Argentinian fruit shipments overseas through the ports of San Antonio and Bahía Blanca totalled 51,118 tonnes in the first two months of the year. This volume represents an annual drop of around 23%; 45% when compared to the average of the past five years.
90% of the shipments correspond to pears, while the rest to apples and some stonefruit.
During the first two months of 2014, nearly 30% of the exportable supply of pome fruits was shipped from Buenos Aires; this season, only 4%. In absolute values, this reflects a loss of 24,500 tonnes of fruit. In relative terms, the decline in annual sales from the ports of Buenos Aires reached over 90%.
Historically fruit exporters seek to export to Europe when the pear season in the Southern Hemisphere has just started so as to take advantage of the window opened by the lack of fruit during the first weeks of the year. But January 2015 was a month to forget at the Rio Negro Valley. Producers were unable to harvest their fruit because they had no money to pay for it, companies did not buy pears, because they didn't know if they would be able to sell them; therefore, thousands of tonnes were neither harvested nor marketed. Lastly, labour strikes prevented the packing of fruit for export during the first month of the year.
All of this caused the pear season this year to start in late January, with the economic and financial consequences that this entails, and losing the possibility of marketing fruit overseas in advantageous conditions.
Different entrepreneurs agree that total fruit exports this year will be between 70,000 and 110,000 tonnes lower than in 2014.
And this is really worrying, because, in commercial terms, last season was the worst in decades for the Valley's fruit sector.
Statistics released by the Port Terminal Patagonia Norte (TPPN) reveal that during the first two months of 2014 exports to overseas destinations totalled 66,700 tonnes; a much lower figure than in the 2007 season, when exports amounted to more than 180,000 tonnes in the same two months (see tables attached).
In short, the revenue generated by the Valley of Rio Negro and Neuquén, compared with 2014, will be between 60 and 100 million dollars lower, which is not to be sniffed at, considering the sector's economic and financial crisis.
The situation for pears
A recent report prepared by the Department of Fruit Cultivation of Rio Negro reveals that pear sales in Europe remain active, with stocks in late January at lower levels than in the years of abundance (2014-2012) and higher than in the years of shortages (2013-2011), although closer to the former.
Chart: Pear exports to the Netherlands in tonnes up to 28 February
Regarding the variety Abate Fetel, the study reveals that stocks lie between those of the past two years, with good sales for the large calibres and slow for the smaller. It stresses that prices in Euro are slightly lower than in 2014. For the variety Conference, stocks remain high, especially in Belgium; prices (in Euro) are lower than in previous years, which ensures smooth sales.
Chart: Pears exports to Italy in tonnes up to 28 February
For imported pears, the revenue generated by the Williams is far lower than in previous seasons; South Africa started shipping earlier, although with lower volumes than in other years. Arrivals from Argentina had been minimal to date and well below other periods. Whatever volumes arrived were quickly sold. Prices in Euro are similar to last year's, and thus prices in dollars are 15% lower due to the devaluation of the European currency.
The study of the Secretariat also noted that the revenue generated by the variety Rosemarie-Sempre, while also below that of the previous year, is not as marked as that of the Williams. The market for this variety responds well, although prices in dollars are lower than in previous years.
The Russian market is still complicated for Argentinian pears. Reports indicate that European fruit continues to enter in an indirect and often irregular manner. The study notes that, up to the harvest date, the revenue generated by the Southern Hemisphere is minimal; relatively significant volumes are expected from Argentina, although lower than in previous years. Current market prices in dollars are also lower than in previous seasons. Countries of northern and eastern Europe continue to export to Russia by triangulating sales and Putin's government is not doing anything to stop this illegal trade, which serves to skip the commercial boycott in place which is causing havoc on its economy.
Chart: Pears exports in tonnes to the United States up to 28 February
Meanwhile, the U.S. market is being taken over by Chilean pears. Import prices are similar to those of previous seasons, while wholesale prices for imported fruit remained in average values, slightly lower than in 2014, but higher than in 2013.
Season closed
The pear season at the Valley of Rio Negro and Neuquén is already as good as closed.
With the poor income generated overseas, the domestic and Brazilian markets represent the only hope that remains to offset some of the losses, but there are few hopes in this regard.
Firstly, Brazil is currently immersed in a deep economic crisis, with its currency in a devaluating process. This reduces the competitiveness of the Valley's fruit exports, which are losing ground to Chilean and European pears, not because of quality, but prices.
The Argentinian domestic market, for its part, is depressed due to lack of consumption and an economy on the wane. Traditionally, this destination absorbed more than 90,000 tonnes of pears. Considering the existing halt on supply and demand, optimistic prospects point to the distribution of 100,000 tonnes of pears this season; a volume which would fail to change the macroeconomic trends of the fruit sector in the Valley.
Fuente: rionegro.com.ar
