Examining economic and financial indicators, the market research firm Ismea has analyzed the vulnerability to crises of one of Italy’s most relevant economic sectors: food industry. A sector that proves to be very dynamic, robust and resilient in the face of difficulties, including the current pandemic-fueled crisis. In fact, 42% of Italian agri-food companies have characteristics such as to guarantee a good resilience even during shock crisis situations.
This “hard core” is flanked by a large production area (36% of the sample) – that can be defined as “middle ground” – with some debt exposure problems that could degenerate due to the effects of the Covid-19 pandemic emergency. Even more worrying is the situation of the remaining 21% of the sample, the “soft underbelly” of the Italian food industry system, characterized by a high level of vulnerability.
ITALIAN FOOD INDUSTRY RESILIENCE: SECTORS
The sectors with a greater share of “high resistance” companies are the Italian milling industries (63% of companies fall into this category), the liquor industry (59%), and the chocolate, coffee and tea ones (both around 53%). On the contrary, the worst picture is in the beer and olive oil sectors where, respectively, 38% and 34% of companies are in the most critical area.
Italian agri-food exports by products
| Product | Sales (mio €) | % Var. 2019 on 2018 |
| Cereals, rice and derivatives | 6,573 | +6.9% |
| Wine and musts | 6,434 | +3.2% |
| Fresh fruit and vegetables | 4,643 | -2.3% |
| Processed fruit and vegetables | 3,809 | +2.3% |
| Dairy | 3,532 | +10.4% |
| Meat | 3,102 | +0.8% |
| Other drinks | 2,907 | +15.8% |
| Oils and fats | 1,881 | -5.4% |
| Industrial crops | 1,830 | +53.4% |
| Floriculture | 894 | +1.2% |
| Seafood | 736 | -4.3% |
| Forage | 199 | +16.1% |
| Other food products | 8,032 | +8.6% |
| Total Food Products | 44,647 | +6% |
SIZE
The companies’ size is also an essential indicator to predict their resistance to crisis. More than a quarter of companies employing no more than 9 people presents elements of vulnerability (27%). A percentage that is significantly reduced considering larger enterprises: it drops to 9% in those with more than 250 employees.
GEOGRAPHICAL AREA
Another comforting sign comes from the estimate of the differences in the degree of resistance to crises at a territorial level. In the South of Italy, the area with the most resistant companies is larger (45%), albeit slightly, compared to the Centre-North (42%).
Exports of the main Italian F&B products (% Var. 2019 on 2014)
| Product | Volume % | Value % |
| Fresh fruit and vegetables | -0.2% | +21.5% |
| Processed fruit and vegetables (except tomato) | +48.2% | +50.1% |
| Processed tomatoes | +18.8% | +11.2% |
| Fruit preserves | +11.8% | +13% |
| Virgin and extra virgin olive oil | -12.3% | +9% |
| Other vegetable oils | +32.6% | +16.6% |
| Wines (up to 15 % vol., less than 2 liters) | -0.8% | +14.6% |
| Sparkling white wines | +72.8% | +88% |
| Sparkling red wines | +7.8% | +20.9% |
| Boneless hams, speck, culatellos | +12.1% | +14.5% |
| Cooked hams | +35.4% | +42.1% |
| Cured meats and salami | +25.4% | +28.8% |
| Grana Padano and Parmigiano Reggiano cheeses | +20% | +40.3% |
| Pecorino and Fiore Sardo cheeses | +25.7% | +13.5% |
| Blue cheeses | +23.5% | +25% |
| Fresh cheeses and dairy products | +42% | +46.8% |
| Grated or powdered cheese | +87.9% | +99.6% |
| Soft cheeses | +11.5% | +11.7% |
| Seasonal products | +32.1% | +35.6% |
| Cookies | +32.9% | +55.9% |
| Bread and bread substitutes | +45.1% | +54.7% |
| Pasta | +9.2% | +18.1% |
| Milled rice | -7.1% | +5.6% |
| Floriculture | +24.2% | +39% |
| Canned tuna | +24.5% | +41.8% |
| Mineral waters | +34.2% | +52.7% |
| Spirits and liquors | +76% | +102.4% |
| Soft drinks | +73.6% | +70.1% |
| Beer | +61.6% | +44.1% |
| Coffee and derivatives | +62.2% | +125.4% |
| Cocoa-based confectionery | +37.6% | +44.4% |
AGE
Data on the average age of the companies in the sample shows to what extent the Italian agri-food system is rooted in tradition. The analyzed companies have a history of more than one generation and have been established on average for 26.5 years. However, it is the companies with less than 5 years of life that show a very positive trend in turnover. Despite their small economic size, they have already increased their average revenues by more than 30%.
