Food and drink industry output (production) in the EU decreased in the last quarter of 2014 (-0.41%). With exception of Austria, Ireland, Portugal and the United Kingdom production in most of EU Member States was slightly lower. Italy’s industry production index, quarterly growth is -1, 75%, according to Food&Drink Europe compilation data.
In September 2014 compared with August 2014, the seasonally adjusted volume of retail trade decreased by 1.3% in the euro area and by 1.2% in the EU28. The volume of retail trade in food drinks and tobacco remained stable with an increase of 0.3% in the same period. The highest increases in total retail trade were registered in Malta (+1.0%), Luxembourg (+0.9%), Hungary and Slovakia (both +0.7%), and the largest decreases in Germany (-3.2%), Portugal (-2.5%) and Poland (-2.4%).
Price developments in the food supply chain are weakened. Producer prices are -0.6%, consumer prices -0.9% and overall inflation -0.3% in Q3 of 2014 compared to the previous quarter, according to Eurostat Monitor. Employment continued to increase in the EU food and drink industry. The labour input index continued to increase (+0.32%) and was modestly higher than the average quarterly growth rate recorded for the total manufacturing sector (+0.28%). By industry sector, quarterly labour input growth of +1.3% was recorded for the beverage industry and +0.2% for the food industry. The food and drink turnover was 1.4% lower compared to the previous quarter. Prices of imported food were modestly lower (-0.6%) compared to the previous quarter.
That is despite Italy’s prolonged downturn, in which the domestic market has shrivelled as unemployment has reached record highs. As smallish food producers seek new markets beyond Italy’s shores, foreign investors have begun to realise their potential. Bright Food, a Chinese state firm which controls Weetabix of Britain, recently bought a controlling stake in Salov, maker of the Sagra and Filippo Berio brands of olive oil. Earlier in 2014 Ebro, a Spanish food company bought 52% of Pastificio Lucio Garofalo. Idea Capital, an Italian private-equity firm, has launched a “Taste of Italy” fund, which it says is attracting American and European investors. More such deals are likely. Over four-fifths of Italian food manufacturers are family-run and with annual revenues of less than 10 million euro.