The 2016/17 Italian kiwi campaign is in full swing after the Christmas period. The positioning on the market is partly influenced by production.
Things were looking positive for operators right from the start, as supply is lower than last year and organoleptic qualities are better.
In total, volumes are 22% lower than 2015 due to lower yields in all production areas and especially in central and southern Italy.
In Piedmont, despite the slight increase in production areas (+1% with respect to 2015), volumes are 11% lower than 2015 due to hail damage and vine decline, which last year affected the region for the first time.
In Veneto, and in the Verona area in particular, production dropped, due to serious cases of vine decline. Production areas decreased by 22% with respect to 2015 and saleable quantities dropped by 14%.
Production areas remained constant in Emilia Romagna, while volumes dropped by 19% due to lower yields.
Volumes in Lazio dropped by 34% due to considerable lower yields, which were only partially compensated by a 5% expansion of the production areas.
Significant production drops, around 30%, were also registered in Calabria, Campania and Basilicata, where production areas are being expanded.
In total, the saleable production for 2016 is of around 448,000 tons, 29,500 of which are golden kiwis (+29% with respect to the previous season) while the remaining volumes are green kiwis (-24% than 2015/16).
In total, the saleable production for 2016 is of around 448,000 tons, 29,500 of which are golden kiwis (+29% with respect to the previous season) while the remaining volumes are green kiwis (-24% than 2015/16).
For what concerns other producer regions in the northern hemisphere, data is still unavailable, but we believe will differ greatly from the forecasts made in September. Supply was estimated to be lower than the previous year except for France (+3%). Portugal and Spain are registering lower volumes (-20 and -16% respectively) while, in Greece, the younger orchards have become productive thus compensating for yield problems.
Production in 2016 is therefore looking much lower than in the previous year, though Greece must be monitored.
The situation in Italy at the beginning of the campaign was better than the previous year thanks to the lower volumes available. Sales were not bad during the first few months and were made mostly overseas.
As usual, on the European market, demand mainly focused on the Greek produce due to its lower price. Demand dropped in December during the Christmas period as consumers were distracted by the availability of many other products.
According to the data processed by CSO Italy concerning stocks, the situation is looking much better than last year. Sales were good right from the start and, with 22% less produce available than 2015, stocks registered -24% in late November and -26% at the end of the year.
The sales rhythm was faster than in the past season as, at the end of 2016, 27% of the produce has been sold against the 23% of the past year.
This was combined with a good evolution also for what concerns price lists, which were definitely better than 2015/16.
At the end of the year, price lists were better for all grades, and especially for medium ones (+25/28 eurocents per kg). At the moment, quotations are similar to 2013/14.
Of course the drop in production led to an increased fluidity, but the presence of Greece has become a structural question. The country keeps on expanding its production and the lack of the Russian market has changed its export destinations.
Pressure from the Greek produce is expected to drop in January, and therefore the domestic produce should find more outlets on the European markets.
The hope is for an increased interest for the domestic produce as well as a stronger predisposition to spend, especially on the German market. The lack of volumes, combined with good organoleptic qualities, should generate a positive campaign.
Soruce: CSO Italy for FreshPlaza