PRODUCTION OF RAW MATERIALS

• At the beginning of the 90’s Argentina had 17,800 h of olive trees of table olive variety. The most important production area was Mendoza, with 7,500 h of table olive trees, representing over 60% of the national total and corresponding to the Arauco variety, regionally called “Criolla”.
• The other producing regions were La Rioja (2,900 h), Cordoba and San Juan.
• The commonest variety planted was Arauco, in its two ecotypes: “cuyano” (of curved pit and high flesh adherence) and “riojano” (of straighter pit and higher “priscocidad”). The Manzanilla, Empeltre and Changlot Real varieties followed in importance.
• By the mid 90’s, the continuous dry seasons in the Mediterranean area caused the international rise of oil prices, motivating the plantation of olive trees for table olives. This situation was favoured by the implementation of act 22021, of tax deferrals.
• Towards the end of the decade, there was a survey made on olive undertakings compromised to plant over 70,000 h, which 40% corresponded to table olive varieties.
• Towards the end of 2000, Argentina had 13,300 h of modern olive trees planted with table olive varieties, and by the end of 2003, the number exceeded 22,000 h.
• These new plantations incorporate the most advanced technology available at international level, especially in irrigation and ferti-irrigation equipment.
• Almost all monovarietal plantation patches have 330 plants/h.
• One of the most distinctive features of new plantations is that they mainly belong to Manzanilla variety in its different types (Sevilla, Chica, Reina, Aloreña and Gigante), representing over 70% of the planted total of table olive varieties. Among them, the Arauco variety has no relevance at all.
• Another characteristic of this new olive cultivation, is that the production area moved away from traditional centers. Thus, important offer centers of raw materials arouse in the valleys of La Rioja Capital, Chilecito, Catamarca Central Valley and Great San Juan.
• It is expected a change in the offer mix of raw materials in the next future: as the plantations go into a productive system, the Manzanilla olive offer will overcome the Arauco’s and this will make the producers change their elaboration techniques. The processing of Manzanilla olive is more delicate than the Arauco’s as the fine peel of this olive is more sensitive to handling and to alcali exposure.
• As the world market demands black and big olives, it is also feasible that some oil varieties such as Frantoio, Picual, Changlot Real, Nevadillo, Farga and Biancolilla will be used as table olives.
• Although in the last years the offer of raw materials suffered great variations due to climate events, the 2005-06 campaign appears as a national record. It would exceed 100,000 tons and nearly 50% of such would correspond to Manzanilla, therefore, Argentina would become one of the main world production centers of this variety.
• Notice that Argentina has been evidencing real world records in olive production per hectare, and in some cases the values exceed 30,000 k/h of Manzanilla olive.

INDUSTRIALIZATION

• Traditionally, Argentina produced about 50,000 tons of olives in brine, mainly green olives of Arauco variety.
• Other ways of presentation (natural black, Californian black and Greek) represented less than 10% of the total.
• In the last two campaigns, the frost significantly reduced the offer of raw materials, which affected the elaborated quantity. Table olives were elaborated by processing double purpose varieties, especially Frantoio, Picual and Farga, in order to reduce this effect.

• Although initial estimates indicated that for 2010 the quantity of elaborated olive would amount to more than 100,000 tons, doubling the present production, the new estimates imply that this production would be reached in 2005.
• 70% of these 50,000 new tons would be mainly of Manzanilla and Arauco.
• In case of achieving the future production estimates, towards the end of the present decade or by mid of the next one, Argentina would become the fifth world producer of table olives with over 250,000 tons, and one of the most important producers of Manzanilla olive with the Seville method of alcali burning.
• It is important to notice that the avalilability to produce table olives grew together with the production of raw materials. Therefore, in the last campaign, the processing capacity grew to nearly 35 million kilos of olives, that is, 30% of the previous capacity.
• This increase was accompanied by the incorporation of value technology: now the Argentine industry can offer great volumes of unpitted, stuffed, filetted, sliced or paste olives.
• There are over 90 olive processing companies in the country, mainly distributed in the provinces of Mendoza, La Rioja, San Juan and Córdoba.
• The concentration level is very high: four companies total 70% of internal production.
• Furthermore, the possibility of reaching buying markets of olives artificially oxidized by the Californian method, provided that nearly 8% of the national production was of this type of product, which had been practically not elaborated before.
• There are also many small companies with artisan production systems.
• They make products such as spiced Greek olives in olive oil, in brine and olive raisins.
• There is a strong tendency towards the presentation diversification, determining the offer of over 20 different products.

INTERNAL CONSUMPTION

• The internal consumption of table olives is about 13,000-14,000 tons, tending to replace pitted fruit by unpitted.
• The preference for unpitted products masks the internal consumption of olives, as although the consumption seems to be seasonal, it increased due to the replacement of pits by flesh.
• 80% corresponds to green olives in brine. Pitted olives are giving in to unpitted, stuffed and sliced olives.
• The consumption is seasonal and higher in summer. It is associated to the consumption of appetizers, pizzas and spices.
• The commonest containers are bottles of 3,5 k for restaurants and food stores, as well as individual glass containers of different capacity.
• Containers can be of glass, doy packs, permapacks and PET. The commonest net weights are of 125, 250, 500 and 1,000 grams. Bottles, usually for institutional sale, are of 2 and 15 k.
• Brine concentration varies according to the olives destination. In the case of bottles for weight sale, the concentration is higher to guarantee preservation.
• Table olives are classified according to their size, and to the number of units in 1 kilo: Class A (from 80 to 120), B (from 121 to 160), C (from 161 to 200), D (from 201 to 240), E (from 241 to 280) and F (over 280). Extra quality olives can be Class A, B or C.
• According to their flaws (blistered or ringed olives, bumped, smashed, striped or infected) they are classified as: extra quality (up to 8% of flaws), quality I (up to 12%), quality II (up to 30%) and quality III (up to 40%). It is forbidden to sell olives with flaws over quality III.
• Between 60 and 65% are sold in supermarkets. In Mendoza, such percentage is up to 80%.

EXPORTS

• In 2004, the exports of table olives recovered the growing tendency that had been affected by the exit from convertibility.
• This exports increase was accompanied by a slight tendency to different destinations and types of products.
• The principal buyer is Brazil, with nearly 82% of the total, and the second buyer is the United States.
• Of 55,000 exported tons, 7,910 corresponded to products fractioned in containers for direct consumption.
• Among the placements of fractioned products, we must notice the shipments of green pitted olives to Brazil, and slices, filets and paste to the United States.
• The containers which are mainly used are kegs of 3,50 k and bottles of 150 and 180 g.
• The products of less value added are sold in barrels of 150 to 180 k.
• During the past years, there was a growing tendency to export olives not for human consumption to Brazil.
• 80% of foreign sales correspond to green olives of Arauco variety, of medium to small size.
• As the northern region of the country has very high temperatures, the brine concentration must be increased, therefore impairing the placement of the products.
• The possibility of entering alternative markets is restricted by the lack of knowledge and advertising of the Arauco variety in extra-Mercosur countries, and by the establishment of Argentina as producer of Manzanilla olive.
• As new plantations go into production, basically the Manzanilla variety, Argentina will have to get into other markets demanding this type of product.
• And when the new plantations are in full productive process, the country will become the second or third exporter of olives in brine.
• Traditionally, olives imports are insignificant, they are olives stuffed with anchovy paste, garlic, almonds and red and green peppers.

ASSOCIATIONS AND CHAMBERS OF THE SECTOR

Asociación Olivícola de Catamarca (ASOLCAT) asolcat@arnet.com.ar - Asociación Olivícola Argentina (ASOLIVAR) asolivar@ssdenet.com.ar - Asociación de Productores Olivícolas de Traslasierra (APROT) mfmoujan@arnet.com.ar - Cámara Olivícola de Mendoza (COMZA) mariobustoscarra@ccecuyo.com.ar - Cámara Olivícola de La Rioja (COR) camaraolivicola@arnet.com.ar – Cuenca del Pichanas pasoviejo@arnet.com.ar