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North and Central Italy: Petti increases prices

10/09/2018 - François-Xavier Branthôme - 2018 Season - Read in French
An agreement is reached for EUR 100 per tonne!

At the beginning of September, the Petti company announced that it plans to increase the price of each tonne of tomatoes harvested in Tuscany for deliveries to its Venturina Terme processing plant. This decision was taken after a particularly difficult season for the processing tomato industry in the central and northern regions of Italy, with unstable weather conditions that included drought and violent rains, which had a bad impact on the development of crops and led to a big decrease in production. Given this situation which represents a threat to the regular supplies needed by tomato canning operations, the Petti group has called on the government to intervene "decisively and urgently".

"Until last year, we could count on a supply of processing tomatoes coming from the large number of farms located within a 60 km radius around our factory in Venturina Terme. This year, crops in the region have decreased, mainly due to the dire water situation, which has been compounded by particularly adverse weather conditions. This situation is no longer tolerable for us or for this region," explained Pasquale Petti. 
This is the context in which Pasquale Petti has also decided to review the reference price for tomatoes, which was fixed by contract last April at EUR 87 /tonne (round tomatoes), and increase it to EUR 100 /tonne for shipments delivered after 30 August, which represents a 15% price raise. The CIA growers' union has expressed its "appreciation for the company's attitude" and has stated its satisfaction with regard to the process that led to this agreement. 

The Petti company, which is based in Tuscany, mainly gets its supplies through the Italian Food Spa organization from growers in the region of Livorno and Grossetto. With this decision, Petti "intends to take practical supportive measures for farms that are facing a difficult 2018 season:  despite a significant loss in yields per hectare, these growers have worked hard to deliver prime quality raw materials."

The Petti group has also openly taken position in the controversy around the downward auctions sales system that has been set up by large retail chain distributors, and which represents a threat for the sustainability of the industry.



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