The Window of Opportunity for Growth of Italian Carrot Exports

Published 2022년 6월 13일

The export of Italian carrots is expected to increase in May and June due to the diminished domestic demand for Italian carrots. Increased production of fresh carrots caused the descending price, which is now 10% lower on average for this part of the season. According to data from Tridge, the wholesale price of fresh carrots in W4 of May-22 was USD 0.75/kg.

May and June represent the time of year when Italian carrots arrive in the European market. In that short period, carrots mainly come from Spain and Italy, making it a unique opportunity for traders. According to Tridge’s Engagement Manager Davide Giudice, this season's overall production will be more abundant than last year. His rough estimate is that overall production for the 2022 season will be 500,000 MT of carrots. Increased production will make room for export growth.

Source: Tridge

The increase in exports is expected for two reasons. First, due to weaker domestic demand, and second, increased offers due to the rise in production. The abundance of fresh carrots caused a 10% lower price on average for this part of the season. According to Tridge’s price data, the wholesale price of fresh carrots in W4 of May-22 was USD 0.75/kg. In 2021, the export of Italian carrots represented 5% of the world's share, while Italy is ranked sixth with a total value of USD 75.1M. The primary export market is Germany. Carrot exports to Germany grew by 7.84% YoY to USD 31.14M in 2021. On the other hand, carrot exports to France, the second-most important market, declined 11.9% YoY to USD 8.46M.

Early carrot production Source: Tridge Davide Giudice-Engagement Manager (Italy)

For growth, carrot requires slightly acidic soil, with an optimal pH level from 5.5 to 6.5. Unstructured and heavy soils (clay soils) are unsuitable for growing carrots because they cause root deformation. Particularly suitable soils are sandy and alluvial deposits with appropriate irrigation measures. Nematodes and a lack of pesticides to control can be a problem in some areas of carrot cultivation in Italy. Nematodes are elongated cylindrical worms that live freely in the soil and, in severe attacks, can significantly damage crops, especially root vegetables such as carrots. Another issue is weed control, where linuron-based herbicides have been withdrawn and replaced with other less effective active substances. The lack of more effective pesticides means that producers will pay more attention to preventive measures, such as crop rotation, carrot varieties that are more tolerant to diseases and pests, and manual operations, which increases production costs. This year's production of carrots was accompanied by warm and dry weather, which affected faster ripening and better-quality fruits.

According to the EUROSTAT, the area under cultivation of carrots was 10.77K ha in December 2020. In Emilia Romagna, where about 2,450 hectares of carrots are grown, most (2,400 ha) have sandy soils. In this region, carrot production takes place with two harvests a year. From October to March, the first harvest goes on the domestic market, and the second harvest takes place from May to August. The most cultivated variety is the Nantes variety.

The price of fresh carrots in the domestic market is dictated by export demand. For example, the prices will stabilize if the demand is good, meaning farmers' profit margins will increase. Expectations are that exports to EU countries will increase. Farmers in Italy are increasingly turning to organic production and branding carrots from Italy through PGI (protected geographical indication) that consumers are willing to pay more than conventional ones.