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Italy: AgrOsserva 2017 report

According to Ismea's AgrOsserva report, 2017 will be mostly remembered for the pickup of food consumption after 5 years (+3.2%) despite the difficult weather conditions. However, Istat data on retail trade for January 2018 recorded a 0.5% drop in sales compared to January 2017.

The industrial segment drove the sector thanks to domestic and foreign demand, which recorded an increase in added value (+1.8%), industrial production (+3%) and employees (+1%). Food and beverage exports went very well with €41 billion (+6.8% in 2018 compared to the +4.2% of the previous year).

The agricultural year was instead strongly affected by the weather, which had a negative impact in terms of added value (-4.4% compared with 2016). The number of agricultural business remained practically unvaried (-0.3% in the Business Registry in December 2017 on an annual basis). Positive data include the growth of agricultural businesses managed by under-35s (5,331, 5.6% more).



On a productive level, 2017 was characterised by a rather bizarre climate, which penalised scheduled supplies. The weather affected growth, which meant supplies were available for a shorter time due to the prolonged heat and which led to losses caused by drought and frost.

As regards fruit, there were lower volumes of apples (-23%) and kiwis (-14%), leading to higher prices. There were 5% more pears than in 2016 yet prices during the last trimester were higher. Prices of oranges, lemons and table grapes were higher than during the previous campaign as well.

The balance of foreign trade during the first eleven months of 2017 was of almost €955 million, almost 34% more than in 2016. The increase in exports (+3.9%) was higher than that of imports (+2.1%).

As for domestic demand, families spent more in 2017 for both fresh and processed fruit (+4.3 ad +3.5% respectively).

The vegetable situation was rather diverse. The artichoke campaign started on a positive note with high prices, which then dropped in December due to an increase in domestic volumes and the arrival of produce from North Africa.

Prices of cauliflowers and cabbage dropped, especially in the first part of the trimester, as demand was slow due to the mild temperatures.

Greenhouse vegetables saw increasing tomato prices while those of courgettes and aubergines dropped. The balance was lower in January-November 2017 (-7%) due to higher fresh (+8%) and processed (+1.2%) vegetable imports while exports remained stable.

Italian families spent 4% more in vegetables compared with 2016, with fresh and processed (+7.4%) and frozen (+2.4%) products leading the way.
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