Market Information 2012 - 2013

Argentina, a leading food producer and exporter

At present, the country makes up one of the most important economies of South America and it is the third place after Brazil and Mexico in Latin America. Worldwide, it is strategically positioned thanks to its renown regarding soil conditions, productivity, quality, innovation, agro-industrial capacity and qualified human resources.

The vast fertile land, exceptional ecological conditions, high levels of productivity, highly skilled human resources and developed agro industrial capacity make our country one of the leading producers and exporters of food worldwide.

The Argentine food industry is consolidated; in fact, the incorporation of biotechnology highlighted the industry due to its differentiated and great value added products. It is on ideal conditions to supply the strong global demand in the following market segments: vegetal oils; cereals and milk products; meat, fish and seafood; fruit and vegetables and dairy products.
 
In the second quarter of 2011, the food and beverage industry grew 4.2% per year, thus employing 71% of its total installed capacity and with a 5.3% financing of the economy´s total credit. Exports were around US$ FOB 7.480 millions, which equals 11,439,000 tons. Imports, in turn, reached US$ 323 million.

In the first ten months of 2011, the trade balance grew 25%; which indicates that for the end of the year it will surpass eighty thousand million dollars. The main component of exports is the set of the agro industry which justifies almost 60% of the total. This includes primary products and agricultural and livestock manufactured products, covering processing and production.

The industry of food and beverage:

• Represents 25% of the industrial GDP.
• Concentrates 4.6% of formal employment.
• Centralizes more than 500,000 direct jobs.
• Mainly exports to Brazil and the Netherlands and to a lesser extend to Spain, Italy, Iran, India and Chile.

Positive aspects of the sector

• New market segments to be exploited: gourmet food, organic food and healthy food.
• Increase of food world demand due to an increase in population and appearance of new high purchasing power consumers.
• Potential destinations for agricultural foreign trade: Brunei, Egypt, United Arab Emirates, Morocco, Singapore and Thailand.
• Favourable possibilities for agricultural products foreign trade: South-East Asia, countries of Persian Gulf and North of Africa.

- Sources: COPAL; DEFIBE; Diario Clarín; Diario La Nación; ElRural.com; Secretaría de Agricultura, Ganadería y Pesca (Alimentos Argentinos) and Subsecretaría de Desarrollo de Inversiones del Ministerio de Relaciones Exteriores, Comercio Internacional y Culto.