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News

Apulia tomatoes: the heavy impact of logistical inefficiencies

24/04/2024 - François-Xavier Branthôme
Apulia tomatoes, Laviola (Princes): “Logistic inefficiencies are weighing heavily on operations. Some form of intervention from the institutions is needed. Apulia’s agri-food sector has great potential, but it is often limited due to a lack of logistical structures.”

This point was underlined by Gianmarco Laviola, CEO of Princes Industrie Alimentari (PIA), which runs the largest plant in Europe for the processing of tomatoes. The company is part of the Agrifood & Beverage Community of the Apulia Region, and reports an annual turnover of EUR 160 million (part of the GBP 1.4 billion reported by the Princes group globally).
 
 “We manage to deliver Apulian tomatoes to the countries of continental Europe via an intermodal system, which uses the railway, leading to a number of benefits from an environmental point of view,” specified the company manager. “At the same time, however, all the goods destined for the British market (we are talking about around three thousand containers per year) can only leave from the ports of Salerno or Naples, because those of Manfredonia, Bari and Taranto cannot be used for our needs. This impacts both operating costs and the environment, due to the CO2 emissions caused by the unavoidable road transport to the ports of Campania. In general, Apulian agri-food exports are increasingly growing, and it is therefore essential to highlight the infrastructural challenges of the South as well as underlining the common and specific needs of Apulia, while we ask local authorities for essential support aiming at regional economic growth and promoting more sustainable business practices. An institutional intervention is urgently required that can provide concrete responses to the growing demand for intermodal transport, through policies that encourage such practices.”

Exports: the UK dominates
Laviola then returned to the topic of exports, a fundamental consideration for the canned tomato category. 95% of Princes production is exported, with the UK remaining the largest market, accounting for between 60% and 65% of total volumes. The Napolina brand dominates the shelves of English retailers, alongside products sold through private labels. The second market is Germany, although there is no shortage of emerging countries, such as China and India (“especially due to the growing, albeit still partial, westernization of consumption which leads to an increase in the use of processed tomatoes”). Eastern countries also could reduce the proportional importance of Germany, which is experiencing a complicated period. Australia, whose market opened to PIA last year, is also relevant as a destination, as is the Mediterranean region, particularly North Africa.

More generally, Laviola confirmed the high supply chain costs for 2024 in the processing tomato sector. “A comparison between all the operators in the supply chain is necessary to find a way out. It is unethical to charge shelf prices below production costs.”

As regards production, for the manager of the Apulian group, there are two issues to resolve. The level of water available in Apulia in the Occhito dam is very low due to the lack of rainfall in recent months, which is worsening the drought problem. The second issue is the impact of climate change on crops. “Last year, the tomato harvest lasted until the end of October, when it usually reaches September at the latest,” said Laviola. “This is an anomalous situation that we hope will not recur this year. It is necessary to plan the collection of the raw material with the right timing to guarantee high quality.”

Source: corriereortofrutticolo.it
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Princes Industrie Alimentari

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