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Posts Tagged ‘tomato

Vegetable hocus-pocus in India

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Which one of these two statements is false?

‘India has more than enough vegetables to feed its households, which need about 144 million tons per year’

‘There is a deficit of about 20 million tons in 2 out of 3 vegetable types India’s households need’

Which one you choose as false depends on whose interpretation of vegetable self-sufficiency you lean towards: the Ministry of Agriculture’s triumphant announcements of ever higher vegetable tonnage, or the data on crop quantities combined with current population and dietary needs (as I do here).

My answer is that the second of the two statements is nearly true whereas the first is entirely false. This is the explanation, and it is based on the data using which the startling graphic presented above was drawn.

In its ‘First Advance Estimates of Horticulture Crops’ for 2017-18, the Ministry of Agriculture has said that a record quantity of 180 million tons of vegetables has been cultivated.

This is no doubt a quantity record for vegetables. It apparently exceeds by a wide margin the quantity required to adequately provide all our households with vegetables for their daily meals. How many household would that be? My calculation, based on the projected increases in population and household contained in Census 2011, is about 270 million (or 27 crore) households in 2018, and with the mean size of the household being 4.8 members.

Such a typical household needs about 1.44 kilograms per day of vegetables as part of a well-balanced diet. Adjusting for the smaller portions eaten by children (up to 14 or 15 years old) and the elderly (from about 65 years old) and further adjusting for the losses and waste that take place from the time vegetables are brought to mandis till they cooked in kitchens, a total of about 144 million tons is needed to supply all our households for a year.

With 180 million tons cultivated and 144 million tons needed, we seem to have a surplus of some 36 million tons of vegetables.

Not so. This ‘surplus’ needs closer examination, which the chart guides you towards. As you see, the biggest circles belong to five vegetable categories: potato, tomato, other vegetables, onion, and brinjal.

What these biggest circles represent needs to be connected to what the National Institute of Nutrition has recommended as the required daily quantities of vegetables. And that is, not just 300 grams per day, but 50 grams of green leafy vegetables, 100 grams of roots and tubers and 150 grams of other vegetables. A household consuming the stipulated 1.44 kg/day of vegetables if those vegetables are a kilo of potatoes and 440 grams of tomatoes is not a household eating vegetables – it’s a household eating far too many potatoes and tomatoes.

The chart shows us dramatically how unbalanced the cultivation of vegetables has become in India. Nearly 40% of the total cultivated is onions and potatoes (70 mt). Add tomatoes and the three account for 51% of the total (93 mt). Add brinjal and the four account for 58% of the total (105 mt).

Our 270 million households should be buying, cooking and eating about 95 million tons of vegetables that are green and leafy, or are ‘other vegetables’. But in these two categories, we are growing no more than about 75 mt – which reveals a massive shortfall of 20 million tons.

This is the truth behind the tale of booming, record vegetable production. Those five big circles in the chart should never have been the sizes they are. Our households do not need an allocation of 500 grams of potatoes per day (no, Lays, Pringles, Doritos, Kurkure, Uncle Chipps, Bingo, Haldirams chips and wafers are not food).

What we need instead is for every taluka, tehsil, block and mandal to value and grow its local varieties of leafy greens, roots and tubers, shoots and stems, edible flowers and buds. That is what will bring back genuine vegetable nutrition and diversity.


Written by makanaka

January 8, 2018 at 19:50

Secrets of the record vegetables harvest

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The Ministry of Agriculture’s third advance estimates for the production of horticultural crops in India during 2016-17 has record figures for vegetables and fruit, 176.17 million tons and 93.7 million tons respectively.

The horticultural division counts 22 vegetable classes and a 23rd which includes all others. Likewise 26 classes of fruit and a 27th which includes all other fruit. Unfortunately, the horticultural division does not name these ‘other’ vegetables – which I surmise will include a number of leafy greens, tubers and beans – and which are estimated by the division to have amounted for the year to 23.62 million tons (mt).

In this chart for vegetables the ‘other’ unnamed vegetables are clubbed together with those vegetables whose harvests are individually sizeable (0.2 to 0.7 mt) but under 1 mt: elephant foot yam, mushroom, capsicum and parwal.

What stands out in this record harvest of vegetables is how the total tonnage is distributed. Potato, tomato, onion and brinjal together account for 101.82 mt which is 57% of the total vegetables tonnage. This is an extraordinary concentration. Worse, potato alone is 48.24 mt which is just over 23% of the vegetables total.

This is a hopelessly skewed distribution by weight which I think describes how very far the writ of the snack food manufacturers runs, by governing crop cultivation choices made in the field. Most snacks available today are industrially produced mixtures of vegetable ingredients, with flavours, colourings and food scents chemically added.

So-called contract farming in India began with PepsiCo’s foods division directing the cultivation of potato for its chips. Onions and tomato followed – for the last five years some 2 to 2.5 mt of onions are exported, and tomato makes its way into numerous ketchups and sauces. Both are ‘popular’ snack flavours by themselves. Hence the top three vegetable classes account for nearly 90 million tons together. Compare this quantity with India’s wheat harvest for 2016-17 of 98.38 mt!

To put the total annual quantities of onions (21.72 mt) and tomatoes (19.54) in perspective, 22.95 mt of pulses were grown during 2016-17 and this being not enough to provide our households, a further 6.6 mt was imported during 2016-17 (at a cost of Rs 28,523 crore). This is what irrational crop cultivation choices results in: kisans’ plots are dedicated to the cultivation of a few vegetable staples that serve as raw material for a snack foods industry whose products are nutritionally harmful, whereas those plots could grow pulses and save the country money, besides contributing to balanced diets.

Yet the count of vegetables by the horticulture division of the Ministry of Agriculture does not enumerate even the better-known vegetables that arrive at the mandis, and whose mandi prices are listed by the same ministry.

Their market names are: Alsandikai, Amaranthus, Ashgourd, Balekai, Banana Green, Beetroot, Chapparad Avare, Cluster beans, Colacasia, Coriander, Cowpea, Drumstick, Field Pea, French Beans, Galgal, Ginger, Gram Raw/Chholia, Green Avare, Groundnut pods, Guar, Indian Beans/Seam, Kartali/Kantola, Knool Khol, Little gourd/Kundru, Long Melon/Kakri, Lotus Sticks, Mango Raw, Methi, Mint/Pudina, Ridgeguard/Tori, Round gourd, Season Leaves, Seemebadnekai, Snakegourd, Spinach, Sponge gourd, Squash/Kaddoo, Surat Beans/Papadi, Suvarna Gadde, Thondekai, Tinda, Turnip, and White Pumpkin.

These 43 classes (there are likely more based on seasons and agro-ecological regions) of commonly consumed vegetables, grown all over India, amount to about 22 mt, using the numbers from the third advance estimates for 2016-17. But it is upon the diversity of these lesser, ‘other’ classes of vegetables that the dietary balance of millions of households depends. Yes, the annual vegetables balance sheet for 2016-17 boasts an impressive bottom-line, but the numbers therein don’t add up.

Written by makanaka

September 5, 2017 at 19:25

Where are Bharat’s local leafy greens in this chart?

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RG_IN_veg_2013_14_prodHere is the list of the principal vegetables grown, according to the third advance estimates for 2013-14 (the agricultural year is July to June) for horticultural crops. The figures are from the usual source, the Department of Agriculture and Cooperation, Ministry of Agriculture. The quantities are in million tons. Where’s the vegetable diversity? Where are the leafy greens? Are they included in that bland circle called ‘others’? The DAC won’t/can’t tell us.

This is an enlightening comment a reader of Resources Research. Neville said:

“We moved to Goa 5 years ago from California. First thing that shocked us was the (low) quality and diversity of greens and other vegetables here. Most farmers here have stopped growing due to the soaring price of land, so veggies are trucked in from Belgaum where there doesn’t seem to be any oversight or regulations. For example, we stopped buying spinach and other leafy greens as they reek of DDT 90% of the time. The average person doesn’t seem to notice / care. There is a healthcare crisis here in Goa – soaring rates of cancer and stroke and I am convinced it is due to the bad quality of food and the rampant burning of plastic waste. We now grow our own veggies or buy from small-time villagers. Sad state of affairs indeed.”

The numbers are: Beans 1.213; Bitter gourd 0.971; Bottle gourd 2.192; Brinjal 13.842; Cabbage 9.109; Capsicum 0.156; Carrot 1.19; Cauliflower 8.585; Cucumber 0.69; Muskmelon 0.702; Okra/Ladyfinger 6.461; Onion 19.769; Peas 4.165; Potato 44.306; Radish 2.561; Sitaphal/Pumpkin 0.356; Sweet Potato 1.126; Tapioca 7.778; Tomato 19.193; Watermelon 1.827; Others 21.953.

Written by makanaka

September 4, 2014 at 21:18

Sauce, ketchup and Indian tomato prices

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They say the prices are cyclical, like they are for all vegetables. They say India grows enough vegetables to provide for our growing population and we have enough surplus to export. Well, if that’s so, then why does a kilo of tomatoes today cost fifty rupees? A few phone calls and visits to local grocery shops (not the supermarkets) confirmed that today, in Bangalore, Mumbai and New Delhi, tomatoes sold for Rs 45 to Rs 55 a kilo.

Sauce and ketchup every which way you look in sizes from 90 grams to 1 kg - that's where India's tomatoes are going.

Sauce and ketchup every which way you look in sizes from 90 grams to 1 kg – that’s where India’s tomatoes are going.

Why are our staple vegetables experiencing such price spikes so frequently (the big onion panic is not two months old)? Here’s what the official numbers look like, from the Ministry of Agriculture, Directorate of Economics and Statistics, Retail Price Monitoring System. This collects prices of food staples every week from 87 urban centres in all 35 states and union territories, and I have used this quite comprehensive data series to examine the ups and downs of the price of the tomato.

The chart above illustrates the price of a kilo of tomatoes in India’s urban centres between the first week of July 2010 and the third week of October 2013 – tomato prices have been recorded for 59 urban centres over 173 weeks. To simplify what is otherwise a maniacal tangle of individual threads (see chart below) I have taken a median price, and urban price at the 80th and 20th percentiles, which together describe the overall movement and variation well enough. The cycles are indeed visible – they are roughly 40 weeks long.

Tomato prices recorded for 59 urban centres over 173 weeks.

Tomato prices recorded for 59 urban centres over 173 weeks.

But the cycle changed from the first week of April 2013, when the prices of a kilo of tomato rose more steeply than before. And from the first week of August 2013, tomato prices have settled at a new plateau significantly higher than at any time in the last three years.

Why has this happened? The growth of the processed foods industry is the main cause – this industry sector has for the last three years grown (in value) at around 15% per year, which is greater than the GDP ‘growth’ and greater than the growth in value recorded for agriculture in general. For tomatoes, this means that every quarter, more tomatoes exit the stream of tomatoes that would otherwise go to home kitchens and instead enter factories, there to be turned into sauce, ketchup, purée and powder (which you find as flavouring even in those awful noodle ‘tastemaker’ sachets and cup noodle containers). These thousands of tons will become available as packaged and processed goods (the better to accompany the acres of super-fattening industrial pizza being baked every day) and this means less, per capita or per household, is available as primary produce that can be used in kitchens at home.

India’s food price inflation is no surprise

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Reports on the new evidence of price increases for staple foods in India have evoked surprise and a variety of responses from economic analysts. Reuters has reported that inflation “unexpectedly hit a seven-month high in September as food prices climbed” because the “wholesale price index (WPI), the main inflation measure, climbed to 6.46 percent last month”.

If tomato, potato and onion show the behaviour of all vegetable prices, the new food inflation peak is no surprise at all.

If tomato, potato and onion show the behaviour of all vegetable prices, the new food inflation peak is no surprise at all.

Supplied by the views from the financial markets and industry sources, and supported by a government position of prices and food supply that is predictably optimistic, reports in the mass media claim that inflation is expected to come down in coming months.

Business Standard reported that “the simultaneous rise in WPI- and CPI-based inflation in September can be explained by the lag effect of rising food prices on consumer prices. The newspaper quoted a chief economist of the State Bank of India who said: “Consumer price inflation is correcting the huge gap we had witnessed in food items at retail and wholesale levels in the previous months.” It also quoted an economist with a credit rating agency, CARE Ratings, who said the divergent trend in July and August could be explained by the fact that retailers couldn’t increase prices at the same rate as wholesalers and, therefore, had to squeeze their margins.

The Hindu reported that “headline inflation unexpectedly touched a seven-month of 6.46 in September riding on the back of a whopping 323 per cent increase in price of onion followed by all round hike in price of other fruit and vegetable items”. This newspaper said that the latest data released by the government on Monday put the food inflation at 18.40 per cent in September over the same month last year.

The three pairs of charts you see here describe the prices of tomato, potato and onion as recorded by the retail price monitoring cell of the Department of Consumer Affairs, Ministry of Food and Consumer Affairs, Government of India. The cell collects retail prices of 22 food items from 57 urban centres, and these are the monthly averages from 2009 January to 2013 September.

The monitoring cell does not collect the prices of common vegetables (such as brinjal, cauliflower or pumpkin) or leafy green vegetables, hence these will serve as indicative proxies that describe the movements of vegetable prices in Indian urban retail food markets over the measured period.

The charts with the full set of price trendlines for all 57 centres are dense to look at, hence I have simplified them to three trendlines each: an average, the price of the 80th percentile of the centres, and the price of the 20th percentile of the centres. Doing so helps preserve the overall trend over the period measured and also helps more clearly display the difference between the upper and lower bounds of the variation in price amongst the set of urban centres.

The tomato chart shows periodic spikes from mid-2010 however the peak of 2013 July dwarfs all others. The potato chart shows the previous peak being during 2009 October, but in terms of the persistence of high price the period from 2012 August till the present is the longest since 2009 January. The onion chart records the previous spike during 2010 December to 2011 January, which has been topped during the current spike that began in 2013 June.

The tale of the charts is that even for items that go through cycles, like vegetables, the overall trend is upwards and this upward trend is at a rate faster than the wage increases for agricultural and rural labour, for those working in the informal urban sector, and is a rate that is only partly offset by any dearness allowance (if that old mechanism is still used).

For all those who are said to be knowledgeable on food price and the causes of inflation – the ministries of agriculture, of commerce and of food processing, the industry associations, the bankers and financiers, the food and retail industry – the current food inflation spike is no surprise at all, it was expected as the festival season has begun. The difference now is that with every such season, the new base price for our food staples is pushed to higher level, further squeezing household budgets that are not reinforced by bonuses.

The cereals, oils and sugars have been far more predictable in their rise for the last five years. Their price rise in inevitable given the growth of the retail food industry, the processed foods industry, the rise in the price of fuel, and the rise on the prices of fertiliser and pesticides. Just as the so-called ‘carrying cost’ of PDS foodgrain is derided as being inefficient by the private sector, they too bear a carrying cost – inventory of processed food and inventory of primary crop used for such food – which is concealed in the price the consumer pays.

It is only local food networks that choose organic crops, supply locally and insulate themselves from the organised food profiteers that can free themselves from the pain of India’s steadily rising food price inflation.

FAO 2011 October Food Index down, food prices still up, what’s going on?

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FAO has released its Food Price Index for October 2011, saying the index has dropped dropped to an 11-month low, declining 4 percent, or nine points, to 216 points from September. Indeed the index has dropped, declined and has certainly not risen. But does this mean food prices for the poor in many countries, for labour, for informal workers, for cultivators too – has the cost of food dropped for any of them?

The answer is a flat and unequivocal ‘No’. FAO has said so too: “Nonetheless prices still remain generally higher than last year and very volatile.” At the same time, the Rome-based food agency has said that the “drop was triggered by sharp declines in international prices of cereals, oils, sugar and dairy products”.

The FAO has said that an “improved supply outlook for a number of commodities and uncertainty about global economic prospects is putting downward pressure on international prices, although to some extent this has been offset by strong underlying demand in emerging countries where economic growth remains robust”.

Once again, the FAO is speaking in two or more voices. It should stop doing so. A very small drop in its food price index does not – repeat, does not – indicate that prices for food staples in the world’s towns and cities has dropped and people can afford to buy and cook a square meal a day for themselves and their children. Not so at all.

I am going to contrast what FAO has said about its October food price index with very recent reportage about food and food price conditions in various parts of the world.

FAO: “In the case of cereals, where a record harvest is expected in 2011, the general picture points to prices staying relatively firm, although at reduced levels, well into 2012. International cereal prices have declined in recent months, with the FAO Cereal Price Index registering an eleven month-low of 232 points in October. But nonetheless cereal prices, on average, remain 5 percent higher than last year’s already high level.”

Business Week reported that rising food prices in Djibouti have left 88 percent of the nation’s rural population dependent on food aid, the Famine Early Warning Systems Network said. A ban on charcoal and firewood production, which provides about half of the income of poor people in the country’s southeast region, may further increase hunger, the Washington- based agency, known as Fewsnet, said in an e-mailed statement today. Average monthly food costs for a poor urban family are about 33,907 Djibouti francs ($191), about 12,550 francs more than the average household income, Fewsnet said. Urban residents in the Horn of Africa nation don’t receive food aid, it said.

FAO: “According to [FAO’s November 2011] Food Outlook prices generally remain ‘extremely volatile’, moving in tandem with unstable financial and equity markets. ‘Fluctuations in exchange rates and uncertainties in energy markets are also contributing to sharp price swings in agricultural markets,’ FAO Grains Analyst Abdolreza Abbassian noted.”

A Reuters AlertNet report quoted Brendan Cox, Save the Children’s policy and advocacy director, having said that rising food prices are making it impossible for some families to put a decent meal on the table, and that the G20 meeting [currently under way in Cannes, France] must use this summit to agree an action plan to address the food crisis. Malnutrition contributes to nearly a third of child deaths. One in three children in the developing world are stunted, leaving them weak and less likely to do well at school or find a job. Prices of staples like rice and wheat have increased by a quarter globally and maize by three quarters, Save the Children says. Some countries have been particularly hard hit. In Bangladesh the price of wheat increased by 45 percent in the second half of 2010. In new research, Save the Children analysed the relationship between rising food prices and child deaths. It concluded that a rise in cereal prices – up 40 percent between 2009 and 2011 – could put 400,000 children’s lives at risk.

FAO: “Most agricultural commodity prices could thus remain below their recent highs in the months ahead, according to FAO’s biannual Food Outlook report also published today.  The publication reports on and analyzes developments in global food and feed markets. In the case of cereals, where a record harvest is expected in 2011, the general picture points to prices staying relatively firm, although at reduced levels, well into 2012.”

IRIN News reported that food production is expected to be lower than usual in parts of western Niger, Chad’s Sahelian zone, southern Mauritania, western Mali, eastern Burkina Faso, northern Senegal and Nigeria, according to a report by the World Food Programme (WFP) and the Food and Agriculture Organization (FAO), and a separate assessment by USAID’s food security monitor Fews Net. “We are worried because these irregular rainfalls have occurred in very vulnerable areas where people’s resilience is already very weakened,” said livelihoods specialist at WFP Jean-Martin Bauer. Many Sahelian households live in a state of chronic food insecurity, he said. “They are the ones with no access to land, lost livestock, without able-bodied men who can find work in cities – they are particularly affected by a decrease in production.” A government-NGO April 2011 study in 14 agro-pastoral departments of Niger noted that pastoralists with small herds lost on average 90 percent of their livestock in the 2009-2010 drought, while those with large herds lost one quarter. Those who had lost the bulk of their assets have already reduced the quality and quantity of food they are consuming.

FAO: “Food Outlook forecast 2011 cereal production at a record 2 325 million tonnes,  3.7 percent above the previous year. The overall increase comprises a 6.0 percent rise in wheat production, and increases of 2.6 percent for coarse grains and 3.4 percent for rice. Globally, annual cereal food consumption is expected to keep pace with population growth, remaining steady at about 153 kg per person.”

The Business Line reported that in India, food inflation inched up to 11.43 per cent in mid-October, sharply higher than the previous week’s annual rise of 10.6 per cent, mainly on account of the statistical base effect of the previous year. Inflation in the case of non-food items and the fuels group, however, eased during the latest reported week. According to data released by the Government on Thursday, an increase in the year-on-year price levels of vegetables and pulses contributed to the surge in the annual WPI-based food inflation for the week ended October 15, apart from the base effect. Sequentially food inflation was up 0.25 per cent.

FAO: “The continuing decline in the monthly value of the FAO Cereal Price Index reflects this year’s prospect for a strong production recovery and slow economic growth in many developed countries weighing on overall demand, particularly from the feed and biofuels sectors.”

Al Ahram reported that Egyptian household budgets had mixed news in September with prices for some basic foods tumbling month-on-month and others showing small climbs, according to state statistics agency CAPMAS. Figures released this week show the price of local unpacked rice fell 15.6 per cent to LE4.96 per kilo between August and September 2011. It was the commodity’s first decline in nearly a year, although the per kilo price remains 68 per cent higher than the LE2.95 that rice cost in October 2010. Chicken also fell 5.8 per cent to LE16.26 per kilo between August and September. Other staples, however, continued to rise; the price of potatoes climbed 14 per cent to LE4.89 per kilo, while a kilo of tomatoes gained a monthly 14.8 per cent to cost LE4.65.

Floating candy, micro loans and Chinese tomatoes

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One week of food for the Casales family in Mexico (Menzel and D'Aluisio, 2005)

One week of food for the Casales family in Mexico (Menzel and D'Aluisio, 2005)

This eclectic selection of reports does have one common theme. And that is a measure of desperation. The global triple crisis – that of finance and credit, of climate change, and of food and hunger – has pushed the poor to desperation, but it has also pushed companies and institutions to desperation. Desperate measures is what links the stories of a floating supermarket in Brazil, normally safe microloans going bad, fertiliser overuse in north India and Chinese tomatoes in Italy.

1. Nestlé’s ‘floating supermarket’ makes its voyages under Amazon skies. The ‘Terra Grande’ vessel is an investment by the Swiss food group designed to reach isolated riverside communities in the Amazon region. The vessel is designed to enhance Nestle’s reach among the lower income consumers that make up a core part of its market. The company has been in Brazil for 89 years and products like its powdered milk are staples among Brazil’s poorer consumers. As the economy continues to grow quickly, Nestlé is hoping that rising incomes among the poor will bring its higher priced goods within their reach, too.

2. Microfinance markets in Nicaragua, Morocco and Pakistan have seen default levels climb to more than 10 percent, the threshold that marks a “serious repayment crisis,” according to a February report from Washington, D.C.-based policy and research firm Consultative Group to Assist the Poor. Delinquencies in Bosnia and Herzegovina stayed below that level only because of “aggressive loan write-offs,” the report said. While there has been no evidence of a “widespread repayment crisis” in India, “a number of industry analysts have highlighted industry vulnerabilities,” the report said.

Here is a slice of Bloomberg’s reportage on the problem in India: “Savita Ramesh Rathore stood at the door to her dimly lit workshop in Mumbai’s Dharavi slum, filled floor-to-ceiling with bundles of old clothes, and tallied up the cost of her son’s wedding last year. ‘Jewels, clothes, food, the town hall,’ said Rathore, 50, who makes towels from discarded clothes. She borrowed 30,000 rupees ($645) from moneylenders charging 60 percent interest and took additional loans from friends to pay for the wedding. Three months ago, she got a 10,000 rupee loan from urban lender Hindusthan Microfinance Pvt. to repay some of that debt.”

One week of food for the Ayme family in Ecuador (Menzel and D'Aluisio, 2005)

One week of food for the Ayme family in Ecuador (Menzel and D'Aluisio, 2005)

3. A new study by Greenpeace Research Laboratories shows that agriculture in Punjab is on the brink of an ecological catastrophe, the result of the overuse of highly-subsidised synthetic nitrogen fertilisers by farmers striving to step up their output. Dr Reyes Tirado, a scientist from the University of Exeter, sampled wells in 50 villages in the areas of Muktsar, Bhatinda and Ludhiana, and found that 20 per cent had nitrate levels above the World Health Organisation recommended safety limit of 50 mg per litre.

Farmers are aggressively using the nitrate fertilisers with the aim of boosting their annual yield. But scientists warn that this overuse is gradually exhausting the soil, which will eventually leave it unfit for food production. PepsiCo, the cola company which also makes potato chips, sources potatoes from farms in Ludhiana, and lost no time in claiming fatuously that it encourages its agricultural suppliers to use less nitrogen-based fertilisers.

4. Italy’s agriculture minister declared “We will defend the Italian tomato” in response to reports by Coldiretti, an agricultural association, that Italian imports of Chinese tomatoes had soared by over 170 per cent in the past year and now made up 10 per cent of the country’s processed tomato market. Chinese tomatoes are being imported into Italy for processing into paste and then re-exported with an Italian label to countries like Ghana which buys about 28,000 tonnes from Italy each year. Chinese exports of food and drink to the EU have doubled over the past decade, reaching 3.2bn euros in 2009.