AGRIBUSINESS DISTRICTS IN THE LEAD: IN 2011 TURNOVER +7.6% OVER 2010, THANKS PRIMARILY TO EXPORTS. WINE IS THE LEADER, SAYS INTESA SAN PAOLO. BUT THERE IS CONCERN FOR THE ITALIAN MARKET. FOCUS, CIA-CONFAGRICOLTURA: FOOD EXPORTS SUFFER IN 2012

Made in Italy products "depend" on exports. Yet another confirmation comes from reports by Intesa San Paolo Bank’s Research Department, which shows that the Italian food districts was up 7.6% in turnover in 2011 compared to 2010, mainly due to exports, regaining ground lost in the first phase of the crisis: almost all the districts (only 3 "exceptions" out of 44) in 2011 exceeded 2007 levels. And the best performers are the wine districts from Trentino with Trentodoc and Veronese wines, Amarone in first place, the Prosecco territory of Conegliano and Valdobbiadene, Tuscany’s Chianti and Piedmont’s Langhe, Monferrato and Roero, which is the top district, with exports growing 8.5% for a value of over one billion euros and a "surplus" of 241.7 million euros compared to 2007. Among the other districts, excellent performance of dairy farming in Lombardy, with exports worth 686 million euros. But there is concern for the Italian domestic market which will be even more difficult in 2012: "The domestic market demand is weak and the increase in unemployment combined with the effects of fiscal correction maneuvers on families, predicts a further reduction in consumption, which could affect the food industry just like in 2008-2009, and in 2011 ".

So, as we have been saying for some time now, exports have become a necessity although, according to Intesa San Paolo’s study, the geographic map is changing: in the past 6 years there has been a general reduction on the more "mature" markets for Italian food, but it has grown on emerging markets, China and Russia in the lead.
What, however, is worrying the Italian wine & food businesses is exposure to debt: according to Coldiretti, the Italian farmers association, analysis of the CGIA Mestre (association of artisans and small businesses) survey, 50 thousand businesses closed in 2011, and there is a 30% increase of businesses suffering due to old debts. And to make matters worse, says Coldiretti, the cost of money in agriculture has reached 6%, which is 30% higher than the industry average, not to mention that 6 out of 10 enterprises have difficulties obtaining credit.