The alarm from cured meat factories: consumption drops by 2.1%, costs increase by 25%

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Firms in the cured meats sector are worried: while production costs increased by 25%, in 2022 consumption showed signs of slowing down and decreased by 2.1% in volume. The figures were disclosed during the annual assembly of Assica, the association that brings together the 900 industrial companies of a sector worth about 9 billion euro. On Thursday 15 June, in Rome, the members also chose the new president who is Pietro D’Angeli, general manager of the Emilian Clai cooperative: «The incessant increase in the cost of raw materials and energy costs is undeniable and exceeds 25% – said the new president – the industries of the sector have only partially passed on the increases recorded downstream, keeping final sales prices calmed to protect consumers. This phenomenon has led to an increasingly marked contraction in the margins and profitability of companies and has certainly contributed to generating liquidity problems for companies and accentuating financial tension. Access to credit is therefore the other major discriminating factor for the health of the sector, especially for small and medium-sized enterprises”.

If overall national consumption of cured meats fell by 2.1% in 2022, Italians are showing growing budget difficulties and are turning to lower purchase categories. For example, the consumption of mortadella and frankfurters also increased (+6.0%), while the consumption of bresaola showed a marked reduction (-6.9%). Exports were also affected by the high cost of living: in 2022, shipments of Italian cured meats abroad stopped at 197,800 tonnes, 0.4% less.

To face 2023, Italian cured meat companies are asking the government for a discount on VAT: «As a reaction to the increase in the costs of raw materials, energy, packaging and many other related costs and the difficulty of transferring these higher charges on the final prices of sales, also in the light of the loss of purchasing power of Italian families, reducing VAT to 4%, thus equating meat and cured meats to cheeses and fruit and vegetables, would help to cheer up the market» said D’Angeli. Who also asked for more interventions to combat swine fever: “To combat its spread, it is vitally important to act promptly, with the sharing and implementation of coordinated actions for the eradication of the infection”.