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News

Italy: 2023 harvest starts under difficult conditions

01/08/2023 - Press release , Sophie Colvine - 2023 Season

ANICAV warns that as the processing year 2023 kicks off, skyrocketing production costs and falling consumption worry companies. The surface under cultivation is +5% compared to 2022 with an estimated production of 5.6 million tonnes, but volumes will depend on agricultural and industrial yields. One unknown factor remains: bad weather.

The 2023 tomato processing campaign has begun, once again this year marked by difficulties. There are always many unknowns and the socio-economic scenario is likely to have a significant impact on the economic sustainability of the sector. On the one hand, the constant growth in production costs, particularly those of raw materials and packaging, and on the other the contraction in consumption generated by inflationary trends, will certainly have very negative effects on the margins of companies.

A combination of factors, therefore, which greatly concerns one of the most representative and important sectors of the Italian food industry. "The shelf-price increases of recent months have in most cases not translated into higher profits and will only serve to partially cover ever-increasing costs. I am thinking in particular of the price paid to the agricultural sector for the raw material, which has seen increases of up to 40 per cent compared to last year, bringing the average reference price for round tomatoes to €150/tonne in both the north and south. Not an easy situation for our companies." Declares ANICAV President Marco Serafini.

For this processing year, some 68,600 hectares have been put into cultivation in Italy, an increase of 5% compared to 2022.

Based on these figures and considering historical yields, a production of about 5.6 million tonnes can be expected. Of course, these are only estimates and the volume of production will depend on both agricultural and industrial yields, also depending on the quality of the raw material supplied. On this the industry's attention remains high as it has to guarantee a finished product that meets the high standards of tomato derivatives. There remains the unknown factor of bad weather, with the risk of a continuous succession of extreme events (heavy hailstorms, heat waves, etc.) that have already had and could still have important effects on crops and therefore on industrial production.

"It will be difficult, not to say impossible, to recover from skyrocketing production costs. A particularly complicated commercial year is looming, but we trust in the resilience of our entrepreneurs who, once again, will do their utmost to prevent this trend from having an excessive impact on end consumers. Despite the increases, red canned products continue to be absolutely affordable thanks to the efforts of the industry. It is not difficult to realise how much it costs to prepare a plate of pasta with tomato sauce compared to a simple breakfast at the bar, among other things with obvious differences in terms of nutritional values. - concludes Giovanni De Angelis, Director General of ANICAV - For our part, we guarantee, as always, our utmost commitment to the protection and valorisation of a leading supply chain."

The processing tomato industry represents the most important Italian chain of processed fruit and vegetables and, with a total turnover (2022) of 4.4 billion euros (3.3 billion generated by ANICAV member companies), plays a strategic and driving role in the national economy, employing about 10,000 permanent workers and more than 25,000 seasonal workers, plus the workforce involved in the allied industries. Italy, the world's third largest processor of tomatoes after the USA and not far behind China, remains the leading processor of derivatives destined directly for final consumption, accounting for 14.8% of world production (equal to 37.3 million tonnes) and 56.5% of European processed tomatoes.

Source: ANICAV

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