Brazil has long been a natural market for the Valley's produce. Producers from the area used to send almost 250,000 tons of pears and apples there nearly two decades ago. Nowadays, that volume has fallen to just over 100,000 tons.
The decline in trade was mainly recorded in apples, as the Valley's apple exports to Brazil throughout this time fell by around 100,000 tons of fruit, worth about 90 million dollars.
The apples produced in Rio Negro and Neuquen were displaced in this important market because of two reasons.
First, because Brazil's local offer began to impose itself in the neighboring country. Until the early 1980s, Brazil did not have its own production of apples but, after an aggressive production program, it ended up harvesting around 1.3 million tons of apples in the southern lands of the country within a few years; an offer that competed against the country's apple imports, which came almost exclusively from Argentina.
The second cause was the progressive loss of competitiveness that the Valley's fruit has had against third parties competing in the same market. In the 1980s, Brazil was a captive market of the entrepreneurs in the Rio Negro Valley as they had no competition to sell their production there. Then, trade became globalized and, according to statistics, Argentina is currently Brazil's third largest supplier behind Chile and Italy.
According to data from the private sector, there is a two-dollar difference between a box of apples from Argentina and from other destinations. The difference in quality, is another issue.
The loss of competitiveness suffered by Argentine fruit in the last twenty years was a determining factor in this productive tragedy.
2017 season
According to the latest official data supplied by Senasa, regional apple exports to the Brazilian market totaled 4,300 tons in the first six months of the year. This figure represents a 65% to 70% year-on-year fall when compared to the averages of the last five seasons.
Regarding pear exports, the official reports highlight that in the first half of the year, the region sent more than 61,000 tons of pears to the neighboring country, i.e. 6% more than in the same period in 2016. Argentina continues to be the leading supplier of this fruit to Brazil.
Source: rionegro.com.ar