"The effects of the adverse weather events and heavy rain that hit Sicily in October and November confirm forecasts on the quantity of citrus fruit available, expected to be 70% lower than in 2020," reports Salvatore Imbesi, director of the Ortogel facility.
Salvatore Imbesi, director of the Ortogel facility
As for byproducts, Ortogel Spa has only reached 25% of the processed product compared to 2020. After the blonde orange byproduct campaign will be over over, we are expecting the byproducts of pigmented varieties to have anthocyanins below average due to a delay in the coloring of fruits . What is more, the campaign should be short and not last beyond March 2021.
"The 2021 campaign will therefore be characterized by less than exciting volumes and low quotations, well below production costs. The extraordinary increase in the cost of raw materials (energy costs, packaging, transport) is bringing both producers and the industry to its knees - also in consideration of the time it will take for things to return to normal - so the entire sector risks collapsing. This situation is unbelievable and it will definitely lead to significant interventions of the legislator to prevent productions from being abandoned. Harvesting, packaging and transport costs have all increased. Just to make an example, it takes €0.60/kg just to reach the platforms in Milan, so producer margins do not exceed €0.30/kg."
"It is a paradox, considering that the sale price of products to consumers has increased by 100% compared to the past campaign, though traders are requested to confirm the prices of the past year, or even to reduce them. Shelf prices will increase by 100% at the expense of intermediaries and producers, who are the weak link of the chain. This is true especially in light of a campaign such as this one, which will be short and will entail costly treatments to rebalance the shelf life of fruits affected by the heavy rain."
“It is a dramatic situation that does not just involve the fresh produce segment, but also the byproduct industry in other European countries which are large citrus fruit producers. Spain is the perfect example, as producers get paid even less than in Italy. The only difference is that, in Spain, there is a livelier political debate as regards the minimum costs, as there is more awareness that, without acceptable prices, more and more groves will be abandoned and green strategies to protect the environment will fail, as we will lose an essential sector for biodiversity."
For further information:
Ortogel Spa
C.da Balchino Zona Industriale
95039 Caltagirone (CT) - Italy
+39 0933 1902800
+39 348 8949166
[email protected]
www.ortogel.com