“The sale of unsustainable food will be stopped”

The war in Ukraine, rapidly rising inflation, energy costs… How do they affect the agri-food industry?

We are all waiting for the decisions of Putin and the leaders of the European Union. We have a factory in Poland. Despite the threats, the gas supply has not been cut for the time being and continues its activities. We are closely following the development of this centre, and of course we are concerned about the international situation due to the problems in global goods supply chains. Ukraine is a breadbasket for Europe in the supply of raw materials for flours and oils. In addition, shipping prices have increased rapidly, and shipping times are also increasing. The cost of a container skyrocketed. Transport companies are blocking roads. In short, logistical problems will not be solved until 2023. There is also inflation. Consumption may suffer from this inflation.

What lessons does the epidemic teach companies?

Many. Crises, health, and the economy teach that people reject luxury goods but reject food. The question is in which products and in which sales channels. I think it is also very important to benefit from the so-called EU New Generation funds, which should be a priority for the agri-food sector. Industries should know how to use these resources. The coronavirus has made us stronger. Since there were people in the house, pipes were consumed a lot. We even continued the investments and doubled the production of the newly opened Parc Sagunt factory.

What measures do you propose to the government? Should VAT be reduced?

We are concerned about the evolution of consumption. We are committed to energy efficiency. Companies must take strong measures to reduce energy costs. Houses too. In our case, we started a plan to install photovoltaic power in all factories, including springs, to produce clean energy. Also solar thermal energy. The consumer will ask about the sustainability of the product he buys in the future. Products that are not sustainably sourced will not be bought or sold by the consumer. Importaco has a goal of becoming Net Zero before 2050. To this end, the company is working on a roadmap for adaptation to climate change, which includes energy transition plans, regenerative farming practices and the sustainability of the full water cycle.

Will food prices rise further this year?

This is closely linked to costs. They have risen and are expected to rise a little higher due to energy. The question is to know how consumption will behave. As the energy cost softens, it will return to normal.

Is the food sector more resilient to the crisis? What prediction do you have for 2023?

We are in a year when average prices in the field are low. Covid-19 has affected the consumption of nuts in the Horeca channel, whose market is global. However, our expectation is that the growth will continue. Tourism will revive this summer. Various reports assure that Spain could re-register 80 million tourists this year. Businesses in the sector are 100% open. Therefore, we are optimistic about consumption. If we have grown between 3% and 4% in volume in recent years, we think that we will maintain this rate this year as well.

What expansion plans does Importaco have?

Foreign trade is in our DNA and already represents a third of our turnover. In recent years, we have bought companies from abroad. We are open to doing more. We are among the top three in the European hazelnut ranking and among the top 10 worldwide. Pepsico, for example, has a range of nuts and so we compete with large multinationals. Also with the German group Intersnack, among others. This means we have to be among the top three producers in every country. In addition to factories, we have sourcing offices in the United States, Argentina, China and Turkey.

How did you solve the difficult combination of family management and business management? Do company and family coexist well?

It depends on a family background. When I was still a student, my father instilled in me from a very young age that you should go to the company to help out on the weekends. This creates an emotional bond. It is like a germinating seed and if you have the relevant training you will eventually start working for the company. New generations must be emotionally connected. Eight representatives of the family participate in society. We get along really well. My father and uncle get along very well, and that left its mark.

Business diversification strategy: nuts, water, ice cream and energy. Not much activity?

We are the leader in hazelnuts in Spain and we are growing in the water sector through Mercadona. Diversification in other businesses will be minimal. We chose more to specialize in hazelnuts. We have purely financial investments in other sectors.

The crisis lowered the prices of crops at their origin. How do you see the situation of the field and the farmers?

Large mutual funds lead the way in this area. We understand what the consumer needs. We have to make agreements with the farmers. There has been more global demand for almonds than supply for years. Everyone started to plant almond trees, especially in California, which accounts for 80% of the world’s production. Also in Spain. What was planted ten years ago is already in full production. Demand has dropped with Covid and we will now have to see what happens around the world.

How is your relationship with the small owners?

Currently, Importaco cooperates with more than 350 farmers covering 22,500 hectares of agricultural land and producing 69,000 tons. The project is located in Argentina, China, Spain, Chile, among other countries. As for peanuts, Importaco has its own cultivation project in Argentina, spanning over 650 hectares.

What trends are you researching in the food industry?

functional meals; that is, those that have a potentially positive impact on health beyond basic nutrition. It also contains probiotics, once fermented, live yeasts and bacteria that are beneficial for our system. And we are working on clean and transparent labels. They want raw cashews or almonds from us. Vegetable protein is highly sought after. There are already dried fruit powders available for use in smoothies.