After the Russian government extended the ban against European produce, Fruitimprese chairman Marco Salvi (in the photo) talked to FreshPlaza about the problems of the industry - from production costs to the relationship with retailers.
"We are working with the Ministry for Agricultural Policy to include the production cost issue in the Agricultural package. We must do something to protect producers, who are the weakest link of the chain. The problem is our companies are no longer competitive and the tax wedge is not helping."
"What is worse, is that the system is failing. The prices of summer products are already falling below production costs and, if the situation does not improve, we will lose profit and jobs with consequences all over the country."
The relationship with retailers
"Everyone can see how the drop in purchasing prices for retailers is not leading to lower in-store prices. They should drop in a few days' time but, in the meantime, they speculate. Of course there are too many operators selling and few that are buying but people are using last year's price lists to make comparisons, especially abroad. Even though quantities are not abundant, we are experiencing steep drops in prices - 5-10 cents at a time."
Exports
"The temperature drop in early June led to fewer sales. Many foreign retailers have just started to introduce Italian produce. It is the Spaniards who control the prices, we must comply and wait for their supply to finish.
"The Arab Emirates and North Africa are important destinations but they are still niche markets. In addition, this year, we have to deal with stiff competition from Greece."
Italy and the embargo
"After Moscow announced it was extending the ban, the deputy Minister for the Economic Development Carlo Calenda declared that 2015 exports should only drop by 1%, which should anyway be compensated by an increase of Italian exports towards the US."
"I'm not sure what products he was talking about, but I believe what is happening is quite dangerous. We are getting used to the idea of the embargo, whereas we should be reminding everyone that the Russian market was really important. If we cannot start negotiating once again, the EU will have to introduce measures to help the industry."
Text and translation by FreshPlaza. All right reserved.
