Competitive Trade Analysis Italy

MARKET ACCESS SECRETARIAT Global Analysis Report Competitive Trade Analysis Italy July 2015 REPORT CONTENT SUMMARY This report looks to highlight the major sectors in Italy, and attempts to identify the best opportunities for Canadian exports. Specifically, the data analysis that follows focusses on the top ten Italian imports by major aggregate sector, of which Canada is a supplier. It identifies the gap between Italy s imports from the world and the proportion provided by Canada, and then outlines top international. Unless otherwise specified, all figures in this document are based on import data as reported by Eurostat, and were sourced from Global Trade Atlas (2015). ITALY MARKET SUMMARY Italy was the eighth-largest importer of agri-food and seafood products in the world with C$62.0 billion in 2014, and Canada s share was 1.4% or C$853.4 million. In 2014, Italy exported C$51.2 billion worth of agri-food and seafood products to the world. This was an increase of 9.6% from 2013 and resulted in a ranking of tenth-largest agri-food and seafood exporter in the world. Over half (56%) of Italy s agri-food and seafood products are supplied by other European countries, such as,,, the and Poland. However, Italy s agri-food and seafood imports from Canada have been increasing faster than their imports from the world. This has resulted in a stable supply gap not only overall, but among most of Italy s top import commodities. Note: Please see the Annex at the end of this document for a list of abbreviations that will be used throughout this report. CONTENTS Report Content Summary... 1 Italy Market Summary... 1 Trade Overview... 2 Top Ten Agri-Food and Seafood Commodity Imports... 4 1. Meat and Edible Offal... 4 2. Dairy, Eggs and Honey... 6 3. Fish and Crustaceans... 8 4. Cereals... 10 5. Fats and Oils... 12 6. Edible Fruit and Nuts... 14 7. Food Waste and Animal Feed... 16 8. Beverages... 18 9. Spices, Coffee and Tea... 20 10. Live Animals... 22 Conclusion... 24 For More Information... 24 Resources... 24 Annex: Abbreviations... 24 Visit our online library of public reports for more information on this and other markets.

TRADE OVERVIEW Italy is a net importer of agri-food and seafood products. In 2014, Italy s agri-food and seafood trade deficit was C$10.8 billion with imports valued at C$62.0 billion, and C$51.2 billion in exports. Italy imports a wide variety of agri-food and seafood products with their top commodities being meat and edible offal, dairy, eggs and honey, and fish and crustaceans. The top three supplying countries are,, and. Canada is ranked 17 th among the 176 supplying countries to Italy and has seen some large fluctuation in market share over the last few years. Italy s Top Ten Suppliers of Agri-Food and Seafood Products, C$ Millions World 50,297.14 56,165.32 51,532.61 56,536.08 62,037.69 5.38 1 7,633.00 8,272.38 7,674.06 8,443.17 8,933.20 4.01 2 7,855.26 8,600.84 7,613.30 8,190.95 8,446.45 1.83 3 4,914.20 5,440.12 5,095.13 5,491.98 6,719.58 8.14 4 5,104.30 5,276.56 4,862.44 5,234.64 5,034.39-0.34 5 Austria 1,664.87 1,792.49 1,775.41 1,936.59 2,068.97 5.58 6 Poland 1,094.61 1,139.35 1,232.39 1,528.69 1,811.14 13.42 7 Belgium 1,486.83 1,609.18 1,469.15 1,628.27 1,727.07 3.82 8 Indonesia 717.62 781.93 877.00 1,179.18 1,505.42 20.35 9 United States 859.80 1,006.20 800.07 1,090.79 1,443.87 13.84 10 Brazil 1,116.84 1,268.28 1,147.53 1,251.63 1,392.30 5.67 17 Canada 431.31 509.47 360.02 421.97 853.44 18.60 Italy s Top Ten Suppliers of Agri-Food and Seafood Products, % Share PP Change 1 15.18 14.73 14.89 14.93 14.40-0.78 2 15.62 15.31 14.77 14.49 13.62-2.00 3 9.77 9.69 9.89 9.71 10.83 1.06 4 10.15 9.39 9.44 9.26 8.12-2.03 5 Austria 3.31 3.19 3.45 3.43 3.34 0.02 6 Poland 2.18 2.03 2.39 2.70 2.92 0.74 7 Belgium 2.96 2.87 2.85 2.88 2.78-0.17 8 Indonesia 1.43 1.39 1.70 2.09 2.43 1.00 9 United States 1.71 1.79 1.55 1.93 2.33 0.62 10 Brazil 2.22 2.26 2.23 2.21 2.24 0.02 17 Canada 0.86 0.91 0.70 0.75 1.38 0.52 Page 2

Canada has a large supply gap with Italy even though Canada was Italy s 17 th -largest supplier of agri-food and seafood products in 2014. There has been steady fluctuation in the value of Italy s agri-food and seafood imports from Canada over the last five years, but 2014 saw a 102.3% increase in imports to Italy from 2013 and thus an increase in market share to 1.4%. This growth was due to an increase in Italy s imports of cereals from Canada, more specifically durum wheat, which saw a substantial increase in imports of 220.6% over 2013. Italy has a diverse supplier list for agri-food and seafood products, but the top five countries combined represented 50.3% of the import market, signalling a relatively concentrated supply environment. Agri-Food and Seafood Product Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Italy s imports from the world 50,297.14 56,165.32 51,532.61 56,536.08 62,037.69 5.38 Italy s imports from Canada 431.31 509.47 360.02 421.97 853.44 18.60 Supply gap 49,865.83 55,655.86 51,172.59 56,114.11 61,184.25 5.25 Meat and edible offal was Italy s top-grossing commodity in 2014, with a value of C$6.7 billion or 10.8% of overall agri-food and seafood imports. However, over the 2010 to 2014 period, the meat and edible offal category was a low performer, with a compound annual growth rate (CAGR) of 2.9%. In comparison, the slightly smaller categories of cereals, food waste and animal feed, and spices, coffee and tea posted the strongest value sales growth with CAGRs of 12.2%, 9.1% and 8.5%, respectively, over the same period Rank HS Code Italy s Top Ten Agri-Food and Seafood Commodity Imports from the World, C$ Millions Commodity 2010 2011 2012 2013 2014 Total Agri-Food and Seafood Imports 50,297.14 56,165.32 51,532.61 56,536.08 62,037.69 5.38 1 02 Meat and edible offal 6,005.25 6,280.62 5,877.00 6,306.36 6,730.77 2.89 2 04 Dairy, eggs and honey 4,833.92 5,289.31 4,618.40 5,557.22 5,855.89 4.91 3 03 Fish and crustaceans 4,367.16 4,851.93 4,194.01 4,442.56 5,077.61 3.84 4 10 Cereals 2,799.27 3,963.19 3,206.50 3,764.86 4,443.28 12.24 5 15 Fats and oils 3,811.99 3,940.23 4,189.69 3,810.52 4,245.36 2.73 6 08 Edible fruit and nuts 2,836.36 3,044.06 2,820.18 3,382.91 3,874.88 8.11 7 23 Food waste and animal feed 2,175.32 2,433.38 2,377.85 2,668.12 3,085.63 9.13 8 22 Beverages 1,933.74 2,078.91 2,001.46 2,068.66 2,097.55 2.05 9 09 Spices, coffee and tea 1,512.30 2,122.39 2,069.10 1,878.42 2,094.61 8.48 10 01 Live animals 2,141.54 2,140.23 1,991.48 1,966.13 2,054.83-1.03 Page 3

TOP TEN AGRI-FOOD AND SEAFOOD COMMODITY IMPORTS 1. MEAT AND EDIBLE OFFAL Italy s Top Ten Suppliers of Meat and Edible Offal, C$ Millions World 6,005.25 6,280.62 5,877.00 6,306.36 6,730.77 2.89 1,307.93 1,398.23 1,304.88 1,481.22 1,589.13 4.99 964.50 954.95 883.42 940.79 976.09 0.30 961.39 1,015.10 949.07 962.92 972.21 0.28 453.40 504.65 558.14 594.32 616.90 8.00 Poland 319.66 315.78 338.66 474.75 570.69 15.59 Denmark 373.33 380.79 335.31 361.81 374.87 0.10 Austria 326.96 328.35 287.57 290.80 324.76-0.17 Ireland 320.61 343.61 273.45 235.77 286.72-2.75 Brazil 160.26 175.21 174.51 205.51 230.06 9.46 Belgium 255.08 250.67 219.81 234.88 226.90-2.88 (33) Canada 0.76 0.76 2.01 2.39 1.43 17.33 Italy s Top Ten Suppliers of Meat and Edible Offal, % Share PP Change 21.78 22.26 22.20 23.49 23.61 1.83 16.06 15.20 15.03 14.92 14.50-1.56 16.01 16.16 16.15 15.27 14.44-1.56 7.55 8.03 9.50 9.42 9.17 1.62 Poland 5.32 5.03 5.76 7.53 8.48 3.16 Denmark 6.22 6.06 5.71 5.74 5.57-0.65 Austria 5.44 5.23 4.89 4.61 4.83-0.62 Ireland 5.34 5.47 4.65 3.74 4.26-1.08 Brazil 2.67 2.79 2.97 3.26 3.42 0.75 Belgium 4.25 3.99 3.74 3.72 3.37-0.88 (33) Canada 0.01 0.01 0.03 0.04 0.02 0.01 Page 4

Meat and Edible Offal Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Italy s imports from the world 6,005.25 6,280.62 5,877.00 6,306.36 6,730.77 2.89 Italy s imports from Canada 0.76 0.76 2.01 2.39 1.43 17.33 Supply gap 6,004.50 6,279.86 5,874.98 6,303.97 6,729.33 2.89 Italy s Top Five Meat and Edible Offal Product Imports, C$ Millions HS Code Description 2012 2013 2014 020312 020120 Fresh/chilled pork meat (hams, shoulders, bone-in) Fresh/chilled beef cuts with bone-in CAGR% 2012-14 1,327.17 1,507.15 1,615.27 10.32 1,226.07 1,260.07 1,334.91 4.34 020130 Fresh/chilled boneless beef 596.94 614.05 719.40 9.78 020319 Fresh/chilled pork 509.83 635.45 695.63 16.81 020110 Fresh/chilled carcasses and half-carcasses of beef 563.53 551.69 535.69-2.50 Italy s Top Five Meat and Edible Offal Product Imports and Top Supplying Countries, 2014 HS Code 020312 020120 Product Description Fresh/chilled pork meat (hams, shoulders, bone-in) Fresh/chilled beef cuts with bone-in 020130 Fresh/chilled boneless beef 020319 Fresh/chilled pork 020110 Fresh/chilled carcasses and half-carcasses of beef Market Share % 1 2 3 18.77 31.41 29.63 Ireland 26.26 49.68 27.95 Poland 19.10 14.66 15.39 24.76 Denmark 16.40 15.27 9.44 Austria 9.68 Poland 14.04 Canada s % Share 0.01 0.18 Page 5

2. DAIRY, EGGS AND HONEY Italy s Top Ten Suppliers of Dairy, Eggs and Honey, C$ Millions World 4,833.92 5,289.31 4,618.40 5,557.22 5,855.89 4.91 1,996.36 2,116.48 1,798.20 2,217.22 2,256.39 3.11 1,025.81 1,127.19 871.42 931.55 940.98-2.13 Austria 280.74 333.28 338.28 390.86 411.89 10.06 283.25 252.21 261.09 347.07 375.79 7.32 Belgium 282.23 316.80 263.86 335.94 357.38 6.08 Poland 115.80 142.59 137.31 238.60 239.38 19.91 134.28 133.25 130.16 174.76 226.30 13.94 Hungary 85.91 117.92 122.82 128.20 164.31 17.60 Slovenia 109.76 118.37 110.88 125.21 136.16 5.54 Lithuania 91.12 103.44 105.07 112.20 135.45 10.42 (45) Canada - 0.00-0.04 0.02 N/C Italy s Top Ten Suppliers of Dairy, Eggs and Honey, % Share PP Change 41.30 40.01 38.94 39.90 38.53-2.77 21.22 21.31 18.87 16.76 16.07-5.15 Austria 5.81 6.30 7.32 7.03 7.03 1.23 5.86 4.77 5.65 6.25 6.42 0.56 Belgium 5.84 5.99 5.71 6.05 6.10 0.26 Poland 2.40 2.70 2.97 4.29 4.09 1.69 2.78 2.52 2.82 3.14 3.86 1.09 Hungary 1.78 2.23 2.66 2.31 2.81 1.03 Slovenia 2.27 2.24 2.40 2.25 2.33 0.05 Lithuania 1.88 1.96 2.28 2.02 2.31 0.43 Canada (45) 0.00 0.00 0.00 0.00 0.00 0.00 Dairy, Eggs and Honey Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Italy s imports from the world 4,833.92 5,289.31 4,618.40 5,557.22 5,855.89 4.91 Italy s imports from Canada - 0.00-0.04 0.02 N/C Supply gap 4,833.92 5,289.30 4,618.40 5,557.19 5,855.87 4.91 Page 6

Italy s Top Five Dairy, Eggs and Honey Product Imports, C$ Millions HS Code Description 2012 2013 2014 CAGR% 2012-14 040690 040120 040610 040310 040210 Cheese, (including cheddar and Colby) Milk/cream, not concentrated nor sweetened, >1% but <6% fat content by weight Fresh cheese, unripened or uncured (including whey cheese) and curd Yogurt, whether or not sweetened, flavoured or containing added fruit, nuts or cocoa Concentrated milk/cream, whether or not sweetened, in powder and other solid forms, <1.5% fat content by weight 1,189.90 1,391.23 1,441.13 10.05 931.93 1,073.83 1,045.00 5.89 703.85 896.52 995.60 18.93 221.86 259.77 312.50 18.68 194.61 230.70 292.31 22.56 Italy s Top Five Dairy, Eggs and Honey Product Imports and Top Supplying Countries, 2014 HS Code Product Description Market Share % 1 2 3 Canada s % Share 040690 Cheese, (including cheddar and Colby) 46.23 12.68 11.73 040120 Milk/cream, not concentrated nor sweetened, >1% but <6% fat content by weight 28.92 24.47 Austria 19.90 040610 040310 040210 Fresh cheese, unripened or uncured (including whey cheese) and curd Yogurt, whether or not sweetened, flavoured or containing added fruit, nuts or cocoa Concentrated milk/cream, whether or not sweetened, in powder and other solid forms, <1.5% fat content by weight 59.14 47.09 46.60 Lithuania 10.38 Austria 21.35 21.25 9.75 Greece 17.45 Belgium 17.02 Page 7

3. FISH AND CRUSTACEANS Italy s Top Ten Suppliers of Fish and Crustaceans, C$ Millions World 4,367.16 4,851.93 4,194.01 4,442.56 5,077.61 3.84 799.04 911.58 806.24 853.19 918.63 3.55 380.91 392.25 344.81 347.22 390.41 0.62 Denmark 357.10 347.90 300.01 349.84 356.04-0.07 Greece 286.44 320.09 277.44 284.88 320.65 2.86 Sweden 126.87 132.33 139.74 209.69 270.06 20.79 352.08 372.42 301.80 282.74 266.53-6.72 Ecuador 141.97 151.46 139.13 150.75 224.30 12.11 Thailand 149.98 175.87 152.17 141.95 180.37 4.72 Argentina 165.58 149.03 124.52 156.55 162.03-0.54 India 108.25 138.18 107.41 123.37 160.86 10.41 (35) Canada 17.73 19.56 17.13 13.36 19.15 1.95 Italy s Top Ten Suppliers of Fish and Crustaceans, % Share PP Change 18.30 18.79 19.22 19.20 18.09-0.20 8.72 8.08 8.22 7.82 7.69-1.03 Denmark 8.18 7.17 7.15 7.87 7.01-1.16 Greece 6.56 6.60 6.62 6.41 6.32-0.24 Sweden 2.91 2.73 3.33 4.72 5.32 2.41 8.06 7.68 7.20 6.36 5.25-2.81 Ecuador 3.25 3.12 3.32 3.39 4.42 1.17 Thailand 3.43 3.62 3.63 3.20 3.55 0.12 Argentina 3.79 3.07 2.97 3.52 3.19-0.60 India 2.48 2.85 2.56 2.78 3.17 0.69 (35) Canada 0.41 0.40 0.41 0.30 0.38-0.03 Fish and Crustaceans Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Italy s imports from the world 4,367.16 4,851.93 4,194.01 4,442.56 5,077.61 3.84 Italy s imports from Canada 17.73 19.56 17.13 13.36 19.15 1.95 Supply gap 4,349.43 4,832.37 4,176.88 4,429.19 5,058.46 3.85 Page 8

Italy s Top Five Fish and Crustacean Product Imports, C$ Millions HS Code Description 2012 2013 2014 CAGR% 2012-14 030617 Frozen shrimp and prawns 385.08 461.51 621.39 27.03 030749 030759 030541 030214 Frozen, dried, salted or in-brine cuttlefish and squid Frozen, dried, salted or in-brine octopus Smoked Pacific, Atlantic and Danube salmon Fresh/chilled Atlantic and Danube salmon 445.32 462.44 500.77 6.04 292.96 217.40 318.00 4.19 164.22 208.38 263.25 26.61 144.83 216.72 253.84 32.39 Italy s Top Five Fish and Crustacean Product Imports and Top Supplying Countries, 2014 HS Code Product Description 030617 Frozen shrimp and prawns 030749 030759 030541 030214 Frozen, dried, salted or in-brine cuttlefish and squid Frozen, dried, salted or in-brine octopus Smoked Pacific, Atlantic and Danube salmon Fresh/chilled Atlantic and Danube salmon Market Share % 1 2 3 Argentina 21.72 Ecuador 36.06 Thailand 25.81 Morocco 26.72 Poland 29.55 Sweden 75.36 23.96 20.45 Denmark 19.47 Denmark 19.85 12.47 China 8.98 Mexico 9.67 Lithuania 15.45 1.50 Canada s % Share 0.01 Page 9

4. CEREALS Italy s Top Ten Suppliers of Cereals, C$ Millions World 2,799.27 3,963.19 3,206.50 3,764.86 4,443.28 12.24 694.21 988.55 710.87 878.22 815.73 4.11 Canada 295.25 392.95 212.79 236.23 641.37 21.40 Hungary 363.92 399.30 348.56 448.62 493.98 7.94 Ukraine 11.41 152.88 222.87 373.55 385.66 141.11 Austria 236.30 278.64 309.82 339.10 364.88 11.47 180.85 230.71 233.40 218.55 237.75 7.08 United States 198.35 286.70 158.05 220.36 235.74 4.41 Romania 85.17 100.82 107.39 116.78 187.41 21.80 Greece 86.15 136.78 74.09 66.88 130.48 10.94 Bulgaria 47.28 126.75 181.08 150.86 120.86 26.44 Italy s Top Suppliers of Cereals, % Share PP Change 24.80 24.94 22.17 23.33 18.36-6.44 Canada 10.55 9.91 6.64 6.27 14.43 3.89 Hungary 13.00 10.08 10.87 11.92 11.12-1.88 Ukraine 0.41 3.86 6.95 9.92 8.68 8.27 Austria 8.44 7.03 9.66 9.01 8.21-0.23 6.46 5.82 7.28 5.80 5.35-1.11 United States 7.09 7.23 4.93 5.85 5.31-1.78 Romania 3.04 2.54 3.35 3.10 4.22 1.18 Greece 3.08 3.45 2.31 1.78 2.94-0.14 Bulgaria 1.69 3.20 5.65 4.01 2.72 1.03 Cereals Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Italy s imports from the world 2,799.27 3,963.19 3,206.50 3,764.86 4,443.28 12.24 Italy s imports from Canada 295.25 392.95 212.79 236.23 641.37 21.40 Supply gap 2,504.01 3,570.24 2,993.71 3,528.63 3,801.91 11.00 Page 10

Italy s Top Five Cereal Product Imports, C$ Millions HS Code Description 2012 2013 2014 CAGR% 2012-14 100199 Non-durum wheat 1,235.00 1,191.24 1,299.16 2.56 100590 Corn (maize), other than seed corn 746.33 1,172.11 1,175.64 25.51 100119 Durum wheat 539.24 654.63 1,156.88 46.47 100390 Barley 141.57 177.81 166.44 8.43 100191 Non-durum wheat seed 205.87 176.87 163.92-10.77 Italy s Top Five Cereal Product Imports, C$ Millions and Top Supplying Countries, 2014 HS Code Product Description 100199 Non-durum wheat 100590 Corn (Maize), other than seed corn 100119 Durum wheat 100390 Barley 100191 Non-durum wheat seed Market Share % 1 2 3 Austria 15.35 22.43 Ukraine 27.46 Canada 49.90 49.91 31.37 Hungary 20.93 12.65 Hungary 20.59 Austria 19.87 Hungary 12.17 11.36 United States 12.38 11.33 Hungary 15.02 Canada s % Share 4.40 <0.01 49.90 0.13 Page 11

5. FATS AND OILS Italy s Top Ten Suppliers of Fats and Oils, C$ Millions World 3,940.23 4,189.69 3,810.52 4,245.36 5,278.86 7.59 1,333.65 1,296.04 1,030.72 1,007.99 1,908.11 9.37 Indonesia 593.65 596.42 711.77 988.17 1,310.50 21.89 Malaysia 146.66 208.09 233.26 230.34 225.77 11.39 Greece 270.69 311.19 316.72 501.99 218.53-5.21 124.42 171.28 165.56 177.70 203.40 13.07 Ukraine 148.81 131.95 108.13 59.09 189.02 6.16 204.59 161.40 153.33 163.63 171.32-4.34 136.52 170.94 163.15 155.17 143.23 1.21 Hungary 2.07 0.55 30.68 103.16 96.59 161.42 Tunisia 151.66 131.33 188.71 215.63 85.04-13.47 (57) Canada 25.56 0.64 0.63 0.24 0.26-68.20 Italy s Top Ten Suppliers of Fats and Oils, % Share PP Change 33.85 30.93 27.05 23.74 36.15 2.30 Indonesia 15.07 14.24 18.68 23.28 24.83 9.76 Malaysia 3.72 4.97 6.12 5.43 4.28 0.55 Greece 6.87 7.43 8.31 11.82 4.14-2.73 3.16 4.09 4.34 4.19 3.85 0.70 Ukraine 3.78 3.15 2.84 1.39 3.58-0.20 5.19 3.85 4.02 3.85 3.25-1.95 3.46 4.08 4.28 3.66 2.71-0.75 Hungary 0.05 0.01 0.81 2.43 1.83 1.78 Tunisia 3.85 3.13 4.95 5.08 1.61-2.24 (57) Canada 0.65 0.02 0.02 0.01 0.00-0.64 Fats and Oils Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Italy s imports from the world 3,940.23 4,189.69 3,810.52 4,245.36 5,278.86 7.59 Italy s imports from Canada 25.56 0.64 0.63 0.24 0.26-68.20 Supply gap 3,914.66 4,189.05 3,809.89 4,245.12 5,278.60 7.76 Page 12

Italy s Top Five Fats and Oils Product Imports, C$ Millions HS Code Description 2012 2013 2014 150910 Virgin olive oil and fractions, not chemically modified CAGR% 2012-14 1,329.51 1,521.99 1,973.03 21.82 151190 151110 151211 150990 Palm oil, refined, but not chemically modified Crude palm oil, not chemically modified Crude sunflower seed or safflower oil, and their fractions, not chemically modified Refined olive oil and fractions, but not chemically modified 379.06 553.65 923.47 56.08 698.81 808.03 788.29 6.21 317.99 315.84 370.40 7.93 98.45 105.23 172.79 32.48 Italy s Top Five Fats and Oils Product Imports and Top Supplying Countries, 2014 HS Code Product Description Market Share % 1 2 3 Canada s % Share 150910 Virgin olive oil and fractions, not chemically modified 81.13 Greece 10.08 Portugal 4.08 151190 Palm oil, refined, but not chemically modified Indonesia 71.27 Malaysia 13.26 10.41 151110 Crude palm oil, not chemically modified Indonesia 80.37 Malaysia 11.99 Thailand 7.45 151211 Crude sunflower seed or safflower oil, and their fractions, not chemically modified Ukraine 42.96 Hungary 21.56 Moldova 20.43 150990 Refined olive oil and fractions, but not chemically modified 93.43 Tunisia 4.45 Turkey 1.47 Page 13

6. EDIBLE FRUIT AND NUTS Italy s Top Ten Suppliers of Edible Fruit and Nuts, C$ Millions World 2,836.36 3,044.06 2,820.18 3,382.91 3,874.88 8.11 502.17 604.75 625.76 707.32 756.89 10.80 Turkey 322.48 326.93 282.43 388.13 441.95 8.20 United States 176.95 206.00 206.42 258.86 371.37 20.36 Costa Rica 129.23 152.39 204.64 225.43 250.23 17.96 210.68 219.79 189.76 222.72 248.52 4.22 Ecuador 209.05 242.05 138.46 165.75 213.10 0.48 144.14 146.75 124.32 167.23 173.69 4.77 119.89 144.20 132.40 146.29 164.55 8.24 Chile 128.85 133.07 125.91 160.26 150.04 3.88 Argentina 117.94 124.37 93.56 126.16 113.63-0.93 (69) Canada 1.87 3.25 2.71 1.60 1.25-9.54 Italy s Top Ten Suppliers of Edible Fruit and Nuts, % Share PP Change 17.70 19.87 22.19 20.91 19.53 1.83 Turkey 11.37 10.74 10.01 11.47 11.41 0.04 United States 6.24 6.77 7.32 7.65 9.58 3.35 Costa Rica 4.56 5.01 7.26 6.66 6.46 1.90 7.43 7.22 6.73 6.58 6.41-1.01 Ecuador 7.37 7.95 4.91 4.90 5.50-1.87 5.08 4.82 4.41 4.94 4.48-0.60 4.23 4.74 4.69 4.32 4.25 0.02 Chile 4.54 4.37 4.46 4.74 3.87-0.67 Argentina 4.16 4.09 3.32 3.73 2.93-1.23 (69) Canada 0.07 0.11 0.10 0.05 0.03-0.03 Edible Fruit and Nuts Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Italy s imports from the world 2,836.36 3,044.06 2,820.18 3,382.91 3,874.88 8.11 Italy s imports from Canada 1.87 3.25 2.71 1.60 1.25-9.54 Supply gap 2,834.48 3,040.81 2,817.47 3,381.31 3,873.62 8.12 Page 14

Italy s Top Five Edible Fruit and Nut Product Imports, C$ Millions HS Code Description 2012 2013 2014 CAGR% 2012-14 080390 Fresh or dried bananas 468.17 527.15 582.83 11.58 080222 080212 Fresh or dried, shelled hazelnuts or filberts Fresh or dried, shelled almonds 191.94 278.87 355.46 36.09 171.49 227.74 309.79 34.40 080231 Fresh or dried, in-shell walnuts 110.72 139.18 196.33 33.16 080550 Fresh or dried lemons and limes 116.02 125.61 153.42 14.99 Italy s Top Five Edible Fruit and Nut Product Imports and Top Supplying Countries, 2014 HS Code Product Description 080390 Fresh or dried bananas 080222 Fresh or dried, shelled hazelnuts or filberts 080212 Fresh or dried, shelled almonds 080231 Fresh or dried, in-shell walnuts 080550 Fresh or dried lemons and limes Market Share % 1 2 3 Costa Rica 23.35 Ecuador 36.22 Turkey 82.40 United States 62.26 United States 49.08 45.83 Georgia 11.28 20.46 23.46 Argentina 24.37 Colombia 18.83 Azerbaijan 4.45 Australia 8.20 Chile 11.24 8.08 Canada s % Share 0.05 Page 15

7. FOOD WASTE AND ANIMAL FEED Italy s Top Ten Suppliers of Food Waste and Animal Feed, C$ Millions World 2,175.32 2,433.38 2,377.85 2,668.12 3,085.63 9.13 Argentina 661.73 763.27 459.88 471.96 639.87-0.84 326.96 337.07 330.21 351.06 376.87 3.62 134.81 151.86 158.21 214.46 233.29 14.69 Paraguay 23.19 9.84 58.72 83.93 206.95 72.85 102.15 126.74 129.42 127.25 156.22 11.20 Brazil 62.84 111.43 80.84 137.25 148.18 23.92 120.08 131.96 127.93 131.59 143.67 4.59 United States 20.76 13.05 40.13 101.73 133.75 59.32 Slovenia 96.62 88.19 295.81 192.80 131.54 8.02 Austria 95.47 89.41 73.55 112.92 124.47 6.86 (29) Canada 4.39 3.82 3.73 4.10 9.44 21.14 Italy s Top Ten Suppliers of Food Waste and Animal Feed, % Share PP Change Argentina 30.42 31.37 19.34 17.69 20.74-9.68 15.03 13.85 13.89 13.16 12.21-2.82 6.20 6.24 6.65 8.04 7.56 1.36 Paraguay 1.07 0.40 2.47 3.15 6.71 5.64 4.70 5.21 5.44 4.77 5.06 0.37 Brazil 2.89 4.58 3.40 5.14 4.80 1.91 5.52 5.42 5.38 4.93 4.66-0.86 United States 0.95 0.54 1.69 3.81 4.33 3.38 Slovenia 4.44 3.62 12.44 7.23 4.26-0.18 Austria 4.39 3.67 3.09 4.23 4.03-0.36 (29) Canada 0.20 0.16 0.16 0.15 0.31 0.10 Food Waste and Animal Feed Supply Gap, 2014, C$ Millions 2010 2011 2012 2013 2014 Italy s imports from the world 2,175.32 2,433.38 2,377.85 2,668.12 3,085.63 9.13 Italy s imports from Canada 4.39 3.82 3.73 4.10 9.44 21.14 Supply gap 2,170.93 2,429.56 2,374.12 2,664.01 3,076.19 9.10 Page 16

Italy s Top Five Food Waste and Animal Feed Product Imports, C$ Millions HS Code Description 2012 2013 2014 230400 230910 230990 230630 230110 Soybean oilcake and other solid residue, whether or not ground or in pellet form Dog and cat food, put up for retail sale Animal feed preparations, except dog or cat food for retail sale Sunflower seed oilcake and other solid residue, whether or not ground or in pellet form Flours, meals and pellets of meat/meat offal, unfit for human consumption; greaves CAGR% 2012-14 922.86 991.40 1,215.76 14.78 587.00 642.17 745.50 12.70 353.30 361.05 389.06 4.94 169.51 203.07 229.25 16.29 80.19 129.30 148.32 36.00 Italy s Top Five Food Waste and Animal Feed Product Imports and Top Supplying Countries, 2014 HS Code 230400 Product Description Soybean oilcake and other solid residue, whether or not ground or in pellet form Market Share % 1 2 3 Argentina 52.49 Paraguay 16.93 Brazil 12.18 Canada s % Share 0.46 230910 Dog and cat food, put up for retail sale 32.18 16.57 Thailand 12.92 0.44 230990 230630 230110 Animal feed preparations, except dog or cat food for retail sale Sunflower seed oilcake and other solid residue, whether or not ground or in pellet form Flours, meals and pellets of meat/meat offal, unfit for human consumption; greaves 28.91 Russia 36.70 26.03 24.90 Ukraine 33.87 14.13 14.81 Slovenia 11.25 Ireland 11.45 0.01 Page 17

8. BEVERAGES *does not include juices Italy s Top Ten Suppliers of Beverages, C$ Millions World 1,933.74 2,078.91 2,001.46 2,068.66 2,097.55 2.05 434.60 454.03 408.95 412.12 444.94 0.59 369.22 399.82 339.57 347.12 381.30 0.81 82.96 159.88 247.14 253.92 176.73 20.81 187.97 193.49 165.43 165.71 174.95-1.78 Austria 150.41 159.34 156.68 136.72 136.87-2.33 United Kingdom 117.86 118.66 95.29 107.49 133.65 3.19 United States 101.57 88.86 72.08 93.47 102.68 0.27 Belgium 78.47 87.66 76.57 79.06 95.51 5.03 Denmark 98.72 94.00 77.20 83.43 84.87-3.71 Slovenia 18.32 18.83 22.10 25.84 27.79 10.99 (51) Canada 0.42 0.50 0.38 0.52 0.63 10.96 Italy s Top Ten Suppliers of Beverages, % Share PP Change 22.47 21.84 20.43 19.92 21.21-1.26 19.09 19.23 16.97 16.78 18.18-0.91 4.29 7.69 12.35 12.27 8.43 4.14 9.72 9.31 8.27 8.01 8.34-1.38 Austria 7.78 7.66 7.83 6.61 6.53-1.25 United Kingdom 6.09 5.71 4.76 5.20 6.37 0.28 United States 5.25 4.27 3.60 4.52 4.90-0.36 Belgium 4.06 4.22 3.83 3.82 4.55 0.50 Denmark 5.11 4.52 3.86 4.03 4.05-1.06 Slovenia 0.95 0.91 1.10 1.25 1.32 0.38 Canada (51) 0.02 0.02 0.02 0.03 0.03 0.01 Beverages Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Italy s imports from the world 1,933.74 2,078.91 2,001.46 2,068.66 2,097.55 2.05 Italy s imports from Canada 0.42 0.50 0.38 0.52 0.63 10.96 Supply gap 1,933.32 2,078.41 2,001.08 2,068.14 2,096.92 2.05 Page 18

Italy s Top Five Beverage Product Imports, C$ Millions HS Code Description 2012 2013 2014 CAGR% 2012-14 220300 Beer made from malt 626.86 663.95 719.44 7.13 220290 Non-alcoholic beverages 201.14 195.63 222.56 5.19 220410 Sparkling wine of fresh grapes 162.59 157.72 174.91 3.72 220429 Wine of fresh grapes (other than sparkling) >2 litre 149.18 200.65 169.53 6.60 220830 Whiskies 106.30 114.13 128.77 10.06 Italy s Top Five Beverage Product Imports and Top Supplying Countries, 2014 HS Code Product Description 220300 Beer made from malt 220290 Non-alcoholic beverages 220410 Sparkling wine of fresh grapes 220429 220830 Whiskies Wine of fresh grapes (other than sparkling) >2 litre Market Share % 1 2 3 Denmark 11.52 44.51 Austria 44.58 96.44 43.17 United Kingdom 39.54 15.67 1.50 United States 38.67 United States 24.21 Belgium 8.59 15.16 0.93 Australia 7.75 19.89 Canada s % Share 0.06 <0.01 0.05 Page 19

9. SPICES, COFFEE AND TEA Italy s Top Ten Suppliers of Spices, Coffee and Tea, C$ Millions World 1,512.30 2,122.39 2,069.10 1,878.42 2,094.61 8.48 Brazil 483.66 747.91 672.02 512.15 576.46 4.49 Vietnam 154.26 220.16 276.26 261.22 298.44 17.94 22.86 23.69 17.91 139.98 210.43 74.18 India 137.13 203.59 224.43 194.56 206.13 10.73 Uganda 40.18 57.29 67.00 69.50 95.42 24.14 Indonesia 55.76 77.17 75.96 105.38 88.84 12.35 63.75 75.34 88.84 82.55 79.45 5.66 Colombia 22.03 44.86 34.09 30.14 56.16 26.36 Honduras 46.81 66.19 67.82 48.05 47.07 0.14 Ethiopia 30.75 52.03 34.48 34.19 43.86 9.28 (72) Canada 0.06 0.10 0.17 0.21 0.11 17.15 Italy s Top Suppliers of Spices, Coffee and Tea, % Share PP Change Brazil 31.98 35.24 32.48 27.27 27.52-4.46 Vietnam 10.20 10.37 13.35 13.91 14.25 4.05 1.51 1.12 0.87 7.45 10.05 8.54 India 9.07 9.59 10.85 10.3 9.84 0.77 Uganda 2.66 2.70 3.24 3.70 4.56 1.90 Indonesia 3.69 3.64 3.67 5.61 4.24 0.55 4.22 3.55 4.29 4.39 3.79-0.43 Colombia 1.46 2.11 1.65 1.60 2.68 1.22 Honduras 3.10 3.12 3.28 2.56 2.25-0.85 Ethiopia 2.03 2.45 1.67 1.82 2.09 0.06 (72) Canada 0.00 0.00 0.01 0.01 0.01 0.01 Spices, Coffee and Tea Supply Gap, C$ Millions 2010 2011 2012 2013 2014 Italy s imports from the world 1,512.30 2,122.39 2,069.10 1,878.42 2,094.61 8.48 Italy s imports from Canada 0.06 0.10 0.17 0.21 0.11 17.15 Supply gap 1,512.25 2,122.30 2,068.93 1,878.21 2,094.50 8.48 Page 20

Italy s Top Five Spices, Coffee and Tea Product Imports, C$ Millions HS Code Description 2012 2013 2014 090111 090121 090230 090411 090112 Coffee, not roasted, not decaffeinated Coffee, roasted, not decaffeinated Black tea (fermented) and partly fermented tea, packaged <3 kg White or black pepper, neither crushed nor ground Coffee, not roasted, decaffeinated CAGR% 2012-14 1,666.67 1,450.39 1,593.47-2.22 158.61 178.18 226.87 19.60 44.27 47.74 53.14 9.55 25.70 23.64 31.66 10.99 50.52 40.66 30.58-22.20 Italy s Top Five Spices, Coffee and Tea Product Imports and Top Supplying Countries, 2014 HS Code 090111 090121 090230 090411 090112 Product Description Coffee, not roasted, not decaffeinated Coffee, roasted, not decaffeinated Black tea (fermented) and partly fermented tea, packaged <3 kg White or black pepper, neither crushed nor ground Coffee, not roasted, decaffeinated Market Share % 1 2 3 Vietnam 17.75 Brazil 35.95 76.6 Poland 62.27 Vietnam 45.45 89.70 6.41 Belgium 9.07 17.02 Belgium 4.71 India 12.16 4.22 India 7.13 Indonesia 9.52 2.12 Canada s % Share <0.01 0.33 Page 21

10. LIVE ANIMALS Italy s Top Ten Suppliers of Live Animals, C$ Millions World 2,141.54 2,140.23 1,991.48 1,966.13 2,054.83-1.03 1,451.42 1,489.07 1,440.51 1,427.76 1,456.83 0.09 91.66 97.35 76.47 77.36 77.83-4.01 Hungary 76.78 62.67 57.13 61.49 68.35-2.87 64.93 64.20 57.14 55.47 67.72 1.05 Austria 60.21 59.06 51.41 56.49 58.38-0.77 Ireland 83.13 71.19 56.82 42.32 53.04-10.63 Poland 94.48 79.63 63.95 56.49 48.75-15.25 Denmark 32.21 31.35 37.04 34.02 47.76 10.35 Romania 37.89 38.51 42.13 42.64 47.68 5.92 61.11 61.96 36.52 32.53 45.51-7.10 (79) Canada 0.20 0.47 0.24 0.12 - -100.00 Italy s Top Ten Suppliers of Live Animals, % Share PP Change 67.77 69.57 72.33 72.62 70.90 3.12 4.28 4.55 3.84 3.93 3.79-0.49 Hungary 3.59 2.93 2.87 3.13 3.33-0.26 3.03 3.00 2.87 2.82 3.30 0.26 Austria 2.81 2.76 2.58 2.87 2.84 0.03 Ireland 3.88 3.33 2.85 2.15 2.58-1.30 Poland 4.41 3.72 3.21 2.87 2.37-2.04 Denmark 1.50 1.47 1.86 1.73 2.32 0.82 Romania 1.77 1.80 2.12 2.17 2.32 0.55 2.85 2.89 1.83 1.65 2.21-0.64 Canada (79) 0.01 0.02 0.01 0.01 0.00-0.01 Live Animals Supply Gap, 2014, C$ Millions 2010 2011 2012 2013 2014 Italy s imports from the world 2,141.54 2,140.23 1,991.48 1,966.13 2,054.83-1.03 Italy s imports from Canada 0.20 0.47 0.24 0.12 - -100.00 Supply gap 2,141.35 2,139.77 1,991.23 1,966.01 2,054.83-1.03 Page 22

Italy s Top Five Live Animal Product Imports, C$ Millions HS Code Description 2012 2013 2014 010229 Live cattle, other than purebred breeding CAGR% 2012-14 1,285.38 1,309.73 1,354.71 2.66 010221 Live cattle, purebred breeding 138.28 151.63 182.50 14.88 010410 Live sheep 103.92 94.99 104.17 0.12 010391 Live pigs, <50 kg each 58.49 50.06 68.81 8.46 010392 Live pigs, >50 kg each 52.89 56.79 68.09 13.47 Italy s Top Five Live Animal Product Imports and Top Supplying Countries, 2014 HS Code 010229 Product Description Live cattle, other than purebred breeding 010221 Live cattle, purebred breeding 010410 Live sheep 010391 Live pigs, <50 kg each 010392 Live pigs, >50 kg each Market Share % 1 2 3 Ireland 2.89 83.93 75.97 Hungary 48.21 Denmark 56.81 32.97 Austria 8.75 18.80 33.05 29.11 Austria 2.8 5.95 Romania 16.97 4.37 18.05 Canada s % Share Page 23

CONCLUSION Even though Italy s imports of agri-food and seafood products from Canada have continually increased since 2012, there is still a significant supply gap between the two countries which has only continued to widen. However, over the last five years, Italy s imports of agri-food and seafood products from Canada have grown at a faster rate than their imports from the world. As well, while Italy sources agri-food and seafood products from a large number of countries, among many commodities the vast majority of their imports come from other European Union countries, leaving just marginal market share for others. Canada holds less than 1% market share in all but one (cereals) of Italy s key import commodities. However, Italy s imports from Canada have increased in five of their top ten commodities (meat and edible offal; cereals; food waste and animal feed; beverages; and spices, coffee and tea). This may indicate further potential to lessen the gap, particularly, within the aforementioned commodities as Italy s imports from Canada outpaced their imports from the world in these categories. Canada should also benefit from tariff reductions under the Comprehensive Economic and Trade Agreement (CETA). FOR MORE INFORMATION International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice. Overview of Trade Commissioner Services in Italy http://www.tradecommissioner.gc.ca/eng/office.jsp?oid=34&cid=117 Find a Trade Commissioner www.tradecommissioner.gc.ca/eng/find-trade-contacts.jsp For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found under Statistics and Market Information at the following link, arranged by sector and region of interest: ats-sea.agr.gc.ca RESOURCES Global Trade Atlas, March 2015 ANNEX: ABBREVIATIONS CAGR - compound annual growth rate - not applicable N/C - not calculable PP - percentage point (difference between two percentage values) Page 24

Competitive Trade Analysis: Italy Global Analysis Report Prepared by: Stephanie Clarke, Market Analyst Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2015). Photo Credits All photographs reproduced in this publication are used by permission of the rights holders. All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada. For additional copies, to request an alternate format, and for all other inquiries regarding this publication, please contact: Agriculture and Agri-Food Canada, Global Analysis 1341 Baseline Road, Tower 5, 3 rd floor Ottawa, ON Canada, K1A 0C5 E-mail: infoservice@agr.gc.ca The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein. Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of Agriculture and Agri-Food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document. Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge. Page 25