Tea, mate, and coffee are part of the daily consumption habits of almost all the Argentine population. The first two are produced and processed locally, while coffee is manufactured from imported raw material. The report below outlines the three infusions in Argentina, and their production and market prospects.

• The raw material are the buds and tender leaves of the tea bush, which are then processed according to various techniques so as to obtain different types of tea (black, green, red, and white).
• Tea is sold in a variety of forms - loose tea, tea bags, or compressed tea, among others.
• Apart from the manufacturing process, the quality characteristics of the end product depend on the botanical varieties, cultivation techniques, and picking time and method.
• Argentina’s tea growing area is the southernmost location in the world, and produces mostly black tea. Tea production is mainly for export, and its properties are acknowledged worldwide.

Tea and mate are part of the daily consumption habits of Argentine population. The report below outlines the two infusions in Argentina, and their production and market prospects.

YERBA MATE (Ilex paraguariensis Saint Hilaire) is a species native to subtropical regions in Argentina, Brazil, and Paraguay. Its consumption in Argentina and neighboring countries is a traditional practice, and efforts are currently under way to increase its popularity in the global market.

TEA (Camelia sinensis) is a species originated on the border between China and India, from where it spread to the rest of the world. Today, it is cultivated and consumed in all five continents.

• There are different yerba mate preparations for consumption, which include the typical mate, a special container filled with yerba mate leaves and warm water, with a bombilla or mate straw to sip from.
• On very hot days, mate may be poured with cold water. This preparation is known as tereré. Also, mate may be drunk in a similar way to tea. The infusion is made with yerba mate in teabags or loose ground form.

PRODUCTION

• World tea production continues to grow: it increased by 23% in the period 2000-2006 due to the larger volumes obtained by the world’s top four producers, China, India, Kenya, and Sri Lanka.
• During those years, China’s production rose by 49%, India’s by 8%, Kenya’s by 31%, and Sri Lanka’s by 2%.
• Global projections indicate that this trend will continue.

• Tea is grown in about 50 countries worldwide, although more than half of the tea production comes from India and China.
• Ten countries hold 91% of total production. Argentina ranks ninth among he largest tea producers worldwide.
• Argentina’s tea production followed the global uptrend. From 2000-2006, the country’s tea crop increased by forty-two per cent, 19% above the rise in world production.
• Taking into account Argentina’s production in 2007, which totaled 79,716.05 tons, the increase since 2000 amounts to 50%.

• Improvements in cultural practices, the introduction of high-yield clone plantations, and a sustained foreign demand are some of the key drivers for such a marked growth in Argentina’s tea industry.
• In Argentina, tea is harvested from October through May, in a fully automated manner, unlike the primary world producers, where tea is picked manually and almost all year round.
• The Argentine tea stands out for its color features that enhance the various blends, and for the clear beverage obtained. This property is kept both in the case of hot and iced tea.

EXPORTS

• Considering tea, yerba mate, and coffee together, tea is the most exported infusion. In 2007, it accounted for 67.9% and 63.6% of the total export volume and value, respectively.
• Argentina exports around 95% of its tea production, the USA and Chile being its major markets.
• Starting in 2000 with 50,072.5 tons, Argentina’s tea export volume rose to 75,203 tons in 2007, i.e. a 50% increase.

• These transactions generated a 44% revenue increase for the same period. In 2007, tea exports amounted to USD 55.5 million as against USD 38.5 million in 2000.
• Tea exports mostly consist of black tea, as green tea only averages 1.04% of total exports. In 2004, it reached its largest share (2.4%), to account for 1% of exports in 2007.
• Argentine tea is exported to several destinations. In the period 2000-2007, it was sold to an average of 39 countries, which proves both the product’s global presence and the search for new markets by the Argentine tea sector.
• The USA and Chile remain as leading destinations in terms of volume and value. In 2007, both countries accounted for 88.9% and 87.7% of the total export value and volume, respectively, followed by Germany, the Netherlands, and the UK.
• The average export price for that year was USD 0.74 FOB/kg., although each destination country paid a different price. The USA, Argentina’s major destination market, paid an average of USD 0.85 FOB/Kg. The average price of tea exported to Chile was lower, at USD 0.46 FOB/kg.

IMPORTS

• Argentina is a net tea exporter, considering that imports are significantly lower than exports. In the period 2000-2007, imports were never above 2% of the export volume.
• In 2007, imports amounted to 1,489.9 tons for a total value of USD 442,770.4 CIF. This represented a 39% increase by volume and a 46% growth by value compared to the previous year.
• Argentina imports tea from several origins. From 2000 to 2007, it purchased tea from 19 different places. The major sources from which Argentina buys tea every year are China, India, Sri Lanka, Brazil, Chile, and the UK.
• In 2007, China remained as the leading source country, followed by Brazil, Sri Lanka, Chile, and the UK.
• Total tea imports for 2007 included 65.3% of black tea and 34.7% of green tea, which followed a similar pattern as in the previous year.

PRODUCTION

• Yerba mate is consumed in nearly all Argentine households, as well as in working and learning environments.
• It is grown for business purposes only in Argentina, Brazil, and Paraguay, which, coincidentally, are also the yerba mate natural growing areas. Our country is the world’s largest producer and exporter.
• The harvested green leaves provide the raw material for the yerba mate.
• Taking into account location, type of raw material, and prevailing business structure, among other features, the National Yerba Mate Institute (INYM as per its Spanish acronym) has identified six areas in the yerba mate producing region, five of which are situated in Misiones province and one in Corrientes province.
• The central area, made up of the Cainguás, 25 de Mayo, Oberá, Leandro N. Alem, and San Javier Departments, in Misiones province, produces the largest volumes of raw material, followed by the northeastern area comprising Gral. Manuel Belgrano, San Pedro, and Guaraní.
• The performance of the Corrientes area is worth noting, since in the 2005-2007 period its share in the total volume produced increased by over 24%.
• The traditional harvest of the yerba mate green leaves takes place from April through September, although smaller amounts are picked during the spring-summer months.
• The volume of green leaves delivered at the dryers, the first step in yerba mate processing, declined by 2% in the 2007 6-month harvest period, as compared to the same semester of the previous year.
• However, when considering the total volumes delivered in 2007 (691,786.4 tons), a slight recovery of 0.5% is noted as against the previous year.
• Argentina is also endeavoring to increase differentiation in such a typically local product. In this sense, the first yerba mate quality protocol has been approved. Facilities complying with these standards are awarded the “Alimentos Argentinos, una elección natural” (Argentine Foods, a natural choice) quality seal. Las Marías is the first company to have certified under this standard.

EXPORTS

• Given the high domestic consumption, yerba mate exports account for 10-15% of total production.
• In 2007, the export volume totaled 35,238 tons, valued at USD 30.35 million FOB.

• These figures show a decline of 14% by volume and a 20% recovery by value as against 2000. However, when 2007 values are compared to those of the previous year, a rise in both volume and value is observed (20% and 25%, respectively).
• Export destinations of Argentine yerba mate have expanded. Starting with a total of 37 buying countries in 2000, this figure has increased to 47 during 2006 and 2007.
• This shows the intention of the Argentine yerba mate sector to seek new markets, and the product’s great export potential in numerous markets worldwide.

Country 2007 Siria 56,5% Chile 9,9% Brasil 16,9% España 2,3% EE.UU. 2,0% Líbano 2,5% Uruguay 5,5% Paraguay 0,1% Other 4,3%		Percentage Share by Volume Country 2006 2007 Siria 57,3 56,5 Chile 12,7 9,9 Brasil 11,6 16,9
..Source: National Food Administration based on DGA, AFIP.

• Syria remains the major destination, followed by Chile and Brazil. In 2007, these three countries accounted for 83.3% and 78.3% of the total export volume and value, respectively.
• It is interesting to note that, during 2007, total yerba mate exports to Syria consisted of ground yerba mate, shipped both in bulk and in bags.
• The bulk product exported is packed in Syria, a customary practice in this country with policies oriented to providing employment to local labor.
• On the other hand, nearly all the yerba mate exported to Brazil was yerba mate canchada (i.e., dried and coarsely chopped), as Brazilians, unlike Argentines, process it to obtain a less mature, more finely ground final product.
• Most of the yerba mate bought by Chile is ground.

IMPORTS

• Yerba mate imports from foreign markets are negligible as compared to the exported volumes.
• In 2000, 957.5 tons were imported, which represents the largest imported volume for the period under review (2000-2007).
• Import volumes subsequently decreased until 2003, with 62 tons, and then picked up in the following years, amounting to 83.1, 119.6, 280.3, and 441.2 tons, respectively.
• Despite these small volumes, the upward trend has been maintained since 2003.
• Imports came from Brazil, Uruguay, and Paraguay.

INFUSION IN ARGENTINA – FUTURE PROSPECTS

The infusion producing sector in our country has a markedly favorable horizon.

Locally, a series of improvements have been introduced to the production, processing, and marketing stages, both in the tea and yerba mate sectors. The players in both production chains have endeavored to make cultural improvements and to enhance the quality of their end products with a view to positioning themselves in new markets and becoming consolidated in traditional ones.

Witness to this is the interest shown by yerba mate and tea manufacturing and processing companies which have drafted quality protocols for both products within the framework of the “Alimentos Argentinos, una elección natural” quality seal .In the former case, the protocol has already been approved, while in the latter, it is under development.

At the international level, the consumption of beverages in general and of infusions in particular is going through a dynamic period, with a trend toward natural products.

Actions of interest for expanding the infusion sector include the following:

• Yerba mate: development of new presentations adapted to the preferences of new markets.
• Tea: promotion of domestic consumption, both as a hot and cold infusion, seeking to increase consumption during warmer months.