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The Brexit effect: ‘Sudden drop’ in Italian food and drink exports to the UK

As Brexit negotiations got underway in Brussels on Monday, Italy was already feeling the effect of the UK's vote to leave the European Union, with wine exports particularly hard hit.

The Brexit effect: 'Sudden drop' in Italian food and drink exports to the UK
The Vinitaly Italian wine exhibition in Verona in autumn 2016. Photo: Vincenzo Pinto/AFP

Food exports to the UK saw a 6.8 percent drop compared to the same period last year, while wine exports fell by seven percent, the Italian farmers' association Coldiretti said.

“The Brexit effect is being felt on symbolic Made in Italy products in Great Britain, where there was an overall sudden drop of eight percent in exports of Italian products,” the organization said.

It added that as well as a fall in the value of the pound, another factor could be “a more nationalist stance among the British, leading to the replacement of imported products”.

The fall in exports to the UK hit all sectors, with vehicle exports down 3.3. percent, furniture exports 7.2 percent, and textiles 12.7 percent, according to figures from national statistics agency Istat for the first quarter of 2017.

But wine producers were particularly hard hit, with Coldiretti saying wine was “the first victim of the chaos caused by Brexit”.

Traditionally good value Italian wine is now more expensive for British consumers than it has ever been, with unfavourable exchange rates and increased tax on alcohol combining to drive up the price of foreign tipple.

The figures confirm the fears expressed by Italy's winemakers in the run-up to and aftermath of the Brexit vote in June 2016.

Before the vote, Coldiretti warned that Britain leaving the EU could “seriously upset trade relations” with Italy, which exports a huge amount of food and drink to the UK each year. Last year, the UK overtook the US as the biggest consumers of Italian wine, helping drive a 38 percent surge in sales of prosecco and other fizzy wines in the first quarter alone, outstripping champagne for the first time.

It is also the fourth biggest importer of Italian food products. After wine and prosecco, the most important items are pasta, fruits and vegetables, and cheese.

And after the UK voted to leave the bloc, Foreign Secretary Boris Johnson reportedly explicitly threatened Italy's economic development minister with a drop in prosecco sales if the UK was not allowed to stay in the single market.

READ ALSO: Why Italy wants Unesco heritage status for its Prosecco hillsWhy Italy wants Unesco heritage status for its Prosecco hills
Photo: Vincenzo Pinto/AFP

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WINE

Italy to overtake France as world’s largest wine producer

Italy is due to regain its spot as the world's largest wine producer in 2024 as France's vineyards are hit by unfavourable weather, according to figures from each country's agricultural authorities.

Italy to overtake France as world's largest wine producer

After a disastrous 2023 harvest, Italy’s production will recover eight percent to between 41 million and 42 million hectolitres, the country’s main agricultural association Coldiretti said on Wednesday.

The French agriculture ministry had estimated earlier this month that French production will fall 18 percent to 39.3 million hectolitres.

Coldiretti noted that this year’s output in Italy still remains well under the average of recent years, as different parts of the country cope with either heavy rains or drought.

Since 2007, Italy has been the world’s top producer each year apart from 2011, 2014 and 2023, when it was pipped by France, according to the International Organisation of Vine and Wine (OIV).

Coldiretti said Italy is “divided in two” with the north hit by “intense rain and hail in spring and early summer”, while large parts of the south and Sicily have faced drought.

Heat and lack of rain led to particularly early harvests in some parts of the country.

In France, the steepest fall is expected in the eastern Jura mountain range where frosts and mildew are expected to result in a 71 percent drop in output.

In terms of volume, the biggest drop will be in the western Charente region where production will fall 35 percent.

Output is expected to fall by 30 percent in the Loire Valley and by a quarter in the Burgundy-Beaujolais area, which was hit by severe hail.

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