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News

Argentina: climate hazards delay self-sufficiency

14/06/2023 - François-Xavier Branthôme - 2023 Season
On the verge of meeting the historic challenge of satisfying demand on its domestic market, Argentina's processing tomato industry is beginning to look to exports as its next growth target.

 Despite expectations, the major climatic problems encountered during the 2023 processing campaign prevented the Argentinean industry from fully meeting domestic consumption demand. Local players remain confident, however, and believe that growth will be linked to exports.

According to the Argentine press at the end of May, weather conditions played a nasty trick on the processing industry, and instead of the 670,000 metric tonnes (mT) scheduled for the 2023 harvest, only 587,600 tonnes have been harvested throughout Argentina, of which 258,000 tonnes were produced in the Mendoza region. As a result, the self-sufficiency hoped for at the start of the year has not been achieved, and the country will probably have to import paste again this year to supply the domestic market. 
Meeting domestic demand from the country's own harvest remains an historic challenge, and with the gradual increase in the area dedicated to growing processing tomatoes and the rise in yields per hectare driven by the implementation of technology, this goal is drawing closer.

Last season was marked by a series of meteorological events that reduced production by around 15-20%. At the same time, the decline in the purchasing power of Argentina's population led to a reduction in demand, so that without the drop in production, domestic demand could have been satisfied and the sector could have progressed on foreign markets. Indeed, due to drought and extreme weather events in the main producing countries, there has been a sharp rise in prices, and the market is buoyant. However, the local sector is faced with a number of difficulties, foremost among which are the unpredictability of local economic variables and the difficulty of accessing machinery, spare parts and essential inputs (such as seeds) due to import barriers.

According to Cosme Argerich, of the La Consulta experimental station of INTA (National Institute of Agricultural Technology), 258,000 tonnes were produced in the Mendoza region, 219,000 in San Juan, 66,000 in northeast Argentina, 39,000 in Rioja and 5,200 in Rio Negro, but it would have been possible to harvest 70,000 to 80,000 mT more. The worst-hit province was San Juan.
Guillermo San Martín, Director of the Tomate 2000 association, said: "Last season was the worst in the industry's history. There were two major hail storms in San Juan, a late frost in November and an early frost on February 18, plus heat waves in November and December, which mainly affected crops in San Juan. This extraordinary build-up of varied, high-intensity weather events has led to a drop in production. The only region to enjoy a record season, because it escaped these setbacks, was La Rioja."

On the other hand, the San Juan region, accustomed to an average yield of 100 tonnes per hectare, fell to around 80. In Mendoza, where yields should have reached or exceeded 90 mT/ha, the results were in line with the usual 80 mT/ha, because the Uco valley, where a large proportion of tomato production is concentrated, was among the worst affected areas.
Tomate 2000 President Orestes Nomikos agreed that last season was very complex in terms of production, also disrupted by episodes of rain and strong winds in the neighboring province. The Tomate 2000 association includes growers, processors, suppliers, the INTA and the regional governments of Mendoza and San Juan. However, Mr. Nomikos pointed out, grower-members of Tomato 2000 have access in all cases to a compensation fund, which operates like insurance and is financed 100% by tomato growers themselves, with no contribution from the provincial or national authorities. The system covers total and partial damage, to ensure that at least production costs can be covered.

For Guillermo San Martín, despite the country's lack of self-sufficiency, imports of pastes should be much lower this year. However Tomate 2000 Secretary and processor Gustavo Cialone warned that it was difficult to quantify needs insofar as, "unlike the trend towards increased sales of tomato-based products observed in times of crisis in other countries, to complement dishes such as noodles and rice, this trend has not been observed in recent months in Argentina."  Added to this unknown factor are the difficulties of accessing import authorizations and foreign currency, problems that represent a real challenge.

In this regard, San Martín underlined the problems faced by the sector in importing critical inputs, such as seeds, mechanical harvesters and spare parts for machinery, among others, the total amount of which represents around USD 10 to 15 million, while some USD 30 million will be needed to import pastes.

With regard to the domestic market, Cosme Argerich pointed out that the 2022 harvest had reached a record level, at 626,000 tonnes, and that the 2023 harvest, even if affected by weather conditions, was the third largest. Relying on technical progress and favorable weather conditions, the head of INTA believes that next season's production could reach high levels and, with a competitive exchange rate, make it possible to consider exports.
 

Source: losandes.com.ar, WPTC
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INTA La Consulta

Research organisation See details

TOMATE 2000

Professional or non-profit organisation See details
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