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The Santa Margherita Terre e Sole tomato campaign

"Italy: "A product that doesn't keep up with expectations is short-lived"

"At the moment we are marketing a number of different varieties oftomatoes. One of these was presented at Berlin's Fruit Logistica lastyear. It is a slightly bigger tomato than a Mini San Marzano, which has a greattaste and shelf-life. At the moment it is being exported in Denmark andGermany, but we hope that, as of the next campaign, we will be able to exportit to Switzerland too."

Gianni Picci, executive coordinator ofthe Cooperativa Santa Margherita Terrae Sole, explained this, adding that it is a tomatocreated from their research carried out in Sardinia.


Gianni Picci with Obretta Pirisinu

The Cooperative is exporting to Switzerland, Germany and Denmarkat the moment. "Usually, when dealing with foreign clients, we plant our products according to the quantities they require. For this reason, demand and supply usually meet however, as we work in the agricultural sector, the production isinfluenced by weather conditions and so we have to managevariations.
The types that we market at the moment are: Fragolino (date tomatoes withstems), Cupido (oval cherry tomatoes), Baci di Sole (cherry tomatoes) andMinuetto (mini San Marzanos). Until the end of May there's no competitionfrom local products, but starting from June, Switzerland will place duties to safeguard itsown produce and Danes will tend to buy local produce. The right period runs fromNovember to June, when it is more complicated to cultivate."



"All of the varieties are considered specialities by ourclients and are placed in the 'premium price' range because of theirintrinsic qualities and also because of the inspections during production, whichsatisfy even the most demanding clients," comments Picci, who also addsthat it is indeed a niche market but, with clients like COOP in Switzerland andEDEKA and COOP in Denmark, quantities are interesting, so much so that it isactually complicated to satisfy all of the requests.

"Increasing quantities is also complicated, as our production is limited because of cultivating techniques and of the varieties we have, whichfavour taste and quality rather that quantity, and also because of inspections during production, which are not as achievable with larger quantities."



As the prices of these products are medium/high, they are partlydisconnected from the general trend. "Prices are linked to the qualityexpectations of those clients who prefer to spend more for excellentproducts. The latter needs to be special and above average, and thisdistinction needs to be perceived."
According to Picci, the more such expectations are met, the more demandwill be maintained, in turn maintaining prices high. "A product that does notkeep up with expectations is short-lived. Then of course marketing,availability and the capability of the client to recognise the product alsoplay a role. The product may be exceptional, but if it is not perceived as such,it will be just as the others."



"A great example of that is our Swissclient, who asked the cooperative to place a sticker with the symbol ofSardinia to stress the fact that the produce comes from a place like no other, a placewhich generally very much appreciated by Swiss people."

Tomatoes that are sold abroad are usually placed in trays, as packaging helps them stand out form the rest of the products as well.

Transportationdoes not pose particular problems, the produce arrives to the platforms in Northern Italy in refrigerated lorries (just as the one destined to the national market) and in then transferred by the client with its own platforms. "It actually is more complicated to leave our island than to cross the border, as we don't have much choice of ships or harbours," complains Picci.




Campaign analysis

"Unfortunately, the campaign didn't start very well: there have been many losses in August due to some diseases and high temperatures. At the moment, humidity levels are a bit high, but we are positive as temperatures have been decent and this in turn should lead to a fairly good production in spring. Before making further analysis though, we have to wait for the end of the campaign."

Impact of the economic crisis

"The impact has been noticeable, especially as far as the national market is concerned, as competition is really tough. It is always complicated for a product to stand out and price has become the most important element. Having said that, our company focuses on quality and therefore is encountering some difficulties facing a market where price is the main element."

"On top of that, we have been affected by the difficulties of Italian agriculture on the whole, starting from the fact that commercial farms are getting old both in terms of structures and in terms of labour. Cultivable surfaces are getting smaller and, even if there aren't many jobs, young people are not very keen on getting involved with such a complicated sector."

The future

Although at the moment it is very difficult, the Cooperative believes it is essential to keep improving and finding the best instruments to relaunch the sector.

"As regards the novelties in Berlin, we presented our new line of multi-colour and multi-shape tomatoes, which has been met with interest by our national and international clients. The market already has different types of tomatoes, but not to this extent, especially taking into consideration taste."



These new lines were also created from the research carried our in Sardinia, which focused on taste as well as aesthetics. "We have presented Sardinia's PDO Thorny Artichoke as well, sold in either 4-piece trays or whole in stay-fresh bags, which keep the characteristics unaltered for several days."


Artichokes are sold in trays or in bags.

Sardinia's POD Thorny Artichokes must follow many cultivation and packaging procedures, as well as strict parameters regarding its aspect and organoleptic qualities.



Picci explains how "the problem is though, that research takes a long time and buyers cannot always wait, taste and decide the perfect placement for products whilst studying with the producer programmes to accompany it."

"Before the next campaign, we are looking at strengthening Minuetto tomatoes in those markets where it is currently marketed and at extending it to others. As far as the new tomato varieties presented in Berlin, we are sure that they will be successful among consumers and, if buyers will have the same interest they showed us during the trade fair, they will definitely place our product."

For more information:
Gianni Picci - Coordinatore Esecutivo
Società Cooperativa Santa Margherita Terra e Sole
09010 PULA (CA)
Tel.: (+39) 070 9208011
Fax: (+39) 070 9208269
Cell.: (+39) 348 6001705
Email: [email protected]
Web: www.saporedisole.it

Copyright FreshPlaza
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