Food product labeling: what changes with the new MIMIT guidelines

The upward trend in prices shows no signs of slowing down, now reaching 70% for cellulose; and while we have been witnessing unprecedented increases in raw materials (such as steel, wood, and gas) for six months, we are forced once again to question the future of production supply chains, put to a severe test by prices that are now skyrocketing. Italian companies are further burdened by increases regarding energy costs, making it necessary to find solutions to avoid halting entire production chains. In particular, the companies facing the greatest difficulties are micro, small, and medium-sized enterprises, upon which falls a double sword of Damocles represented by the cost of raw materials and energy. Data from Confartigianato shows that the most "expensive" effect is evident in the North-East of our country, home to numerous companies and businesses, including family-run ones. In this area, the rise in raw material prices weighs on micro and small enterprises by 3.3% of GDP.  The impact has also swept through the North-West, affecting it by 2.8%, while for micro and small enterprises in Central Italy, the impact drops to 2.3%; the lowest impact is recorded in the Mezzogiorno, standing at 1.8%. The issue of the unavailability of raw materials puts the very existence of companies to a severe test, forcing them to turn down orders both due to the difficulty of sourcing raw materials and the impossibility of honoring quotes made months ago.  Confartigianato announced that the percentage of companies operating in the construction sector reporting materials shortages as an obstacle to production rose to 9.5% in September 2021. Raw materials: how they affect economic recovery The high cost of raw materials and their unavailability represent an obstacle to recovery. Despite increasing orders, we are witnessing a slowdown in investments as well as innovation processes, and the demand for labor is falling. Some are even attempting to access social safety nets.  There is a growing need to monitor speculative maneuvers; therefore, the introduction of price control mechanisms, as in the case of the energy sector, would be appropriate. How the packaging sector is facing the crisis  The restart within the packaging sector brought about an increase in requests, but successive lockdowns and restrictions had previously forced businesses to slow down. In doing so, a gap was created between market demands and actual response capacity. Currently, the packaging sector is weighed down by price increases in cellulose, in addition to the costs of waste paper and gas costs, which have now skyrocketed. Some paper mills are thinking of countering the situation by temporarily suspending operations, all to avoid producing below cost. The overall picture of increases puts production to a severe test: for instance, long-fiber NBSK has seen increases of 60%, while it amounts to 70% for short-fiber eucalyptus. These increases translate into a price per ton of 1,350 dollars for long-fiber and 1,150 dollars for short-fiber, according to Assocarta data. Paper and cardboard for recycling have risen by 138% and 143% respectively, marking prices from 155 up to 170 euros per ton. Therefore, anyone wishing to purchase raw materials for recycling pays much more for them. What are the reasons for the price increases in paper and cardboard for recycling? The advent of the pandemic changed our purchasing habits. On one hand, there was a greater demand for packaging due to the explosion of e-commerce and the creation of packaging destined for takeout. Furthermore, the increased demand for sustainable containers led to paper and cardboard being identified as the primary candidate for replacing single-use packaging. It must also be considered that the paper sector is among the most energy-intensive. The increase in the cost of gas, as also reported by Assocarta, has been rising since the summer of 2020 and unfortunately tends to grow without showing signs of slowing down. This has significantly impacted the finished product. At times, price increases are equal to 5%, and even up to 10%. For this reason, according to some paper mills, it will be necessary to halt production, at least until more affordable gas costs can be accessed. How much does the cost of energy impact the cost of packaging? According to estimates reported by Il Sole 24Ore, energy represents 30% of the total costs incurred, and therefore, even if turnover tends to increase precisely because of a greater demand for paper and cardboard packaging, profit margins tend to narrow due to high energy costs. Among the most affected sectors is tissue: we are talking about sanitary and household paper, because this segment, due to its type of production, needs to secure agreements lasting at least six months, a timeframe too long to allow for the forecasting of final prices. How much do the new EU regulations on packaging influence price increases? As we have repeatedly explained in previous articles, packaging is at the center of a revolution. The need to reduce or eliminate plastic volumes within packaging has caused the demand for cardboard to soar. Faced with a stable production capacity, an increase in cardboard demand was generated, which in turn, in this delicate situation, caused a general price hike: Linerboard with corrugated medium → +65% Graphic paper → +15-20% Tube paper → +55% Paper and cardboard are among the most recyclable materials. In our country, we have achieved a good level of circularity regarding paper collection and recycling, giving life to a more sustainable production cycle. At the moment, a large volume of orders is being recorded, but it is impossible to fulfill them. As pointed out at the beginning, the e-commerce boom made manufacturers aware of the need to provide a massive amount of packaging.  How should packaging production be rethought? The crisis in the paper sector also asks us to rethink our relationship with packaging which, especially regarding primary packaging, carries aesthetic value, product recognition, and so on. At present, efforts are being made to review the concept of packaging, particularly based on functionality, so as to align production and optimize it solely and exclusively to meet specific needs. While we have already talked in the past about packaging design in terms of resource savings and waste reduction, this requirement has now become a true diktat to be followed.

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The Italian agricultural sector is facing significant challenges in adopting ecological and economically sustainable practices, while grappling with farmer unrest, the urgency of the climate transition, and complex management at the European level. The Farmers' Crisis in Italy: Economic and Industrial Repercussions. Farmers' protests have spread across several European countries, from France to Italy, driven by reasons including the reduction of EU subsidies and the perception of excessive restrictions. Let's explore all the details in the rest of the article. Read also: “Suez Canal Crisis: The Agri-Food Sector Also Pays the Consequences” What is Happening to Agriculture in Italy Between 2005 and 2020, 5.3 million farms disappeared in Europe, nearly 600,000 of which were Italian. The pandemic, the war in Ukraine, inflation, and climate events have further complicated the situation, with a 25% increase in the prices of agricultural goods and services in 2022. Dissent in the agri-food sector stemmed from measures to make food production "greener," criticism of the European Union's restrictive agricultural policies, and rules requiring land to be left fallow to preserve biodiversity. In Italy, the Comitato Agricoltori Traditi (Betrayed Farmers Committee) led the protest against restrictive EU agricultural policies and the stance of traditional sector organizations. Farmers complain about declining incomes, taxes on inactive vehicles, and demand an urgent dialogue with Parliament. An Unsustainable and Inadequate Agricultural Model The #CambiamoAgricoltura Coalition (a coalition formed in 2017 to demand a CAP reform that protects all farmers, citizens, and the environment) also criticizes national and EU agricultural policies, arguing that they have created an unsustainable and unjust agricultural model. The interests of industrial supply chains have prevailed at the expense of agricultural workers, human and environmental health, and animal welfare. Farmers and consumers are considered the weakest links in the chain, while powerful industrial actors have increased their profits and political influence. Agricultural protests are directed at the European Green Deal due to its environmental implications and alleged negative consequences on the sustainability and prosperity of the agricultural sector. Indeed, the European Green Deal is blamed for causing the crisis in the primary sector. Derogations from environmental commitments, such as reducing pesticide use and nature conservation, compromise the goals of the "Farm to Fork" and "Biodiversity 2030" strategies. Climate change is identified as a serious threat to agriculture, with direct and indirect impacts on production, the environment, and food security. The Coalition further maintains that farmers' hardship is caused by multiple factors, including unfair distribution of aid, lack of support for changing the production model, and conflicts of interest in the reform of the Common Agricultural Policy. It highlights the need for subsidies geared toward economic sustainability and the numerical growth of farms, encouraging the ecological transition. Is the Consequence an Agroecological Transition? The majority of farmers, oppressed by the dominant actors in the supply chain, express growing discomfort and distrust in the agri-food system. Agricultural protests, initially focused on environmental protection, are the result of multiple reasons, including structural problems within the Common Agricultural Policy (CAP). Despite the agro-environmental rules introduced with little success, the unfair distribution of aid persists, rewarding large corporations at the expense of small ones. Agricultural corporations, by defending a payment system based on historical entitlements, favor large landowners over small and medium-sized farmers, leading to the closure of many businesses. The rhetoric of the farmer as the custodian of the environment has not helped in understanding the necessary evolution of agriculture's social and environmental role. Thus, the need for an agroecological transition is proposed, supported by public subsidies geared toward economic sustainability and the numerical growth of farms. Agroecological practices, as demonstrated by the 2023 agricultural year, can guarantee both environmental protection and farmers' income. The #CambiamoAgricoltura Coalition urges key stakeholders to avoid weakening CAP rules, pointing out that such actions will hinder the transition toward a fair, healthy, and environmentally friendly food system. It also invites an open debate on the true causes of the economic crisis in the primary sector, pointing to an unfair agri-food system that favors large corporations over small producers and consumers. Economic and Industrial Implications of the Agricultural Crisis Unemployment: The agricultural crisis has a direct impact on employment in rural areas, where many families depend directly on the agricultural sector. The loss of jobs has significant consequences for the social and economic fabric of local communities; Decline in National Production: This has knock-on implications for the domestic food supply, increasing reliance on imports and affecting the country's food self-sufficiency; Reduction in Agricultural GDP: The agricultural crisis contributes to a decrease in the agricultural sector's contribution to Italy's Gross Domestic Product (GDP), negatively impacting the economy as a whole; Impact on the Agri-Food Supply Chain: The farmers' crisis has significant consequences along the agri-food supply chain, involving producers, processors, and distributors. The fragility of the chain can undermine the security and diversity of the food supply. The farmers' crisis in Italy is not just a challenge for the agricultural sector, but an issue that impacts the entire national economy. Addressing this crisis requires collaboration among government, industry, and local communities to implement sustainable solutions and promote the revival of a strong and resilient agricultural sector. Only through a joint commitment can we preserve the agricultural and industrial wealth that has characterized Italy for generations. See also: “Climate Change and Environmental Impact: Summer 2023 the Hottest in History”