Global Changes and the Italian Pantry

Stocking the pantry with your favorite specialty items and key ingredients is becoming a real luxury.

The staples that are the backbone to simple quick dishes, such as tomatoes and olive oil, pasta and rice are enjoying an increased global demand.  Ingredients which 20 years ago were luxury items and considered treats for special occasions have now become part of our daily usage in our enlarged assortment of meal preparations.  Olive oil, balsamic vinegar, prepared tomato sauces, olives and anchovies are now classic pantry staples.

In today's global economy we are no longer reliant on what happens here in the United States with our food supply; we are now intertwined with the ever changing and growing economies of China, India, Russia and Southeast Asia.  These markets are now absorbing quite a large percentage of imported products, whereas a few years ago were almost non-existent as a percentage of market share.  Changes in both population and annual consumption along with the need of the feeding and raising of animals for meat have also put pressure on the supply of grains and resources.

These key factors thus start to affect the price of core food items in the world's daily diet such as wheat for bread, pasta and also pastry.  In addition to heightened demand, most primary ingredients have been affected by climate change, rising labor and fuel costs.

Some facts worth noticing:

• This year's global wheat supplies are forecasted to fall by 5%, mostly in China and India.  Meanwhile, consumption of wheat is forecasted to rise by 2%.
• North American grain silos hold a two-month supply compared to a customary 18-month supply.
• Wheat production has been impacted by the planting of more soybeans and corn to meet the needs for alternative fuel manufacturing.  Fewer acres of wheat are being planted despite the rising demand.  In addition, the Energy Policy Act of 2005--which mandates increasing levels of ethanol use--helped trigger a more recent spike in demand for crops other than wheat.  Increased demand for biodiesel, which is made from soybeans, has increased the demand for soybean crops, again taking away from expanding wheat propogation.
• The use of wheat for animal feed is at record levels, with greater use in former Soviet Union and Europe due to reduced coarse grain crops (i.e. rye, millet, barley and oats).
• Recent poor weather across Europe has wiped out much of this year's grain harvest.  The International Grains Council reports the wheat supply in Europe is at the lowest level in a decade.
• The U.S. Dollar continues to decline against the Euro - a 10% drop since the summer of 2007.  Pasta prices in Italy have increased 27% recently.  With pasta being the mainstay of the Italian table, the increased cost has set the Italian consumer into a tailspin.  On September 13, 2007 consumer groups called for a one day strike.  Pasta was not purchased in Italy for a day!

At Manicaretti, we are working very closely together with all of our Italian producers to ensure that we may continue to deliver the high quality products which have now become a staple to so many people.  The suppliers are helping Manicaretti with their utmost commitment to ensure their highest standard of quality and production, as well as in costs and pricing.  Our common goal is to continue to work together as partners to ensure we can continue to share these Italian "Manicaretti" as much as possible!