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Facing the price increasement with effective logistics

How to deal with the energy price increase that’s reducing the competitiveness of Italian companies abroad in 2022? Many agri-food producers are looking for the answer.

Some data about producers situation

An analysis by ISTAT (the Italian National Institute of Statistics) describes a very discouraging situation: in fact, during the first months of 2022 a consumer price increasement was registered.

Furthermore, consider that in Italy the average cost per kilometer for heavy transport goods is € 1.12 €/km, a figure that according to Coldiretti (the largest Association of representation of Italian agriculture) is higher than Countries such as France and Germany, and double compared to the realities of Eastern Europe.

In the agricultural production sector, the increase in oil prices weighs double: firstly on the decrease of producers’ earnings, secondly on the growth of their expenses, such as heating greenhouses, cooling stables, use of tractors and agricultural machines.

Ettore Prandini, Coldiretti President, states: “To support the growth trend of Made in Italy food and wine, it is now necessary to unlock all the infrastructures that would improve connections between the South and the North of the country, but also with the rest of the world via maritime routes and high-speed rails “.

A real necessity – to face energy increases in transports – that threaten the sustainability of Italian companies on foreign markets.

What hinders Italian producers today?

Workers of agricultural sector, after two years of pandemic, understood that to increase earnings it is necessary to focus on selling abroadwithout being swallowed up by competitors.

However, one aspect reduces the chances of success: the quality of Italian infrastructures is below the European level for all types of transport, be it rail, air, road and sea, as stated in a recent analysis by the Italian Centro Studi Divulga.

This has a considerable impact on the agri-food sector, which more than others has difficulty in recovering the higher costs because it often has to deal with dishonest competition in terms of production methods.

A foreign trade office can help manage the situation

Long story short, it’s clear that heavy transport bills are the top of a truly threatening iceberg for operators in the Italian agricultural sector.

If more expensive petrol risks causing entrepreneurial disappointments, solutions can still be identified.

Firstly, with the choice of investing in an efficient export sales office, which follows the management and fulfilment of orders and after-sales, and even coordinates and optimises logistics processes, with a consequent amortisation of costs.

In fact, every small and medium-sized business faces important challenges in communicating and selling its specialties. Producers hardly find the time to design complex sales strategies.

An aspect just a few people consider

Often Italian producers, aware of their value, are deceived by the false hope of successfully selling abroad automatically. Unfortunately, reality is very different: both because it is necessary to know how to choose the winning markets and the suitable products.

In the process of exporting food goods, just a few people realise the role played by context’s accuracy and relevance.

What are your goals?

Our commercial agency knows the difficulty for large foreign distributors to market products from other Countries. Logistic, bureaucratic and regulatory steps that change according to the situation. Furthermore, retailers need to search and contact producers easily.

That’s why we act as a “touchpoint” between the best Italian food producers and the large-scale retail chains. To find out more, write an email to info@touchpointsrl.com.