Performance of Argentine Pears in 2024: Key Insights and Market Challenges
The 2024 season for Argentine pears saw initial benefits from a favorable exchange rate but faced challenges due to rising domestic costs amid continued inflation. Production exceeded anticipated levels, resulting in significant surplus. Argentina’s key markets remain Brazil, Russia, the U.S., and Europe, though competition and varietal preferences affect its market share.
As the 2025 Argentine pear season commences, Ms. Betina Ernst, agronomic engineer and president of Top Info Marketing S.A., examined the performance of the pear industry during the 2024 season. Ms. Ernst highlighted the dominance of Argentina in the global pear market, where it holds a 48% share in exports to Europe, outpacing South Africa and Chile significantly.
In 2024, favorable exchange rates initially benefited the Argentine pear market, spurred by economic shifts under the new government of Javier Milei, where inflation was reported at 20% per month. However, despite stabilization of the exchange rate, domestic costs increased significantly due to persistent inflation and the aftereffects of hyperinflation witnessed from November to February.
Ms. Ernst articulated ongoing challenges with high internal costs, attributed largely to a complex labor system. She underscored the need for reduced tax burdens and labor costs for the industry to thrive effectively. Tensions arose last season between producers and exporters, with financial difficulties leading to delayed payments to producers.
Production levels exceeded expectations, resulting in surplus pears left in storage. Some of this surplus was processed, while the remainder was deemed a loss. “That represents a huge loss,” expressed Ms. Ernst, emphasizing the necessity for better management of production quantities.
In terms of market dynamics, Argentina’s primary trading partners include Brazil, Russia, the United States, and Europe. She pointed out a decline in market share in Europe, primarily due to shifting consumer preferences away from the Williams variety. Meanwhile, the Latin American market remains crucial for Argentina and Chile, in contrast to South Africa’s focus on European exports.
In summary, the Argentine pear industry faced significant challenges and opportunities in 2024. While initial benefits from favorable exchange rates were observed, ongoing inflation and high domestic costs created hurdles. Additionally, market dynamics fluctuated due to consumer preferences, particularly in Europe. By examining these factors, the industry can strategize to maintain and potentially enhance its market position in the upcoming season.
Original Source: www.freshfruitportal.com