The potato market - Italy (2023)

1.2 The global market

Potatoes represent the third most important food crop globally after rice and wheat in terms of human consumption. Exisoto over *,*** edible varieties of potatoes that can be found mainly in the Andes of South America. In addition, there are over *** species of wild potatoes, despite the fact that they are not edible due to their extremely bitter taste. Potatoes have a natural resistance to pests, diseases and climatic conditions.

The potato market size is estimated at $***.** billion in **** and is expected to reach $***.** billion by ****, growing at a CAGR of *.** percent during the forecast period (***).compared with other food crops, potatoes have the advantages of easy storage, high yield, low planting requirements, large planting area, and high nutritional value-these qualities make potatoes a suitable crop in the processed food industry.

Global potato market value World, ****-****, in billions of dollars (***) Mordor Intelligence

Production

China is currently the world's largest potato producer based on FAOSTAT data, potato production in the country was **,***,*** tons in ****, which increased to **,***,*** tons in ****. Most of China's fresh potatoes are used for table consumption; industry contacts estimate that ** percent of Chinese potatoes are consumed fresh by households and restaurants. After China, India is the world's largest potato ...

1.3 The local market

The Italian market consists of both early potatoes and common potatoes: more than one million tons of classic potatoes and just under half a million tons of early or new potatoes are produced each year. Common potatoes are grown mainly in Emilia Romagna, Campania , and Abruzzo, while the production of new (***), production of alcohol or other semi-finished products including potato starch and snacks made from potato flakes.[***]

To view an overview of the value of the Italian market, we look at the production of the product; we see an increase of*.* percent, a positive trend that suggests growth in demand or production efficiency.

Potato production Italy, ****-****, thousands of tons Ismea

In ****, the vegetable, legume and potato processing industry experienced a significant **.* percent growth in turnover compared to the first year taken into consideration (***). The industry seems to be benefiting from a growing awareness toward healthier and more convenient food choices.

Vegetable, legume and potato processing industry turnover Italy, ****-****, € million Ismea The production sold of potatoes has grown significantly compared to ****; specifically, an increase of **.* percent is noted. This could be due to several factors, such as increased demand for potatoes on the market or even a good harvest ...

1.4 Analysis of Imports and Exports

In Italy, the potato sector plays a significant role in the agricultural economy. Potato imports and exports are key factors influencing market dynamics; interestingly, despite domestic production, the value of potato imports clearly exceeds that of exports. This phenomenon can be attributed to several factors, including steady demand in the domestic market, consumer preferences, and fluctuations in domestic production.

From **** to ****, there is a **.* percent growth in the value of imports . **** was the year when the value of imports was highest, registering around $***.* million. As for exports , the value from **** to **** was almost unchanged, registering significant growth in **** (***).

Exports, Imports and Coverage Rate Italy, ****-****, in millions of dollars (***) UNComtrade

Among the most relevant trading partners, Germany is the main destination, grabbing **.* percent of Italy's total exports. It is followed by France with **.* percent, Greece with *.* percent, Switzerland with *.* percent and Romania with *.* percent.

Distribution of exports among the top * consumer countries Italy, ****, % UNComtrade While Italy is a significant exporter of potatoes, it shows a significant dependence on imports, with some nations dominating the trade landscape. France stands out as the main supplier, contributing **.* percent of Italy's total potato imports. It is followed by theNetherlands with **.* percent, Germany with **.* percent,Egypt ...

1.5 Impact of the conflict between Russia and Ukraine

Following the outbreak of the Russian-Ukrainian conflict, there was a significant increase in the consumer price index. The scenario of geopolitical instability has affected several sectors of the global economy, with direct impacts on the cost of consumer goods. Due to tensions in the energy market and disruptions in supply chains, prices of many commodities have risen, directly reflected in final products for consumers. From January **** to November **** there was an increase of ** points, signifying a consumer price growth of **.* percent.

Consumer price index - potatoes Italy, ****-****, base ****=*** (***) Istat

the consumer price index is nothing but a reflection of the producer price index. Specifically, we see a growth of ** points between January **** and September ****(***).

Producer prices of industry-potato processing and preservation Italy, ****-****, base ****=*** (***) Istat

2.1 Demand characteristics

During ****, households experienced a significant reduction in spending on potato purchases, down **.* percent from the previous year. Despite the reduction in spending, potatoes remain a versatile and nutritious food: rich in complex carbohydrates, vitamins and fiber, potatoes offer nutritional benefits, contributing to energy intake and digestive health.

The highest expenditure value on potatoes was recorded in ****, amounting to €* .** per month.

Average annual household expenditure on potatoes Italy, ****-****, in current &euro Istat

Apparent per capita consumption for potatoes represents the average amount of potatoes available to each individual in a given population, considering both domestic production and imports, reduced by exports. This measure provides an indication of the availability of potatoes for consumption within a community, not considering waste or losses. Over the period from **** to ****, an increase in apparent consumption per capita for potatoes of *.* percent was observed. The increase in apparent consumption suggests increased accessibility and popularity of potatoes as a key component of people's diets.

Apparent consumption per capita - potatoes Italy, ****-****, in kg Ismea

2.2 Demand drivers

As shown in the chart below, most Italians consume at least one vegetable a day. Specifically, about*% of Italians consume about one serving per day, while **.*% report consuming about *-* servings of vegetables per day.

Vegetable consumption habits (***) Italy, ****, in thousands Istat The first factor that drives Italians to buy potatoes is the quality/price ratio of the product, which drives as many as ** percent of the sample. This is followed almost equally by product quality (***), confirming that Italians are aware of the high quality of native tubers: in fact, ** percent of the sample says they put a lot of trust in the potatoes they buy. Italians are proving to be increasingly sensitive and attentive to sustainability parameters : in fact, **% of the sample says they are willing to spend more to buy potatoes in exchange for the guarantee of a sustainable product. But that's not all. The main reasons why people would be incentivized to increase the number of potatoes purchased include, in addition to clearly a price reduction(***).[***]

2.3 Geographical distribution of demand

To analyze the geographical distribution of tuber demand in Italy, a map was created with the share of monthly household expenditure for each Italian macro-region. The regions of Southern Italy have the highest expenditure, amounting to €*.** current. The main potato-producing regions are Sicily and Campania , which account for about a third of Italian production, in a highly fragmented market where nearly** percent of farms have an area under cultivation of less than * hectares.[***]

They are followed by regions in northern Italy (***).

3.1 Market structure and dynamics

Analysis of the size of the potato market requires an assessment of the hectares of land devoted to cultivation. In ****, there was a*.* percent increase over **** in hectares cultivated for potatoes, indicating a significant increase in agricultural activity related to this product.

Cultivated area - potatoes Italy, ****-****, hectares (***) Ismea Enterprises operating in potato processing and preservation have experienced extraordinary growth, showing a significant increase in the period between **** and ****, amounting to +**.* percent. This remarkable increase suggests a growing interest in the potato processing sector, with enterprises actively engaged in the production of derivative products. The highest value recorded in the last years analyzed is ****, with *** enterprises active in the sector. Enterprises active in potato processing and preservation Italy, ****-****, number of units Istat The potato processing and pres ervation sector reveals a particular prevalence of sole proprietors, freelancers and self-employed workers, who make up **.* percent of active enterprises. This strong presence of self-employed figures suggests an industry structure characterized by a diversified business fabric, with individuals independently undertaking activities related to potato processing and preservation. This is followed by Limited Liability Companies, which make up **.* percent of the total number of enterprises in the sector, and Limited Partnerships(***).

Legal form ...

3.2 Value Chain

Cultivation: potato cultivation involves activities such as soil preparation, planting, irrigation, and disease and pest management Harvesting: once the potatoes are ripe, they are harvested. This can be done manually or with machinery. Processing: potatoes can be processed in various ways, such as cleaning, cutting, drying, or processing into products such as chips or mashed potato. Packing and Distribution: after processing, potatoes are packed and distributed to retailers or directly to consumers. Retail: potatoes are sold in retail stores, such as supermarkets or local markets. Consumption: potatoes are consumed by customers, who can cook them in a variety of ways.

The supply chain of Italian potatoes

The supply chain of a product is defined as all the factors involved along a product's economic route either directly or indirectly from production to use. The main actors in the potato supply chain are:

the production farms; the primary processing farms; the processing industries; the wholesalers and distributors; the companies that provide complementary products and services.

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3.3 Distribution channels

Wholesale

In ****, there were *,*** enterprises active in the wholesale trade of preserved fruits and vegetables in Italy, a category in which potatoes (***) are included. This number increased in the last year by *.*% compared to ****.

Firms active in the wholesale trade of fresh or preserved fruits and vegetables Italy, ****-****, in thousands Istat

Retail In terms of retail trade, tubers are distributed in both specialized fruit and vegetable establishments and non-specialized establishments. There are **,*** specialized establishments, with a predominance of the category "Individual entrepreneur, freelancer and self-employed" composing** percent of the total, signaling a small average size of these establishments. Non-specialized establish ments, on the other hand, include hypermarkets, supermarkets, food discounters and minimarkets. There are **,*** of them in the country. Firms active in fruit and vegetable retailing in specialized establishments Italy, ****-****, in thousands Istat

3.4 Main actors

The following are the main Italian players for potato production:

EUR. OP. Fruit. soc. cooperativa: Eur.O.P.Fruit is a partner in the commercial subsidiary Naturitalia, through which it implements marketing to domestic and foreign GDO and DO. It facilitated the establishment of Natura Nuova, a consortium structure that implements the industrial processing of fruit and that since September *, **** has become a subsidiary for the industrial processing of Eur.O.P.Fruit and other major POs. Asso Fruit Italia soc. agricultural cooperative: asso Fruit Italia's main vegetable crops include hydroponically grown cherry tomatoes, escarole, lollo and parsley. Also significant is the cultivation of cauliflower and romanesque cabbage. The crops broaden the production offerings of the Basilicata-based Producers' Organization and are an important challenge for producers year after year, thus diversifying the qualitative offerings of quality fruit and vegetables. Campagnola soc. cooperativa agricola: Campagnola Societa Cooperativa Agricola A Responsabilità Limitata operates in the potato growing sector. it was established in ****. C.O.A.M. agricultural cooperative soc: since **** tradition and innovation in the art of transforming nature's excellence into gastronomic delicacies. A work made of research, dedication and respect for the products that the land and the sea offer us but ...

4.1 Overview of the Offering

There are different types of potatoes and each has its own characteristics. Tubers par excellence, accessible and inexpensive ingredients, potatoes can be eaten in any way and can be used for starters, main courses and rich side dishes.

White potatoes: these are the most widely known and used type of potato; they have light-colored flesh and a very floury texture due to the large amount of starch they contain. They are rich in potassium and minerals and tend to "flake" when cooked and are used for making potato dumplings, mashed potatoes, croquettes and various savory pies. Yellow potatoes: yellow potatoes are firm, firm and low in flour. Popular types include: the Agata, Spunta, and Liseta; there is no shortage of PDO varieties such as Primura di Bologna. Yellow-fleshed potatoes can be used for crispy stir-fries, salads or side dishes: the small amount of starch prevents this type from breaking down during cooking. Best eaten without the skin-which is quite tough and not very digestible-white potatoes are the least suitable for making gnocchi and mashed potatoes. Red potatoes: they have a delicate but at the same time pronounced taste and are similar to yellow-fleshed potatoes in texture and properties. In fact, only ...

4.2 Prices

The following is an average product pricing, analyzing the available squares and products.

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4.3 Agriculture 4.0

Agriculture *.* is a type of farming that uses a range of technologies to improve agricultural efficiency and production. Agriculture *.* is an upgrade of precision agriculture (***) and is useful for harnessing technological innovation to improve farm efficiency, increase yields and product quality. Tools and technologies used by precision agriculture include:

sensors in the field drones agrometeorology Internet of things or IoT Big data Artificial intelligence Farm management information system Cloud

The use of such technologies makes it possible to monitor and record environmental data and conditions in the field: data are not simply stored but also analyzed and, thanks to artificialintelligence, are also used by machines to make decisions. After monitoring the situation in the field, machines can intervene automatically or semi-automatically by administering water, fertilizer, herbicides or pesticides as needed. By using this set of tools and technologies, farms have the opportunity to save resources, money and unnecessary processing, increasing production and improving product quality, which also benefits the environment and consumers.

Agriculture *.* in Italy

Agriculture *.* has grown by ** percent in **** in Italy, confirming the positive trend of recent years. In **** , Agriculture *.* generated a turnover of about *.* billion euros, ** percent more than in the previous year. In **** , the turnover exceeded * billion ...

5.1 Rules and regulations

Potato production in Italy faces multiple challenges, influenced by environmental factors and changes in agricultural policies.

Common Agricultural Policy (***) ****-****: the European Union's new Common Agricultural Policy has introduced specific financial supports for the potato sector. These funds are intended to support farms in acquiring more efficient machinery and equipment, applying production techniques with low environmental impact, and modernizing potato processing and storage facilities. Framework Contract for Fresh Consumption Potatoes (***): agreement for the new framework contract valid until **** between producers and traders. With this contract, the aim is to provide a high-quality product to consumers and to ensure fair and transparent remuneration to the different players in the supply chain.

Food safety and quality

Regulation (***) No. ***/****: the general principles and requirements of food law are established, establishing the European Food Safety Authority and establishing procedures in the field of food safety. Regulation (***) No. ***/****: covers food hygiene and establishes specific rules to ensure that all food produced in the EU is safe to eat. Regulation (***) No. ***/****: establishes specific hygiene rules for food of animal origin. Codex Alimentarius General Principles of Food Hygiene (***), which have a significant impact on food safety. PDO(***) products: PDO products are an important category in the Italian and ...

6.1 Segmentation

• Eur.O.P.Fruit
• Assofruit
• La Campagnola Soc. Cooperativa Agricola
• C.O.A.M.
• Ortomad
• O.P. La Maggiolina
• Colle D'Oro Società Consortile Agricola