Market Trends of Argentina Fruits & Vegetables Industry
Increasing government initiative to boost the production and Export
- The government of Argentina extensively supports the production of fruits and vegetables. The ultimate goal of the Argentinian government is to support its regional rural economies and to boost the production and export of fresh produce. In March 2020, the government announced adjustments to its export tax regime, according to which the tax rate for the export of most of the fruit and vegetable produce was 5%.
- The removal of export taxes significantly impacted the international markets, making the county's fresh produce highly competitive. In addition, the government established a 7.0% export rebate for most of the fresh and deciduous fruits shipped from the ports of Buenos Aires. The export taxes adjustment on many specialty crops, including apples, pears, citrus fruits, blueberries, seeds, and alfalfa, intended to improve the international competitiveness of these products.
- The government provided funds to the provinces of Rio Negro and Neuquen for various programs related to plant health issues to increase production. The Government of Argentina also supports the fruit sector under the Agricultural Emergency Law by providing tax deferrals to struggling producers, among other benefits. With the new government administration, exports are gradually reaching their previous levels, expected to drive the fruits and vegetable market during the forecast period.
Understand The Key Trends Shaping This Market
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Grapes to Dominate the Argentine Fresh Produce Sector
- Grape production in Argentina was reported at 2,055.7 thousand metric tons in 2020 and 2,241.4 thousand metric tons in 2021. The terroir of Argentina is unique compared to the rest of the world and differs slightly around the country. Being located next to the mountains offers Mendoza the benefit of high altitude.
- Not only does this translate to direct sunlight, but the snow from the Andes is a great source of clean, pure water that can hydrate the vines. Additionally, the high altitude makes it difficult for viruses and fungal diseases to survive on vines, allowing for increased cultivation and better grape yields annually.
- Besides protecting from phylloxera, rootstocks confer resistance to nematodes and salinity and can control the vines' vigor in the vineyard. Consequently, more vineyards in Argentina are planted with grafted vines, especially in Mendoza's newer and more sophisticated growing regions. The market attractiveness of grapes, especially in the form of raisins and fresh juices, will likely intensify fresh grape production in the coming years.
- Grapes offer many health benefits, including lowering blood pressure, improving memory and mood, and protecting against infections. The major driving factor of the production is the increasing consumption of grape products owing to the rising awareness about its health benefits and improving demand for wine.
