Parma PDO Ham in pork production chain and Parma economy

Prosciutto di Parma DOP (Parma PDO Ham) is the main product of Italian cold cuts and is produced in the province of Parma. The verification of compliance with its guideline is implemented by Istituto Parma Quality (IPQ), that together with Istituto Nord Est Qualità (INEQ) operates a monitoring on compliance requirements of the most part of Italian PDO and PGI cold cuts production. In the production area there are 181 production plants where 9 milions of PDO Ham are produced every year and the 71% of factory and the 80% of Parma PDO Ham production is concentrated in four municipal districts in the foothills of the province of Parma. Among the major economic and financial aspects it is to consider production difficulties related to the duration of financial cycle because of maturing long period and because of long terms payment required by large retail chains. Analyzing a sample of firms it emerges the improving technology level and the management strategies with the aim to differentiate production (Parma Grosso ham production), and pre-sliced ham production. These strategies make it possible to generate positive cash flows to serve indebtedness and to reward equityholders.