According to a new report, New Market Research Report: Italy Agribusiness Report Q3 2011 from Business Monitor International (BMI), impressive gains are forecast for some of Italy's key agricultural industries, with production of poultry, wheat and corn expected to be out-performers.
As with much of Europe, milk production is performing poorly, though EC measures aimed at boosting farmers' bargaining power should improve things. The FTA with Mercosur continues to hang over livestock production, however, though the completion of negotiations looks unlikely until the end of the year.
A rise in wheat production in 2010/11 of 2.6 per cent to 7.14 million tonnes if forecast although BMI warns that abundant rains at planting in 2010 could have resulted in yield reductions.
A significant leap in maize production levels in 2010/11 is expected, driven by rising plantings in response to soaring prices. Output is forecast to grow 7.9 per cent year-on-year to reach 8.92 million tonnes.
Rice production in 2010/11, is predicted to rise to 1.63 million tonnes in line with rising acreage. However, rice production in Italy is held back to some degree by the lack of improvement potential for yields, which have stagnated somewhat.
In 2011, the report forecasts milk production to remain at the same level of 10.59 million tonnes. Over our forecast period, production is expected to increase by a marginal 2.9 per cent to reach 10.89 million tonnes in 2015.
Poultry consumption is likely to continue to benefit from its relative affordability compared to pork and beef, according to the report. In 2011, consumption is expected to rise by 1.6 per cent to 996,200 tonnes.
With feed prices rising rapidly in 2011, BMI forecasts a decline in beef production to 1.05 million tonnes.
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