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ANICAV warns against speculation

22/08/2022

Press release
ANICAV
Italy,
WPTC

ANICAV warns that out-of-control price increases and internal speculations in the supply chain place the sector at serious risk. Gas costs increased by 1000% and unjustified demands from agriculture in the southern basin are bringing hundreds of businesses to their knees. An intervention by the institutions is urgently needed.

What has happened in recent months suggests that the 2022 tomato processing season would be characterized by great difficulties, but the reality that is emerging is far worse. The sector is literally on its knees due to completely out of control production costs. The dizzying increase in energy prices is what immediately catches the eye. The cost of diesel fuel has increased that of transport, but more than anything else, the exponential increases of up to  over 1000% of methane gas, the most used in the production plants of canned tomatoes, are causing serious problems. Also, steel, necessary for the production of the cans that represent the main container of our products, glass, paper and paints for labels, cardboard, plastic and wood for secondary packaging. Everything is registering double-digit increases.

"It is absolutely necessary to take action to protect businesses from this dangerous drift which has an evident speculative component, – declares Giovanni De Angelis, General Manager of ANICAV – especially with regard to expensive bills. The tax credit is fine, but it is not enough. Although we were aware that this would be a difficult campaign, we did not imagine reaching these proportions. Our productions are concentrated in 45/60 days and these sudden increases have a specific, non-programmable influence in the short seasonality that distinguishes us. This situation is impossible to sustain especially if we consider the evident difficulties we will have in transferring these increases to large retailers ”. Furthermore, as if that were not enough, the attempts at speculation of the agricultural counterpart in the central-southern basin add to the deterioration of the picture already full of difficulties.

What is happening in the central-southern basin leaves us truly astonished. – declares Marco Serafini, President of ANICAV – We are forced to suffer the pressures of the agricultural world which, despite the high average price of the raw material recognized, with unparalleled increases in the history of our supply chain, continues to make unjustified and unjustified requests for further increases that are putting the entire sector at risk, fueling an inflationary spiral to the detriment of the final consumer. It is not really possible to understand why in Northern Italy the contract at 108 €/tonne can be respected for the round tomato, despite the very serious drought that hit that area, while in the South, despite an average reference price of 130 €/tonne, we continue undeterred to be asked for further increases day by day! All this is not acceptable! ”.

Source: ANICAV press release

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