Italian tomato production in 2024: a contrasting season
The complexities of the production and market of canned tomatoes in Italy in 2024
New record of the trade balance, with a surplus of 2.7 billion euros
The year 2024 was marked by a significant increase in the areas cultivated for the processing of tomatoes in Italy, with an increase of 11% compared to 2023. This increase was observed in the two main production basins: Central-South Italy (+16%) and Northern Italy (+7%). However, this increase in areas did not lead to a proportional increase in production.
Climate challenges and impact on yields
Despite the increase in areas dedicated to processing tomatoes, yields per hectare fell to historically low levels due to unfavorable weather conditions. In northern Italy, excessive rainfall disrupted transplanting and harvesting operations, while in the south, drought and scarcity of irrigation water severely affected crops.
These climatic conditions had a direct impact on total fresh tomato production, which decreased by 2.4% compared to 2023, to around 5.3 million tonnes. This production represents 12% of global production and around half of European production.
In fact, farmers had to deal with a particularly poor harvest, while processing industries faced difficulties due to the low industrial yield of the raw material. Processors were forced to use more tomatoes to obtain the same quantity of finished product, leading to an increase in production costs.
From an agricultural perspective, the national average yield was less than 70 tonnes of fresh tomatoes per hectare, one of the lowest ever recorded. In the north, yields reached a historically low level due to persistent rains, which delayed planting, favored the development of fungal diseases and hampered the harvest. In the south, drought and high temperatures reduced yields to around 84 tons per hectare, a level comparable to that of 2016.
Commodity market and price developments
The commodity market is characterized by prices defined in interprofessional agreements, with adjustments based on the qualitative characteristics of the batches delivered. Prices decreased compared to 2023 for round and elongated tomatoes, but increased compared to the average of the last three years.
The agricultural sector benefited from a slight decrease in input prices (-1.5%), mainly due to lower energy, fuel and fertilizer costs. However, prices for tomatoes delivered to the processing industry also decreased, with a 6% drop for round tomatoes and a 20% drop for elongated tomatoes.
Regarding marketing to end consumers, retail prices, after the inflationary surge in 2022/23, increased by 3% in 2024. This increase is due to increased demand during the pandemic, soaring energy and fertilizer prices, and higher packaging costs.
The 2023/24 marketing year was marked by a slight decrease in purchases of canned tomatoes (-0.6%), but expenditure increased due to higher prices. Purees and pulps remain the most popular products, accounting for around three-quarters of volumes sold.
Consumers are increasingly turning to higher value-added products, such as ready-made sauces and organic preserves. Sales of these products increased, while those of products with a low service content, such as peeled tomatoes and pulp, decreased.
Foreign trade: a key sector for Italy
Foreign trade in canned tomatoes is a pillar of the Italian economy. The 2023/24 campaign set a new record for the trade balance, with a surplus of EUR 2.7 billion. Total exports mobilized around 4.7 million tonnes, for a value of over EUR 3 billion.
The main export markets are Germany, the United Kingdom and France. Italy mainly imports semi-finished products, such as tomato paste, and exports finished products, such as passata and peeled tomatoes.
Conclusion
The 2024/25 campaign is characterized by abundant global supply, which is putting downward pressure on international prices for semi-finished products. However, Italian domestic demand is supported by the growth in tourism and a slight recovery in retail purchases.
The outlook for the sector is closely linked to the success of Italian exports. The industry's ability to adapt to climate challenges and consumer trends will be critical to its future.
Some complementary data
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Share of retail sales in quantity and value for the 2023/2024 marketing year (Sept.-Aug.).
Changes in retail sales for 2023/2024 MY vs 2022/2023 and vs three previous MY average.
Export share expressed in raw material equivalent (left) and value (right).
Sources: ismeamercati.it
