In 2024, the Argentine pear industry started strong due to a favorable exchange rate but faced rising domestic costs and market share challenges. Argentina remains a key player in global pear exports, predominantly to Europe, but struggles with decreasing demand for the Williams variety. Production exceeded expectations, leading to significant surplus and storage losses, while pricing varied between markets.
As the 2025 pear season commences, Betina Ernst, agronomic engineer and president of Top Info Marketing S.A., reflects on the performance of the Argentine pear industry in 2024. Argentina, South Africa, and Chile are the three dominant suppliers in the global pear market, with Argentina holding a commanding 48% market share in exports to Europe, followed by South Africa at 37% and Chile at 15%.
The 2024 season began with a favorable exchange rate, which allowed exporters to capitalize on advantageous conditions following the administration of President Javier Milei, amid an inflation rate reaching 20% monthly. However, although the exchange rate noted some stabilization, domestic costs surged significantly, primarily driven by persistent inflation and the residual effects of widespread hyperinflation experienced between November and February.
Ernst highlighted the ongoing challenges posed by high internal costs, largely attributed to an expensive and complex labor system. She emphasized the necessity for lowering tax burdens and labor costs to ensure operational efficiency within the industry. Additionally, the previous season was marked by significant tension between producers and exporters due to the latter’s financial difficulties, resulting in delays in payments to producers.
Notably, production levels surpassed expectations, leading to considerable volumes of pears remaining in storage. A portion of this surplus was processed, while the remainder was regrettably discarded, which Ernst identified as a substantial loss.
Regarding market dynamics, Ernst outlined that Argentina’s primary markets consist of Brazil, Russia, the United States, and Europe. She expressed concern over Argentina’s diminishing market share in Europe, attributing it to changing varietal preferences, specifically the declining popularity of the Williams pear among European consumers.
Furthermore, Ernst highlighted the increasing importance of the Latin American market for both Argentina and Chile, contrasting this with South Africa’s focus on exporting pears primarily to Europe and Asia. Looking to the current season, she anticipates that Argentina’s market share will stabilize, while Chile may redirect its focus more prominently towards the U.S. market due to limited domestic pear production.
On the topic of pricing, Ernst noted the stability of U.S. pear prices, while European prices experienced a significant drop after an initial surge, despite a low local supply. This context suggests a complex landscape for the Argentine pear industry as it navigates both market dynamics and internal challenges.
In summary, the Argentine pear industry faced both opportunities and challenges in 2024, with favorable exchange rates prompting initial exports, but high domestic costs and market share losses presenting significant hurdles. The evolution of consumer preferences in Europe, coupled with internal tensions and surplus production, underlines the need for strategic adjustments moving forward. Nevertheless, Argentina maintains a critical role in the global pear market amidst shifting competitive dynamics.
Original Source: www.freshfruitportal.com
