GEA-Fondazione Edison Observatory: the 4 As pull along Made in Italy. The USA looks to food

Lug 18, 2015

The new edition of the GEA–Fondazione Edison Observatory records that in 2013 Italian food represented an important driver in export growth.

On a base of reference of 616 products, in fact, Italy has 63 products in which it gains first, second or third place in the world for best foreign balance of trade, generating a total of 21.5 billion dollars.

Together, the ‘4 As’ of Made in Italy (Alimentari-vini/food-wine; Abbigliamento-moda/clothing-fashion; Arredo-casa/furnishings-home; Automazione-meccanica-gomma-plastica/Automation-mechanical-rubber-plastics) confirm a positive growth reaching a new record of 128 billion euros.

From an analysis of the data what emerges, furthermore, is that the United States is the third-largest export market for Italy, after Germany and France, with overall Italian exports to the USA of 29.8 billion euros and a surplus of 17.3 billion, the highest Italy had in 2014 in bilateral trade.

The American market, in particular, is increasingly focalised on the food sector and this presents the greatest potential for growth; suffice to consider that in 2014, about 10% of Italian exports were to the American market. The first 10 provincial-sectorial examples of highest food exports towards the USA in 2014 are: Florence, Lucca, Grosseto, Milan and Perugia for oils and vegetable & animal fats; Modena for other food products; Naples for baked and flour products; Salerno for fruit and veg that have been prepared and conserved; Sassari and Parma for the products of the dairy industries. The first 10 provincial-sectorial examples of highest wine and drink exports towards the USA in 2014 are: Trento, Milan, Cuneo, Florence, Verona, Siena, Venice, Treviso, Asti and Brescia. In total, 61 agriculture and food products in which Italy came first, second or third in the world for best balance of trade with the USA, for a bilateral commercial surplus of 3.3 billion dollars.

The increasingly strong relationship between the US market and Italian food has been confirmed by a GEA Digital study. From this, which focused on the feelings towards food, and Italian food in particular, expressed by consumers throughout the world and the USA through web traffic, what emerged is that the number of searches relating to food from US users is three times higher than the rest of the world and that Italian food beats other online topics such as Italian art and music.

Starting from an awareness of the enormous potential of Italian food in the USA, Luigi Consiglio, President of GEA (in the photo) , comments: «The data and trends demonstrate that interest in Italian food throughout the world is very strong, in particular in the United States, an extremely lively market, where the demand expresses the expectation of healthier food. Today anyone who says the US market is saturated is wrong. The opportunities for Made in Italy are there and there is a lot of space for all the food and agricultural industries who wish to export and invest in the USA. The political battle that has been fought up to now has not allowed us to see the wonders of our industrial system. For this reason GEA, along with the Harvard Business Review Italia, wanted to overcome the stereotypes about Italian industry through the creation of an annual overview of the entrepreneurial excellences of Italy».

Thus was conceived the GEA-Harvard Business Review Italia “Business Excellence” Prize, which will be awarded for the second time on 27 October 2015.

Host 2015, beginning on 23 October, almost sold out already

fabrizio.gomarasca

Lug 18, 2015

Un momento della conferenza stampa di presentazione di Host tenutasi a Expo presso Identità Golose.

The edition of Host that will be held at fieramilano from 23 to 27 October, a stone’s throw from the Expo that will be coming to an end then, is going to be exceptional. The exhibition brings together under the one roof the whole HoReCa and retail chain, where it will be possible to see the all the latest developments from coffee mixtures to makers, from fridge units to contract furnishings: 1,748 exhibitors have already signed up and the total is expected to reach 1,900, 38% of whom will be from abroad, divided among 14 pavilions, +2 compared to the 2013 edition for a growth of +12% in the floor space used. This year a part of the exhibition will be dedicated to commercial refrigeration.

In three macro-areas that bring together similar chains and dedicated to: Professional Catering with Bread-Pasta-Pizza; Coffee-Tea with SIC – Salone Internazionale del Caffè, Bar -Machines for Coffee – Vending and Ice Cream-Pastries; Furnishings and Tables.

Germany, France, Spain, the USA and Switzerland are the countries that are best represented, with large delegations from the more dynamic economies. 135,000 professionals and 1,500 top buyers from 60 countries will meet, as well as incoming missions from promising markets in collaboration with ICE, in a context enriched by a busy timetable of events.

OECD and FAO: price of agricultural products in decline, protein and meat rising, grains and biofuels falling

Anna Muzio

Lug 7, 2015

Stable production and consumption, falling prices: according to the Agricultural Outlook 2015-2024 by OECD and FAO. The report by the two organisations shows a world divided into two, with the more affluent population groups of emerging countries demanding more animal proteins and sugar, whilst in the “Old world” these same products are increasingly the cause of illnesses related to obesity and overweight, especially amongst the poorer and less-educated groups.

Prices: cereals down, meat up

In 2014, the prices of cereals and meats have gone in opposite directions. Two years of abundant harvests have led to further pressure on cereal and oilseed prices. On the other hand, meat prices have hit record highs, due to factors such as herd-rebuilding and disease outbreaks.

In real terms, the prices of all agricultural products should decrease over the next ten tears thanks to growing productivity and lower input prices, which have outpaced slowing demand increases for staple foods, due to the slowing increase of per capita consumption which, in emerging economies is reaching saturation. This is in line with the century’s downward trend, but it is predicted that prices will remain higher than in the period prior to the 2007-08 rise.

Changing diet in emerging economies

Slowing population growth, urbanisation and rising per capita incomes have led to an increase in demand for food, and particularly for certain items like animal proteins. For this reason the price of meat and dairy products will remain high compared to cereals and oilseeds. In addition, the price of coarse seeds used for feed will rise. According to the director general of FAO, José Graziano da Silva, the increase of calories in the diet of developing countries “is good news”, but it is also true that these countries “remain significantly behind advanced economies, [and this] means that hunger in these countries could persist.” And that’s not all: malnutrition is also a problem: “developing countries now have to face problems of overweight, obesity and other diet-related non-communicable diseases”.

Biofuels no longer so cheap

The price of petrol at historical lows has led to a fall in the price of biofuels and cultivation is generally less profitable than in the past in the absence of incentives, and these are unlikely to be adopted by European or American governments. In Brazil on the other hand, the production of sugar-based ethanol will increase thanks to tax incentives and an increase in the mandatory ratio in petrol. The cultivation of biofuels is also actively promoted by the Indonesian government.

Few exporters, more importers

An increase in farmland is predicted only in South America, whilst in Asia, Europe and North America the increase in production will be the result of improved productivity. Modest growth is predicted for Africa. It is predicted that the export of agricultural products will be increasingly concentrated towards few countries, whilst more countries will rely on imports. This will lead to an increase in market fluctuations, caused by natural disasters or the introduction of particular trade measures. In general, it is thought that trade will grow at a slower rate than in the last decade. Nevertheless it will maintain a stable share in relation to global production. The report shows that if historical variations on yield, the price of oil and economic growth are maintained over the next decade, we should expect a strong crisis in international markets.

Increases and decreases on the global dinner table

The high demand of protein will lead to further growth in the production of edible seeds, in particular soy, especially in Brazil.

The increased demand of sugar in developing countries will help prices recover from record lows and could lead to investment in this sector. In Brazil, the leading producer worldwide, this will depend on the profitability of sugar in relation to ethanol from the same source.

It is predicted that fishing production will increase by 20% by 2024, with aquaculture possibly surpassing the production of capture fisheries in 2023.

Exports of dairy products will be concentrated towards four regions: New Zealand, the European Union, USA and Australia, where there are limited opportunities for domestic demand growth.

The price of cotton will fall due to the crisis of Chinese production, but could return to stable levels in the rest of the period; in 2024 neither real nor nominal prices are expected to reach the levels of 2012-14.

Contaminated pork in UK: too many antibiotics on European farms

Anna Muzio

Giu 22, 2015

It’s called MRSA, methicillin-resistant Staphylococcus aureus, the latest European health emergency from the animal world. An antibiotic-resistant super bacteria that is rapidly spreading on pig farms in Northern Europe. Infecting not only those who work in contact with the pigs, but also the products that arrive on our supermarket shelves. In Denmark, tests have shown that 20% of pork products are contaminated; in the United Kingdom, in a test sponsored by the Guardian newspaper and carried out by a Danish university, out of 100 products taken from the major British chains, 9, sold by Co-ops, Sainsbury’s, Tesco and Asda, were contaminated with the MRSA bacterium.

The health problem goes well beyond the rashes, sometimes serious, that some people have developed (usually farm workers, but not only), and the contamination of products which, according to the health authorities, is not directly linked to the development of the disease, and concerns resistance to antibiotics. According to the WHO, World Health Organization, by 2050 antibiotic resistance could lead to more cancer deaths, caused by infections no longer treatable with the drugs we use today, and which are heavily used on farms. The drastic reduction in their use is the only way to curb the problem.

Hence the idea of a number of associations to apply a label to the meat on sale, certifying the absence of administering antibiotics during the life of the animal. A means that would indicate, indirectly, more healthy and sustainable farming. According to some activists, however, the creation of a “not treated with antibiotics” label risks creating a protected area (a bit like organic) for higher-priced meat, while the majority of consumers would continue to buy low cost products, without directly addressing the issue. It is not so much the use of drugs, when necessary and prescribed by a veterinarian, which should be punished, but their widespread, indiscriminate and preventive use on all animals on intensive, overcrowded farms where sanitary conditions are extremely deficient.

The problem is clearly not circumscribed to Northern Europe, for two reasons. First of all, half of the pork used in Italy is imported. Moreover, as Dan Jørgensen, former Danish Minister of Agriculture, told the Guardian, “every country with pig farms has this problem: they just don’t know how big it is”. And Italy is certainly not exempt from the widespread use of antibiotics, a sign that there are health problems, often derived from unsustainable farming conditions, such as those reported by Animal Equality in certain farms in Northern Italy. It was the Health Minister herself, Beatrice Lorenzin, who said that “The figure on the use of antibiotics is high on our farms”. The Ministry also provided this data: over 10 million pigs are raised in our country and there are 137,851 pig farms. Finally, Italy is at the bottom of the league in terms of antibiotic resistance, due to the often indiscriminate use of the drug in both humans as well as animals. MRSA resistance, in particular, in Italy has European record percentages, exceeding 38%.

The European regulation which came into force in April which requires indication on the label of pig, sheep and goat meat, as well as poultry, of the country of origin, in addition to the name of the country where the animal was raised and slaughtered, is certainly a step forward, but the real problem is that the infected farms are not tracked in any way. Two Danish journalists who investigated the pig industry have been reported for “violation of privacy”. Not only that, the origin labelling does not apply to processed meat like sausages.

A problem, that of intensive farming and the use of antibiotics, which concerns not only pork but also poultry. According to the 2015 ECDC/ EFSA/ EMA report, in Italy we consume three times the European average of antibiotics for animal use.

The return to more “traditional” and “human” farms, which take into account the health and – as far as possible – the welfare of the animals and decrease the chances of getting ill would, according to many, be the solution. A step that would certainly lead to having more expensive, but presumably healthier, meat. Meanwhile, consumers are increasingly concerned about the health and origin of the meat they buy.

Alarm from Greenpeace: European apple orchards contain a cocktail of pesticides

fabrizio.gomarasca

Giu 16, 2015

Greenpeace has published a report on the presence of pesticides in apple orchards in Europe entitled “The bitter taste of intensive apple production”. And the news is not exactly good for consumers.

The report presents the results of the analysis of 85 samples of water and soil taken in twelve European countries, including Italy (in Val di Non and in Valtellina, two of the areas of greatest apple production) and examples of environmentally friendly farming practices for sustainable production without contaminating soil and water.

36 water samples and 49 soil samples were collected during the months of March and April 2015 in conventionally managed apple orchards and analysed to check the presence of pesticide residues. The samples represent a “snapshot” of the situation at the beginning of the flowering period.

On the 85 samples, 53 different pesticides were found. 78% of soil samples and 72% of water samples contained residues of at least one pesticide.

The pesticide most often found in soil and water is the fungicide boscalid (present in 38% of soil samples and 40% of water samples). As many as seven of the pesticides found are not currently approved in the EU, but can only be used with exceptional temporary waivers. The presence of these residues could be the result of previous applications, while in one case it could be a phenomenon of degradation.

Two thirds of soil and water samples taken in European apple orchards also contain residues of pesticides and 70% of the pesticides identified have very high levels of toxicity for humans and the environment. In a single soil sample collected in Italy, as many as thirteen different chemicals were found, and ten in a water sample, a veritable pesticide cocktail.

In the second part of the document, a selection of sustainable solutions for apple production and their possible application without contaminating soil and water are illustrated.

“Italy is one of the largest apple producers in Europe – said Federica Ferrario, responsible for the Greenpeace Italia Sustainable Agriculture Campaign –. Abandoning an agriculture model heavily reliant on chemicals is essential, also to protect our farmers and their families, who are the first to be directly exposed. The massive use of these substances in intensive apple production is another failure of industrial agriculture”.

Two are the requests of Greenpeace to European countries. Phasing out of the use of synthetic chemical pesticides in agriculture, starting from those that have carcinogenic, mutagenic or toxic effects for reproduction, which interfere with the hormonal system (EDC) or which have neurotoxic properties. Greater commitment in promoting and investing in the research and development of environmentally sound practices for pest management and control that are not dependent on the use of synthetic chemicals.

“There are already environmentally sound solutions adopted by thousands of farmers throughout Europe. In order to develop these good practices, it is also necessary that large-scale distribution plays its part by encouraging the transition to sustainable practices” concluded Ferrario.

Food exports: also retailers are moving and Coop starts with China

fabrizio.gomarasca

Mag 30, 2015

For decades it has been said that Italian retailers should have expanded abroad, but that the companies were not of a sufficient size to take the leap and measure themselves against the big international players. Then they arrived in Italy.

Some have gone, others are medicating their wounds. Others will arrive. Today, however, in 2015, albeit with the difficulty of establishing oneself abroad, with the opportunities of e-commerce and the interest of almost every country in the world for Italian food, things have changed somewhat. This was recently forcefully underlined at Fruit Innovation by the President of ICE, Riccardo Monti: “There is a huge demand from abroad for products of the Italian food industry. Today we are recognised leaders in quality, we must also become so in quantity”.

The goal which the Government has given itself is 50 billion in export turnover for 2020, compared to the 33 billion of today. “A goal within reach – said Agriculture Minister Maurizio Martina (on the right) – that can also count on a single agrifood made in Italy logo”, presented at Expo. The single logo is represented by an Italian flag with three waves that recall the concept of growth and development and by the wording The Extraordinary Italian Taste. The plan selects three segments: established, emerging and new markets. And in June the first campaign aimed at the United States and Canada will start with an investment of 30 million euros out of a total of 150 million envisaged overall.

“From today Italian agrifood – explained Minister Maurizio Martina – will be stronger and more recognisable on international markets. We finally have a single logo that will help consumers and operators to immediately identify the promotion of our products. We are starting with Expo Milano 2015 to take advantage of this extraordinary opportunity for visibility and continue with the activities envisaged in our internationalisation plan on strategic markets. Over the next three years we will invest over 70 million euros in promotion, learning to work as a team and not spreading our resources too thinly. With the single logo we intend to work on recognisability, create a leit motiv that links all the promotion activities of the real Italian product on the international stage. Our goal is to support companies that in recent years have fielded their energy, ability to get things done and passion, companies that have enabled Italy to record a growth of 70% in agrifood exports in the last 10 years. We closed 2014 with 34.4 billion euros, in the first quarter of 2015 we are at over 8.7 billion euros and our objective is to reach 36 billion by the end of the year. Also by properly exploiting the Universal Exhibition in Milan we can make it and aim to achieve 50 billion in exports in 2020”.

Also large-scale distribution can play its part. In fact something is moving, precisely in the direction of using the many riches of Italian agrifood to develop business abroad. There have been examples in the past, so much so that Crai is present in Switzerland and Malta with 160 stores. The methods are different, but the two major Italian groups, Conad and Coop, have finally moved.

The Cooperative of retailers landed in China in February with a mixed formula, for the moment envisaging five stores and a network of vending machines with a wide selection of products that can also be purchased via the Internet.

The project of Coop Italia, on the other hand, has just started, with the creation of a specific company – Coop Italian food – to develop contacts with international retailers or distributors of Italian products abroad, to which to propose private label products and those of small suppliers.

The first episode of this new adventure is in China: according to inStoremag information, ItalMenu has been established, a company based in Hong Kong whose business is to import and distribute Coop branded products in the retail and HORECA channels. Three weeks of promotional activities with ICE are planned for June and July in 40 stores of the PARKnSHOP chain, which belongs to the Hutchison Whampoa group.

At Tuttofood Agrifood Covalpa, frozen vegetables, just like their fresh counterparts

fabrizio.gomarasca

Apr 27, 2015

Sustainable, that speak of their region, safe and of superior quality: the frozen vegetables of Agrifood Covalpa, result of the work of more than 400 fruit and vegetable producers and a dedicated Agronomy Department, follow the dictates of the third millennium. Based on the plateau of the Fucino (L’Aquila), the food group was founded in 1989 from the union of seven agricultural cooperatives and will present its products at TuttoFood, which will open at the Fiera Milano on 3 May. “This year the event has a very important role. – says Valeria Picco, Group Marketing Manager – TuttoFood will in fact be for us, producers of consumer products, the official showcase to exhibit our products to an international audience. Moreover, the eco-sustainable approach that distinguishes the central theme of EXPO also fits perfectly with our production principles and the attention to a greener diet, both in the sense of “richer in vegetables” and in the sense of “less impacting on the environment”, encourages, and will increasingly do so, the consumption of fresh and frozen vegetables”.

Safe and superior quality products, grown in the green heart of the Valle del Fucino, among pristine lands and surrounded by the Sirente-Velino Natural Park, the Mount Salviano Nature Reserve and the Abruzzo National Park. The choice of safe and top quality seeds, the fertile soil and the mountain micro-climate give the finished product excellent organoleptic properties. A combination of naturalness and attention to the most innovative farming techniques that take only the best of tradition and give priority to water conservation and sustainable farming, make the Agrifood-Covalpa consortium a true certainty in terms of food safety, quality and environmental sustainability.

“Our goal has always been and always will be to offer frozen vegetables increasingly similar – in appearance, taste and texture – to fresh vegetables in season. This is the true innovation that the consumer rewards and recognises”, explains Picco. Thanks to rapid processing and instant freezing at -18°C, it is in fact possible to “capture” all the nutritional goodness of the original product, thus keeping it intact until the end.

Finally, Agrifood Covalpa, thanks to its photovoltaic and cogeneration systems, not only avoids the emission of 653 tonnes of CO2, 764 tonnes of SO2, 693 tonnes of NOX and 33 tonnes of particles, but also facilitates the production of eco-sustainable energy.

The Italian fruit and vegetable industry is looking to exports, among opportunities and difficulties

fabrizio.gomarasca

Apr 27, 2015

Italy is a major producer of fruit and vegetables, exporting 3.9 million tonnes (2014, +4.4%) and 4.1 million euros (-1.2%), with a share of 22% of fresh and processed produce, one point more than beverages. But how can exports be increased (also to compensate for the decline in the domestic market of 5.7% over the past 5 years) and which are the countries to be targeted? This was discussed at the seminar “Internationalisation of fruit and vegetable companies: concrete answers to emerging needs” organised by Fruit Innovation, the new fruit and vegetable exhibition which will make its debut at Fiera Milano Rho from 20 to 22 May 2015 with a mission: innovate and internationalise the industry.

Exports vary greatly depending on the product, we are the leader in the export of pears (with 718,000 tonnes, especially to Germany), stable in eating grapes of which half are exported, with the American market and seedless varieties growing, and we are the world’s second largest producer of kiwifruit (after China), 80% of which is exported to 100 countries, while we have decreased in a historical product such as citrus fruits, for which the balance of trade is negative.

The weaknesses of exports were summarised by Marco Salvi, President of Fruitimprese:

Phytosanitary barriers: if there is no bilateral agreement with the country in question, the result of political and diplomatic activity, you cannot export. In Japan, for example, we can only export processed oranges; in China we export 15,000 tonnes of kiwifruit.

The Russian embargo: fruit and vegetables have been hard hit, because it accounted for 39% of European exports, and is the largest importer of pears.

The conflicts in North Africa and the Middle East: that threaten an extremely promising and growing market.

The lack of a policy of commercial expansion involving companies and focussing promotional investments on selected markets.

Higher costs compared to other countries (including Spain, a direct competitor) in terms of labour, energy and transport.

“Companies, politics, universities and research need to form a system. 260 million euros for Made in Italy products have already been allocated by the Ministry of Economic Development (MED), which could allow us to make the quantum leap. We must invest in communication: for Pink Lady apples, for example, we invest 10 million euros a year. We are market leaders in many products, but we must avoid doing as we did for oranges, where we are the tail-end in exports: who would have said so 25 years ago?” warned Marco Salvi, President of Fruitimprese.

Claudio Scalise, Managing Partner of SGMARKETING, on the other hand, identified the opportunities to be seized at this point in time, positive due to the favourable euro/dollar exchange rate, oil prices at all-time lows and the beginning of recovery in consumption. “Among the trends I see are the increasingly blurred distinction between fresh and processed produce (see ready-prepared fresh produce) and exports that think in terms of the supply chain, from manufacturer to distributor to processor”. Another crucial lever is adaptation of the strategy to the different markets which request different things: critical consumption, service and aesthetics for mature markets, so product presentation becomes of crucial importance; quality standards, brand and service for emerging markets, for which imported fruit and vegetables are a status symbol for the middle class; and price for “New Frontier” countries (Africa, India, Turkey, Middle East), where fruit and vegetables are a commodity.

The first Kosher Parmigiano Reggiano Dop by Bertinelli is born

fabrizio.gomarasca

Mar 5, 2015

Focus on a market, that of kosher products, which is worth $150 billion worldwide, but also offer a quality product adapted to the many needs of an increasingly diverse and globalised clientele: these are the reasons that led the Bertinelli farm, producer of Parmigiano Reggiano Dop, to start production of the kosher version: the first kosher cheese rounds (the company plans to produce 5,000 per year), given that production was launched in October, will be available at the end of 2015, and most have already been sold.

“In the Jewish religion, dietary laws and food are strictly encoded by the Holy Books – explains Nicola Bertinelli, who along with his father today runs the farm -. The challenge of reconciling the specification of a unique product such as Parmigiano Reggiano DOP with the Kashrut proved to be extremely complex: all stages are involved, from cow breeding, which must follow certain rules, to milking, performed under the supervision of a rabbi who verifies the Chalav Yisrael nature of the milk, which can only come from Kosher animals. Even the animal rennet with which we produce Parmigiano Reggiano DOP must be Kosher certified. In the dairy, the production process is constantly monitored by the Mashgiach Temid. Furthermore, with regard to systems and infrastructures, the entire process route has been sanitised to conform with Jewish standards”.

The Bertinelli farm is the first in the world to be certified Kosher for the production of Parmigiano Reggiano DOP, both by the OU – the Orthodox Union (certification is under ratification and will be made official in April) and by OK Kosher Certification, among the most authoritative Kosher certification bodies, while in Italy it has obtained the recognition of the rabbi of Milan.

Recognition was facilitated by the fact that Bertinelli manages all production stages in house. “The products of our fields are used for the nutritional requirements of the livestock in our cow sheds. This is extremely important because the cheese is made “in the shed” and not in the dairy. To obtain a good cheese, it is necessary to start with a healthy diet for the cows: only those who have control over the entire chain can be certain that the livestock is fed in the proper way, i.e. with fresh fodder, rich in “good bacteria” that gives flavour and aroma to the Parmigiano Reggiano”.

Alongside the Kosher Parmigiano Reggiano the farm will produce a lactose-free fresh cheese, again Kosher: the first rounds of this product will be available starting from the summer of 2015.

Worldwide there are approx. 13.5 million people of Jewish faith, of which just under 40,000 in Italy. In the USA, kosher products – over 90,000 – represent 28% of food products sold in supermarkets: 56% of consumers are not Jewish.

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Tag: Agro-food supply chain

GEA-Fondazione Edison Observatory: the 4 As pull along Made in Italy. The USA looks to food

Host 2015, beginning on 23 October, almost sold out already

OECD and FAO: price of agricultural products in decline, protein and meat rising, grains and biofuels falling

Contaminated pork in UK: too many antibiotics on European farms

Alarm from Greenpeace: European apple orchards contain a cocktail of pesticides

Food exports: also retailers are moving and Coop starts with China

At Tuttofood Agrifood Covalpa, frozen vegetables, just like their fresh counterparts

The Italian fruit and vegetable industry is looking to exports, among opportunities and difficulties

The first Kosher Parmigiano Reggiano Dop by Bertinelli is born

Processed meat, MEP’s in favour of the obligation to indicate the origin

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