Could Chinese entry revitalize Argentina's table grape sector?

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Could Chinese entry revitalize Argentina's table grape sector?

A tentative protocol agreement for exports to China is good news for Argentina's table grape sector, which in recent years has battled with local economic troubles coupled with heightened barriers in what has historically been its main market, Brazil.

While at the time of writing Chinese authorities are yet to publish any official details, this week Argentina's Ministry of Agro-industry was celebrating an agreement of terms for a protocol that would allow a completely new export deal.

National Grape and Wine Institute of Argentina (INV) vice president Marcelo Alós tells www.freshfruitportal.com the industry used to ship table grapes to China via third countries, but China has become stricter in its approach to the gray trade.

The government expects a final protocol to be signed in time for the 2017 season, and even though he is optimistic about the opportunities Alós is unsure whether the sector will be ready, mainly because it needs to find customers.

"But something that wasn't there before, is now," he says.

In terms of possible required treatments under the protocol, Alós doesn't believe there will be anything too challenging.

"I understand that there won't be any specific treatment because when they came in January last year, according to the manifestations of the Chinese agents, they did not need any particular treatment because the pest that we have here which is fruit fly, is also in China."

He says the country can produce between 80,000-100,000 metric tons (MT) of table grapes per year, with 90% coming from the province of San Juan while the rest would come from Mendoza and Catamarca.

Argentina witness a peak of table grape exports from 2004 to 2008 with Brazil as the main market, but problems with competitiveness and phytosanitary barriers imposed by the neighboring country, led to a considerable drop in shipments over the following years.

"It seems to me that starting with these commercial agreements and the new exchange rate policy in Argentina, new perspectives are opened up for the sector to capitalize and export with the potential it has," Alós says.

"There is an adaptation process that has to be undertaken starting with these new conditions. We have to work a lot to see how our grapes can position themselves in new markets again, as well as those we lost," he says, adding the goal is also to regain a footing in the Brazilian market.

In terms of varieties, the most important in Argentina is Superior, with harvests starting in December and followed by Red Globes in February.

Photo: www.shutterstock.com

www.freshfruitportal.com

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