An overview of the Italian import-export of apples and pears

Unlike other years, Italy has exported lower volumes of apples and pears in the 2021/22 season. Here is a detailed analysis of the situation.

ue, the drop compared to last year is -7%, while the positioning compared to 2019 is better (+15%). Data source: Eurostat

APPLES

Italian apple exports for the 2020/21 trade season have confirmed the rebound trend already underway in the last commercial campaigns. The shipments of apples headed to foreign markets between July 2020 and June 2021 amounted to more than 966,000 tons, recording an increase of +11% compared to the previous sales campaign, and +8% compared to the average of the 2015/16-2018/19 period.

In this campaign, exports accounted for 45% of the available supply, confirming the same weight as in previous years.

In the last two sales seasons, 63% of exported apples were sold to EU27 countries. However, among the main markets reached, there are also non-EU countries. The first eight destination countries absorb almost 70% of total shipments in terms of volume. Germany leads the way, with a share of almost 25% of the total, equivalent to around 250,000 tons, followed in second place by Egypt with around 100,000 tons (10% of the total exported) and Spain with around 80,000 tons (9% of the total).

Further away we find Saudi Arabia, United Kingdom, and India, who each represent about 5% of the total, with shipments varying between 40,000 and 50,000 tons; while France and Sweden receive about 4% each, with 30-35,000 tons of Italian apples exported. In 2021 the supply of Italian apples was slightly lower (-4%) compared to that of 2020, but also to the average of the 20152019 period, despite the frosts, which seem to have had no influence on Italy’s export capacity.

Analysing the trade flows of the period July-December 2021 (latest data available), the volumes of these first months of sales shipped to foreign markets recorded a decrease of 12% in comparison to the same period of 2020; the decrease is milder if the comparison is made with the same period of 2019 (-4%). In terms of valThe contraction of volumes affected the main destinations. The first part of the 2021/22 campaign saw smaller quantities directed to the German market, which absorbed a share in line with previous years, equivalent to 27% of the total. The volumes saw a reduction of 16% compared to 2020. However, they were exchanged at a better average price that allowed to mitigate, albeit partially, the decrease in value (-10%). The positioning is more favourable if compared to the same period in 2019, with +2% in terms of volumes and +20% in terms of value.

Egypt represents the second most important destination. In the period July-December 2021, this market absorbed 12% of total volumes, with a slight decrease of -3% in 2020 and -1% in 2019. The average price, however, failed to match the good levels of 2020, dropping the value by 6%, which, however, remains at 20% higher levels when compared to 2019.

As for Spain, quantities decreased by 7% compared to 2020 and by 1% compared to 2019, while exports remained good in terms of value, respectively +1% and +30% thanks to the good positioning of average prices.

Descending in the list of destinations, we find next Saudi Arabia that regained a +18% in 2020, after the contained volumes of 2020, although remaining 10% lower compared to the good quantities of 2019.

In the UK market, after recording successful exports in 2020, the 2021 flows returned to more similar levels as 2019, with volumes showing a 13% drop in 2020 and 1% drop in 2019. On the other hand, the total value of trade is 10% lower than the excellent levels of 2020, but up by 21% when compared to the same period in 2019, thanks to the good positioning of the average price.

After the pandemic year, shipments to India also returned to good levels, accounting for 3%; exports for the July-December 2021 period were up 65% compared to 2020, and up by 23% compared to 2019, while the value recorded increases of +73% and +25%, respectively.

Five percent of the volumes were destined to the French market (+1% over 2020 and +30% compared to 2019); a positive positioning of value was also achieved, with +45% and +37%, respectively, thanks to average prices rising after a modest 2020. thanks to the recovery in production compared to the 2019 deficit (+68%), with volumes, however, remaining below the average of the 2015-2018 period (-16%). Overseas business rebounded over 112,000 tons in the June 2020-May 2021 period, registering a 55% increase over the previous commercial year, although remaining at 24% lower than the average of the 2015/16-2018/19 period.

PEARS

Italian exported pears of the 2020/21 campaign recorded quantities on the upswing, In 2021, the production gap that is characterizing the current season (-67% over 2020 and -72% compared to the average of

the 2015-18 period), has obviously affected exports as well, which are proceeding at a modest pace, while still remaining in line with the production deficit.

HISTORICALLY, PEAR EXPORTS REPRESENT A SHARE OF ABOUT 20% OF SUPPLY.

According to the latest available data from Eurostat regarding direct cross-border exports for the period June-December 2021 are around 25,000 tons. Compared to the same period of the previous campaign these quantities recorded a decrease of 62%, and -46% if the comparison is made with 2019; in terms of value the decline is respectively 42% and 30%, thanks to a better positioning of quotations.

The 2021/22 campaign will be remembered as the season of minimum production, and therefore, the commercial transactions also reflect this marked reduction.

During the first part of the 2021/22 campaign (June-December), exports saw volumes fall by 62% compared to the same period of the previous year, with -42% in terms of value.

The downturn was common to all destinations, with more or less important decreases depending on the reference market. The main destinations remain within Europe, accounting for almost 90% of total volumes without considering the United Kingdom.

About 35% of the national export in the period considered was directed to Germany, against 44% in 2020 and 40% in 2019; a drop of -70% in 2020 and -52% in 2019 was recorded in terms of quantity, a milder drop in terms of value, respectively -52% and -35%, despite the higher average quotations of the previous years.

France absorbed 22% of exports, with volumes, however, down 30% in 2020, mitigated by rising quotations that allowed the overall value to register a 10% increase. The Austrian market accounted for 10% of the total, with volumes down 65% in 2020 and a 38% drop in value.

Shipments to the UK market also remained at contained levels (-58% in 2020), followed, in order of importance, by volumes to Romania (-82%), very modest exports to Hungary (-77%), Greece (-71%), and Spain (-81%), while smaller drops were recorded towards Slovenia (-18%) and Switzerland (-11%). Shipments to Libya also remained modest, down 57% in 2020.

“Looking to the future, both short-term and medium-term, it is best not to make any predictions. Some politicians are already mentioning a hypothetical war economy. I’m not worried, but I am a realist. We must adapt to changes and work hard, as always, to overcome this crisis,” said Ettore Ceccarelli, of the company Ceccarelli Giulio in Longiano (Italy), specialized in the production of pears.

“The situation is quite complicated, with a war being added to the pandemic. Let’s not forget that, due to the adverse seasonal trends of last spring, we harvested very little pears. Producers need these stocks to be sold at high prices. We should also mention the increase in sea freight, the alleged shortage of containers, the (inexplicable) delays in deliveries of products that have affected, and continue to impact, the global market and sales (of kiwi fruits for example) as well as imports of pears”.

The period of ship arrivals from the southern hemisphere is expected in March and April. “Theoretically, yes, it would be the moment of arrivals, but in reality, it is not. For instance, shipments from Argentina will arrive one month late and this represents a damage for the whole supply chain. The fruit will arrive late and all at once, so we will not be able to keep up with our agreements with the supermarkets and we run the risk of not selling it all,” continued Ceccarelli.

“Chilean and South African producers also asked us to help them out with the merchandise that was supposed to go to Russia. There is conflicting and inaccurate news. Unfortunately, the various packages of sanctions change every 4 days, and insurance coverage for ships bound for Russian ports no longer exists or, if it does, it is offered at war prices, making it no longer economically worth the cost”.

As for Italian pears, in March there were already no more stocks. “In March, the sales of Italian pears suffered a strong slowdown, as the producers of Belgium and the Netherlands, unable to sell in Belarus and Ukraine, massively switched to the Mediterranean basin, slowing down the movement of the Italian product.”