Performance of Argentine Pears in 2024: Insights and Challenges

In 2024, Argentina’s pear industry benefited from a favorable exchange rate but faced high costs and production challenges. While maintaining a leading market share in Europe, changing consumer preferences have affected its competitive edge. Argentina’s key markets remain Brazil, Russia, the U.S., and Europe, with future dynamics influenced by Chile’s focus on the U.S. market.

As the 2025 Argentine pear season commences, Betina Ernst, an agronomic engineer and president of Top Info Marketing S.A., has provided insights into the 2024 season and projections for the current year. Argentina, South Africa, and Chile are the primary global suppliers of pears, with Argentina leading in exports to Europe, capturing 48% of the market share compared to South Africa’s 37% and Chile’s 15%.

The onset of the 2024 pear season allowed Argentina’s industry to benefit from a favorable exchange rate. As inflation soared to 20% per month following Javier Milei’s government assumption of office, many exporters hastened their shipments, acknowledging their advantageous position. Although the exchange rate later stabilized, domestic costs significantly escalated, exacerbated by persistent inflation and the effects of hyperinflation experienced between November and February.

High internal costs have long plagued the industry, particularly attributed to a complex and costly labor system. Ernst posits that for the sector to thrive, reductions in tax burdens and labor costs are essential. Last season was marked by tension between producers and exporters, as financial challenges led some exporters to delay payments to producers, compounding the strain.

Production levels exceeded expectations, resulting in excess pears being left in storage. Portions of this surplus were processed, while a considerable quantity was discarded, leading to substantial losses. Ernst highlighted that Argentina’s principal markets include Brazil, Russia, the United States, and Europe.

The country has reportedly lost significant market share in Europe, primarily due to changing consumer preferences, particularly away from the Williams variety, which is Argentina’s flagship. Ernst noted the importance of the Latin American market for Argentina and Chile, while South Africa predominantly exports to Europe and Asia.

Looking forward to the current season, Ernst anticipates that Argentina’s market share will remain stable. She also indicated that Chile is likely to focus more on the U.S. market this year, given its limited domestic pear production. Price stability was observed in the U.S. market, while European prices, which initially started high due to a low local supply, dropped significantly afterward.

In summary, the Argentine pear industry faced several challenges in 2024, including high internal costs, market changes in consumer preferences, and difficulties within the supply chain. While Argentina continues to dominate exports to Europe, its market share has been affected by shifting varietal interests. The industry must navigate these dynamics effectively to maintain its standing in global pear markets going forward.

Original Source: www.freshfruitportal.com