Italian consumers prefer Italian garlic with protected geographical indication(PGI), causing lower competitiveness of Argentine garlic.

Dave Giudice
게시됨 2021년 12월 20일
The Italian garlic market is usually characterized by strong sensitivity to price. Chinese garlics are preferred because Italian consumers are more likely to allocate a higher budget for garlic only in case buying national products labeled with the protected geographical indication (PGI), such as the Nubia Red Garlic or the Piacenza White Garlic.

Meanwhile, garlics from Argentina, which are more expensive than Chinese ones, are less preferred as consumers do not recognize the added value of an imported product. Thus, at the same price, Argentine garlic is considered to be of less quality than the national one labeled with protected geographical indication.

This trend characterized by imports strengthened the focus on price with a general increase in costs and a slight decrease in consumption. The distributors are not raising prices to keep demand alive. Still, they face higher operational costs, de facto squeezing their margin.
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