The abnormal start of the current stone fruit campaign had already led farmers to expect that something would go in the wrong direction this year, due to a series of climatic and socio-economic factors that contributed to the chaos on the markets. However, it was the entire supply chain, including packaging companies, that felt the blow.
We analyzed the situation with Antonio Castelluccio, sales manager of the Italian Pack System company in Policoro (Matera), to determine the main factors that caused a drop in stone fruit sales over the past two months, with a consequent drop in demand for packaging. "The amount of packaging volumes that were sold in the first few months of this season was significantly lower than last year's, with a drop of more than 20 per cent in sales compared to May/June 2022. The first reason for the decrease in processed packaging volumes was the weather, which reduced the availability of several fruit and vegetable references and delayed the ripening of the fruits. The weather was marked by a very wet spring, with near-daily rainfall and below-average temperatures. It was not until mid-June that summer really kicked in, but in terms of quality (size and shelf-life) the quality standards remained low, which further discouraged the purchase and consumption of stone fruits.
Moreover, there are still signs of an economic crisis that continues to have a negative impact on consumption, despite a reduction in inflation compared to a few months ago. This situation has been exacerbated by the recent surge in interest rates, as spending habits are constrained by higher mortgage repayments.
"Another reason for the reduced sales in packaging," adds the manager, "is the increase in apricot and peach prices, due to the crazy weather and its consequent impact on production. In particular, apricots registered a considerable increase in their selling price (ISMEA data: +53% in May 2023 compared to May 2022 and +46% in June 2023 compared to June 2022), placing them on the top of the list for price increases in June 2023, with an average production price of €1.28/kg. This caused a drastic drop in consumption and therefore in demand. Price increases were also recorded for peaches and nectarines, although they were less marked (+19% and +6% respectively compared to June 2022).”
There also seems to be a correlation with the dramatic and unpredictable flooding that hit Emilia-Romagna last May. "The floods brought down the entire stone fruit harvest in Emilia and destroyed entire fields. As a result, several growers in southern Italy who work with companies in northern decided to ship their product in bulk to packing stations in the north rather than on site. This further reduced the demand for primary packaging among southern growers," continued Castelluccio.
The sale of packaging for stone fruit was therefore below expectations and lower than in previous years. "This has been a very unusual commercial trend We are waiting to see any rebound in consumption and therefore in sales," concludes Castelluccio.
For more information:
Pack System Srl
Via Bellini, 11
75025 Policoro (MT)
+39 0835 901068 - 339 2018577
[email protected]
packsistem.com
