Adolfo Storni of lemon-export giant San Miguel told the Southern Hemisphere Congress said that his Argentinian fresh produce counterparts need to find new markets to ensure the long-term viability of their industry.
Argentina is not strong in many markets, and most of them are full of product, he said. “Our biggest export destination is Russia, and we oversupply that market with apples, pears and lemons every year. We depend too much on Russia and Brazil, and we need to find new ways to compete with Chile and New Zealand in Europe.
Argentina’s industry is blessed with young orchards, Storni added. Fifty per cent of lemon trees are less than 10 year olds, and in apples and pears the equivalent figure is 30 per cent and 40 per cent respectively. The newest, high volume category on the block, grapes, had barely begun its commercial life a decade ago.
The well-documented economic difficulties of the country have forced a re-evaluation amongst growers. “Since the devaluation of the peso, farmers do not want to keep their money in the bank, so they have spent it,” said Storni. “All investment in our industry has come from growers’ pockets, and the emphasis has been on the replacement of old trees with higher density plantations. The aim is not to increase production area, but to increase our productivity.”
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