Increased Italian Kiwifruit Production in 2022 Is Facing Strong Competition and Lower Domestic Consumption

Published 2023년 1월 20일

Favorable weather in autumn, along with an absence of frost damage helped Italian kiwifruit producers to bounce back from a terrible CY 2021. Production is estimated to jump 20% YoY to 365,000 MT. Despite increased production of kiwifruit in 2022, Italian traders are faced with intense competition from Greece in the field of yellow pulp kiwifruit varieties. According to Theodoros Damvakaris, Tridge Engagement Manager in Greece, Greek kiwifruit are gaining ground in global markets, despite adverse weather and harvest delays. With lower local consumption, Italian traders prefer placing kiwis abroad.

Italian kiwifruit production in 2022 is expected to reach 365,000 MT, a 20% YoY increase due to favorable weather in autumn, which will keep Italy as the number one European kiwi producer, according to Elisa Macchi of CSO Italy. Out of 365,000 MT of total kiwifruit production, 256,000 MT are green pulp varieties, and 106,000 MT are yellow pulp varieties. Greece is taking the lead in the distribution of especially yellow kiwifruit varieties, according to Theodoros Damvakaris, Tridge Engagement Manager in Greece, Greece is the main competitor for Italy and New Zealand. Other points that Italian marketers face are decreased consumption of fresh fruits and vegetables and soaring input costs (fertilizers, energy, and gas prices).

Production of kiwifruit in Italy is trending downwards, from 600,000 MT in 2017 to 365,000 MT in 2022, an almost 40% drop. Still, 2022 marked a significant recovery from 250,000 MT in 2021, despite heatwaves and drought in Italy. Actually, in 2022, favorable weather in autumn and the absence of frost led to an increased volume of kiwifruit.

Seasonality of Kiwifruit in Italy, Greece, and New Zealand

Source: Tridge

As expected, due to their geographical proximity, Italy and Greece's harvest seasonality of kiwifruit are almost identical, while New Zealand's harvest comes earlier in March and April. Kiwis from New Zeeland practically end the market season in November, providing a window for Italy and Greece. However, Italian traders are also faced with decreased local consumption. According to data from Agroter's Monitor Ortofrutta, from January to October, the volumes purchased by Italians in the modern distribution channel fell by 6% compared to the same period in 2021.

Source: Tridge

Decreased consumption of kiwifruit has forced traders to look to export markets. The most preferred destinations for Italian kiwi suppliers are the US and Canada where suppliers have the most significant number of customers composed of retailers and importers, as well as Latin America, where solid and loyal relationships have been in place for years despite the decline in the number of customers. Meanwhile, Arab countries and India are considered less preferred destinations for Italian kiwis due to intense competition from Greece and Iran, which provide different products in terms of quality but at competitive prices. In a recent update, Italian kiwifruit can now be shipped to China by refrigerated cargo ships and in refrigerated containers. In September 2022 Chinese customs authorities announced new regulations for opening up a new potential means of transport that uses specialized vessels mainly carrying refrigerated cargo and designed especially for transporting perishable goods. Reefer ship allows an increased volume of kiwifruit capacities, while it remains to be seen how Italian traders will respond to new ways of transportation.

In 2023, adverse weather conditions, as well as increased input costs (fertilizers, energy, and gas prices), will continue to determine the success of kiwi production in Italy. Italian farmers are investing in anti-hail nets and anti-frost systems, with constant improvement in the implementation of new kiwi varieties. With tough competition from Greece, and decreased local consumption, it remains to be seen how traders will respond to obstacles ahead.