Italian Peach, Nectarine Output Drops

WASHINGTON - Mar 24/06 - SNS -- Italian production of peaches and nectarines in 2005 was down by about 4% from 2004 at 1.55 million metric tons (MT), according to a recent report from the U.S. agricultural attache for the country.

The low production volumes are primarily due to lower yields for nectarines, especially late varieties, while peach production remained in line with 2004 production levels. Quality and size of the fruit have remained generally satisfactory.

Ripening of early varieties was about a week later than expected, causing a concentration of supply during the peak period in mid-July. Markets had difficulty absorbing the bulge in production, resulting in a sharp decrease in price.

The long-term trend for Italian peach and nectarine production is negative. Planted area is shrinking in response to decreasing exports, falling domestic consumption and the resultant low domestic market prices. According to industry sources, Italian producers experience marketing problems when DU supplies of peaches and nectarines exceed 3.6-3.8 million tons, as was the case in 2005.

In the last decade, the nectarine production area in Italy has extended from the traditional region in the center-north, mainly Emilia-Romagna, to southern regions where the climate is milder. As a result, Italian producers compete directly with Spanish and Greek producers in the early production supply to the DU market. Most summer fruit and horticultural production face similar problems. Last summer southern farmers protested the lack of Italian competitiveness in the global market.

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