After 18 consecutive years at the helm, Michele Odorizzi hands over to Ernesto Seppi, an economics graduate, who was born in 1966 and has dedicated his life to fruit farming. Seppi takes over at a delicate time, following the various organisational, productive and commercial changes brought about by the consortium in recent years.
Significant investments, such as the creation of underground storage cells and the recent acquisition of the fruit processing leader A.D. Chini, have been added to a series of pressures coming from an increasingly competitive and dynamic market. Increases in raw materials prices, difficulties in recruiting manpower, and decreasing product prices are the issues that are arousing the greatest concern.
An important challenge for the Seppi management that will take the Non Valley Consortium, its 16 member cooperatives and over 4.000 members into the future. His inauguration was a call for unity and shared governance by promoting exchange and dialogue between all the stakeholders. We spoke to him to find out how the consortium intends to face the challenges of the future.
The last few years have seen numerous changes, including the unification of the operational management of Melinda and La Trentina under the Apot, the underground cell project and the development of the Consortium’s environmental sustainability philosophy. What are the changes that will face you in the future as the new ceo?
My arrival is part of a journey characterised by significant and positive changes, such as the very recent merger of La Trentina to form a single consortium. These developments will benefit the whole of the Trentino fruit farming sector, which will be stronger and more competitive on the markets, not least thanks to the vast range of fruit and vegetables La Trentina possesses and which allows an optimum diversification of supply.
The first challenge I intend to take up in this capacity, apart from continuing the commitment towards sustainability in production and a constant drive towards innovation, regards precisely the world of the cooperatives and their many members. I intend to make the member community increasingly cohesive and engaging by promoting a governance model that is close to them and able to meet their diverse needs. I am well aware of the priority role of the membership base that I am called upon to represent today, and I believe it will be important to succeed in collaborating increasingly with the various players present in this fantastic area in order to bring about the synergistic social and economic development of the entire district.
As far as innovation in apple farming is concerned, what steps is the Consortium taking on the varietal and technological fronts?
Melinda has always invested significant human and economic resources in order to innovate the apple farming sector, especially in terms of environmental sustainability. Examples of this are the research into modern irrigation systems, the result of partnerships with qualified and pioneering sector enterprises like Netafim, and the development of world-class projects, such as the underground storage cells. This innovation is also necessary to guarantee fair profitability to member farms and a positive impact on the social fabric and economy of the entire area.
In addition to product quality, which has come to be crucial for anyone aiming for a certain level of the market, what are the other factors for staying successful?
Melinda enjoys an extremely high brand reputation with consumers and is recognised as a market leader both in Italy and in other countries. This is a role that has to be maintained and consolidated by continuing to pursue the productive quality that has always hallmarked Melinda apples by offering a varietal diversification that is able to follow both new fruit consumption trends and the demand for modern tastes.
Sales forecasts talk of increasingly low prices for producers, which have been estimated at about 40 cents per kilo, while production costs continue to soar, not least due to increases in raw material prices. How is it possible to reconcile the two?
Unfortunately, the current season is not one of the best, the high percentage of hail-damaged product and of apples with a sub-standard average size are, in themselves, critical elements. If we then add the well-known increase in raw material and transport costs, it goes without say that we obtain a picture of the campaign that is anything but simple and reassuring. Our commitment will therefore focus on finding, insofar as is possible, the right balance, by optimising processes and improving supply chain efficiency, in order to guarantee and maintain the promise of profitability for members.
What are the new markets the Consortium is focusing on?
Despite being the queen of Italy, Melinda must necessarily export the quality and excellence that distinguish it abroad. In other European countries, such as Spain, we enjoy a very good reputation, the result of recent investments in communication campaigns. Over the last few years, we have also approached new markets; for example, in the Middle East and Far East, in addition to positive feedback, we are also reaping the first concrete achievements, such as our very recent entry into “Park & Shop”, Hong Kong’s most important retail chain.
Melinda has just acquired the leading fruit-based product manufacturer A.D. Chini. What are the aims of this operation?
The acquisition of A.D.Chini, an Italian leader in the fruit-based product market, is another vital and strategic milestone, whose priority aim is to consolidate Melinda’s business and develop new product lines. It will be managed as an independent business unit of the Melinda Consortium. We are convinced that the production and distribution of products obtained from the processing of high-quality Melinda fruit will be increasingly important for strengthening the Melinda brand and its reputation, by placing us in sectors other than that of fruit and vegetables.
Apples, cherries, small fruit and processed and fresh-cut products and now also a project to develop winemaking in the Non Valley. Is this simple diversification or a long-term strategy?
Diversification is a decisive asset for two reasons: on the one hand, it means a correct and respectful approach to the territory in which we identify the real and profitable vocational areas for the various crops; on the other, it allows us to pursue and guarantee further income and stability opportunities for farmers, which, let us not forget, is our priority objective.
As far as the project for the development of the local wine-making sector is concerned, does Melinda really consider wine in terms of diversification of production?
The wine project is still at the embryonic and research stage, involving expert consultants who are evaluating all its economic, social and environmental aspects. As I said earlier, diversification is a strategic asset, but it must always entail a serious, in-depth feasibility analysis before it is implemented, given the multiple aspects and stakeholders involved.
Melinda has been supporting an organic farming development plan for more than 10 years. What is the state of the art in the organic sector and which varieties are best suited to production?
Over the last two years, Melinda’s organic production has increased from 80 to more than 300 hectares, a figure which reaches 400 if we consider also La Trentina as part of the same enterprise. A commitment and a promise that has been kept and that continues through the varietal set-up where the newly identified resistant apples, such as the “rustic” varieties, are perfectly suited to organic farming. Let’s not forget that in this specific setting we decided to operate by creating authentic districts instead of following an uncoordinated approach to development, and this provides greater product protection.
Melinda has built the world’s first underground fruit storage cells. A project of international scope that has brought great visibility. Will there be new developments in the future and might the cells be used also by other producers (Cavit perhaps)?
The underground storage cells, the fourth batch of which are due to be inaugurated in 2022, are a prestigious feather in Melinda’s cap, a brilliant example of sustainability that is recognised as being the only model of its kind worldwide. We would be extremely pleased if our pioneering underground storage concept were to be of interest to other companies. A shared commitment that deserves to be experienced first-hand by visitors to our region, which is why we are working on an ambitious project to open this place, which I would define as almost “magical”, to the public. We want our loyal customers and any visitors to be able to have a one-of-a-kind experience by going right inside the mountain and visiting the only mine in the world that has now become a natural storehouse for apples.
