The sheep and goat farming market - Italy (2023)

1.2 The global market

Goat dairy products market

The size of the global goat dairy products market was estimated at $**.** billion in **** and is expected to grow at a compound annual rate(***) of *.* percent from **** to ****.

The growth appears to be driven by the increase in the lactose-intolerant and child population, increasing focus on health, and technological developments. In fact, goat milk is a rich source of protein, easier to digest, and incorporates a lower risk of allergies since it has a lower lactose content.

The liquid milk segment accounted for **.* percent of the share of global sales in ****. At the same time, the milk powder segment is expected to grow at a CAGR of *.*% over the forecast period.

Territorially,Asia-Pacific dominated the market, accounting for a **.* percent share of global revenue in ****. India, Pakistan, Bangladesh and China are the largest producers and consumers of goat milk in the world. India, in particular, leads in production, accounting for about ** percent of global production. According to NCBI, about ** percent of goats are in the Asia-Pacific region.

Global market for goat dairy products World, ****-****, in billions of dollars grandviewresearch.com

Sheep and goat herd market Regarding sheep and goat livestock in the world, looking at the ...

1.3 The Italian market

According to census data from the National Livestock Registry as of Dec. **, ****, there were about *.* million livestock in the country, of which just over * million were goats and about *.** million were sheep.

In the case of both sheep and goats, there is a decreasing trend, which is more pronounced in the number of sheep.

Sheep population Italy, ****-****, in millions of units ersaf.lombardia.it ismeamercati.it

Goat herd Italy, ****-****, in millions of units ersaf.lombardia.it ismeamercati.it

The number of her ds also appears to be decreasing steadily over the past years in Italy, in **** there are ***,*** herds. Of these, only *% are large farms (***), but they contain half of the total number of animals raised.

The number of animals sent to slaughter also decreased in **** (***) . Meat production, on the other hand, remained largely unchanged, a sign of a gradual shift toward heavier animals and a slight but interesting seasonal adjustment in consumption.

Evolution of sheep and goat herd numbers Italy, ****-****, in numbers ismeamercati.it

1.4 Import-Export

In order to analyze trade related to the sheep and goat farming sector, we first consider the import-export of sheep and goat meat, and then refer to the foreign marketing of live livestock.

Sheep and goat meat

Regarding the Import-Export of sheep and goat meat, reference is made to HS code ****: sheep or goat meat, fresh chilled or frozen. Looking at the graph below, it is evident that Italy is predominantly an importer of sheep and goat meat, which is also evident from the low coverage ratio, which, however, tends to increase from ****, with exports increasing more than imports.

Sheep and goat meat import-export Italy, ****-****, millions of dollars comtradeplus.un.org

at the level of sheep and goat meat imports, France and Spain are the main suppliers, accounting in aggregate for nearly half of foreign imports. Main countries of origin for sheep and goat meat imports Italy, ****, % comtradeplus.un.org

as for meat exports, these are mainly destined for Spain, with ** percent of total exports. Main destinations of sheep and goat meat exports Italy, ****, % comtradeplus.un.org

Livestock heads

regarding Import-Export of live animals (***) Italy can only be considered as an importer. Specifically, in **** imports of live sheep were +**.* percent, ...

1.5 The impact of the Russian-Ukrainian conflict

The outbreak of war in Ukraine has severely impacted Italian dairy farms: in the first half of **** there was a ***% increase in production costs compared to ****. The estimated national average farm impact is €**,***, while for dairy farms it has risen as high as €**,***. These increases are related to the exceptional increase (***).

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Prices at origin of lambs in the weeks leading up to Easter **** gradually increased, reaching a maximum quotation of €*.**/kg live weight for the kg *-** category, which, although lower than at the same stage of the previous campaign (***), is to be considered significantly higher than two years ago. More intense was the decline recorded by the **-** kg lamb category, which, having touched the level of *.** €/kg live weight, marked a -*.* percent compared to Easter ****. Despite the decline from the previous year, lamb prices settled at high levels, not only due to reduced supply but also under the pressure of higher production costs, especially with reference to the raw materials used in cattle feed.

On the meat front, prices reached their highest peak in the past five years in April ****, reaching **.** €/Kg, also putting an increase over the exceptional Easter of the previous year (***)

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Theindex of ...

2.1 Demand in Italy

Domestic consumption of sheep and goat meat is still strongly influenced by a seasonality concentrated at two times of the year coinciding with the Christmas and Easter holidays and continues to represent a niche in relation to the overall basket of total fresh meat purchased by Italian households, with a share of just *%. In **** , the decline in consumption continued(***), confirming the negative dynamics of the past five years. In ****, the average consumer price was +**.*% overall, with large fluctuations throughout the year that gradually incorporated the generalized increase in production costs.

Percentage breakdown on meat consumption by type Italy, ****, % ismeamercati.it

Regarding the average monthly household expenditure with reference to sheep and goat meat, an upward trend can be observed, which is interrupted in ****, where there is an evident decrease coinciding with the pandemic period. In ****, spending returns to an upward trend, however settling at a lower level than in the pre-pandemic period.

Average monthly household expenditure on sheep and goat meat [***] Italy, ****-****, in current euros istat.it

2.2 Demand drivers

Sheep meat properties and benefits

Sheep meat contains a good amount of iron, protein essential for the transport of oxygen to organs and tissues, potassium on the other hand to enable the functioning of muscles, heart and for the transmission of nerve impulses.

In addition to the high amount of vitamins, sheep meat contains a low percentage of fat, and because of its proprities its consumption is recommended within a healthy and balanced diet.

Lamb meat is also valued for its properties and nutrients such asiron, zinc, protein, selenium and niacin. This type of meat is also rich in Omega *, antioxidants and folic acid.

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Goat meat properties and benefits

Goat meat is a very lean type of meat, characterized by a low lipid profile, due to the fact that goats have no inframuscular fat deposits. It also offers protein of high biological value and is a good source of iron, zinc, and potassium.

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2.3 The geographical distribution of demand

Regarding the regional distribution of expenditure on sheep and goat meat, the highest values are concentrated in the South and Islands with an average expenditure per household of €*.**, followed by the Center, with an average expenditure of €*.*, and finally, with the lowest values there is the North with a value of €*.**.

Production

These data can also be compared on the production side, which, in fact, appears to be concentrated in * regions and, in particular, in the Islands: Sardinia breeds just under half of the national sheep herd(***), followed by Sicily with**% of the head and then, Lazio and Tuscany with *% and *% respectively

2.4 New trends in demand

Cultured meat

Nationally, a bill has been passed banning the production and sale of synthetic meat and the use of meat-related names for products consisting of plant foods. However, the Italian direction is highly criticized and not in line with the rest of Europe. In addition to a question of conflict with international law and European rules with a "preventive" ban, i.e., introduced before production is started in Europe, the discussion revolves around a lack of economic development for italy.

This measure could have the 'negative effect of making it impossible for Italian companies to develop in a potentially high-growth sector, capable of creating jobs and economic induced activity. And it will also drive out researchers and researchers aiming to work in this field. The sector that would be held back by the move is that of alternative proteins, which can offer a double advantage: on the one hand it does not contribute to the breeding and killing of animals, and on the other hand it has an important role in reducing emissions from the food sector.

Authoritative studies, show that compared to conventional beef, cell-based meat could reduce emissions by up to **%. It could also cut air pollution associated ...

3.1 The market structure

The sheep and goat supply chain is characterized by thehigh number of operators in the agricultural phase and by a structural dynamic oriented toward a steady decrease in the number of farms due to the gradual abandonment of the activity by smaller and less competitive farms , confirmed again in **** (***). In detail, there were ***,*** active sheep and goat farms at the end of **** , and almost *,*** farms disappeared in a single year, after two rather critical campaigns, especially on the front of increases affecting production costs.

Looking at the graph below, one can see that there has been a gradual decrease in both the number of farms and the number of animals present . More in detail,there has been a decrease of about *.* percent in the number of herds in **** compared to ****.

Evolution of the number of herds and heads Italy, ****-****, in number ismeamercati.it

the distribution of livestock farms and heads by size class highlights the phenomenon that most Italian farms are small in size, but most livestock heads are concentrated in the larger farms. For example, **% of livestock heads are concentrated on farms with a size of more than ***. Distribution of herds and heads by size class Italy, ****, % ismeamercati. ...

3.2 The value chain

The following are the main processes that generate value in sheep and goat breeding activities.

3.3 Distribution

In terms of sales channels for sheep and goat meat, the supermarket remains the main purchasing channel with ** percent of total purchases.

An important share is also accounted for by the traditional sector, which absorbs one-fifth of demand, but by **** appears to have lost more share, with a reduction in purchases of more than ** percent.

A digital transformation is also taking place in the meat sector, involving traditional business models as well as physical stores, so it is crucial that both large-scale retail and the traditional butcher channel pursue a competitive strategy in the digital channel as well. Online meat sales are already a reality, and there are some companies that make it their main business model.

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Share of purchases by distribution channel Italy, ****,% ismeamercati.it

3.4 The main actors

The following are the main companies engaged insheep and goat farming, identified through the reference ATECO code **.**.

SOCIETA' COOPERATIVA AGRICOLA PRODUTTORI LATTE MAIELLETTA: The Majeletta dairy produces dairy products made from milk sourced from Abbruzese farms. The products are prepared with milk from selected and controlled farms. The offerings include caciocavallo, fior di latte mozzarella, ricotta and caciotta.

IL CARRO S.R.L: The facility consists of a livestock area, a factory used for milk processing and cheese ripening, and a large sales outlet where the different products can be purchased and tasted. The main activity lies in cultivating the land and raising goats with aptitude for milk production for processing. It is based in Putignano, in the province of Bari.

CARMASCIANDO SOCIETA' AGRICOLA S.R.L: Founded in **** inside a recovered farmhouse, the farm's * hectares are located at *** meters above sea level,in an area conducive to animal welfare and fine dairy production. It is involved in raw milk processing, controlling the entire supply chain: breeding, production and aging.

SOCIETA' AGRICOLA BAGAGGERA S.R.L: a farm located in the Montevecchia and Curone Valley Regional Park, with ** hectares of land whose main activity is raising *** chamois goats. The goat milk ...

4.1 Supply analysis

Types of sheep breeds

Sheep breeds are classified according to their attiturine. In fact, there are breeds more suited to milk production, breeds more suited to meat production, and breeds that can have both production characteristics. In Italy, about ** percent of sheep herds are for milk production, while those whose sole production purpose is meat are few in number.

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Types of goat breeds

In the case of goat breeds, there are some more suitable for meat production and others more suitable for milk production, the main ones are listed below.

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4.2 The prices

In **** the average consumer price was +**.* percent overall, with large fluctuations throughout the year that gradually incorporated the generalized increase in production costs.

In Q* ****, the push on prices eased, partly as a result of increased foreign product pressure, and volumes released in the retail channel in the pre-Easter period were higher than the previous year (***).

However, as can be seen from the price trends shown below, the long-term trend after Q* is upward. In this case, these are prices closer to the production side, but it is clear that consumer prices are reflectively following the trend in producer prices.

Average prices at origin of lamb and sheep Italy, September ****-October ****, €/Kg ismeamercati.it

Looking at theconsumer price index shows an upward trend, with a peak recorded in April ****. In general, prices are lower than in ****, although they remain at high levels due to higher production costs.

Consumer price index for sheep and goat meat [***] Italy, January ****-October ****, in current euros (***) istat.it

4.3 New supply trends

Climate crisis and livestock farming

The climate crisis is putting Italian agro-livestock systems to the test in ways that depend mainly on their level of intensification and forage systems, with differences affecting irrigated lowland areas and hilly and mountainous areas, with the loss in both cases of the integration of horticultural and cereal cropping systems with livestock. In addition, in intensive systems the heavy reliance on foreign-sourced raw materials exposes them to considerable uncertainties associated with the combination of the effects of climate change and international crises. Within this framework, new forage and grassland and pasture management systems will need to be developed in the near future, including using digital technologies, precision farming, and precision livestock farming.these innovative techniques may help make intensive systems more sustainable, especially when integrated with circular economy principles that allow water and nutrient management to minimize releases to the environment, increasing resource use efficiency and ultimately enabling an effective adaptive response of agro-livestock systems to the challenges of climate change.

New goals in animal nutrition

The new Farm to Fork agrifood policy is a central element of the European Green Deal, which aims to transition to a more sustainable agricultural production system that reduces the ...

5.1 The legislation

National Scope

In our country, the protection of farmed animals is enshrined in Legislative Decree *** of **** implementing Directive **/**/EC.

The national legislative background has made it possible to take an important ethico-cultural step forward, since the obligation to provide animals raised for the production of foodstuffs, wool, hides, furs or other agricultural purposes with shelters , care and food adequate to their physiological and ethological needs, as well as freedom of movement, lighting, temperature and humidity rate consonant with the animal has been recognized. In addition to the provisions of the European legislature, with Legislative Decree *** Italy has also provided specific prescriptions for the protection of animals bred for the sole value of fur, which must be guaranteed precise spaces for rearing and weaning and the possibility of being bred on the ground in enclosures equipped with enrichments that make the environment suitable for their needs.

European context

In Europe, the Green Deal and the CAP reform that the European Union intends to adopt from ****-**** will be of great importance, with a transition from the original productivist paradigm to a multifunctional one. This transition configures measures to support and protect agricultural production according to canons and modalities that do not undermine ...

6.1 Segmentation

• SOCIETA' COOPERATIVA AGRICOLA PRODUTTORI LATTE MAIELLETTA
• IL CARRO S.R.L
• CARMASCIANDO SOCIETA' AGRICOLA S.R.L
• SOCIETA' AGRICOLA BAGAGGERA S.R.L
• CEREAL LATTE KR - SOCIETA' COOPERATIVA AGRICOLA
• CAMPIDANO AGROZOOTECNICA SOCIETA' AGRICOLA A R.L.