Agricultural Markets and Food Processing in Italy

Italy is a net importer of agricultural goods and a major processor of agricultural products. Numerous value added processes take place in Italy and, therefore, the country imports agricultural commodities and raw materials to produce consumer goods such as leather products, wooden furniture, and cured meats, amongst others. In spite of its dynamic growth, the Italian food processing sector is highly fragmented and remains dependent on the import of agricultural commodities. Most of these agricultural imports destined for processing in Italy come from fellow EU member states as well as North American markets.

In terms of preferences, Italy’s traditional diet is Mediterranean and domestic market consumers normally seek out fresh organic products. Furthermore, as a member of the European Union, significant sectors of Italy’s domestic agricultural industry are subsidized and legislation severely limits the cultivation or trade of genetically engineered organisms. This article explores the status of agricultural production and processing in Italy.

Agricultural Markets and Food Processing in Italy

In the case of the trade relationship between Italy and the United States, the US imported US$4.1 billion worth of agricultural goods from Italy during 2014. Meanwhile, Italy imported a total of US$1.4 billion in agricultural products from the US during the same year. The main products imported into the US from Italy include wine and beer, which accounted for US$1.8 billion during 2014, as well as vegetable oils, which totaled almost US$600 million in 2014. Other important agricultural goods that Italy exports towards the US are dairy products at more than US$300 million yearly and red meats accounting for more than US$100 million annually.

On the other hand, during 2014, Italy imported some US$276 million worth of tree nuts from the US as well as US$147 million in wheat from the US. Likewise, on average, the US exports more than US$100 million worth of soybeans to Italy on yearly basis as well as over US$90 million in fish products annually.

Similarly, Italy ranks amongst the top five seafood importers in the world, with an estimated per capita consumption of more than 20 kilograms of fish and seafood on a yearly basis. Annually, Italy imports over US$90 million worth of seafood products from the US alone; this includes tuna, salmon, lobster, shrimp, octopus, and fish, such as cod. The Italian agriculture market holds great growth potential, in terms of both trade opportunities as well as vertical integration within the domestic production and processing industries.

Over the last several decades, as more Italians extend their working hours and move to urban centers, the domestic demand for processed foods and ready-made meals has increased substantially. Therefore, this specific market for consumer goods is bound to continue growing during the upcoming years. However, Italy also boasts a competitive and attractive market of restaurants and diners, which represent an alternative to food consumption within private households, particularly in urban centers. Usually, as societies become increasingly urban and individuals join the formal labor force, the competition between ready-made meals and restaurant-dining options increases.

(Read more about Fruit Markets in Italy and the European Union)