menu di scelta rapida

torna al menu di scelta rapida

News

Italian Food & Beverage: the exports in North America increased

Italian Food & Beverage: the exports in North America increased

An Agrifood Monitor survey, presented at the Forum on 29 September, shows growth opportunities for Italian agro-food in North America and in Canada, the reputation of Made in Italy is growing.

 

*Francesca Paolucci

 

The competitive positioning of Italian Food & Beverage in the US and Canada has record numbers, but still great growth prospects, also in view of the Free Trade Agreement CETA between Europe and Canada.

The theme is at the center of the Agrifood Monitor Research, presented on 29 September, at the Palazzo Varignana in Bologna, by Agrifood Monitor, a platform for the agri-food business, founded on Nomisma's initiative in collaboration with Crif.

 

The survey is based on the main economic indicators related to the quantity and type of trade between Italy and North America (Canada and USA). As far as Canada and Italy are concerned, in 2017, the trade balance of the two countries recorded an increase in exports and imports of goods: exports went from 1773.46 million euros in 2016 to 1906, 17 million in 2017; as regards imports, from EUR 751,26 million to EUR 813,97 million.

As in previous years, the most exported Italian goods were food and beverages: wine (40%), olive oil (14%), cheese (6%), pasta (5%). Food & Beverage is therefore a substantial part of Italian exports to North America (USA and Canada) with a total value that in 2016 exceeded 4.6 billion euros (about 12% of the total), of which 766 million of the euro to Canada, which is expected to grow further in the short term, following the provisional implementation of the CETA agreement from 21 September. The survey dell'Agrifood Monitor fits indeed in a market environment where great importance is given to the approval of the European Union and Canada free trade agreement CETA, which is currently awaiting ratification of the Member States. The economic and commercial agreement includes, among other things, the almost total cancellation of customs tariffs (98%) for the interchange of goods and services, human capital and investment facilitation, resulting in a substantial increase in revenues and a cost reduction, in addition to the launch of a total opening of Canada-Europe relations.

Identikit of the Canadian consumer of Italian food products

 

Interesting results with respect to Canadian consumer characteristics emerge from research: 'identikit of the authenic user of Italian foodstuffs'. Denis Pantini, Head of the Nomisma Food Sector, explained that the 'Canadian user' most attracted by Italian F & B on the total population is 11% and is the consumer with a high family income, between the ages of 52 and 65 years, with a high level of education, a provider of web and tv services, through which he finds out about cooking courses and food. From here, the analysis of the Canadian citizen's favorite ways of knowing Italian products was introduced, with 37% of preference for wine and food tastings. The potential for expansion of Italian products on the North American market is also measured, especially in terms of reputation. Although the price remains the first criterion in the purchase of a food product for more than 20% of consumers, the Made in Italy is in second place in the Canadian ranking of quality, only preceded by the US, the leading exporter in Canada. Quality is the most important strategic element of Italian exports worldwide, compared to economic realities characterized by quantitatively high but low quality production, mostly from the Far East, which have a substantial share of foreign trade. The difficulty in many cases for Italy is to fully understand the characteristics that make Italian products unique, which often result in geographical and quality awards.

The CETA agreement recognizes many of the geographical indications of Italian Food & Beverage: in this perspective, these products enjoy a greater guarantee of qualitative recognition and this could increase controlled exports, favoring a market expansion and an improvement of the perception of Made in Italy in Canada. The benefits that Italy can benefit from the recognition of designations of origin through CETA have been at the center of the debate at the Forum Agrifood Monitor. Paolo Tramelli (Marketing Manager Conservation Parma Ham, Marianna Simeone (Québec Delegate in Rome) and Jan Scazighino (Minister of Economic and Trade Affairs Canada's Embassy in Italy), on this occasion stressed how negotiators have achieved a great goal.

The concept of Geographic Indications is, in fact, completely unknown to the North American market, as demonstrated by the total closure by the USA to the recognition of the same during the TTIP negotiations. Nevertheless, 90% of the market value of European denominations has been included in the CETA, while for the time being only 130 products are left out of the agreement. For the first time, a trade treaty with Canada provides for European product recognition, a clear protection against piracy.

Jan Scazighino then emphasized the benefits for the 10,000 Italian SMEs that will invest and export to Canada, benefiting from the cancellation of customs barriers.

Further considerations on the CETA provisions have led to a debate on what will really change and on the benefits that will come from the Italian business fabric of F & B, for the economy of the country and the satisfaction of Canadian consumers, whose growth will produce a strengthening to the reputation of Made in Italy and spreading it in areas where there are margins for improvement of Italian products, as emerged from the Research presented.

The Agrifood Monitor economic analysis was carried out, in fact, on the basis of a survey of 2500 US consumers and 2500 Canadians representative of different geographic areas. As indicated by Andrea Goldstein, Nomisma chief economist, data from 2016 shows that, in Canada and the United States, trade relations with Italy vary according to the geographic areas analyzed: the main source of import of Italian agri-food products Ontario and Quebec for Canada (over 300 million euros) and New York and California for the USA (over 500 million euros). The US hinterland and Western Canadian provinces are therefore areas that allow strategic work to penetrate the market, develop new business relationships, and increase interchange value.

As for the commercial risk index at various market levels (industry, wholesale and retail trade), Nicholas Zuffetti, Marketing Manager at CRIBIS, during the presentation of the research, pointed out that North America boasts a the commercial risk of F & B is lower than that of Italian and other European countries, while taking into account the diversity between the American (mostly large multinationals) and Italian companies (characterized by a large number of small and medium-sized enterprises).

The Agrifood Monitor survey was concluded with a roundtable, which included, in addition to the aforementioned Jan Scazighino and Paolo Tramelli, the President of Granarolo, Gianpiero Calzolari, Vittorio Capanna, President of the Consortium Parma Prosciutto, Paolo De Castro, First Vice President of the European Parliament's Agriculture and Rural Development Commission, Luigi Scordamaglia, Federal Minister, Michele Scannavini, President of ICE Agency.

The promotion of Made in Italy, on which Italy has invested so far 79 million euros, is the basis of the internationalization process, emphasized the president of ICE, but has to deal with Italian sounding, a rampant phenomenon in the latter years, especially in areas where there is a strong lack of penetration of Italian commerce, which consists in the use of geographical names, images and trademarks that evoke the Bel Paese, to promote products that have nothing to do with Italy.

 

* Coordination and research Centro Studi Italia-Canada