Italian Carrot Traders Expect a Second Chance in 2023 after Last Year’s Negative Results

Italian carrot traders are gearing up for a second chance in the market, expecting a better outcome in 2023. After facing negative results in the previous year, where fresh carrot exports declined 20.5% YoY, traders are determined to make a comeback. Midway through 2022, it was anticipated that Italian carrot exports would increase, as projected in The Window of Opportunity for Growth of Italian Carrot Exports,. However, significant stocks available at the start of the campaign in the EU market contributed to the drop in exports in 2022, contrary to previous projections.

Top Exporters of Fresh Carrots to Germany

Source: Tridge and TradeMap

Italian traders reached the highest levels of fresh carrot exports in the second quarter of the year, narrowing the gap between Netherlands and Italy, as shown in the above graph. The significant stocks available elsewhere in the EU at the start of the campaign contributed to the drop in exports in 2022. The window of opportunity for Italian traders was in May and June, but due to intense competition from Belgium and the Netherlands, which had stocks of fresh carrots from the previous season, supply on the EU market was abundant, closing the window for Italian carrots. Italy exported 78,049 MT of fresh carrots in 2022, a 20.5% decrease from the previous year. Germany was the preferred export channel, with Poland a distant second and France in third place. The Netherlands was the leading supplier of fresh carrots to Germany, the number one importer globally.

The sowing period differs depending on the carrot variety and region in Italy. Generally, the sowing period varies from November to January and May to July. Harvesting time is, respectively, from May to June and from October to December (until March in some regions). The Italian farmers are coping with increased input costs, energy, and packaging costs, as well as with the ban on pesticides by the EU. Adverse weather was another obstacle for producers, with the drought consequences of the last season stretching into 2023. Climate change resulted in the shifting of planting structure, which resulted in farmers abandoning carrot production and switching to maize and other grains, proving less demanding and more profitable. The final result is lower acreage under carrots in 2022 of just 8,071 ha, according to ISTAT, an 22.05% YoY decrease.

Still, despite the lowered acreage of carrots in Italy and obstacles for farmers in production, the window of opportunity is open again for Italian traders. France was struck by drought in 2022, resulting in lower production of fresh carrots by as much as 30%, which will increase demand in 2023. Additionally, Dutch suppliers took the opportunity in the fall of 2022 to sell carrots destined for refrigerated storage, right after the harvest, leveraging on higher prices and anticipating increased energy costs. The final result is decreased stocks of winter carrots, which will affect the prices of fresh carrots in the EU markets. As it stands now, the first batches from Italy will arrive in May, reaching a peak in June with open space for trade in that period and a good opportunity for sales. Expectations are that the negative trade balance will not repeat this year and that fresh Italian carrots will bounce back in 2023.