Ortomad is a La Linea Verde Group company specialised in untreated and fresh-cut baby leaf products with 670 hectares cultivated by these products (of which 170 owned), 20,150 tonnes of annual production and 46 million euros in turnover in 2021. Always firmly focussed on exports, it is expanding its presence on the international markets, Export Manager Clotario Maddalo, explains.
What is the market situation today?
2022 is not an easy year, weighed down by various factors simultaneously, such as the generalised increase in production costs, the little availability of certain consumables (footboards, packaging and agricultural diesel oil) and difficulty in finding staff, in particular medium-level agricultural operators like tractor drivers. What is most concerning is the explosion of energy costs. Ortomad has invested a great deal in increasing its energy efficiency and this is why consumption levels are still sustainable, albeit the two-monthly cost has effectively tripled. The situation is then further complicated by the fact that this rise in costs is not recognised by the market, particularly in Italy, while abroad we have managed to achieve something. This situation is completely revolutionising the traditional scale economies policy and, accordingly, the possibility of making long-term plans, as we had become accustomed to doing. In this context, our sales policy continues to focus on product value. We have chosen to keep out of the “price war”, which we believe not only fails to solve the needs of certain companies but also risks being counter-productive for an entire industry.
Amidst this difficult situation, how is Ortomad doing?
Despite everything, we are reasonably satisfied because we have spent the last year working with partners who appreciate us and have allowed us to grow in both volumes and value. We expect to close 2022 approaching turnover of 50 million euros, above all thanks to exports, where we forecast +10%. Exports now account for almost half our turnover and for months have been doing well: in addition to strengthening relations with our long-term customers, we have also acquired some new important importers and retailers (in particular in Germany and, as a result, also in Holland), which in the last three years have become essential. This is the result of the investments made in the last three years to plan the winter campaign and focus on the market segment that offers the greatest added value.
Which products are causing you to grow abroad?
We are obtaining good results on packaged untreated produce, of which we offer an increasingly large assortment and that rewards our know-how in terms of production, reliability, safety and organoleptic quality. Indeed, we are now a real factory to all intents and purposes, never stopping. We have always sought to stand out and give value to the product and know-how downstream of all production processes. This is why we continue to be committed to R&D (like the POFACS project – Storage, quality and safety of fruit and vegetable products with a high service content provided by the Crea, editor’s note) and to invest in new products, like our latest new feature: the baby leaf mix we unveiled at Fruitlogistica with the claim “Non la solita insalata” (Not your usual lettuce). We started out with a study of the organoleptic and nutraceutical characteristics of each type and, together with In Cibum Lab – the innovation lab of In Cibum, the Advanced School of Gastronomic Education of Southern Italy – we have finalised not only the mixes but also the relevant dressings. The aim is to allow salad to make the leap from side dish to main dish, offering a unique, complete taste experience.
At what point is this project?
We have already prepared four mixes, which we will be supplying with their dressings and recipes. We began presentation of this project at the Berlin Fruitlogistica in April this year. The test has generated great curiosity and enthusiasm amongst our foreign partners, who have already asked us to extend the range. The Madrid Fruit Attraction will provide another opportunity to refine this project. We expect 2023 to thus open up to a new market segment: untreated lettuce in tubs, with dressing. And this is an important flywheel for us, because I expect to see it covering a significant percentage of our winter production.
Are you planning any new structural investments in production?
In 2021, we concluded our renewal and upgrading of the plant and are now carrying out another intervention, which should be completed early 2023 and will result in a slight increase but substantial modernisation of production.
