Unionfood and Ai

How artificial intelligence is revolutionising agribusiness

EY analysis at the Unione Italiana Food Assembly: 2023 turnover of 530 member companies to grow by 10% to 56 billion, 3 billion investments in 2023

by Emiliano Sgambato

L’industria dolciaria in Italia vale 28 miliardi di euro

3' min read

3' min read

From supply chain control to marketing choices, from new product development to 'customer service': the new frontiers of artificial intelligence can have a significant impact - and have already begun to do so - on the entire production and distribution process of the Italian food industry. An analysis along these lines was presented by EY at the Assembly of Unione Italiana Food.

"The size of the AI market is growing steadily due to increasing applications, investments and market capitalisation. According to Stanford University's Artificial Intelligence Index Report 2024, in 2023 - analysts report - the sector attracted investments of USD 25.2 billion, almost 9 times more than in 2022 and about 30 compared to 2019. 55 per cent of companies have implemented AI in at least one of their functions, and food is no exception'.

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AI applications in agribusiness

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The following points emerge from the analysis of the case histories.

 AI-driven quality control: integrating AI with blockchain technologies to track the entire supply chain, ensuring transparency and promoting sustainable practices from producer to consumer.

Nutritional chatbot: AI chatbot providing personalised food recommendations based on consumers' nutritional needs and preferences.

Intelligent logistics: use of AI systems for demand forecasting and stock optimisation, improving warehouse management and reducing waste.

Production efficiency: application of AI for predictive analysis and preventive maintenance of production equipment, reducing downtime and maximising operational efficiency.

AI-based targeting: use of machine learning algorithms to analyse data and increase the effectiveness of marketing and sales strategies.

R&D with AI: Artificial intelligence processing large volumes of data to drive the development of innovative food products, responding rapidly to market trends and consumer needs.

At Unione Italiana Food 70% of agricultural products...

During the Assembly, some significant economic parameters were also provided to understand the impact of Unionfood on the Italian agri-food industry: according to the association, which groups together 530 companies employing 100,000 people, producers "seven out of 10 national agricultural products are purchased and processed by Unione Italiana Food". There are 900 brands for 20 product sectors represented (including pasta, desserts, ice cream, chocolate, coffee, tomatoes for processing, frozen foods, pickles and vegetables, ready-to-eat soups).
Turnover in 2023 is growing (56 billion, +10%) and investments in 2023 have reached 3 billion..

The best-performing products in 2023, with an average increase of +13% in value, were canned fruit, tomato and mushroom products; soups and stews; sauces and ready-made sauces; bakery preparations and gluten-free pasta. In absolute values, the leading sector remains confectionery, with a value of EUR 18 billion. This is followed by pasta with EUR 8.1 billion, frozen food with EUR 5.8 billion and vegetable products, which are worth EUR 5 billion and include, among others, jams and fruit juices, pickles and ready-to-eat vegetables.

... and 40% of 'Made in Italy' exports worldwide

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"Our members are large 100-year-old companies that bring our Made in Italy to the world, global companies that operate in Italy, and many family-run SMEs. We have chosen a common home," says Paolo Barilla, president of Unione Italiana Food, "aware of the differences but also of what we have in common in terms of values, entrepreneurial thinking, and respect for the consumer. The government is supporting us in our journey and we are sure that it will continue to do so in the future. We need the institutions to be increasingly effective in the use of available resources and to create value for the entire Italian supply chain'.

According to data released during the Assembly, moreover, every 10 Italian food products consumed in the world 4 come from Unione Italiana Food. "With a value of 21 billion euros, exports weigh 38% of the Association's 2023 turnover. A result that is clearly higher than the average of the Italian food industry (27%),' underlines a note. 'In 2023 the best performing sectors on foreign markets were confectionery (+9%, in particular the caramels), vegetable products (+8%) and coffee (+6%).

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