Argentina produces a broad range of foods required by international markets. It is widely recognized that we basically offer raw material and processed products deemed “standard”; but also, particularly in recent years, there has been an increase in the production and supply of products that often come from regional economies. These products provide an interesting value added and there is a growing demand for them in both domestic and international markets.

STANDARD VEGETABLES (BULBS AND TUBERS)

The revenues from garlic, onion and potato exports taken as a whole amounted to USD 179,926,691 FOB in 2007, with a volume of 345,558 tons. The development of Argentine vegetable exports in recent years has been led by two bulbs —garlic and onion. Both ranked atop vegetable exports in 2007 by volume and value.

Therefore, within standard vegetables, garlic may be regarded as the No. 1 export in terms of foreign currency generation (70%), while onion ranks first in terms of volume (64%).

Moreover, the business strategy for both products has been to maintain current markets while encouraging expansion by diversifying destinations and offering new varieties in line with the changes in global consumption trends.

EXPORTS

GARLIC

  • Argentina has become the major garlic supplier in the Southern Hemisphere and ranks second as global producer. It is worth noting that garlic is mainly exported to MERCOSUR countries, particularly to Brazil, which purchased 62% of the total export volume in 2007 with its customary preference for red garlic.

 

Argentine Garlic Export Evolution by Destination

..Source: National Food Administration based on data of Customs.

 

  • The performance of garlic in recent years shows a continuous increase in the inflow of foreign currency, as well as an increase in the volumes shipped to other countries (Belgium, Spain, USA, Canada, Greece, Haiti, The Netherlands, among others).
  • As shown in the chart above, in 2007 garlic exports (both fresh and powder) exceeded USD 125 million FOB, with an aggregate volume of 120,703 tons. These records exceed those of the previous year by 35% in terms of value and by 21.3% in terms of volume.

ONION

  • Regarding onion exports, Argentina ranks sixth among world exporters.

 

Argentine Onions Export Evolution by Destination

..Source: National Food Administration based on data of Customs.

 

  • As shown in the following chart, Brazil has also been the major destination, since it accounted for over 50% of shipments during the period under review (2000-2007).
  • In 2007, onion exports (both fresh and dehydrated) amounted to 216,988 tons worth USD 54,589,000 FOB, i.e. 10% less by volume and 28% more in value terms vis-à-vis 2006 figures.

POTATO

  • Potato shipments to MERCOSUR member countries were significant in 2000 when Paraguay accounted for 66% of exports (25,764 tons). Brazil took the lead in 2001, 2004 and 2005 and gained a predominant role as a destination, by importing 50-95% of all potato exports.

 

Argentine Potatoes Export Evolution by Destination

..Source: National Food Administration based on data of Customs.

 

  • During the last two years of the period under review (i.e., 2006 and 2007), Chile has become the No. 1 destination, with 50 to 80% of shipments.
  • Potato exports totaled 7,867 tons (USD 1,520,000 FOB) in 2007. Compared to 2006 records, these figures were 53% lower by volume and 21% higher in value terms, which may be put down mainly to the adverse weather conditions in Argentina, which affected production in 2007.

IMPORTS

  • Garlic imports in 2007 amounted to 347.5 tons, worth USD 355,411 FOB. Over 50% of these consisted of fresh garlic imported from Brazil, Chile and Mexico, whereas processed garlic (garlic powder) came from Germany, Brazil, China, Spain, France and Hong Kong.
  • As to onion imports in 2007, they amounted to USD 5,900,000 FOB and exceeded 30,000 tons, mostly fresh onions (99.55%) coming mainly from Brazil and, to a lesser extent, from Chile. Processed (dehydrated) onion was supplied by several business groups.

 

Argentine Bulb Vegetables Import - 2007

..Source: National Food Administration based on data of Customs.

 

  • Fresh potato imports totaled 13,961 tons in 2007 worth USD 2,570,000 FOB. These values were well above those recorded in 2006 (128 tons) due to the need to satisfy the domestic market demand that had been only partially covered by national production. As with onion and garlic, fresh potato was the No. 1 choice.
  • Major potato suppliers were Brazil (67%), followed by Chile, Uruguay and Canada, which shared the remaining 33%.

 

PREMIUM VEGETABLES (Asparagus, Cabbages & Endives)

Years ago, it would have been unthinkable to have products such as asparagus, cabbages and endives in the Argentine export portfolio. However, an increasingly demanding market eager for attractive, varied and premium products, coupled with the country’s out-of-season production vis-à-vis the Northern Hemisphere, enabled the opening and development of international trade in these items.

EXPORTS

ASPARAGUS

  • Fresh asparagus exports amounted to 323 tons (USD 620,125 FOB) in 2007. The USA and Spain were the major importing countries followed by France, Germany, Switzerland and The Netherlands, among others.

ENDIVES

  • The share of endive exports has increased in the last four years totaling 73 tons in 2007 and USD 128,382 FOB (with an average value of USD 1.75 FOB/Kg).
  • Endives are exported in fresh form, the major destinations being Brazil (63.5%), Chile (27%) and Uruguay (9.5%). There had already been some exports to said countries in January 2008 (11 tons).

 

Argentine High Range Vegetables Export Evolution

2000
2001
2002
2003
2004
2005
2006
2007
Endives(tn) 19,80 5,09 3,50 3,00 68,13 94,57 109,97 73,12
US$ FOB 55.950,00 16.902,00 5.265,00 3.306,00 73.070,00 129.446,00 176.502,00 128.382,00
Cabbages(tn) 87,31 37,65 84,66 49,21 91,53 66,98 74,33 77,38
US$ FOB 18.691,00 7,562,00 9,069,00 4137,00 8951,00 7449,00 7.017,00 39.575,00
Asparagus(tn) 485,69 352,18 752,79 626,75 582,96 665,82 378,95 323,39
US$ FOB 1.100.941,00 725.699,00 1.003.398,00 744.019,00 804.023,00 997.998,00 612.489,00 620.125,00

..Source: National Food Administration based on data of Customs.

 

CABBAGES

  • As to cabbages, exports amounted to 77.38 tons in 2007 (similar to 2006) with a FOB value of USD 39,575. Sixty per cent of these exports consisted of Brussels sprouts, which acquired significance in 2007, since previous export volumes had been smaller. They were all shipped to The Netherlands, for a FOB value of USD 35,000.
  • In the period under review, premium vegetables slowly achieved a significant position in foreign trade, with clearly identified destinations and consolidated transactions.
  • Argentina has been making strong efforts in terms of quality to open its international trade, with innovative cultivation and post-picking techniques.

Nowadays, there are premium vegetable production companies seeking to increase their differentiation. In this context, being awarded the “Alimentos Argentinos, una elección natural” (Argentine Foods, a natural choice) quality seal becomes a business strategy to strengthen their commitments to these destinations, as is the case with fresh green asparagus or endives.

CONSULTED SOURCES

IDR Mendoza – National Customs Administration
Tea and mate are part of the daily consumption habits of virtually all the Argentine population. The report below outlines these infusions in Argentina, and their production and market prospects.

 

...Secretaría de Agricultura, Ganadería, Pesca y Alimentos

...Subsecretaría de Agroindustria y Mercados
...Dirección Nacional de Alimentos

   Ministerio de Economía y Producción - Buenos Aires, Republica Argentina