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Argentina is a regional leader in concentrated juices
Argentina's citrus industry is one of the most competitive worldwide and Argentina is the main exporter of fresh lemons, oils, and concentrated juices in the world. These good prospects have now been ratified by one of the leading food and soft drink multinational companies.
The general manager of Coca Cola for Latin America, Dino Troni, said that Argentina was the main supplier of fruits and concentrated juices for this multinational company in the region, and one of the most important suppliers in the world. This is important because concentrated juice is a key input in the Coca cola beverage industry.
Troni said that some US $250 million annually was allocated to acquire 42,000 tons of oranges, lemons, pears, and grapes and stressed that this allowed the Argentine production to open new markets. In this regard, he said that "the purchases of Coca Cola also pushed the sales of oranges and lemons to China and other countries that discovered the quality of Argentina's fruit, thanks to the exposure that the company gives it."
A key aspect is the question of seasonality, which plays an increasing factor in national production both in lemons and sweet citrus fruits (oranges, grapefruit, tangerines) when there is no production in the northern hemisphere. "Argentina has the capacity to deliver juices and concentrates that are enjoyed all over the world. The country has a natural capacity to develop these markets because of its climate and because it's production takes place in the counter season of the northern hemisphere," he added.
Regarding prospects, Troni said that this year would be a good year for the company in the country. However, he said that the country had a heavy tax burden, which would be raised by a tax reform project, and stated that Argentina was the third country with the highest tax rate in the sector (50%) worldwide, after Finland and Hungary.
Publication date: 11/8/2017
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