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THE ITALIAN AGRI-FOOD SECTOR IS ON SHOW IN SHANGHAI

The Italian agri-food industry arrives in Shanghai aiming to assert its presence in one of the markets expected to grow fastest in the near future. The Food and Hospitality Shanghai 2009 exhibition will take place from 18 to 20 November 2009 and host an Italian group organised by the Italian Institute for Foreign Trade. The Food & Hospitality China exhibition has established itself over the last few years as one of the main professional events in an international context, with the attendance of exhibitors from all over the world. The exhibition has now reached its eighteenth edition and takes place annually. Its mission is to provide exposure for agri-food products and hospitality facilities and services. The 2008 edition recorded the presence of 820 exhibitors from 84 countries over a total exhibition area of 33,000 square metres, with more than 20,440 visitors. The Italian Institute for Foreign Trade’s group in the 2008 edition occupied a surface area of around a thousand square metres and hosted 74 exhibitors; similar numbers are expected to be confirmed for the event’s 2009 edition.
Though continuing to represent a niche market for imported products (and particularly for Western ones), the Chinese market has demonstrated strong dynamism in recent years and an attractive trend of consumption growth, especially in coastal metropolitan areas. With nearly 64 million Euros of Italian agri-food imports and a 17.6% improvement compared to the previous year, China has proven to be receptive to Italian agri-food products, even in 2008 (despite the global economic crisis). The Italian food industry naturally has all the characteristics needed for success even on the tough Chinese market, which has so far proven challenging due to its traditionally very nationalistic stance. At the end of 2008, the total turnover of the agri-food sector in Italy reached 119 billion Euros, in an industry which provides stable employment to more than 400 thousand employees spread across 6,500 small and large companies. The Italian agri-food sector – which, along with agriculture, suppliers and distribution represents Italy’s leading supply chain - buys and transforms around 70% of Italy’s raw materials. In addition, it acts as a true ambassador of Italian manufacturing in the world and in 2008 achieved exports valued at almost 25.8 billion Euros against almost 23.6 billion in 2007, registering growth of 9.4 %. The improved performance was led by plant products, for which exports rose by 8.3%, while farmed products grew by 17% and pasta exports by a good 30%.
Great emphasis is placed on the quality and traceability of products and raw materials, in a sector which in mid-August 2009 led Italy to first place in the European ranking of recognised PDO and PGI products (with 182 certified products), ahead of both France and Spain. Trade in Italian products has so far mainly revolved around European Union countries, but in 2008 East Asian exports did in fact climb by 11.2 %, going against the trend which occurred in relation to other countries. The PDO and PGI sector as a whole represents a large slice of Italian industry. On average it recorded an increase in 2008 in the share of exports going to countries outside the EU (+3.9 percentage points in absolute value terms) to the detriment of intra-EU exports. Because of the large numbers it represents, the stirring of the Chinese giant might provide a fast track path for companies wishing to escape the current economic crisis by entering new markets. Food imports in China have grown at a rate of 15% per annum in recent years. According to the China National Food Industry Association, growth will continue and is expected to reach a trillion Yuan in 2014; China will then go on to become the world's largest food importer in 2018.
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