed his cattle. Dr. Capaldo stresses the importance of providing a varied diet made up of hay and different cereals such as maize, barley, fava beans and peas.

Through its methods, La Granda seeks to provide assistance and improve the lifestyle of its members. By joining this cooperative, the breeders are able to profit from several benefits.

One key advantage is the annual fixed price that helps minimise market vulnerability and it gives the breeders more financial security. In return, this helps safeguard the indigenous Piedmontese breed from extinction. By working directly with the breeders and giving them economic assurance, there is greater potential for  breeders to start rearing this breed. Indeed at La Granda, the breeders have an average age of around forty.[10] This economic security could encourage more young farmers to undertake this activity. Also, in collaboration with Slow Food, La Granda has set up a Slow Food Presidium to further protect this breed, while giving more value to the meat.

Another advantage is the prospect of reaching larger markets; being part of Slow Food and participating in its events such as the Salone del Gusto, La Granda is increasingly creating awareness of the Piedmontese breed. Moreover, these events help create new distribution links as they provide the space to attract potential new customers.

La Granda has already established new distribution channels, including local butchers, restaurants and the famous Eataly, where La Granda is the exclusive meat provider. Furthermore, La Granda exports its products to Germany and Luxemburg. Through its new product line, La Granda Pronta, where the product is transformed and pre-packaged, it is reaching new markets and increasing the value of the product. Except for the website and promotional booklets, most marketing is done by word of mouth and Dr. Capaldo admits that he prefers to work this way as he believes in the power of recommendations.

It is worth mentioning other developments taking place, independent of La Granda, that also promote the Piedmontese breed. Important to mention is the Consorzio di Tutela della Razza Piemontese (COALVI), established in 1984, which promotes the rearing of the Piedmontese breed according to local traditions and offers technical assistance to the breeders. It also performs several promotional campaigns to increase awareness. In May 1988, the COALVI managed to obtain a quality label for the Piedmontese breed that is recognised by the Italian law. Currently, the COALVI is working to obtain an IGP label for the Piedmontese meat; this label will not only improve the overall quality of the meat but will increase the recognition of the product, hence facilitating access to markets.

All these developments place emphasis on a local product reaching a wider market. This is vital in terms of profitability and adding value to the product. It is evident that specialist network groups such as La Granda are of great benefit to small-scale farming as such networks help alleviate small farmer’ economic burdens and assist them in selling and marketing their products. In addition, this kind of cooperative can also be considered a positive alternative to an increasingly centralised system of food production and supply, dominated by large-scale retailing and manufacturing interests.

Bibliography

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ANABORAPI. “L’ Evoluzione Della Piemontese Dalle Origini ai Giorni Nostri.” In Patrimonio zootecnico del Piemonte: La Razza Bovina Piemontese, by Regione Piemonte, 9-18. Turino: Stamperia Artistica Nazionale S.p.A., 2005.

ANABORAPI. “Rilancio per la zootecnia nazionale.” La Razza Bovina Piemontese 1 (2002): http://www.anaborapi.it/RIVISTA/attualita/2002/RIV-SOMM-zootecnia.htm

Ataide Dias, Mahon, and Dore. “EU cattle population in December 2007 and production forecasts for 2008.” EUROSTAT (2008): http://www.eds-destatis.de/de/downloads/sif/sf_08_049.pdf

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COALVI. “Coalvi.”Accessed September 19, 2010, http://www.coalvi.it/Consorzio/coalvi.aspx

Dalmasso, Christopher. “Quando La Qualita’ Non Basta.” La Razza Bovina Piemontese 4 (2009): http://www.anaborapi.it/RIVISTA/attualita/2009/RIV6-Qualita.htm.

La Granda. “La scommessa della qualità.” Accessed September 19,2010, http://www.lagranda.it/

Onley, John. “World Italian Cattle Congress.” Accessed September 19, 2010, www.romagnola.com.au

Pacher, Fabia. “Il consumo e l’immagine della carne bovina.” La Razza Bovina Piemontese 2 (1999): http://www.anaborapi.it/RIVISTA/ricerche/1999/stu-carne.htm

Sergio Capaldo, “Rassegna delle attività di mercato: l’associazione La Granda,” La Razza Bovina Piemontese 1 (2009): http://www.anaborapi.it/RIVISTA/attualita/2009/RIV1-LaGranda.htm