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News

Tinned tomatoes suppliers reintroduce rationing on retailers

21/06/2021 - François-Xavier Branthôme
On June 18, 2021, the British press revealed that tinned tomato suppliers have reintroduced supermarket rationing as stocks run low following three years of poor harvests. Companies are warning of a global shortage of steel sheets to make cans for food production.

 Limits on how much each supermarket receives have become necessary to avoid stocks running out before the next harvest begins in August. An acute can shortage has exacerbated the situation, a consequence of China buying up global steel supplies as part of its economic recovery from the pandemic. Tomato suppliers first began rationing retailers in April last year when panic-buying by shoppers placed an unprecedented strain on supplies.

Diego Pariotti, export commercial & marketing director at Conserve Italia, confirmed the same policy has now returned. “We are basically out of stock on every single line because for the last three years we didn’t have enough to satisfy demand.” Conserve Italia, owner of brands such as Cirio, has advised retailers to remove promotions to try and reduce shopper demand.

Wholesale prices for Italian tomatoes are already up 20% since last year and could increase by as much as 50% in the coming month, according to Jason Bull, director at Eurostar Commodities.

Natasha Linhart, chief executive officer of Atlante, which supplies Italian fine-food retailers in several markets including the US, UK, India, Japan, and Canada, commented on the shortage: “We cannot find cans. Big multinationals are defaulting on their contracts and the price of cans has increased by more than three times.”
This means that steel suppliers are not immediately able to deliver to European nations.
Italy supplies more than three quarters of the UK’s tomatoes each year, according to official customs data, around ten times more than Spain, the next biggest supplier.

Sources: thegrocer.co.uk, express.co.uk
Related companies

CONSERVE ITALIA Soc. Coop. Agr.

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