Rago Group: "Fresh-cut sector needs strong investments"

Rago Group is market-leader in vegetable production and processing. The company occupies the second place in Europe for volumes of exported Rucola (wild rocket) and is specialized in the production (year round) and processing of Baby Leaf: rucola, green and red baby lettuce, baby spinach. Produced vegetables are offered both fresh and fresh-cut.

FreshPlaza asked Rosario Rago about his opinion about the current commercial season and on the fresh-cut sector in general. "We are one of the few firms who cultivate their own produce," Rosario explains. "We grow vegetables on 350 hectares, for a daily production of 10 MT fresh-cut winter vegetables and 4-5 MT fresh-cut summer vegetables. We are also diversifying our supply with some cherry tomatoes. Production for non-cut fresh vegetables is much greater, but profitability is higher on fresh-cut products."



With regard to the commercial season 2006/07, Rosario recalls the difficulties which originated from a too temperate winter: "The high temperatures during the winter season caused not only a general oversupply of vegetables, but also an unnatural ripening synchronization between the main Italian producing regions. This situation caused pressure on the prices. Fresh-cut products have been the only products which obtained better results, but we should not forget that in this sector a strong growth in the foreign companies is noticeable. Our European competitors are indeed very aggressive with regard to their marketing policy."

"Marketing is a key factor for business - Rosario says - Our added value consists in quality, but when a consumer is buying salads in the supermarket, what sounds into his head is a slogan and what catches his eyes is a brand. So my advice
for the Italian firms who are entering this field is: you have to make investments and should not forget your competitors have a million euro budget for their promotional and marketing needs."

Rago Group's fresh-cut supply is encountering a growing interest, especially on the English market, as Rosario informs: "Our growing rate in England is about 15-20% a year, but we are also looking at new markets, such as the eastern countries and
especially Russia."

On the side of the packaging innovations, Rosario says: "We have just launched a new packaging for ready-to-eat salads in the Italian chain Conad, with spices and a little fork inside (see photo below). This month, we will also start with a pocket-packaging (50 gr) for vending machines."



Amongst the reasons to be proud of his firm, Rosario adds: "Researchers from the Italian University of Potenza have chosen our firm in order to make a study on the fresh-cut processing system."

For further information:

Rago Group
Via S.P. 312 Santa Lucia Sup.
84090 Battipaglia (Sa)
Italy
Phone.: +39 0828 671404 when recording begins, press 26
Fax: +39 0828 673092
UK: +44 208 1234 004
Germany: +49 665 724 1330
Email
Info/Sales Italian
Info/Sales English
Website

Publication date: 7/4/2007
Author: Rossella Gigli
Copyright: www.freshplaza.com

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