Caligari & Babbi: the commercial performance of the fennel between overproduction and falling demand

The Italian company Caligari & Babbi in Savignano on the Rubicone, in the province of Forlì-Cesena (Emilia-Romagna region), works and sells the fennel from farms located throughout Italy for twelve months of the year and with which it agrees precise programming of production.



Marco Babbi (pictured below), sales representative and co-owner with Vittorio Caligari, technical manager, explains about the fennel season.


Marco Babbi, left, with his partner Vittorio Caligari.

"Unfortunately, this fall particularly warm and favorable weather influenced the production in the south of Italy (eg, Foggia and Metaponto) and resulted in a higher yield for crops of the mid-north (Abruzzo, Emilia Romagna and Veneto) with a consequent overlapping of volumes that market is not able to fully absorb," explains Marco.


Ifco box for foreign countries (18-20 pieces, about 6 kg).

"Beyond that - Marco continues - , the decline in demand which is obvious and quantifiable in our case, also affected by the spread of the trend in home gardens."

Main customers of Caligari & Babbi are wholesalers and national markets, but 30% is exported to Switzerland, France and the Netherlands.

"In this first week of December, it seems that the foreign market will be better, but only with the highest quality product that, in the end, it is always the one that gives higher margins."


Wooden case for foreign markets (12-14 pieces per 5 kg).

Speaking of prices, Marco says: "The prices are at the levels of last year, while logistics costs have increased by 10%, packaging by 5% and labor by 3%. This obviously translates into a reduced margin. Hopefully the cold weather that is sweeping the country will help us a bit with consumption."


Black boxes of 8 and 10 pieces for the Italian market.

"Ultimately, compared to 2011, we moved the same amount of fennel, but our turnover has declined, returning to 2010 levels," Marco concludes with some concerni.

Contacts:
Caligari & Babbi srl
Via E. Bevilacqua 17
Savignano su Rubicone (FC)
Phone: (+39) 0541 942599
Fax: (+39) 0541 201919
Email: info@ortofruttacaligari.com

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