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News

Italy: the ANICAV launches an urgent appeal to government ministers

30/08/2022 - François-Xavier Branthôme - 2022 Season

"Faced with cost increases, companies will be forced to slow down production or even close their factories." In a letter to Ministers Patuanelli and Giorgetti, the ANICAV has asked for "immediate government intervention or we will lose jobs and export shares." The Association has written to the Minister of Economic Development and the Minister of Agricultural Policies to request government intervention to protect the sector's companies.

Doubling of tax credits and an extension of conditions for their use, less restrictive terms and conditions (including cancellation or reduction of interest in the case of deferred payments), suspension of the ETS mechanism for carbon allowances to avoid additional burdens on companies, and direct intervention by the ARERA (Autorità di Regolazione per Energia Reti Ambiente, Authority for the management of electricity, gas and water networks) for a review of the cost of allocating natural gas transport capacities, which significantly impacts the expenses of highly seasonal companies, particularly in the tomato processing sector: these are the main requests of the ANICAV to the Minister of Economic Development, Giancarlo Giorgetti, and the Minister of Agricultural, Food and Forestry Policies, Stefano Patuanelli. After the warnings of the last few days (see our related articles below), these letters take stock of the growing difficulties caused by rising costs for a sector that is already in crisis, and are a reminder that, without immediate intervention, current tensions will inevitably have repercussions on end consumers as well.

"This situation may jeopardize the continuation of the processing season, with companies unable to cope with the increases, and therefore being forced to slow down production or even close their plants, with significant repercussions on employment and the agricultural world," said ANICAV President Marco Serafini. "We must also take into account the difficulties that companies will face in passing on these increases to supermarkets and restaurants, both on domestic and foreign markets, where there is a serious risk of seeing the quantities exported being eroded to the advantage of our competitors. Therefore, an urgent intervention of the current government is absolutely necessary to protect not only our sector but especially all the highly seasonal sectors."
"Our production and, consequently, our consumption of gas and electricity, are concentrated between the months of July and September, a period in which energy costs this year are reaching extraordinarily high levels. These sharp increases, mainly linked to a 'race for supplies' whose objective is to increase the quantities stored up in order to secure next winter's requirements, have significant repercussions on our companies, which cannot under any circumstances postpone or suspend work," concluded Giovanni De Angelis. The proposed measures "represent solutions that, in the immediate future, could help us get through this critical time, as well as contribute to the protection and benefit of end consumers."

The comment of Mutti: “Sector at risk, it will be a bloodbath. Ad hoc interventions are needed “
According to Italian press, looking at the alarming data released recently by Confcommercio, there is nothing to be happy about. On the contrary. There are 120,000 companies at risk of closure and 320,000 jobs that could jump due to the increasingly prohibitive costs of energy. And one of the most troubled sectors is the food, retail and wholesale sectors.
One of the most affected areas is that of tomato processing and conservation. The alarm was raised by Francesco Mutti, head of the food group Mutti, in a recent interview. In the tomato processing and conservation sector, “we had a first explosion of costs, in an absolutely violent way, linked to the theme of energy, packaging, in late autumn 2021 but which reflected on the 2022 campaign with the explosion of energy costs in recent months. It will be a bloodbath, I believe that many of the companies in the sector risk not making it forward. For the sector, an ad hoc intervention is needed » says Mutti. The CEO of the eponymous group leader in the tomato processing sector added: “We are talking about putting a limit on the price of gas, we are talking about many things. The problem is that our sector uses energy from July 20 to September 20 and if you look at the trend in the price of gas, you understand what it means to be exposed to a production that starts on July 20 and cannot be postponed, blocked or slowed down because tomatoes cannot stay in the field for days waiting for the problems of an economic nature linked to gas to be resolved”.

«We estimate an increase in the gas bill of around 400-500% compared to last year, if compared to 2020 we are talking about 1200-1300%. It is as if you had gone to eat a pizza two years ago and paid 9 euros for it and returned to eat it two years after you had paid 120 euros for it… ». And he adds: “An element like that of gas which was important in our income statement but not dramatic today has become a cost item that is absolutely out of control for exogenous reasons”.

Sources: Ufficio stampa ANICAV, breakinglatest.news

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