Supply chain table, ASS.I.CA.: a constructive and concrete discussion
Thank you to Minister Lollobrigida and Undersecretary La Pietra, who in a few months took up the request more than a year ago of the entire supply chain
28, Apr 2023
A pork supply chain table was held today, Friday, April 28, at MASAF in the presence of all the major players in the national pork supply chain. Lively and participatory, the discussion brought out clearly the difficulties affecting the various stages of domestic pork and cured meat production. Rising costs of domestic and foreign raw materials (even more than 30 percent compared to the first quarter of last year), slowdown in exports, difficulties in domestic consumption, presence of PSA, high production costs and consequent reduction in operating margins are the main critical issues that companies in the sector have to face on a daily basis. As said by Undersecretary La Pietra himself, who convened and coordinated the work, increases in final prices have not compensated for soaring production costs, and this threatens to undermine the resilience of the supply chain.
These critical issues are exacerbated and made particularly unsustainable by an even more difficult and unpredictable economic environment due to a combination of exogenous factors ranging from the serious consequences of the continuing Russia-Ukraine war, to drought, to the establishment of a legislative and media framework increasingly hostile to meat.
Against the backdrop of this precarious scenario, the weight and looming uncertainty of which businesses in every link of the supply chain are feeling, the attention devoted by the agrifood department in Via XX Settembre was a particularly welcome gesture, a careful and concrete response to the demands that the supply chain has been carrying forward since March 2022, when, after the appearance of PSA on the continental territory and the recording of the first major damage to exports, it immediately became clear to everyone that we were heading into a complex period to be governed with extreme care and constant monitoring.
Today’s meeting therefore represents not a point of arrival, but a satisfactory starting point: Undersecretary La Pietra himself reiterated the need to continue rapidly and with conviction on this path to build our way out of a situation that is no longer sustainable.
«I want to thank Minister Lollobrigida and Undersecretary La Pietra for giving attention and response to our request to convene the pig supply chain table. We are aware that the situation is complex; on the raw material cost front, we have reached unprecedented prices both on the Italian market and on those of our EU partners that we have to resort to because Italian meat is not enough. Costs that are much higher than in 2019, the year of the PSA explosion in China, with increases of up to 60 percent compared to the peaks reached in that year, and with ancillary costs that are significantly higher than in 2019. We do not expect the government to have a magic wand to suddenly project us into better conditions. However, we are convinced that we are on the right path to cohesively, compactly and concretely emerge from a swamp of critical issues in which the supply chain risks being mired» commented Ruggero Lenti, president of ASS.I.CA.