Competitiveness and Diversification:

Specialist advisory services to modernise and diversify farm activities.

Within the framework of the Sardinia Rural Development Programme (RDP) 2014–2022, Sub-measure 2.1, Focus Area 2A, we developed a specialist advisory programme focused on competitiveness and diversification. The work combined meetings, on-farm visits and management tools to analyse economic and environmental performance, examine regulatory compliance and assess investments. The aim was to support informed decisions on modernisation and multifunctionality, taking into account profitability, liquidity and risks.

Advisory services and management tools to assess investments and strategies for farm business.

ClientAutonomous Region of Sardinia
Primary serviceTechnical advisory services
Related servicesDecision support
Period2024
Beneficiaries37 farm business
Duration 6 months

Context and needs.

Farm businesses need to improve both profitability and sustainability, while deciding how best to modernise their structures and processes and diversify their activities. These decisions require accurate data, knowledge of regulatory obligations and the ability to assess investments and risks. The project addresses these needs through a tailored advisory programme linking the analysis of economic and environmental performance with opportunities for multifunctionality and the needs of the local area.

Objectives.

  • Strengthen the ability to assess economic and environmental performance in order to guide farm management decisions.
  • Support the modernisation and diversification of farm activities, enhancing multifunctionality and responding to local needs.
  • Support investment assessment trough analyses of costs, benefits, liquidity and the financial sustainability of the available optons.
  • Explore regulatory compliance and conditionality requirements, identifying necessary adjustments and opportunities for improving farm management.

Working approach.

The programme combined active listening, on-farm visits and digital tools, structuring the advisory activities around four operational areas:

  • Data collection and identification of the farm's economic and environmental needs.
  • Compliance checks and recommendations for necessary adjustments.
  • Analysis of performance and diversification opportunities, supported by sustainability indicators.
  • Planning and management control tools to assess investments, liquidity and financial risks.

Rurinnova's Role.

Rurinnova provided tailored specialist advisory services combining economic analysis, regulatory guidance and on-farm visits. The work also included the transfer of management tools and information materials, adopting a participatory approach to facilitate their understanding and practical use.

Results.

  • Information materials and a report on regulatory compliance and conditionality were produced, including recommendations on the adjustments required.
  • Planning and management control tools were introduced to monitor economic and environmental performance and assess planned investments.

  • Profitability, liquidity and financial soundness were examined in greater depth, including an analysis of the sensitivity of results to changes in the underlying assumptions.

Lessons learned and replicability.

  • Diversification is most effective when it responds to local needs and is supported by sound economic and environmental assessments.
  • Continuous dialogue and active learning facilitate the transfer of methods and the direct use of management tools.
  • Regular data updates and periodic reviews make it possible to assess improvements and revise decisions in light of observed results.