Italy Food Sector Loses €600m As Result Of Russian Embargo
The trade war with Russia has hit the Italian food sector with reduced exports of €600 million over two years.
Mostly affected, by an estimated 50 to 100% are; shipments of fruit and vegetables, cheeses, dairy products, Italian meats and sausages, according to an analysis by Italian farmers association Coldiretti.
In addition to the prohibition of access to these products, trade tensions have hindered, de facto, exports throughout the food industry and in other sectors as well. Fashion, furniture and the car industry, where the Italian presence was traditionally strong, have also been affected.
The result is that Italian exports to Russia, have been reduced by at an estimated €7.5 billion in two years, compared to the pre-embargo period.
In the five previous years to the embargo, Italian agri-food exports to Russia, had more than doubled in value (+112%).
The food products most impacted by the embargo are; fruits and vegetables (€149 million in losses), mainly apples, kiwi and peaches; then milk products (€80 million), including Grana Padano and Parmigiano Reggiano; and finally the meats and sausages (€39 million).
On a positive note, Italian food exports have registered a record growth rate of 12.1%, based on Istat data for May. The biggest growth has been within the EU (+13.6%), which accounts for 2/3 of Italian food sales abroad.
Sales outside the EU grew by 9.6 per cent (6.5% to the US).
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.