For European cheeses, the EU-Mercosur agreement is worth 245 million. And Italy is export champion

The signing of the EU-Mercosur trade agreement that regulates and simplifies import-export trade with South American countries has aroused criticism from the European agricultural market, but there is no shortage of opportunities either. After the promotion arrived from the Italian Wine Union, come the considerations of Assolatte, according to which the signing "opens up a market that has a potential value for the European dairy sector of 245 million euros".

In a note, the association that represents Italian dairies emphasises how 'in the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) Italian cheeses have not yet taken off' and 'without going into the critical issues highlighted by other food sectors and the path that will be decided for its implementation in Europe', it points out that 'it is clear that for the dairy sector the agreement brings some significant results, both in terms of duties and in the chapter on the protection of geographical indications. With regard to the first aspect, in fact, it provides for an increasing tariff quota, which rises from 3 thousand to 30 thousand tonnes in ten years, with the parallel progressive zeroing of duties. Even more important is the acceptance by South American countries of the chapter that protects geographical indications"
The agreement - "albeit with some distinctions and exceptions" - will protect the 9 most exported Italian cheeses: Asiago, Fontina, Gorgonzola, Grana Padano, Mozzarella di Bufala Campana, Parmigiano Reggiano, Pecorino Romano, Provolone Valpadana, Taleggio.

And it is precisely exports that continue to be the strongest weapon of our products. According to data reported at the Dairy Expo Tech, the exhibition and conference dedicated to machinery and equipment for the production of milk and all dairy products, organised by Senaf, the value of cheese sales beyond the borders expected by the end of 2024 is more than 5 billion euro. A value that positions Italy as the third largest country in the world behind Germany and the Netherlands (12.6% world share) . These numbers also indicate that Italy is growing more than its direct competitors, with a 2018-2023 variation of +75.2%, compared to 53.5% for Germany and 52.3% for the Netherlands.

Duties policies on the part of the US and China are worrying, however. The additional duties of 25% applied in 2019 by the USA on some of the most exported Italian cheeses had hit dairy companies hard," they recall from Assolatte, "and in 2020 the export of Italian cheeses to the United States left more than 6 thousand tonnes of product on the ground, worth 65 million euros. To which was added another 40 million in additional costs. For our companies, the United States has always been a strategic market, to say the least," Zanetti confirms. "Fortunately, the suspension of duties arrived before the inflationary flare-up of the last two years, because otherwise the consequences would have been disastrous.

Recovering lost quotas, Assolatte points out, has cost a lot of work and huge investments and now Italy is the world's leading exporter of cheese to the US market. With 37 thousand tonnes, and a counter-value in excess of 440 million euro, Italy covers 20% of total US cheese imports.
The demand for made in Italy in the USA is mainly supported by Grana Padano, Parmigiano Reggiano and Pecorino. These three cheeses, Assolatte points out, alone account for 80% of Italian exports to the United States. And a new record was reached in the first 7 months of the year: +16.7% in volume and +13% in value.