Italian Pre-cut Sales Taking Off
Fresh Cut
February 2005
Minimally processed products were introduced in Italy
in the 1980s after enjoying big commercial success in French markets.
While they got off to a slow start, processors are now witnessing exciting
markets in terms of growth. Italy’s fresh-cut produce sales witnessed
a 38 percent increase in value in 2003 compared to the previous year.
During that same time frame, sales jumped 123 percent in the southern
part of the country, offering significant growth opportunities for those
companies supplying pre-cut fruits and vegetables located there.
In 1999, there were 50 companies producing minimally processed fruits
and vegetables in Italy. Of those, 33 were producing fresh-cut produce
products, categorized as “quarta gamma,” while the other 17
were marketing what the Italians call “Quinta gamma” products,
or ready-to-use, lightly-processed, perishable products requiring refrigerated
storage.
Professor Giancarlo Colelli of the Universita’ degli Studi di Foggia,
Foggia, Italy, provides a few facts on what’s happening in Italy
in the proceedings of a workshop, “Improving Quality Management in
the Minimally Processed Fruit and Vegetables Industry of the Euro-Med
Area,” held Dec. 13-14, 2003 in Mesagne, Italy. Some of the statistics
quoted have since been updated.
Thirty-three Doing Fresh-cut
Most of the companies producing fresh-cut products are located in northern
Italy, Colelli points out. In 2001, the total workforce of those involved
in producing minimally processed fruits and vegetables was about 600,
with the average number of employees per company twelve, although many
companies may use additional seasonal workers.
Total value of the industry was 206.5 million Euros, with an average annual
growth rate of about 19.6 percent since 1997, the professor notes. Four
companies control approximately 61 percent of the fresh-cut produce business
and more than 71 percent of “quinta gamma” products, or ready-to-use,
lightly-processed, perishable products requiring refrigerated storage.
Trend is toward concentration with large companies entering the business:
French Bonduelle (acquiring Italy’s Ortobell and Cielo e Campo, the
two largest Italian companies producing “quarta gamma” products),
and Cirio Del Monte Italia, through its participated Compagnia Agroalimentare
del Fresco.
Citing more recent data, Colelli’s report places fresh-cut industry
output at 257 and 355 million Euros for the years 2002 and 2003, respectively.
The annual sales growth rate for the fresh-cut produce industry during
those years was 38 percent, more than double the rate of the previous
five years. During that time frame, actual production was 30.5 and 40.7
thousand metric tons with annual increases of 33 percent.
Nonetheless, in 2003, fresh-cut vegetables represented only 11 percent
of the total vegetable market, Colelli’s report points out. “Quinta
gamma” products represented only 1.1 percent. In terms of value,
fresh-cut products represented more than 46 percent of the total refrigerated
vegetable market, while “quinta gamma” products represented
1.5 percent.
Salads – 60 Percent of the Market
Salads represent more than 60 percent of fresh-cut produce sales, he informs.
These are prepared in various mixes and are packaged in both bags and
trays. Thirty-four percent are in bags; 27 percent are in trays. Among
the more popular vegetables used in salads are lettuce (Lactuca sativa
L.), radicchio (Cichorium intybus L. of different varieties) and arugula
(Diplotaxis muralis L.), sometimes referred to as “rocket salad.”
Also used are baby spinach leaves (about 15 percent), carrots (9 percent)
and “Minestrone,” a vegetable mix consisting of such ingredients
as spinach, carrot, zucchini, onion, squash, celery and parsley. This,
of course, is used as the basic ingredients for “minestrone”
soup (9 percent). Other minor products account for approximately 6 percent
of the market.
Fresh-cut fruits—mainly melons, kiwi fruits and apples—have
been slower coming on and commercially remain a very small percentage
of the pie, Colelli explains.
As in the United States, raw material production needs are often previously
contracted between producers and processors, according to specific requirements
dictating varieties to be grown, agricultural practices and maturity stages.
Such agreements make traceability procedures less problematic. Rarely,
raw products can be acquired from wholesale markets, with more problems
in term of consistency of characteristics and traceability.
Retail Market – More Than 90 Percent of the Sales
In 2001, more than 90 percent of Italy’s fresh-cut fruit and vegetable
products went to retail markets – 13-14 percent through wholesalers,
3 to 4 percent to traditional retail stores, 1 to 2 percent to hard discount
stores and 76 to 77 percent to what is known as the “large supply
chain”. Only about 3 to 6 percent of production went to food-service
companies such as restaurants, catering services and automatic
distributors.
Added value for the minimally processed produce industry in 2001 was about
34.7 million Euros, representing 17 percent of the total output for the
industry, Colelli says.
On an average, processors and chain suppliers receive more than 85 percent
of the revenue from a product sale, while raw vegetable producers receive
only 10 to 15 percent.
Packaging Solutions
Most of the packaging solutions used in Italy are only effective in protecting
from contamination and excessive dehydration, Colelli points out. Few
ensure optimal gas composition inside the headspace. Although, in some
cases, properly modified atmosphere conditions within the package are
very effective in prolonging quality life of the products, modified-atmosphere
packaging is rarely commercially applied at its maximum potential.
Today, the most popularly used packaging materials for minimally processed
fruits and vegetables are propylene film for bags (or pillows), polyolefin
material for large sacks and extensible film in plasticized PVC for tray
wrapping. The most used packaging system is the bag (250 and 500 gram
packs), which accounts for 60 percent of the fresh-cut market in terms
of volume. The pillow system is less expensive compared to other packaging
systems since labor costs are reduced with highly automated filling and
weighing processes. On the other hand, appearance is not as attractive
compared to plastic trays which are more expensive and have a better visual
impact for consumers.
Most packaging material manufacturers are foreign companies that have
commercial branches in Italy, although smaller, internal companies are
now providing low technology materials.
Technical Gas
Nitrogen is by far the most used technical gas for minimally processed
produce, according to Colelli. Carbon dioxide is also used in combination
with nitrogen (for quinta gamma products) and with nitrogen and air for
fresh-cut vegetables and fruits. Some companies provide pre-prepared gas
mixtures (usually various combinations of nitrogen, oxygen and carbon
dioxide) to flush into packages in substitution of air. Other gas mixtures,
containing argon or super-atmospheric oxygen, are not commercially used
for minimally processed products. Both domestic and foreign companies
are active in the market providing technical gas for Italy’s minimally
processed industry.
Equipment
Most of the equipment used in the industry is provided by Italian manufactures,
Colelli says. Some companies are marketing equipment for the food industry
in general which can be adapted for fresh-cut processing, while others
are specializing in equipment for fresh-cut produce processing lines.
“The minimally processed fruit and vegetable industry in Italy is
increasingly playing an important role in the economy of Italy’s
fresh produce sector, the researcher says. Various aspects encourage the
growth of this particular industry, including a better perception of quality
aspects of these products by consumers.
“On the other hand, many improvements are possible, both in the technology
and in the organization of production,” Colelli points out. “The
use of the latest technological innovations, the increase in the number
of commodities and the expansion of the foodservice market represent only
a few aspects which need further development and improvement.”
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