Recently, we discussed the competitiveness and sustainability standards of the processed tomatoes produced in Europe compared with those imported from outside the EU. The results of this fruitful discussion are a set of proposals to support European tomato supply chains and strictly regulate imports to benefit consumers and companies alike.
For the processing tomato chain in Northern Italy, 2023 was quite a positive year in terms of harvesting and processing, with the exception of the areas affected by the flood. Italy’s role in the global processing tomato sector is substantial. Italy accounts for an average of about 15% of world production and more than 50% of the European output – half of this production comes from the area of Northern Italy. With an export value of more than 2.5 billion euros out of a total turnover of 4.4 billion euros, Italy is the world’s largest exporter in value and the second largest one after China, considering in fresh tomato equivalent. This information highlights the importance of value over the amount of product exported from our country.
In 2023, there was a +16% growth compared to the previous years in the global production of processing tomatoes. In recent years, due to constantly increasing production costs, many secondary processing industries, having to buy tomato derivatives in order to realize their final products, are veering towards cheaper tomato derivatives, often from non-EU countries. So, they prefer to buy at a cheaper price, compromising on quality and sustainability. Some extra-EU countries, in fact, have greatly increased their export of derivatives to international and European markets: by not having to meet certain sustainability parameters in the production, they are able to offer their products at lower prices.
This is a big challenge for the competitiveness of the European supply chain, especially for the Italian one, which exports 50% of its products to Europe. The Italian tomato processing supply chain’s production still maintains high-quality standards, respects the environment, and recognizes a fair price to farmers.
This issue also affects all European consumers, who find themselves buying and consuming goods made with lower-quality and sustainability-standard tomatoes, having no information about the tomato’s origin to enable them to consciously choose.
For decades, Italian processors and producers’ organizations have steadfastly committed to providing consumers with quality products that are economically, socially, and environmentally sustainable. This commitment is reflected in our supply chain’s core values, which include proper remuneration for operators, respect for workers’ rights, adherence to occupational health and safety regulations, and national collective labor agreements. For example, Northern Italian tomato operators’ dedication to environmental sustainability is evident in the adoption of stringent production regulations, as the fact all the tomato is cultivated in integrated and organic farming.
In order to promote fair competition, the Italian processing tomato supply chain has proposed to the institutions specific actions at national and international levels to protect the supply chain and enhance the quality of Italian and European products.
How to build a fair competition promoting sustainability
Transparency of information about the product’s origin and attributes
First of all, Italian and European consumers should be made aware through an informative campaign about the better environmental, social, and ethical standards of tomato products 100% made in Italy and Europe. It’s important for consumers to know that the European tomato processing supply chains guarantee and follow traceability, laws, certifications, and safety specifications that do not exist outside of the EU.
At the national level, we propose to promote an information campaign that clarifies to consumers that Italian processors produce tomato derivatives with tomatoes grown on Italian fields. Moreover, it’s important to know that the legislation in Italy requires transparency and origin marking of tomatoes on the label and that there are in-use tools for verifying and controlling the origin of tomatoes in products. At the European level, we appeal for the extension to other countries of the obligation to indicate the origin of tomato for products in which this ingredient plays a major role.
Principle of reciprocity of trade policies for imported products
In addition to transparency of information about product attributes and origin, we believe that a key point is the adoption of the principle of reciprocity of trade rules for imported goods. There is no use in struggling within Europe, between EU countries, while extra-Eu products can be imported with no clarity of information on the mentioned aspects. Hence, we call for the same European production and trade rules to be applied to imported extra-EU products, or at least for transparency of information about any difference. According to the principle of responsibility of the importer/distributor, we also underline that it is already mandatory for the distributor to guarantee and take responsibility for applying the environmental, social, and traceability requirements in force in Europe. This should be strictly applied.
Moreover, we believe that the European Corporate Sustainability Due Diligence Directive (CSDDD), which we have been actively supporting and which was approved last April 24th, 2024, will be a major step toward improved environmental and social sustainability conditions and concrete help for fair competition. In fact, this directive mandates that large EU and non-EU companies implement human rights and environmental due diligence in their supply chain.
