“The trend we are seeing from society is for natural goods and that is being incorporated in dietary advice. A genuine concern for the health of the earth is also driving a fundamental change in consumer habits,” says Dr Federico Mirré, Argentina’s ambassador to the UK. “Argentina has responded to this global demand through many small and medium sized companies and our organic offer covers a diverse range of products, including fruit and vegetables, but ranging from marmalade to oysters.”
This portfolio is being constantly re-evaluated, he adds, as the Argentine agricultural sector embraces the organic ideal by exploring for new lines. At the same time, the search is being stepped up for new markets for these products. “The scale of potential for people wishing to work with Argentinean producers is getting bigger all the time,” he says.
“Our country is emerging from a deep economic crisis. The advantages of that include devaluation of the currency, which gives strength to our exporters and creates a will among enterprises to move forward after a difficult period. Those companies that are able to see the potential - and act on it - will be the first to reap the benefits.”
Nicholas Saphir, whose presentation on the organic market as a whole features on page 8, told the Argentinean contingent in the audience. “Argentina has a wonderful opportunity in organics and a real chance to rebuild its position in the UK. At the moment particularly, Argentina is in a good position in terms of quality and the exchange rate is in its favour. But you cannot rely on that remaining the case. Exporters must focus on bringing value to the market - look at the competition and how they fought hard to break through and follow suit. You have to fundamentally commit yourself to this marketplace, understand it and do whatever you do very well.”
Saphir warned against the urge to send in large volumes at relatively low prices and effectively commoditising the Argentine organic offer. “Argentina traditionally sees itself as a commodity supplier to the world,” he says. “You need to take every retailer separately, meet their requirements and establish an identity through brands, packaging etc.. in order to move from commodity supplier to something special.
However, organic olive oil exporter Jorge Alberto Pierrestegui, of Olivares y Viñedos San Nicolas SA, had a different view. “We want to use this favourable position to get ourselves more known in the marketplace - then move on to the second stage.”
Felipe Caprioli, director of Mendoza producer/exporter Olive Grove, one of the leading organic fruit exporters from Argentina and director of CAPOC, the Argentine Chamber of Certified Organic Producers, adds: “We have become a very dynamic sector in the last seven years, despite the economic crisis in our country. To keep on moving forward we refuse to compromise on our quality ethic and we are committed to maintaining our standards through work in the public and private sectors.”
The 3.2 million hectare Argentine organic export sector has grown 10-fold in the last 10 years, from a base of US$4 million in 1994. “That is not by chance,” says Caprioli, “but through hard work, dedication and the ability to follow world demand patterns. Organic consumption has had a big quantitative effect, now we are beginning to see the qualitative side - traceability, social responsibility and the environmental impact of our farming are being taken evermore seriously.
CAPOC was created in 1998, with the aim of creating the first business entity in the sector, seeking greater institutional dynamism in a sector that was expanding quickly but without a united front, he said.
Caprioli listed the 10 principal objectives of CAPOC.
• To expand the organic trade.
• To improve the competitiveness of the sector and its companies.
• To fight for transparency in the certification process.
• To defend the legitimate interests of its members.
• To assist the improvement of the quality of Argentinean organic products.
• To defend the interests of Argentine production.
• To act as an intermediary between Argentine and international organic businesses
• To raise awareness of Argentine organic products.
• To work with foreign representations located in each specific marketplace.
• To advise the public sector about the most appropriate policies than should be applied.
Caprioli’s company Olive Grove has an office and packhouse in Rodeo de la Cruz, Guaymallén, and operates a combination of plantations on 325ha. This comprises 120ha of pears; 45ha of plums; 45ha of olives; 30ha of plums for drying; 30ha of garlic and onions; and 60 hectares of virgin land.
Fellow CAPOC member OrganicSur has been exporting fresh organic berries since 1999 through Geo Valley in the UK, and is the only organic berry exporter of any consequence to date from Argentina. The company also exports organic vegetables, mainly onions, and has 1,500ha under production that is both organic and EurepGAP certified.
Director Ernesto Engels was at the London event and told the FPJ Supplement that in his opinion there is a huge amount of potential for Argentine exporters to expand their markets in Europe and that OrganicSur itself is confident of expanding its own presence in the UK market in the forthcoming seasons.
Also presenting at the Chamber of Commerce was Building Bridges, a company that specialises in establishing organic Argentinean products in the UK market. Director Roberto Jellinek says: “We are looking to strengthen the links between Argentina’s organic sector and the UK and have already established the Ché brand in more than 600 retailers across the UK.”
The Ché brand does not cover fresh fruits or vegetables yet, but the company’s advice still rings true. “Work hand in hand with both our producers and our customers,” he says. “We proactively promote the unique selling points of each product and we actively support that at trade and consumer levels by targeting the appropriate advertising and merchandising channels. Communication and having a presence are vital. We do not see ourselves as middlemen, but more as facilitators - helping to create a better product and add value to the marketplace.”
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