In the period 1998-2007, the world pear production increased by 30%, while apple production remained stable, and so did the exports of both fruits. In 2007, the world fresh apple and fresh pears production totaled 47 million tons and 17 million tons, respectively. World exports, on the other hand, reached 5 million tons (apples) and 1.6 million tons (pears).

• China leads the world production of fresh pears and apples, accounting for over 50% of the total volume. Additionally, it is the No. 1 fresh apple exporter, but only contributes 20% of the world supply, followed by Chile and Italy, which together account for 30%.
• Argentina only surpasses China in world fresh pear exports, ranking first with 30% of supply. This position has been earned by the regular supply of well-known quality varieties enjoying good market acceptance, such as the Williams and Packham’s Triumph pears.
• Moreover, Argentina is the major pear producer and exporter in the Southern Hemisphere.
• The world demand for pome fruit is led by Russia, which has become a major consumer in recent years.
• Apple and pear global import and processing are mostly concentrated in the Northern Hemisphere, while countries in the Southern Hemisphere play a more prominent role as suppliers.
• Thirty percent of the world apple production goes to the processing industry, of which half is in turn crushed to obtain juice concentrate.
• Only 10% of the world pear production is processed. Canned pears are the main by-product, followed by juice concentrates.
• With half the world volume, China also leads the apple juice concentrate production and export, while the USA and Argentina manufacture 90% of the pear juice concentrate.
• These are 70° Brix concentrate products (degrees Brix measure sugar concentration), which in the case of apple juice are mainly used as sweeteners by carbonated soft drink manufacturers. Pear juice, on the other hand, is mostly used to manufacture juices for direct consumption.

DOMESTIC PRODUCTION

• Argentina produces 1.8 million tons of pome fruit, of which 60% corresponds to apples.
• Between 1998 and 2007, the domestic pear production increased by almost 40%, mainly due to technological investment and new pear orchards. This scenario contrasts with the sharp y-o-y fluctuations in apple production, which in some periods exceed 20%.
• The apple and pear growing area is located in the Alto Valle (Upper Valley) of Río Negro and Neuquén Province, and in the Valle Medio (Medium Valley) of Río Negro Province, which concentrate 80% of production.
• The remainder is grown in the Uco Valley (Mendoza Province). Other less important areas include 25 de Mayo (La Pampa Province), and the Tulum Valley (San Juan Province).
• It is estimated that there are 27,175 hectares (67,150.88 acres) of apple and 22,028 ha (54,432.37 acres) of pear orchards.
• Apple and pear growers (around 4,000) are associated in a Federación de Productores de Frutas de Río Negro y Neuquén (Federation of Río Negro and Neuquén Fruit Growers), while in Mendoza Province the most representative organization is the Cámara de Comercio, Industria y Agricultura de Tunuyán (Tunuyán Chamber of Commerce, Industry, and Agriculture).
• In the valley of Río Negro and Neuquén and the middle valley, 50% of the farms have a surface area of less than 10 ha (24.7 acres), while in Mendoza Province farms of this kind represent 90%.
• Sixty-five percent of the domestic apple harvest corresponds to the Red Delicious variety and clones; 15% corresponds to Gala and clones, with the same percentage for Granny Smith. The remaining 5% is divided up among Pink Lady, Rome Beauty, Golden Delicious, Fuji, and Braeburn varieties.
• Although still in an initial stage, a change of variety (especially through Gala) is under way in view of the preferences in the global marketplace.
• With regard to the pear varieties grown, 45% of the total volume corresponds to Williams and 30% to Packham’s Triumph. These are followed by Beurre D’Anjou (10%), Red Bartlett (6%), and Abate Fetel (2%). The remaining percentage includes Beurre Bosc, Beurre Giffard, Clapps Favourite and Red Beurre D’Anjou.
• The pear harvest starts at the beginning of January and ends in mid-March, while the apple harvest extends from late January through mid-April.
• A tentative harvest schedule is defined by the National Service of Agricultural Food Quality and Health (SENASA as per its Spanish acronym) (Resolution SAG No. 554/83 and Resolution ex IASCAV No. 203/93), based on the optimal ripeness of fruit, and it changes with each variety.
• Growers and/or packers must request permission at the local SENASA delegations prior to harvesting.
• Fifty percent of growers are independent and are only involved in the first sale stage of the product. Those who are fairly integrated (i.e., they pack and market their production) account for 30% of the total and have greater bargaining power.
• The remaining percentage corresponds to fully integrated growers who, in addition to having cutting-edge technology throughout the production chain, control exports.

Production Destination (%)

• The codling moth (Cydia pomonella) or “apple and pear maggot” is the pest that inflicts the most severe damage to these fruits and hence to the regional economy. Apart from the direct losses caused by damaging the fruit, the pest also limits access to new markets and to traditional destinations such as Brazil, which has imposed quarantine restrictions.
• The SENASA, jointly with the Plant and Animal Health Commission of the FunBaPa (Patagonian Zoo- and Phytosanitary Barrier Foundation, have developed a pest control program aimed at reducing pest damage below a threshold level that may ensure the competitiveness of fruit produced in the region for trading purposes.
• Mendoza Province, through the Iscamen (Instituto de Sanidad y Calidad Agropecuaria, Farming Health and Quality Institute), has a pest alert system in place.
• Cultural practices account for 50% of apple and pear growing costs, while harvesting accounts for another 20%.
• Owing to the type of variety sold and the quality of fruit for fresh consumption, the markets for these fruits are very different.
• Pear production, favored by the excellent quality of the Williams variety, mostly goes to fresh consumption, and particularly to exports.
• As to apple production, 50% of the crop goes to the processing industry due to the scarce Argentine supply of the varieties most demanded by international customers, and to the high percentage of fruit failing to meet the fresh market quality standards. Eighty percent of the processed volume is crushed to obtain juice concentrate.

PACKING

• In the Alto Valle and Valle Medio region, and in Mendoza Province, a network of agro-industries has been set up for the manufacture of juice concentrate, cider, dehydrated and canned fruit, dehydrated pulp, and liqueurs.
• Juice concentrates are produced by concentration of juice from several apple or pear varieties. Manufacture takes place mostly from January through May.
• Argentina’s production of apple juice concentrate averages 60,000 tons, while pear concentrate totals only 25,000 tons per crop season.
• Variations in juice concentrate production are a direct function of the availability of fruit for crushing and of international juice prices.
• The industry uses 6.7 kg (14.77 lb.) of apples, on average, to obtain 1 kg (2.20 lb.) of juice concentrate, while for pears, the ratio is 7.4 kg (16.31 lb.) to 1 kg (2.20 lb.).
• There are two types of concentrates – clear concentrate (70°-71° Brix) used in the juice and carbonated drink industry, and cloudy concentrate (60° Brix) for making juices and nectars.
• The product is stored in 307 kg (676.81 lb.) plastic or metal drums or, most often, in wooden bins with a net capacity of 1,535 kg (3384 lb.). In both cases, the juice is kept in a polyethylene bag.
• There are 10 juice concentrate manufacturers, mainly SMEs, operating 11 industrial plants, most of which are members of the Cámara Argentina de la Industria y Exportación de Jugos de Manzana, Peras y Afines - CINEX (Argentine Apple and Pear Juice and Related Products Export and Industry Association), headquartered in Cipolletti (Rio Negro Province).
• The installed capacity is approximately 100 thousand tons, which due to the seasonal nature of production is idle most part of the year.
• The juice sector provides employment to 1,000-1,100 skilled workers.
• In the last decade, the investment of fruit juice companies was focused on process streamlining. The technology used is of Italian and American origin.
• Fruit is the factor with the strongest incidence on juice concentrate production costs, followed by enzymes (imported from Germany and France), and packaging.
• Apple and pear essences are by-products recovered during the concentration of apple and pear juice, and they are sold separately. They represent between 0.5% and 1% of juice concentrate production and are used by the beverage and perfume industries.
• Another by-product obtained is dehydrated fruit of excellent quality that satisfies the most demanding markets.
• Dehydrated apples and pears are sold in a variety of presentations (small dice, slices, dice with peel, wedges, segments, dice without additives, and powder), and are vacuum-packed in bags of 10 kg (22.04 lb.), 12.50 kg (27.55 lb.), or 22.68 kg (50 lb.), which are in turn placed in cardboard boxes.
• The product has a variety of uses – confectionery, breakfast cereals, snacks, food services, and dairy industry, among others. There are 2 companies manufacturing 1,400 tons of dehydrated apples per year, obtained from the Granny Smith and Red Delicious varieties. On the other hand, less than 1,000 tons of dehydrated pears are produced per year, mainly made from the Williams variety.
• Cider is another apple by-product, and the Argentine Food Code allows an addition of up to 10% of pear juice concentrate to the end product.

• In 2007, Argentina exported 283,000 tons of fresh apples and 454,000 tons of fresh pears, which represented USD156 and USD269 million in foreign currency inflow, respectively.
• In the period 1998-2007, fresh pear exports were the largest growth category (60%), showing an uptrend, just like apple exports, which increased by 25%.
• Russia, a member of the CIS (Commonwealth of Independent States), and Brazil concentrate nearly 50% of Argentine fresh apple and pear exports. However, as far as regional trade blocs go, the main destination is the European Union, with 35% and 40% of the total supply, respectively.

• With regard to fresh pears, the USA is the third most important buyer, accounting for 15% of Argentine exports.
• Additionally, although volumes are still rather low, fresh pear shipments to Mexico have been growing steadily since 2001, when import tariffs were eliminated for Argentine exports.
• Unlike the Alto and Medio valley region, the fresh apple and pear production from Mendoza mostly goes to the domestic market and the Mercosur bloc.
• In relation to exports by variety, the Red Delicious apple is mainly exported to Brazil and Russia, while the Gala type is generally sent to the European Union and Russia. Russia is also the most avid market for Granny Smith green apples.
• The main buyers of Williams pears are the European Union and Brazil, while the Packham’s Triumph variety is also sold to these markets and to Russia.

• The categories exported are “premium”, “choice”, and “commercial” grades (Resolution SAG No 554/83).
• Six exporters sell 50% of the total volume. Some are fully integrated, right to the shelves, as a result of their partnering with foreign companies that own retail chains in the European Union.
• Most fruit shipments to overseas destinations (Russia, the European Union, and the US) are exported through the ports of San Antonio Este (SAE), in Rio Negro Province, and Buenos Aires, while land shipments to Brazil are made through Santo Tomé (Corrientes Province) and Bernardo de Irigoyen (Misiones Province).
• SAE is a port specializing in fruit shipments due to its closeness to the growing areas (450 km/281 miles).
• From March through June, fruit is shipped to the European Union, with most cargo being handled in the first two months. During the second half of the year, there are more exports to Brazil. This sale pattern serves to offset labor seasonality.
• The Rotterdam and Hamburg markets are the gateways to the European Union; in Brazil, fruit is sold through the Sao Paulo and Porto Alegre wholesale markets.
• During the 2002-2003 crop year, a Risk Mitigation System (RMS) was implemented for all fresh apple and pear exports to Brazil. This scheme consists in sampling on-farm and at packing, as well as registry and inspection of final pack. Plant health officials from both countries participate and the aim is to certify the absence of live Carpocapsa (codling moth) larvae.

• Ninety-five percent of the Argentine apple and pear juice concentrate production is exported, basically to the USA, thus supplying more than 30% of the American market demand for clear juice concentrate. Philadelphia is the port of entry.
• As is the case with the fresh category, processed exports are made through the Port of San Antonio Este.
• Two companies account for 70% of total exports, while the first four account for 90% of shipments. From December through January, some exporters gather to arrange the chartering of vessels. However, no association has been set up to sell the product.
• In addition to the traceability requirements, HACCP, and good manufacturing practices (GMP) already imposed by the USA, the Bioterrorism Act was enforced in December 2004.
• The increase in global supply (especially as a result of China’s soaring growth as a producer and exporter) poses further challenges for Argentina in terms of quality requirements and the need to find new ways of cutting down costs.
• The USA imports 70% of Argentina’s dehydrated apple production, and together with the United Kingdom and Chile, accounts for 65% of Argentine dehydrated pear exports.
• Only 3% of canned pears go to the global market, with the USA being the main buyer.

• Fruit for the domestic and Brazilian markets is shipped by land. In the first case, reefers or temperature-controlled trucks are used for transporting 1,000 boxes each, equivalent to 20 pallets. In some cases, trucks are used that are not fitted with temperature control systems; these are covered with tarpaulins, sometimes insulated, which could result in impaired fruit quality.

• Shipments to Brazilian market destinations are adequately refrigerated. Vehicles have greater capacity as they can load 1,200 boxes (22.8 tons). Freight services in the Mercosur bloc are largely outsourced, with a majority of Brazilian carriers.
• Fruit exported to the European Union and the USA is shipped through different maritime transportation services, such as TEU 20’ containers with a capacity of 10 pallets, or FEU 40’ containers with a capacity of 20 pallets.
• A standard cargo hold is mostly used for transporting fruit in pallets.
• Juice concentrate is transported on reefers at 0°C (32 °F) for clear juice concentrate, and at -20 °C (-4 °F) for cloudy juice.
• The dehydrated product is transported in standard cargo holds at room temperature, by ship or truck depending on the country of destination.
• As from March 2002, the EU is implementing FAO ISPM–15 (ISMP - International Standards for Phytosanitary Measures), which rule on the treatment required for wood packaging material including dunnage used in international trade.
• Pursuant to Resolution 626/03, the Secretariat of Agriculture, Livestock, Fishing and Foods (SAGPyA as per its Spanish acronym) has created the Registro Nacional de Centros de Aplicación de Tratamientos a Embalajes de Madera (CATEM) (National Registry of Wood Packaging Material Treatment Centers), which are authorized by the SENASA to apply the heat or fumigation treatments recommended by ISPM-15.
  The table above illustrates the tariffs (in %) imposed on pear and pear by-product exports:

• On average, Argentina consumes 8 kg (17.63 lb.) of fresh apples and 3 kg (6.61 lb.) of fresh pears per inhabitant, per year, which is rather low as compared to China and the European Union. In Argentina, national consumption promotion campaigns are still infrequent.
• Eighty percent of the apples consumed in the domestic market correspond to the Red Delicious variety, 11% to the Granny Smith, and 6% to the Gala type. Argentine consumers’ favorite pear is the Williams (60%), with the Packham’s Triumph accounting for 35%.
• Barely 25% of the domestic supply is sold through the Buenos Aires Central Market. Although this channel is becoming less relevant, it is still seen as a price benchmark.
• In recent years, other markets in the provinces, such as Córdoba, Mendoza, Tucumán, and Rosario, have gained importance.
• A major change has taken place in the apple and pear domestic distribution with the expansion of direct sales to supermarkets and hypermarkets, the upgrading of green grocers, and greater diversity in demand. In addition, retail distributors are applying more stringent requirements regarding quality, health, color, and size.
• The Central Market receives fresh apples and pears all year round, with 50% of the total volume being concentrated from February to June, while apple distribution is more evenly spread. In both cases, there is a supply shortfall between November and January.
• A marked price seasonality is observed – prices plunge to their lowest level in April, coincidentally with larger volumes arriving at the Buenos Aires Central Market, and then rise until their peak in November and December.
• The most common grades for domestic consumption are the “choice” and “commercial” varieties.
• Despite the technological developments, there is still inadequate management and an over handling of goods from the harvest stage down to the shelves.
• The National Food Administration runs courses for retailers and wholesalers, basically on fruit and vegetable post-harvest handling. Also, the importance of customer service is highlighted, taking into account that consumers are becoming increasingly knowledgeable and well -informed.