Aim of this work is to define the characteristics and actions of local institutions in promoting the competitiveness of regions specialized in agricultural food production. The article considers these areas as localized production systems and focuses on the role of local institutions in managing food chains, local resources affecting the sustainability of local production system, the reputation of the area and the competitiveness of the entire system. It analyzes the example of the province of Parma and the production of Parmigiano Reggiano cheese focusing on the system of relationships that different local institutions have developed and the effectiveness of governance generated by the Consortium of Parmigiano Reggiano with reference to sector level competition