Argentinian garlic is facing a critical period in the global market. Varieties such as the spring white, spring violet, red garlic, pearl white and elephant are at the core of this sector, with key markets such as the United States, Brazil, Spain and Mexico. However, factors such as the Argentinian economy, the weather conditions and phytosanitary regulations are shaping a complex and challenging scenario.
"The recent elimination of the requirement to treat the goods with maleic hydrazider to be able to export them to Mexico is opening up new opportunities for market diversification," says Jorge "Lito" Olivera, general manager of Servicios y Soluciones Inteligentes S.A. "This measure will reduce costs and shorten the processes, facilitating more competitive access to the Mexican market," he says.
However, there are strong limitations due to Argentina's economic outlook. "Our costs in pesos have risen drastically, while the dollar has fallen. This is making us less competitive against countries like Peru or Chile," says Olivera. "In this context, the minimum price for exports to be profitable is 30 dollars for a box of 10 kilos of garlic; a figure that reflects the impact of labor and energy cost increases."
In terms of production, the 2023 garlic season was marked by a drop of up to 30% in the volume due to adverse weather conditions, which took a toll on both quantity and sizes. Despite this, Olivera says that "all the garlic is kept in cold storage at -2 °C, which allows us to extend the season until July or August without the quality being compromised."
Competition also plays a crucial role. "Spain, as the world's second largest exporter of garlic, has been working to recover from significant losses in 2022. Meanwhile, countries such as Brazil and Chile have similar harvesting periods, and that's putting greater pressure on Argentinian exporters," says Olivera.
"This season, we expect to ship between 200 and 250 containers, although there will be difficulties with the logistics. The lack of refrigerated containers and high transport costs are additional obstacles to overcome," he says.
Despite these challenges, Olivera is optimistic about the future. "The market will reward those who can deliver quality and efficiency. We have implemented pressurized and drip irrigation to optimize our resources and stay competitive. However, economic uncertainty remains an obstacle for the sector. We would like to work with less uncertainty, but the supply and demand govern the market," says Olivera.
For more information:
Jorge "Lito" Olivera
Servicios y Soluciones Inteligentes S.A.
Valle de Uco, Argentina
Tel.: +54 9 2615 65 1321