Expofrut, the Argentinean subsidiary of Belgian produce group Univeg, has apparently decided to cut this season’s fruit production by half compared with last year, or around 6,000 tonnes, according to a report by Tiempo de San Juan.
However, speaking in the Eurofruit, Asiafruit and Americafruit supplement Trade Latin America 2012/13 in May, Expofrut’s managing director Cristian Skou revealed that the company expects to handle 50,000 tonnes of its own apples and pears this year, alongside 75,000 tonnes from third-party producers and 12,000 tonnes of table grapes.
Expofrut’s exports have been in decline since 2005, largely as a result of the unfavourable macro-economic environment in Argentina with high inflation, costs and taxes, which have crippled the country’s exports.
According to figures from Patagonia Norte (operator of the ports of San Antonio Este and Bahía Blanca), Expofrut’s exports this year have totalled 60,000 tonnes, down considerably from 165,000 tonnes in 2005.
Indeed, Skou told Trade Latin America that the high-volume business with medium quality fruit will disappear in Argentina – a situation for which Expofrut is preparing.
With no plans to exit the business, Skou revealed that Expofrut is determined to improve productivity and raise the quality of its fruit.
That strategy includes replanting and upgrading some of its orchards, and Skou added that to meet those costs the company is exploring the possibility of selling assets that it no longer uses – some packhouses, for example.
According to RioNegro.com.ar, Expofrut this week signed a deal to sell one of its packhouses and coldstorage facilities to a local firm in Vista Alegre, Neuquén.
The group has also apparently sold 300ha, comprising 150ha of production, in the town of San Patricio del Chañar, Neuquén, to fellow topfruit supplier Kleppe, the report said.
