Italian growers and exporters are well known for their distinctive grape offer, which has long featured predominantly seeded varieties Italia, Vittoria, Red Globe and Palieri. Apulia hosts 65 per cent of Italian grape production, which comes on stream in July and stretches until December, taking in one of the most competitive and well supplied periods in the grape calendar.
This year, in particular, has not been easy on the major grape growers and exporters, so many of the most forward-thinking companies have been forced to take stock and think about how best they can secure the long-term viability of the sector.
The summer saw wet weather combine with the fluctuating exchange rate and the gauntlet presented by a particularly cut-throat period in the grape market to create one of the toughest seasons that Italian grape players have seen in a long time. At the same time, the supply chain has faced pressure from all sides and across the board, prices have fallen by 20 per cent on last year, while competition from the likes of Greece and Turkey has been fierce.
However, the Italian grape sector is keen to keep moving forward through this difficult patch and there is increasing awareness that a more decisive step into seedless varieties, improved production methods and better relationships with a wider range of export markets will open doors across Europe and beyond.
The Italian Institute for Foreign Trade (ICE) invited a 20-strong group of overseas importers to the region earlier in the month, to meet Apulian growers and exporters to see how they are tackling the market.
ICE president Giuseppe Lamacchia is confident that the industry will pull through this difficult period, with grape exports from the region nudging upwards for the second year in a row, by seven per cent in value terms. “This year, there has been a good relationship between quality and price,” he says. “Every year, we are continuing to work on food safety, focus on efficient production and improve packaging and transport so that we can cut back on expensive claims.”
A number of major Italian grape players are based in Apulia, where the maritime climate and healthy soil is well suited to commercial production.
Italian grape heavyweight Messina concentrates on the export market, with 80 per cent of its Bari and Taranto grape production sent to the UK. The firm grows on 300 hectares, of which the vast majority is made up of a wide a range of table grapes, mostly seedless varieties. Alfio Messina, who heads up the firm, maintains that the UK is a key market but the lack of consumer understanding of the fruit is holding back the Italian offer. “The problem is that UK consumers do not understand that Vittoria, for example, is at its best when it is yellow,” he says. “They prefer green grapes, so they are better off with Thompson Seedless. The UK is an important market for us and we will continue to meet its demands.”
Peviani Spa is another major player, with 150ha of seedless grapes making up part of its 1,000ha-strong production. The firm claims to be have been the first in the country to introduce seedless varieties, including Sugraone, Thompson Seedless and Crimson, before starting with newer varieties Sugrathirteen (marketed as Midnight Beauty) and Sophia last year. Ivan Capodiferro, who works on the technical side in Taranto, says that these newer varieties will reach significant volumes in the next two years.
The UK already represents one of the top markets for the firm, but sendings are set to increase as newer seedless varieties come on stream. The future of Italian grape production, he insists, has to be in seedless varieties.
“Here in Taranto, one advantage for us is that we can produce grapes earlier because temperatures are warmer and we are just four kilometers from the sea,” says Capodiferro. “And the soil is different - sandier - but we are able to produce high-quality grapes for export.”
Giuliano farms 600ha of its own production in Bari and Taranto, where a sizeable proportion is made up of grapes and nearly half the job consists of seedless varieties, including Sugraone, Thompson Seedless and Crimson. Of the 40 per cent that is exported, a quarter is sent to the UK. Nunzio Pavone, Giuliano’s quality control manager, says the UK market is “well appreciated” and “well supplied”, so that it still represents a relatively small market for the majority of exporters in the region. However, he stresses that the production of seedless varieties is on the up in order to make more of this market in the long term. “This type of product is very popular in the UK and the most requested,” says Pavone. “This is why we are increasing production.”
Not too far away, Dr Franco Pignataro has boosted his seedless production by planting 30ha, including Sugraone, Thompson Seedless, Regal, Crimson and newer variety Apulia Rose, officially introduced at Fruit Logistica last year. This will increase overall production for the firm and build on the 200ha already in place.
But there are a number of challenges facing Italian grape growers and exporters, not least those brought on by the economic downturn, which has impacted trade and hit demand from all the major markets. However, Italian players have not been deterred and are keen to make the most of their offer over the coming months, in the hope that the next season will play out better.
Those dealing with organic lines have had the hardest time of it this year, with growers having to draw on all their skills to produce fruit of an acceptable quality and struggling with lower returns than they are used to. But like the rest of the Italian grape sector, they are determined to see the season through.
OP Jonica has considerable interest in organic production, with 350ha of grapes, of which 30 per cent is organic and supplied mainly to Germany, Scandinavia and the UK. Vincenzo Santoro, commercial director at the five-year-old firm, says that prices for organics have failed to reach the same levels as last year, especially in the UK. “They are down by about 20 per cent, but the fruit is still moving,” he explains. “We would like to convert more land to organic production, but it is difficult to think five years ahead at a time like this. Our aim is to provide a whole package of organic products that will reflect the Mediterranean diet, including wine and olive oil, as well as fruit and vegetables.
“At the moment, organics are still relatively small, but in the long term we know that we will have to add value and services to what we offer because the market will continue to change even more rapidly.”
And the vast number of small- and medium-sized firms have continued to stand up for what they produce, honouring their commitments to the market and being as flexible as possible.
Sabino Dipiero, sales manager at Frudis, insists that the industry has been watching the market for windows of opportunity in a bid to make the most of the season. The Noicattaro-based firm has up to 90ha of its own grape production, of which a fifth is made up of seedless varieties targeted at the UK market. “There was a window for us in the UK at the end of the Spanish season but, at that time, it was difficult for us to supply the right volumes in the right condition,” says Dipiero. “We have to be very careful with the UK market and in order to increase sendings, our proportion of seedless production is increasing.
“This year, we have had some big problems and, as a result of the economic crisis, we have not been able to sell fruit at the normal price. The summer started with low prices for Italian peaches and nectarines and with these prices at the beginning of Italian supply, it became clear that grapes would follow. On top of this, we then had two weeks of rain and our grapes were damaged so prices fell further.
“However, we must be positive and believe that the situation will get better.”
Luigi Facchino, marketing manager at Facchino, stresses that growers and exporters have had to adapt to the changing demands of the market this year, often by reducing sendings or offering different tiers for quality. The Bari-based firm is working at around a third of its capacity this season and no longer supplies the UK. “Consumers are not eating the fruit quality that they would have enjoyed last year because supermarkets are approaching us and asking for lower-quality fruit in order to save money,” Facchino explains. “This year, we started out thinking it would be a good season, but then rain has affected quality. The volumes are there, but it is the market that is difficult.”
But despite the number of obstacles this season, it looks as if small, medium and more major grape players have every intention of holding their own until they round up supply in December. And with a number of firms increasing their proportion of seedless grapes and newer varieties beginning to come through, Apulian growers and exporters will continue to invest in the future and seek out more export markets, including the UK.
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