Dipartimento PRIME

INCO-MED PROGRAM

International Cooperation with Developing Countries

Parco Scientifico e

TecnologicoIonico Salentino -

Brindisi

IQM-MEDThematic Network on Improved Quality Management in the

Euro-Mediterranean Fruits and Vegetables Processing Industry

Fifth Workshop:IMPROVING QUALITY MANAGEMENT IN THE MINIMALLY-

PROCESSED FRUIT AND VEGETABLES INDUSTRY OF THE EURO-MED AREA

Mesagne (BR), Italy, 13-14 December 2003

THE MINIMALLY-PROCESSED FRUIT AND VEGETABLES INDUSTRY IN ITALY

Giancarlo Colelli Dipartimento di Scienze delle Produzioni, dell’Ingegneria, della Meccanica e dell’Economia applicate ai Sistemi Agricoli e Zootecnici

UNIVERSITÀ DEGLI STUDI DI FOGGIA

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riOutline

DEFINITIONS IN THE ITALIAN INDUSTRY

STATISTICAL FIGURES

TYPE OF CROPS INVOLVED

PRODUCTION ORGANIZATION

MATERIALS & EQUIPMENTS

CONSUMERS ATTITUDES

HUMAN RESOURCES AND EDUCATION NEEDS

STATE OF THE ART OF R&D

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riDefinitions

MINIMALLY-PROCESSED PRODUCTS IN ITALY INCLUDE TWO MAIN CATEGORIES:

IV GAMMA, WHICH REPRESENTS FRESH-CUT PRODUCE

V GAMMA, WHICH REPRESENTS READY-TO-USE, LIGHTLY-PROCESSED, PERISHABLE PRODUCT

ALTHOUGH THEIR CHARACTERISTICS ARE RATHER DIFFERENT THEY OFTEN

ARE PUT TOGETHER IN STUDIES, SURVEYS, ETC.

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NUMBER OF COMPANIES 50

of which about 33 produce IV gamma products

25

1

7

TOTAL WORKFORCE 350

AVG PER COMPANY 7

PRODUCTION VALUE (MLN EURO) 131

AVG VARIATION PER YEAR 1999/1995 +18,5%

ADDED VALUE (MLN EURO) 18,3

MARKET SHARE FIRST 4 COMPANIES (IV GAMMA) 61,1%

MARKET SHARE FIRST 4 COMPANIES (V GAMMA) 50,3%

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PRODUCTION & CONSUMPTION - IV gamma

60

80

100

120

1995 1995,5 1996 1996,5 1997 1997,5 1998 1998,5 1999

ML

N E

uro

ProductionApparent consumption

PRODUCTION & CONSUMPTION - V gamma

0

5

10

15

20

1995 1995,5 1996 1996,5 1997 1997,5 1998 1998,5 1999

ML

N E

uro Production

Apparent consumption

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riType of crops

SALADS (LETTUCE, ARUGULA, RADICCHIO, ETC.)

SPINACH

CARROTS

MINESTRONE

CUCUMBERS

PEPPERS

Salads in bags34%

Spinach15%

Carrots9%

Minestrone9%

Others6%

Salads in trays27%

FRESH-CUT FRUITS ONLY RECENTLY

APPEARED IN THE MARKET

ITS PRODUCTION/USE IS STILL LIMITED

LETTUCE, ARUGULA, RADICCHIO, ETC.

PRODUCTION IN 1999 WAS ESTIMATED IN 1 MLN MT

OF WHICH ABOUT 1% WAS USED FOR FRESH-CUT

PRODUCTION

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riOrganization

PRODUCTION

100%WHOLESALE

CASH&CARRY

LARGE SUPPLY CHAIN

TRADITIONALRETAIL

CATERING

76-78%

10-12%

3-4%

1-2%

6-8%

78-80%

12-14%

7-9%

Fr&Veg sales according to the channel (%)

0

10

20

30

40

50

60

70Large Supply ChainHard DiscountsMobile sellersTraditional retailersOthers

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riOrganization

general IV gamma V gamma

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riOrganization

Price structure for Julienne Carrots

0%

20%

40%

60%

80%

100%

1997 1999

% o

f th

e f

ina

l pri

ce

Chain Supplier

Processor

Producer

-17.4%

+4,3%

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MAIN ASPECTS:

severe control of production chaineffective planning of production (product/variety, time, space)vertical integration with specialized companiesflexibility (product, packaging)production poles: in order to produce closer to where the market isprice competitionproduct innovation (product & services)supply chain efficiencypromotional campaigns

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riMaterials & Machinery

MAIN PACKAGING MATERIALS:

EXTENSIBLE FILM IN PLASTICIZED PVC FOR TRAY WRAPPINGPROPILENE FILM FOR “PILLOW” BAGSPOLYOLEFINIC MATERIAL FOR LARGE PACKS

MOST OF THE PACKAGING SOLUTIONS ARE ONLY EFFECTIVE IN PROTECTING

FROM CONTAMINATION AND FROM EXCESSIVE DEHYDRATION, BUT DO

NOT ENSURE OPTIMAL GAS COMPOSITION INSIDE THE HEADSPACE

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MOST USED PACKAGING SYSTEM IS THE BAG WITH ABOUT 60% OF THE FRESH-CUT MARKET (IN VOLUME) WITH 250 AND 500g PACKS

TRAYS ARE MORE EXPENSIVE, ALTHOUGH HAVE A BETTER VISUAL IMPACT FOR CONSUMERS (FREQUENTLY SMALLER SIZES)

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riMaterials & Machinery

PACKAGING MATERIAL MANUFACTURERS ARE OFTEN FOREIGN COMPANIES THAT HAVE COMMERCIAL BRANCHES IN ITALY

MOST OF THE EQUIPMENT MANUFACTURERS ARE ITALIAN USING INTERNAL KNOW-HOW WITH A STRONG ATTITUDE TO EXPORT

SMALLER INTERNAL COMPANIES ARE IN THE BUSINNESS FOR LOW TECHNOLOGY MATERIALS

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riConsumer attitudes

MINIMALLY-PROCESSED PRODUCTS WERE INTRODUCED IN ITALY IN THE 80s AFTER THE BIG COMMERCIAL SUCCESS IN FRENCH MARKETS

ITALIAN MARKET DID NEVER EXPLODE ALTHOUGH IT IS RECENTLY INCREASING

COMMERCIAL PERFORMANCE IS VERY DIFFERENT ACCORDING TO GEOGRAPHICAL AREAS (NORTH vs. SOUTH) AND COMMUNITIES CHARACTERISTICS (URBAN vs. RURAL AREAS)

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riConsumer attitudes

ONLY 30% PENETRATION IN THE ITALIAN FAMILIES/HIGH FREQUENCY OF USE

CHOICE IS BASED ON CONCEPTS OF CONVENIENCE, TIME-SAVING, NUTRITIONAL VALUE, SENSORIAL APPEAL

NON-CHOICE IS BASED ON PRICE-CONSIDERATIONS AND “CULTURAL APPROACH”

SEASONAL APPROACH (WINTER vs. SUMMER)

AGE FACTOR

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riHuman resources

GOOD AVAILABILITY OF HUMAN RESOURCES WITH UNIVERSITY EDUCATION

LITTLE USE OF SKILLED PERSONNEL, ESPECIALLY IN THE CASE OF SMALL COMPANIES

MOST FREQUENT USE OF UNIVERSITY-EDUCATED PERSONNEL IS FOR QUALITY CONTROL AND INSPECTION

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riLegislation

THERE IS NO INTERNAL REGULATION FOR THESE SPECIFIC TYPE OF PRODUCTS: MORE GENERAL CODES APPLIESE.G. THERE IS NO DEFINITION OF MAX INITIAL BACTERIAL COUNTS (AS ON THE OTHER HAND IS VERY WELL DEFINED FOR PESTICIDE RESIDUES)ENVIRONMENT CHARACTERISTICS ARE ALSO REGULATED AS FOR HYGIENIC AND PERSONNEL SAFETY ASPECTS

AS FOR OTHER FOOD PRODUCTION AND MANIPULATION INDUSTRY, HACCP IS MANDATORYREGIONAL HEALTH DEPARTMENT AGENCIES ARE IN CHARGE FOR CONTROL AND CODES ENFORCEMENT

PRODUCT LABELLING IS ALSO STRICTLY REGULATED

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riR&D

A NUMBER OF LABS (BOTH PUBLIC AND PRIVATE) HAVE R&D ACTIVITIES ON THIS PARTICULAR TOPIC WITH RELATIVELY GOOD LEVEL OF THE STATE OF THE ART (LITTLE OR NO FRONT-LINE ISSUES)INTERDISCIPLINARY APPROACH: COMMUNICATION NOT ALWAYS EFFICIENTINDUSTRY IS MORE AND MORE INVOLVED IN R&D PROGRAMS BECAUSE OF DEDICATED FINANCIAL SUPPORT

INNOVATION TRANSFER, INDUSTRIAL APPLICATION, PROCESS IMPLEMENTATION

THANKS FOR YOUR ATTENTION