Home » It’s time for bitter rice “Costs skyrocket but production doesn’t”

It’s time for bitter rice “Costs skyrocket but production doesn’t”

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It’s time for bitter rice “Costs skyrocket but production doesn’t”

Bitter rice, one might say by citing the film by Giuseppe De Santis. For the war, for the increase in production costs, and for the record drought that is hitting the most important national and European rice-growing district, the one between Novara, Vercelli and Pavia. Where 90% of the cereal that grows in water is produced. Not only the companies forced to increase the kilo of Carnaroli by one euro are in difficulty. There is also the world of industry living in uncertainty: this is confirmed by Mario Francese, president of Airi, Associazione Industrie Risiere Italiane, the link between agricultural production and the consumer. The body associates more than 30 Italian industries, which in turn represent over 80% of the rice produced in Italy: over half of the grains grow in the provinces of Vercelli and Novara, and in much lower quantities in Biella and Alessandria, for a total of 115,700 hectares (2020 data).

Having reached his 4th term of presidency, the career of Francese, “proudly from Vercelli”, has always been linked to the rice sector: for about ten years he was in charge of a farmers’ cooperative, the Consorzio Vendita Risone, then he moved on to ‘industry. Since 1994 he has belonged to the parent company Euricom, a food group active mainly in the processing and distribution of rice, a sector in which he is a leader in Europe. And since 1997 he has been CEO of Curti. «We are living in a delicate moment and we do not know – admits French – if there will be rice for everyone in the coming months. The pandemic has created unpredictable situations. Then there was the war, with effects that we all see: increases of up to 400% in the cost of energy, 124% oil, 40% costs for packaging, fertilizers and international logistics for containers. Factors that we have all suffered ». Another factor that influences the year is drought: for this mix of factors, Ente Risi estimates that at the national level the rice fields in 2022 will go from 227,000 to 217,000. In contrast to all this is the consumption of cereal, which has steadily increased over the last 10 years: + 25% at the national level, + 12% at the community level. It is a missed opportunity, in the year in which world consumption could shift from wheat to rice due to the war in Ukraine: global cereal markets have been hit by the Russian invasion, and by the almost complete cessation of wheat exports from that country. «Like Airi – adds Francese – we have repeatedly expressed concerns about the increases in production costs and raw materials, which we too suffer and which have not been adequately compensated with the sale prices. That is our selling price to customers. Without adequate compensation, transformation is no longer economically viable. It is not a problem of Airi, but of the rice sector: in this context it is evident that the industry must be enabled to pass on its customers the strong increases in energy and raw materials ». All this, he adds, “in a situation where it is necessary to evaluate the reaction of consumption to the selling price. If consumption continues with the trend of these first months, not everyone can be satisfied. If, on the other hand, consumption slows down, we will arrive at the next harvest ». The hope of Francese is for an at least normal harvest, “which rewards the courage shown by the producers in giving confidence to the cultivation of rice in spite of everything”.

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