A couple of days ago, our group spent the morning in Verona visiting Villa della Torre, a beautiful, local vineyard and villa owned by the Allegrini wine company. Although this winery was not technically an agricultural farm, it related well to the article that my partner and I were assigned to read and discuss which was in relation to the localization and globalization of agricultural farming industries.

The process of globalization of such firms can be examined through several factors. The first is for firms to begin to concentrate their production, creating fewer firms that are much larger in size and often leading to a decline in farm employment. Next, firms begin to integrate all sectors of their system, allowing them to increase their influence and control over the day to day practices of production. Though of course Italy still has many firms that produce wine, the Allegrini wine company has expanded from one small vineyard to seven vineyards throughout Italy and now produces nine different varieties of both red and white wines. Factors such as technological change and increase in food processing and retail sellers also help to expand a firms’ market power, increasing their influence in the industry. The Allegrini wine company exports close to 80 percent of its wine, the largest amount going to the United States.  Lastly, often firms begin to grow across borders and become international entities that use cross national sources and production strategies.  

            The other main aspect of our article that related well with our class discussions was the concept of localization. A large component of localized industries is the small clusters of small towns surrounded by rural regions, similar to the organization of Italy. Such clusters of firms often begin to rely heavily on each other and are greatly affected by socio-cultural factors such as familial and historical roots. In Italy, small and medium firms tend to specialize in the processing and distribution of local, high quality foods. The best example we have seen thus far of a localized industry in Italy whose presence locally has lead to its economic success is Magnifica Comunita di Fiemme, the common property forest in Calvelese. This organization is entirely locally owned and operated by the community and supplies numerous citizens throughout the valley with work. Income generated by the forest goes directly back into the community whether it goes into the pockets of the community members, or the community itself in the form of various sponsorships and cultural donations. Furthermore, close to 90 percent of their lumber stays within the national borders of Italy, establishing and maintaining relationships and ties amongst other networks throughout Italy.