From, the consortium of Italian exporters that accounts for around 70 per cent of the country's apple producers, was set up a few years ago to develop sales of the fruit to emerging markets such as Russia, India, the US and the Far East.
Having recently gained access for apples and pears under strict import protocols, wespeak to From director Nicola Zanotelli about the road ahead for Italy's apple trade in the US market.
Can you explain the current situation as far as Italy's access to the US apple market is concerned?
Nicola Zanotelli: Currently, the situation is that the agreement signed with the US only allows apples from specific orchards to be used, selected from places that are licensed as part of the agreement. The problem is that this means we don't have a huge amount of flexibility.
At the moment the US market is watching with some concern, and I think some American apple producers – particularly those in Washington – see our entry as a threat. But I think the situation could be the complete opposite. We don't plan to invade their market, be it in the short term or the long term. We have different apples, so I think this can benefit the category.
The American red apple certainly doesn't need to be worried about the arrival of our apples. Our Red Chief and Red Delicious haven't even been certified as part of this deal.
What Italian varieties are we talking about here?
NZ: We're only talking about Golden Delicious, Granny Smith and Royal Gala. We have now made the first shipments, which is something we had to do given that it's the first time the market has been open to us. The results have been satisfactory to a certain extent, bearing in mind that the market has been full of apples, and we're confident that we can be competitive on the US market.
Do you see this as a worthwhile exercise, given the limited scope of the programme so far?
NZ: I think the US market can definitely be an interesting one for Italian apples. For us, it remains a niche market rather than a major outlet. Clearly, we're waiting for such a time when we will be able to send any type of apple to the US, but in the meantime we're working to at least do our best with the limited volume available.
I heard that you have opted to use a single facility belonging to La Trentina as a conslidation point for all of Italy's apple exports to the US. Why was this?
NZ: The logistics set-up we've tried to implement has been set up with the aim of simplifying the checking process for US inspectors. We have to certify and secure the entire supply line, so we chose a single co-operative and, as it turned out, La Trentina was the closest one to the ports.
The fruit is stored in the various packhouses close to where it is harvested, but at the point at which we get the orders the cartons are brought in and sent to La Trentina, which then does the packing under the watchful gaze of the US officials.
What will the future hold as far as Italian apple sales in the US are concerned? Do you think the situation could change and Italian apples will be granted broader access?
NZ: For this year and next year, our expectation is definitely that the situation will continue as it is currently. But, having approached the whole US access situation with a great level of seriousness and professionalism, I believe we've done nothing wrong so far and we can be confident of growth. We will have to see how things pan out during the coming years.
What volume of Italian apples have been sold in the US since the market opened?
NZ: The total volume shipped this season is 15 containers. So, very limited and very much a test. We've been careful not to throw one container after another into the market, preferring instead to monitor the fruit carefully and see how the market reacts.
Where exactly is the fruit being sold?
NZ: It's all being sold in the eastern part of the US, in the triangle between Boston, Chicago and New York. It's an area that has a strong Italo-American presence and this could indeed be our target group. Given the logistics involved, it's unlikely we would look to expand across to the west coast.
The US market is clearly a very well developed one. It has clear and precise rules, with imports regulated and controlled by a limited number of groups. For us in the Italian fruit trade, it's a particularly important point in time for the business and the key thing is for us to find trustworthy partners with shared aims and challenges.
Would you agree with the suggestion that gaining access for Italian apples to the US is a breakthrough that should have been achieved years ago?
NZ: It would definitely have been easier today if we could already look back on plenty of experience of the US market. However, I don't think it's ever too late to rise to a new challenge. What helps us is that we've set up initiatives like From, which are all aimed at putting us forward on a global level as we try to develop the sector.
We've started, but now the job is to ascertain whether or not this is an interesting market for our fruit and whether or not the access stipulations are comfortable. Right now, it's far too early to tell, but it would be pointless to abandon our efforts to establish ourselves in the US market. It's a serious, demanding market, but we have all the right cards in our hand ready to play.
