"Everybody's trying to find new outlets in emerging markets because they are more profitable and less strict from a regulatory point of view. Europe is not as attractive as it used to be," explains Luca Battaglio, chairman of Gruppo Battaglio.
"Just think about Argentinian pear exporters, who bypassed Europe for Russia as prices were attractive and it was less demanding quality-wise. When the market got saturated, they switched to Brazil. Unfortunately, the purchasing power dropped a lot over there because of the crisis, so maybe next year they will come back to Europe!"
"This is a perfect example of how we need to distribute out products on numerous markets without following current trends."
Fresh produce with a long-shelf life can affect the market
Especially since marketing trends and rhythms have changed considerably due to new technologies.
"The fact that the produce is perishable has always been the reason behind a dynamic market however, now that it can be stored for increasingly long periods of time, there is the risk of slowing down the entire market and creating stocks we cannot manage. We produce according to what we sow and depending on the weather - it is all casual, it cannot be planned. Having produce that can be stored for a long time means we have to start thinking differently."
"We used to be able to import fresh apples from April to June (from Chile and Argentina), but we cannot do that any more as now Italian apples are still available during that period. The same is happening with pears. It makes no sense to start a new campaign while the old one is still going on. Because of this, we are convinced we should increase tropical fruit imports. If retailers started promoting it more, it would make more sense to focus on alternative products that are not cultivated in Europe in the future."
The relationship with Peru
Gruppo Battaglio has been working with Peru for many years though, while it used to buy produce from Dutch/Spanish importers, it now imports it directly.
"Peru is very interesting because it has a long productive calendar and fruit stands transport well. The produce has excellent organoleptic qualities and the companies are very dynamic and want to grow."
According to the entrepreneur, "the only disadvantage is that Peru is in an awkward position from a logistics point of view, as transit time towards Europe is quite long. The climatic conditions of the country and the dynamism of the companies more than makes up for it though."
Gruppo Battaglio is currently importing asparagus, Red Globe table grapes, tropical fruit and pomegranates.
"Peruvian asparagus are imported the whole year round except for April, when the local produce is available. Europe used to grow a lot of it but now most of the Spanish production is destined to the processing industry and Italy only grows it during a limited period of time. Peru can grow asparagus throughout the year as it has three different production areas."
"The product is graded well and has good organoleptic qualities throughout the year."
Red Globe table grapes are imported when the Italian season is over, i.e. from December to March, then it is the turn of Chilean grapes. "Peru is definitely the most interesting grape producer in Latin America because quality is excellent and prices are competitive."
Tropical fruit
"Tropical fruit - mangos and papayas in particular - is a niche in Italy, as we are quite a traditional country. This characteristic and the fact that many markets do not even sell these products means people do not know when the fruit is ripe, thus limiting its consumption."
"It is a real pity, because Peru is an excellent mango producer. The problem is importing mango containers is complex, as consumption is low. Despite this, I strongly believe tropical fruit is important for the future of European importers."
Last but not least, pomegranates. "Consumption is growing thanks to the marketing focused on its healthy characteristics. Pomegranate juice is a US product that is becoming increasingly popular, just like it did with pineapples in the last 15 years - pineapples are now being consumed daily also thanks to varietal improvement, more accessible prices and better marketing."
All Peruvian products are imported via sea except for asparagus.
