Argentina's 2025 mandarin season started with good prospects in terms of volume and quality. The first varieties, such as Satsuma, including the Okitsu, are mainly destined for the domestic market due to their limited post-harvest life. However, the clementines, such as Nova, that start to be harvested at the end of April, are destined for export, mainly to Brazil, the Philippines, and Russia. Despite price stability in recent years, Argentina faces increasing competition from Peru and South Africa, which have significantly improved their quality and varietal updating.
"Production volumes are similar or slightly higher than last year. Brazil remains our main sales market, especially for the larger sizes. Russia and the Philippines take a wider range of sizes," stated Andrés Fraga, director of Fru2gether. However, he said, the increase in production costs in Argentina complicates its competitiveness compared to other exporting countries. "South Africa, for example, can sell a box cheaper than we can," he said.
Many producers in Argentina are reconsidering their export strategy due to the increase in production, transport, and input costs. Although international prices remain stable, margins are shrinking. "We need a minimum $10 price for a 10-kilo FOB box to remain profitable. That's a difficult price to achieve in more distant markets, such as Russia or the Philippines, due to high logistical costs," Fraga stated.
Moreover, the lack of varietal renewal also affects Argentina's competitiveness. While other countries are investing in modern varieties, Argentina continues to rely on a limited supply, mainly clementines and Novas. "Years of low margins have slowed down investments in the field," Fraga stated.
Fru2gether is looking ahead and wants to tap into new markets, such as the Balkans and Asia, to diversify destinations and strengthen its position. However, Fraga stressed, "Argentina needs to reduce costs and modernize its production if it wants to continue being a relevant citrus exporter."
For more information:
Andrés Fraga
Fru2gether
Tel.: + 54 9 11 2512 2777
Email: [email protected]
www.fru2gether.com