Italy-Fresh Deciduous Fruit Annual 2012

An Expert's View about Economic Trends/Outlook in Italy

Posted on: 23 Jan 2013

Italy's fruit production (2012/13) is forecasted to decrease due to adverse weather conditions.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 10/24/2012 GAIN Report Number: IT1234 Italy Post: Rome Fresh Deciduous Fruit Annual 2012 Report Categories: Fresh Deciduous Fruit Approved By: Christine Sloop Prepared By: Ornella Bettini Report Highlights: MY 2012/13 Italian apple production is forecast to decrease by 13.3 percent compared to the previous year, due mainly to the freeze and heavy rains during the blooming time. MY 2012/13 pear production is forecast at 717,000 MT, a 22 percent shortfall over last season’s supply. The decline is due to the severe drought of this summer that affected the main producing areas, strongly hindering the normal development of the fruit. Italy ranks 6th in world’s table grape production and 3rd among table grape exporters, behind Chile and the United States. MY 2012/13 Italian table grape production is estimated to decrease slightly, because of the severe summer drought that negatively affected the growth of mid to late maturing varieties, thus reducing the size of the fruit. Italy is the leading table grape consumer in the EU-27, followed by Germany, the United Kingdom, France, and Spain. I. APPLES Table 1: Production, Supply, and Demand (MT) 2010 2011 2012 App Estimates les Estimates 2011/2012 Forecast 2012/2013 2010/2011 Post Data Post Data Post Data Area Planted 57,907 58,968 58,950 Area Harvested 54,468 55,100 55,050 Commercial Production 2,179,000 2,293,000 1,987,000 Production 2,179,000 2,293,000 1,987,000 Intra EU-27 Imports 24,573 23,650 23,600 Extra EU-27 Imports 13,649 7,934 7,900 Total Imports 38,222 31,584 31,500 Total Supply 2,217,222 2,324,584 2,018,500 Fresh Domestic Consumption 1,164,579 1,041,067 857,300 Intra EU-27 Exports 748,756 675,762 675,000 Extra EU-27 Exports 213,887 286,735 287,500 Total Exports 962,643 962,497 962,500 For processing 90,000 321,020 198,700 Total Distribution 2,217,222 2,324,584 2,018,500 Source: Istat; Assomela; CSO (Italy’s Fresh Produce Service Centre); GTA PRODUCTION With about 2MMT, Italy provides around 20 percent of the EU-27 apple production. Trentino-South Tyrol covers 70 percent of apple production in Italy and 15 percent of the production in Europe. Veneto, Friuli Venezia Giulia, Piedmont, Emilia Romagna, Lombardia, and Campania are the main apple-producing areas. Golden Delicious, Gala, Red Delicious, Fuji, and Granny Smith represent the most widely planted varieties. MY 2012/13 Italian apple production is forecast to decrease by 13.3 percent compared to the previous year, due mainly to the freeze and heavy rains during the blooming time. Remarkable decreases are forecast for Red Delicious, Renetta, Gala, and Fuji varieties. Fruit quality is in turn satisfying. In terms of price, the fall in European apple production (-9 percent ) should ensure a healthy balance between supply and demand, determining definately better prices compared to the ones registered in the last commercial campaign. Table 2: Italian apple production by region (MT) 2009 2010 2011 2012 (Forecast) Var. 2012/2011 Alto Adige 1,157,524 1,064,638 1,180,991 998,406 -15,5% Trentino 420,658 466,724 504,801 449,111 -11% Other regions 659,096 648,253 606,970 545,394 -10,1% Total 2,237,279 2,179,615 2,292,762 1,992,911 -13,1% Source: Assomela; CSO Table 3: Italian apple production by variety (MT) Apple Production Estimates Estimates 2011/2012 Forecast 2012/2013 by Variety 2010/2011 Golden Delicious 947,000 1,021,000 910,000 Gala 302,000 318,000 278,000 Red Delicious 245,000 253,000 201,000 Fuji 163,000 164,000 146,000 Granny Smith 113,000 122,000 92,000 Braeburn 97,000 102,000 87,000 Cripps Pink 70,000 92,000 70,000 Morgenduft/Imparatore 81,000 61,000 63,000 Annurca 34,000 35,000 35,000 Renette 27,000 27,000 19,000 Jonagold 14,000 17,000 14,000 Stayman R. e W. 18,000 17,000 13,000 Idared 4,000 2,000 2,000 Elstar 1,000 1,000 1,000 Gloster 0 0 0 Jonathan 0 0 0 Other 62,000 60,000 62,000 Total 2,179,000 2,293,000 1,993,000 Source: Assomela; CSO Table 4: Farm Gate Prices (€/kg) Golden Delicious Month JAN FEB MAR APR MAY JUN SEP OCT NOV DIC Year 2011 0,54 0,55 0,57 0,57 0,56 0,56 0,50 0,48 0,52 0,52 2012 0,52 0,53 0,50 0,51 0,54 0,56 0,59 0,59 - - Source: Datima CONSUMPTION Experts estimate that in MY 2012 around 10 percent (198,700 MT) of the Italian crop will be destined to the industry, while the remainder 90 percent (1,788,300 MT) will be suitable for domestic fresh consumption and export. TRADE Italy’s apple exports have been constantly growing for 10 years, both in terms of quantities and reached destinations. MY 2011/12 Italian extra EU-27 apple exports regisitered a significant increase, especially to North Africa (Egypt, Libya, and Algeria) and Mid-East countries (United Arab Emirates, Saudi Arabia, and Kuwait). Germany, Chile, and France continue to be the main suppliers to the Italian apple market. II. PEARS Table 5: Production, Supply, and Demand (MT) 2010 2011 2012 Estimates Pears Estimates 2011/2012 Forecast 2012/2013 2010/2011 Post Data Post Data Post Data Area Planted 40,233 39,428 39,000 Area Harvested 36,890 36,339 36,100 Commercial Production 680,000 915,000 717,000 Production 680,000 915,000 717,000 Intra EU27 Imports 59,088 31,202 31,100 Extra EU27 Imports 77,219 461 460 Total Imports 136,307 31,663 31,560 Total Supply 816,307 946,663 748,560 Fresh Domestic Consumption 623,363 729,839 563,410 Intra EU27 Exports 112,697 100,119 100,100 Extra EU27 Exports 10,247 13,310 13,350 Total Exports 122,944 113,429 113,450 For processing 70,000 103,395 71,700 Total Distribution 816,307 946,663 748,560 Source: Istat; CSO; GTA PRODUCTION Italy is the largest pear producer in the EU-27 and ranks third in the world after China and the United States. Approximately 33,498 hectares of pear orchards are cultivated in Italy, mainly located in the northeast. Emilia-Romagna (Ferrara, Modena, and Bologna) is the main producing area with almost 66 percent of Italy’s total output. Pear planted area has been declining over the last decade due to lack of profitable investment opportunities. Abate Fetel is the dominant variety, followed by William B.C., Conference, Coscia, Kaiser, Decana, Passacrassana, and Guyot. MY 2012/13 pear production is forecast at 717,000 MT, a 22 percent shortfall over last season’s supply. The decline is due to the severe drought of this summer that affected the main producing areas, strongly hindering the normal development of the fruit. The Abate variety registered a decrease of 45 percent compared to MY 2011/12, while Williams and Conference drop by 30 and 35-40 percent respectively. Size of the fruit is smaller than expected, but quality is very good from the gustatory and organoleptic point of view. Table 6: Farm Gate Prices (€/Kg) CONFERENCE Mont JA FE MA AP MA JU AG SE OC NO DI h N B R R Y N O P T V C Year 0,8 0,8 0,84 0,8 0,76 0,6 0,37 0,3 0,50 0,52 0,5 2011 0 3 3 0 8 2 0,5 0,5 0,56 0,5 0,66 0,5 0,52 0,5 0,73 - - 2012 0 3 8 5 3 ABATE FETEL Month JAN FEB MAR AUG SEP OCT NOV DIC Year 2011 1,10 1,11 1,04 0,49 0,57 0,65 0,62 0,57 2012 0,53 0,48 0,51 0,68 0,82 0,94 - - WILLIAMS Month AUG SEP OCT Year 2011 0,45 0,60 0,61 2012 0,50 0,75 0,79 Source: Datima Table 7: Italian pear production by variety (MT) Pear Production Estimates Estimates 2011/2012 Forecast 2012/2013 by Variety 2010/2011 Abate Fetel 220,000 378,000 279,000 William B.C. 156,000 185,000 152,000 Conference 93,000 112,000 88,000 Coscia 53,000 54,000 48,000 Kaiser 39,000 57,000 38,000 Decana del C. 38,000 39,000 33,000 Passacrassana 5,000 6,000 5,000 Guyat 2,000 2,000 2,000 Altre 74,000 80,000 73,000 Total 680,000 915,000 717,000 Source: CSO CONSUMPTION Italy consumes most of its domestic production, exporting less than 16 percent. TRADE MY 2011/12 Italian pear imports reached 31,663 MT, a decline of 77 percent compared to the previous campaign. Italy imports the majority of its pears from Spain, accounting for 72 percent of the total. Follow France and the Netherlands. Germany and France continue to be the main destinations for Italian pears, accounting for 40 and 15 percent respectively. III. TABLE GRAPES Table 8: Production, Supply, and Demand (MT) 2010 2011 2012 T Estimates able grapes Estimates 2011/2012 Forecast 2012/2013 2010/2011 Post Data Post Data Post Data Area Planted 68,232 68,100 68,030 Area Harvested 65,583 65,900 65,820 Commercial Production 1,361,000 1,343,000 1,275,850 Production 1,361,000 1,343,000 1,275,850 Intra EU27 Imports 10,941 16,129 16,150 Extra EU27 Imports 9,818 8,827 8,810 Total Imports 20,759 24,956 24,960 Total Supply 1,381,759 1,367,956 1,300,810 Fresh Domestic Consumption 898,857 869,725 802,575 Intra EU27 Exports 427,889 443,538 443,600 Extra EU27 Exports 55,013 54,693 54,635 Total Exports 482,902 498,231 498,235 Total Distribution 1,381,759 1,367,956 1,300,810 Source: ISTAT; GTA PRODUCTION Italy ranks 6th in world’s table grape production and 3rd among table grape exporters, behind Chile and the United States. Italian table grape production is concentrated in Southern Italy, mainly in Apulia and Sicily, which account for 75 and 25 percent of the domestic production, respectively. Italia, Victoria, and Red Globe are the main varieties in Italy, covering about 66 percent of the table grape area. In the last few years, Italy has gradually moved to seedless grapes cultivation, to an increasing demand from intra and extra EU markets. Sugraone and Crimson are the most popular seedless varieties followed by Thompson, Centennial, and Sublime. MY 2012/13 Italian table grape production is estimated to decrease slightly, because of the severe summer drought that negatively affected the growth of mid to late maturing varieties, thus reducing the size of the fruit. However, the heat had a beneficial effect on the sugar content of the grapes, which is forecast to be particularly high. Early varieties (Victoria and Black Magic) from Sicily are reported to have excellent quality, colour, and sugar content. Early varieties are sold at higher prices from May to the end of July. They are grown using the overhead table grape vineyard system (“tendone” training system): polyethylene sheets are draped over the vines in spring to accelerate fruit growth through a greenhouse effect. For medium and late varieties (Italia, Palieri, Pizzutello Bianca, and Red Globe) - from Sicily, Abruzzo, Apulia, Basilicata, and Sardinia - the harvest occurs from August to December. Table 9: Average farm gate prices table grapes in Italy (Euro/kg) Source: ISMEA, Agricultural Marketing Center CONSUMPTION Italy is the leading table grape consumer in the EU-27, followed by Germany, the United Kingdom, France, and Spain. Despite the fact that Italian seeded grapes are still appreciated, experts claim that seedless varieties are increasingly being demanded by EU-27 consumers. Thus, many EU-27 table grapes farmers are replacing old seeded varieties with new seedless ones. TRADE Germany, France, and Poland continue to be the main destinations for Italian table grapes. Spain, the Netherlands, Chile, Egypt, and Peru are the main suppliers to the Italian table grape market. Table 10: Italian exports of table grapes (MT) Quantity Partner Country 2010 2011 2012 World 397,960 482,902 498,231 Germany 98,447 114,707 116,793 France 56,178 92,021 96,982 Poland 38,478 53,931 56,586 Spain 24,228 23,387 27,521 Czech Republic 22,351 22,253 24,998 Switzerland 21,980 22,872 22,880 Belgium 15,639 16,520 18,106 Romania 11,969 13,374 15,130 Netherlands 19,485 13,162 14,354 Austria 10,340 12,841 12,401 Russia 8,334 13,941 12,208 United Kingdom 8,018 10,433 10,510 Hungary 5,987 9,670 9,960 Slovakia 6,346 7,756 8,040 Denmark 6,742 6,060 6,827 Lithuania 6,664 9,243 6,754 Norway 8,189 6,062 6,218 Slovenia 6,692 6,465 5,210 Sweden 2,705 4,457 4,963 Latvia 1,631 2,353 2,612 Source: GTA Table 11: Italian imports of table grapes (MT) Quantity Partner Country 2010 2011 2012 World 22,464 20,759 24,956 Spain 4,218 5,049 7,089 Netherlands 2,729 3,140 4,241 Chile 4,102 4,909 2,882 Egypt 3,415 2,254 2,628 Peru 263 651 1,296 France 2,031 1,075 1,284 South Africa 1,722 908 961 Greece 552 414 956 Germany 420 696 919 Bulgaria - 19 911 Abbreviations and definitions used in this report: EU European Union MS EU-27 Member State Ha hectare; 1 ha = 2.471 acres MT Metric ton = 1000 kg MMT Million metric tons MY Marketing year Apples: July/June Pears: July/June Table Grapes: June/May HS Codes: Apples: 080810 Pears: 080820 Table grapes: 08061010
Posted: 23 January 2013

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