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International Resources: Global Market Profile: Italy

Italy

As part of its commitment to providing its members with market analysis and insight, PMA has compiled the following information about Italy from the Ministero delle Politiche Agricole e Forestali (Italian Ministry of Agriculture) and Attaché Reports submitted by the U.S. Department of Agriculture’s Foreign Agricultural Service, as well as the CIA World Factbook, embassy sites, and business etiquette reference guides.

Fresh Fruit, Vegetable, and Flower Market
Consumer Trends
Entering the Italian Market
Trade Agreements
Food Standards and Regulations
Business Protocol
Export Business Reminders
Government Resources and related links

Fresh Fruit, Vegetable, and Flower Market

Fruit and Vegetable Market

Italy is the largest consuming country when it comes to fresh fruit and vegetables in the European Union. Italy exports mainly to countries in the European Union. The main market for Italian fresh produce is Germany, which buys nearly 45% of vegetable exports and 31% of Italy’s exported fruit and citrus. Other major EU export destinations for Italian produce are France and the United Kingdom. Conversely Italy imports fresh fruit and vege

Major fruit commodities exported include apples, grapes, peaches, nectarines, and pears; main vegetables produced are tomatoes, onions, carrots, courgette, lettuce, fennel and artichokes.

Imports to Italy from developing countries are gradually increasing, especially imports of off-season and exotic fruit and vegetables such as bananas, pears, pineapple, garlic, mushrooms, and beans.

Fresh Flower Market

Italy is the European Union’s fourth largest market for fresh cut flowers and the second largest EU producer (after the Netherlands). In 2006 the total expenditure on flowers in Italy was €1,619 million. Traditionally the selection of cut flowers consumed was fairly limited. Now, however, Italians are developing tastes for different varieties. The two most popular fresh flower imports are roses and orchids. Imports are supplied mainly by the Netherlands, although a significant number of products are imported from France, Latin America, Thailand, and Africa. Major fresh flower products exported by Italy are roses and carnations, which are sent to Germany, the United Kingdom, Switzerland, and Austria.

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Consumer Trends

Italy has a population of about 59 million people who possess a strong sense of food sophistication. Italians normally spend 20% of their income on food. Northern and central Italians are more urbanized, whereas those living in the South maintain a more traditional and rural lifestyle. Southern Italians purchase significantly higher volumes of fresh food products and spend more on food than their counterparts in other regions of the country. The majority of Italians live in small cities and towns, though about 20% of the population lives in the country’s three largest cities: Rome, Milan, and Naples.

Most consumers prefer to shop at a traditional grocer. The quality-gourmet sector is strongly supported, and there are many high quality shops with niche gourmet products. Consumers are becoming more price and quality conscious and are favoring retail outlets that offer more services, selection, and better prices. The number of supermarkets and hypermarkets is growing, mainly in the northern parts of Italy.

As a group Italians want high-quality, fresh, and traditional foods. Italians generally follow a traditional Mediterranean diet, but are also seeking healthy foods. “Light” and “diet” products are becoming more popular.

The number of women in the workplace is growing. This combined with smaller families and later marriages is increasing the demand for ready-made and convenience products. August is the peak month for demand, with the greatest diversity of products on sale.

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Entering the Italian Market

It is beneficial for exporters to enter the Italian market through the service of an experienced importer or agent. The importer sells the product directly to the supermarket chains or to regional wholesalers. It is a good idea to emphasize any special features of the product. Most products enter the market through brokers or specialized traders. Imported products originating from North America usually enter the country indirectly from the Port of Rotterdam (Netherlands) or directly by air.

Italian importers are generally small to medium-sized companies, unlike the large, market-dominating ones in northern Europe. These companies import smaller volumes and a wider range. The price of an imported product is always important, though for some products quality and novelty alone are selling points.

Personal relationships and language ability are valuable when doing business.

The most effective ways to market new products are through television commercials and newspaper advertisements; billboards can also be useful. Sports events are popular among a wide audience and can be helpful in promoting brand names. It is common to offer free samples of food products in supermarkets.

Packaging must be environmentally compatible and, if possible, recyclable. Consumers are very selective on product packaging and presentation. It is critical to develop innovative and effective packaging, and working with an Italian specialist is the best way to do this.

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Trade Agreements

Italy is a member of the European Union. European Union agricultural and trade policies are major determinants of agricultural production and trade. The Common Agricultural Policy states that there will be product preference in the internal market of the European Union over foreign imports through common customs tariffs. . The European Union is part of the EU-European Free Trade Area.

The European Union has bilateral trade relations with the following countries:

EU Regional Trade Agreements under negotiation include:

EU and the Gulf Cooperation Council (GCC), comprising of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE),
the EU and Mercosur (Argentina, Brazil, Paraguay and Uruguay, and Venezuela which joined the group on 4 July 2006),
the EU and its Mediterranean Partners (Morocco, Algeria, Tunisia, Egypt, Israel, Jordan, the Palestinian Authority, Lebanon, Syria, Turkey)
the EU and the Association of South East Nations (ASEAN), comprising of Philippines, Indonesia, Malaysia, Singapore, Thailand, Brunei, Vietnam, Laos, Burma, and Cambodia,
the EU and Korea, and the EU and India.

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Food Standards and Regulations

Italy follows European Union policies regarding labeling and ingredient requirements. A comprehensive guide to the latest EU food laws and regulations is available at http://www.useu.be/AGRI/expguide.html.

Products are inspected when they enter Italy by examining import documents. Health inspectors may perform tests and examine samples. After paying the import duty and other taxes, the goods are released and may enter the market.

Fresh fruits and vegetables are subject to phytosanitary regulations and are inspected for compliance with EU marketing standards, as determined by Italian Inspection Post controlled by the Ministry of Health (USMA-Uffici Di Sanita` Marittima, Aerea e di Confine). The conformity checks (set forth in EU regulation 1148/2001) have been established for apples and pears, apricots, asparagus, aubergines (eggplant), avocados, beans, Brussels sprouts, cabbage, carrots, lettuce, curly and escarole chicory, melons, onions, peaches and nectarines, peas for shelling, plums, spinach, strawberries, sweet peppers, table grapes, tomatoes, watermelons, witloof chicory, for miniature produce, walnuts and hazelnuts.

Standards for marketing fruit and vegetables can be read here. (note: link to www.useu.be/agri/Fruit-Veg.html.)

Commercial invoices are mandatory and must contain the following information:

Name and address of seller and consignee
Signature of the seller
Denomination of the merchandise
Number of cases, parcels or containers in which the merchandise is packed and the type used
Marks and numbers, if any, on the cases, parcels and containers and the gross height
Quantity of the merchandise
Price of each type of product

A health certificate is required for all food. Certificates of origin are not mandated for EU manufactured goods.

If you are shipping any goods to Europe, you should obtain a written customs duty ruling, known as Binding Tariff Information (BTI). Getting a BTI is free and will prevent any conflict over customs or excise duty. A BTI is valid for six years.

Metric Labeling

European Parliament and Council Directive 1999/103/EC permits the use of both metric and imperial units on the same label until December 31, 2009 for products sold in the European Union.

The Italian Customs agency is the Agenzia delle Dogane.

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Business Protocol

The appropriate greeting is a standard handshake with direct eye contact and a smile. Once a relationship forms, however, air-kissing on both cheeks (starting with the left) is usually added, and between men a pat on the back as well.
Always wait for your counterpart to move to a first name basis.
It is important to show respect, particularly during the first meeting. First impressions are extremely important, as is demeanor.
Dress well. Men should wear dark colored, conservative business suits. Women should wear business suits or conservative dresses. Elegant accessories are important for both men and women. You will be judged on how well you dress and present yourself.
Appointments are necessary and should be made in writing (in Italian) two to three weeks in advance. Confirm the meeting again by telephone or fax (in Italian). It is better to avoid scheduling appointments in August, which is a prime month for vacationing.
You should be on time for meetings. Printed material should be in English and in Italian.
After the formal introduction, business cards are exchanged. When receiving a card, look closely at it before putting it in a card holder; this demonstrates proper respect for your counterpart. It is advisable to have on side of your card translated into Italian. If you have a graduate degree, include it on your card. Also include your title; titles are very important within a business or organization.
Italians prefer to do business with people they know, like, and trust, and a third party introduction is very helpful. Italian businesspeople prefer face-to-face contact. Spending time developing the relationship is important. The initial meeting is used to develop a sense of respect and trust with your colleague. Ask questions about your counterpart’s family and personal interests.
Italians are expressive communicators and are often wordy and emotional and use facial and hand gestures to demonstrate their point.
You should hire an interpreter if you are not fluent in Italian.
It is not unusual to be interrupted when speaking or for several people to speak at the same time. People may raise their voices to be heard over others, not because they are angry.
Written agendas may not always be followed but rather serve as a point from which discussions are made.
Decisions are not reached in meetings and are often based more on how you are viewed by the other party than on straight-forward business objectives.
In the north, people begin to do business after just a brief period of social talk. In the south, people are more relaxed and want to get to know the people with whom they are doing business. Let your Italian colleagues determine the pace of negotiations.
Italians like doing business with high-ranking people and respect power and age.
Do not use high-pressure sales tactics.
Always follow through with verbal agreements. If you do not fulfill a commitment, the business relationship will crumble.
It is not unusual to haggle over price and delivery date.
Networking is very valuable and can allow people to advance.
Many Italians have calling cards that they give in social situations. If you are remaining in Italy for a long period of time, it is advisable to have calling cards made. Do not give your business card instead of a calling card in a social situation. Calling cards are slightly larger than traditional business cards. They include a person’s name, address, title or academic honors, and telephone number.
If invited to an Italian’s home, you may arrive between 15 minutes late for a dinner and up to 30 minutes late for a party. If dress is informal, wear stylish clothes that are still rather formal: a jacket and tie for a man and an elegant dress for a woman.
If invited to a meal, bring a wrapped gift such as wine or chocolates. Make sure you bring quality wine.
Avoid wrapping gifts in black (a mourning color) or purple (a symbol of bad luck). Gifts are opened when received.
If you want to send flowers, have them delivered that day. Never give chrysanthemums, which are used at funerals. Avoid giving red flowers, which signify secrecy, or yellow ones, which indicate jealousy.
Wait until invited to sit down. There may be a particular seating arrangement.
The host or hostess gives the first toast, and an honored guest should return the toast later in the meal.
Table manners are Continental—the fork in the left hand and the knife in the right.
Pick up cheese with your knife instead of your fingers.
Refrain from eating or getting up at the end of the meal until the hostess leads.
Take a small amount of food at first so you can be persuaded to accept more food.
Keep hands on the table and not in your lap during the meal, but do not put your elbows on the table.
It is fine to leave a small amount of food on your plate.
If you do not wish for more wine, leave your wineglass almost full.

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Export Business Reminders

Prices should be quoted in Euro, cost, insurance and freight (CIF) Italian port, or alternatively in US dollars.
Italians invert commas and decimal points when writing figures.
Be patient regarding requests for documentation, ingredients lists, production process, and quality assurance, and respond to such requests with diligence and in a timely fashion.
Keep in mind the date is written Day/Month/Year.
Use letters of credit to reduce risk.
Hedge export values with your bank if you are concerned about exchange rate risk

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International Resources: Global Market Profile: Italy

Table of Contents

Fresh Fruit, Vegetable, and Flower Market

Consumer Trends

Entering the Italian Market

Trade Agreements

Food Standards and Regulations

Business Protocol

Export Business Reminders

Related Links and Government Resources