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production costs cause difficulties for Italian fresh produce sector

"Our electricity bill has increased by 85 thousand euros"

"There is a concrete risk of not making ends meet. If things do not change, 2022 will be terrible," reports Emile Fellini, owner of a company producing, processing and commercializing vegetables located in Gambettola (Forlì-Cesena).

"I do not know how the others are doing, but from what I read everybody is experiencing the same. For example, in just four months, our electricity bill has increased by 85 thousand Euros compared to the same 4 months last year, though consumption has remained more or less the same. And this is only one of the many items for which there has been an increase."

Fellini also owns a business covering dozens of hectares where he cultivates many products directly. "In 2021, we substantially broke even. In 2022, we will probably work at a loss, a concept that everyone can understand easily - technical means have doubled or tripled, while the prices our clients pay do not cover these increases."  

How to make up for this? "First of all, we will diminish the number of transplants. Consumption will probably drop, so we will not plan as much. However, our producers do require a guaranteed minimum to organize their crops. It is not easy to find the right balance."

Certifications, new packaging, sustainable agriculture - these are indeed nice concepts, but they clash with a question: who will pay for them? "Consumers are more careful and purchase as little as possible. If the price of produce increases, consumption drops, so we need to get it into our heads that we cannot produce the same quantities as before."

"I do agree that the current €2.50/kg for fennel is too much, but was the €0.70/kg the market paid for them for two years good? It was not, but no one complained."

Covering production costs is a mirage. "We are doing what we can to save, but it is risky."

For further information:
Fellini Patrizio S.r.L.

Via G. Pascoli, 875
47035 Gambettola (FC) - Italy
+39 0547 659 777
emile@fellinipatrizio.it 
www.fellinipatrizio.it      

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