The largest agro-industrial operator in Italy has opened a new production hub, inaugurated in the presence of the Prime Minister Matteo Renzi, the Minister of Agriculture Maurizio Martina and many national and local institutions.
“We started the internationalisation process of the group two years ago, following the onset of the crisis and the significant reduction in the volume of milk consumed. It was a necessity but also an opportunity. We have created plants and invested a substantial figure (100 million euros) in acquisitions without public contribution; often saving trademarks and jobs. We are aware that the structural limit of our country is the average size of its companies, size that precludes access to financial instruments, research and development and therefore the non-domestic markets”, remarked president of Granarolo, Gianpiero Calzolari, who continues, “Granarolo aspired to represent the ability to bring the excellence of Italian agriculture to the world. We have invested in order to diversify; not just to be a simple dairy, but a first-class dairy product company, one that can produce soft and hard cheeses (especially pdo labelled products, which are much appreciated abroad): we have invested in Italian know-how, despite the geographic difficulties which we must face when compared to other countries.
Within two years Granarolo has increased its exports from 4% to 16%. Today, it operates through the holding company ‘Granarolo International’ with two production plants in France, in Spain with its sales division and both in the UK and China with a trading company. During 2014, the Group participated in eight of the largest specialised fairs worldwide (Singapore, Johannesburg, Sao Paulo, New York, Uk, Melbourne, Paris, and Beijing).
The Expo 2015 food fair in Milan will give the Italian food processing industry a chance to greater promote itself and Granarolo wants to play an important role in representing the cow’s milk sector, as well as sheep’s and goat’s, in the Italian wing. In fact, the company invested in pecorino cheese production through the acquisition of Ferruccio Podda in 2012 and the Pinzani dairy in 2014, as well as investing in goat’s milk through the acquisition of Amalattea in 2014.
We will end this year by surpassing a turnover of €1bn; however in order to compete with international players we have to grow again in 2016, where we should achieve a turnover of around €1.5bn. In our portfolio we have several PDO cheeses and are working to further expand our range of products as well as the number of countries in which we are present.
The values of the investments made in the Bologna site from 2009 (the year in which we invested in a new mozzarella unit) are extremely important: over €40 million up to 2014 and a forecasted investment of over €2.5 million in 2015. Bologna is both the brain and the heart of our group, but this has not prevented us from operating in 13 other Italian regions, in order to find knowledge and know-how, and people from both ends of the ‘Italian boot’ who see the potential in Granarolo to export these skills to 55 countries worldwide. The numbers tell a story of a piece of Italy which is growing. “So on this occasion”, states the president of Granarolo, Gianpiero Calzolari, “we are happy to report two important operations which are aimed at achieving this goal.”
GENNARI
“We have reached an important agreement with Gennari S.p.A., a business based in Parma which has a long tradition of producing Parmesan cheese, Grana Padano and Parma ham that will steadily generate an additional turnover of about €42 million. We will work with the Gennari family to take these delicacies to foreign markets.”
GRANAROLO CHILE
“The second announcement concerns the creation of Granarolo Chile Spa, controlled by Granarolo International and the first platform from which to enter the South American market. Granarolo Chile will acquire 90% of Bioleche Lacteos, a historical Chilean cooperative of 300 farmers with a cheese factory and a brand which is well-positioned within the market. The deal, which was finalised this week, will allow Granarolo to steadily, within 4-5 years, reach a €27 million turnover through the sale of both Chilean cheeses and products imported from Italy. Latin America is an interesting growth market, with consumption habits not far from those found in Italy. We are in fact looking to other countries in that area.” “What do we ask of the government of our country?” continued Calzolari.
“In the first instance the best option would be the consideration of the strategic importance of the food processing business to Italy, which goes well beyond the impromptu and sometimes sickening representations of our world (we contribute 14% of GDP and make up 14% of national employment, a decisive contribution for our trade balance with more than €30 billion of exports).
Finally let’s move on from the policies which support the status quo of the agricultural sector towards the policies of profound change, within the primary sector initially.
The European Community is closing the season of milk quotas: Unfortunately, our country was characterised by the worst management you could imagine, but there is still time to soften the landing at a grass-roots level. It would be paradoxical, finally, of the Italian government not to activate any initiative which prevents honest Italian manufacturers from suffering a penalty in the last year of the quotas due to a false estimate of domestic production by the ministerial departments.
No direct aid rather the resources are allocated to the sector, particularly in light of the collapse in the price of the raw material in recent months from €50/hl to €35/hl. With such untenable changes it is becoming necessary to implement such tools as insurance in order to protect income. Minister Martina knows that we were the only ones in the last quarter of 2014 to support a fair price for the raw material. It’s time to put in place a cross-profession enquiry group to see that all parties involved; agricultural, industrial, cooperatives and distributors have a plan for the medium term.”
POLICIES TO SUPPORT COOPERATIVES
“Bringing the cost of money, energy (+ 30% compared to the European average), transport and logistics (+ 32% compared to Spain) in line with other European countries. But also tax and labour policies which boost domestic consumption, however here I know that the Government already has this in mind. Continue the reform policies which have been initiated, aimed at modernising our country to close the gap that separates us from the rest of Europe.In summary, we need to do business in a country that works, we want to be part of a country that wants to succeed. For our part, we are confident that we will succeed.”