Argentina: Fresh fruit export downturn
The number represents a collapse of around 77% in comparison to sales in the same month of 2011 and a drop of 82% regarding the average exports in January during the last 5 seasons.
Even if the first month of the year doesn't set a standard in fruit commerce for the region, 3,535 tons are a number to account for.
Market operators agree in pointing out that the registered drops in regional exports of fruit are due to:
• Sizes. The growth in pears suffered a delay reflected in the postponement of the harvest in many sectors of the Valley. Early this week the intense collection of the Williams started.
• The impact of hail caused important losses that also affected the first numbers of overseas exports.
The commerce downturn that has been expected this season is important. There are no incentives today to export to European markets, so many companies are redirecting their programs for the 2012 season. According to the notes from week 4, importing prices in Europe for pear were set, on average, at 0.98 Euro cents per kilo against the 1.05 Euro obtained in the same week of the previous year. Adding to this the yearly loss of 7% exchange parity Euro/Dollar. Taking both factors into account, the drop in average yield return for pear in the present season will be set above 10% in relation to the 2011 season. Adding up this scenario, the costs structure 15% superior to the previous year.
On the other hand, in January Argentinian pear exports to Brazil doubled in relation to last year and everything points to growth to that important destination.
Prices and destinations
"Fruit from the South Hemisphere will go, this season, to European markets with a price 10% lower than last year. We can expect that the drop in quotations in not so strong in time like in the last season, but that will depend on the fruit offer existing in the market", said an exporter.
For many operators, the overseas commerce will have important limitations this year, due to the combination of two variables: high local costs and the economic crisis in the Europe.
Regarding destinations of the exportable produce from the Valley in January, statistics from the Patagonia Norte show that it only reached Canada, the United States and the Netherlands.
As for the Russian market, the most important for the region regarding exports, it's expected that in February the ships will depart for that destination. Last January saw 6,2000 tons of fruit departing to the port of Saint Petersburg, a number representing almost double what was exported last month. "Russia is turning into a key market, but competition is also strong there, especially for apples", said a regional exporter during a phonecall.
Source: Rionegro