Pizza and pasta – these are the mainstay in menus of most F&B establishments, which is unsurprising since they are popular across all age groups and guest profiles. However, will those who cannot do without their Italian fare might find their wallets feeling a pinch, as that Italy’s expected production of durum wheat 2022 will be 3.5 million tons? This is 10% lower than the production volumes recorded in 2021.
Piero Luigi Pianu, Director of Italmopa, the Italian Millers’ Industrial Association (Federalimentare-Confindustria) begs to differ. He tells Hotelier India how this will impact durum wheat exports and the likely price hike of these products when it reaches Indian shores.
The Wholesale Price Index (WPI) inflation of food articles rose to 12.37% in August compared with 10.77% in July. How will this impact the discretionary spending on Indians?
This is a very local question regarding the Indian market and quite frankly answering it without knowing internal dynamics is difficult. In general, it can be said that inflation leads consumers to give up their purchases of superfluous goods and food products.
However, products that form the basis for daily nutrition should be less influenced by the inflationary spiral. This is even if inflation could lead to consumers making conscious choices to save money when buying products that make up their basic diet.
In Italy, an increase in food prices results in a reduction in the sale of products that are not considered strictly essential while products that form the basis of the Italian diet, such as bread or pasta, do not register significant fluctuations in consumption.
- How will 10% lesser production of durum wheat in Italy this year as compared to 2021 impact its export to countries like India?
The Italian production of durum wheat and soft wheat has always been insufficient in relation to the needs of the Italian milling industry. Therefore, our country is an importer of wheat raw material.
This allows us to identify, select and mix the best varieties of wheat whatever their origins and to obtain flours and semolina flour of the highest technological quality and health standards from the best grains in the world. Consequently, the reduction in the national production of wheat does not impact in any way on the quantity and quality of flour and semolina flour produced by the Italian milling industry.
Our exports of soft wheat flours in 2022 are recording an increase of more than 35% compared to 2021. We expect to close the year with absolute records both in terms of volume and value, reflecting a general appreciation as regards the quality and versatility of Italian flours.
- Can the lowered production result in a price hike of these products when they reach Indian shores?
With regard to India in particular, we can maintain our forecasts in terms of higher export volumes, which should reach 7,700 tons in the third year of the programme. In absolute terms, this amount is limited. But in any case, it represents a strong percentage growth that, we are convinced, will accelerate further in the following years.
Will this also mean that people while eating out, Indians would prefer to go for local food, which offers more quantity and therefore better return on their investment?
This reasoning is correct, in principle. However, it should be taken into account that Italian flours, due to their characteristics, differ from flours generally consumed in India. It is marketed in HoReCa sector that wants to offer their customers, whether Indian or international, premium products that can be found in Italian food and Italian excellence.
- To tame rising food prices of essential commodities, the central government has banned exports of food items including flour? How will this impact wheat imports to Italy, which is the 6th largest importer of wheat in the world?
Potentially, the reduction in the supply of wheat worldwide, due to the conflict between Russia and Ukraine, inevitably generates a spiral of price increases and this is also happening in Italy. Italy, however, does not import wheat, or only marginal quantities, from Russia, Ukraine or India and its main suppliers are Hungary, Austria, France and Germany from the European Union and the United States, Canada and Australia as regards non-EU countries.
Currently, no problems in the availability of raw materials are foreseen, despite the awareness that due to the conflict between Russia and Ukraine the international markets have generated an increase in prices.
