US duties on oil, wine and pasta put exports at risk
- Hge News
- Mar 28, 2024
- 2 min read
WineA bottle of prosecco that costs €5-6 a bottle in Italy can cost up to the equivalent of €10-15 at large retailers in the United States. With the application of 100% duty, that price would go up to €20-30. Prosecco exports in 2019 saw an increase of 17%. Exports to the US in particular grew by 10%.
Grana PadanoA kilo of Grana Padano, on sale in Italian supermarkets at €12-15 euros per kilo, can cost the equivalent of €30-35 in the US. With 100% duty, it could end up costing as much as €60-70 per kilo, “which would cut us out of the market”, according to the producers’ consortium. If duty were set at 30%, the price per kilo would go up to about €45.
PastaA packet of pasta in Italy sells for around €1.5 per kilo, and for €2.75 per kilo in the US. According to farmers’ association Coldiretti, if duty were set at 100%, this would go up to €3.75 per kilo. The amount of duty on pasta currently averages 6 cents per kilo. In 2018, pasta exports to the United States were worth about €305 million.
Olive oilItaly’s olive oil exports to the US are worth €436 million (2018 figures). Extra virgin olive oil costs on average €8 per litre in Italy. In the US, it currently sells for the equivalent of €12.40 per litre, but with the application of 100% duty, Coldiretti calculates it would go up to €24.77 per litre. There is currently no duty charged on olive oil.
MozzarellaCampana PDO buffalo milk mozzarella costs on average €18 per kilo in Italy. In the US, the price per kilo is equivalent to €41.30, but this would rise to €82.60 – according to Coldiretti – if duty at 100% of the product’s price were applied. Currently, duty on mozzarella stands at €2 per kilo. Cheese exports are worth €273 million.
Prosciutto crudoParma or San Daniele ham currently costs between $35 and $60 dollars a kilo in US supermarkets. In Italy, the same ham costs €28-34 per kilo. If duty went up to 100%, the price would be over €70-90 per kilo. In the first half of 2019, San Daniele exports to the US grew by 4%.
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