State of the Blueberry Industry Report

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Planting and Production Data, Figures & Commentary
(Denominated in Hectares and Thousands of Metric Tons)


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¹ Growth in volume produced compared to previous season
² Volume increase from new hectares coming into production
³ Volume increase from higher yields
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Argentina
Country Member Summary

Adapted from the report by the Argentinean Blueberry Committee Argentine

Blueberries 2021 Season

Argentina exported 13,200 metric tons (MT) of blueberries in the 2021 season of which 8,500MT were fresh and 4,700MT were frozen, while 4,500MT were destined for the domestic market. These figures show Argentina managed to keep its production volume stable at around 18,000MT thanks to a great effort in varietal replacement and high-density schemes.

Historically, the greatest share of volume was sent to the US, but exports to this market have decreased with it currently receiving less than half (45%). In contrast, the participation of Europe is growing. Shipments to this region have been maintained at levels between 3,500-4,000MT (43%) in recent years.

Argentina’s commercial strategy has focused on:

  • supplying niche markets and diversify destinations satisfying certain segments of the market that appreciate our fruit due to its distinctive flavor;
  • improving quality fulfilling chill hours and temperature amplitude;
  • increasing the share of sea shipments in order to extend the commercial window;
  • seeking the right varieties in the right climate (varietal replacement);
  • increasing organic production – a regime in which Argentina is highly experienced and has a strong presence with many products. It is estimated that approximately half of what was exported was organic;
  • expanding the production capacity of frozen blueberries based on the expectation that demand continues at high levels;
  • developing the domestic market where demand is growing at high rates. For the sixth consecutive year, the ABC is carrying out its “Better with Blueberries” promotional campaign to encourage the consumption of this super fruit in the local market;
  • strengthening its responsible business model: the sector designed its own social compliance system with a focus on child labor prevention. The ABC is part of the Enterprise Network against Child Labor, and is governed by the National Plan for the Prevention and Elimination of Child Labor and the Protection of Adolescent Labor. Most exporters have social certifications (GRASP, SMETA, FAIR TRADE, etc);
  • addressing sustainable development goals which are at the heart of our vision.

Forthcoming Campaigns

Many challenges remain to be solved, however, the Argentine blueberry sector will continue working on the same course of action. The differentiation strategy will continue, based on four pillars: flavor, organic cropping, social responsibility, and environmental care.

Argentina
Report Team Narrative

As outlined in the Argentinean Blueberry Committee (ABC) country member summary, the country’s industry has been adapting to competitive challenges in recent years with such strategies as market diversification, varietal replacement and a shift to organics, the latter now constituting 60% of Argentina’s planted area for the crop; that is almost double the share of organic-dedicated land in the 2020-21 season.

Argentina was a pioneer for South American blueberry production at the turn of the Millennium. It soon saw Chile encroach on the tail end of its season, but for a long time was able to maintain a privileged position in overseas markets in September and early October. However, this timing advantage came to an end with the emergence of Peru, which has forced Argentina to lift competitiveness through various means. The country’s plantings have fallen in half since 2008, but since then yields have lifted substantially, organics have become the majority of volume, and Argentina’s relatively small operations have embraced technology and vertical integration. With a climatic tendency towards rain and hail events, the majority of blueberry orchards are now planted in protected systems

Most Argentine growers close the containers for export within their own packhouses, but not all have been able to keep pace with the rapid operational changes required to survive and industry exits continue. Much more volume has been sent to processing over this past year with some farms opting to purely focus on the instant quick freezing (IQF) market in light of the competitive and logistical challenges for fresh blueberries. The infrastructure that exists for processing is predominantly in Buenos Aires, which represents part of Argentina’s production but the majority is grown in the Northeast (Corrientes, Entre Rios) and Northwest (Salta, Tucuman, Catamarca).

As noted by the ABC, Argentina’s fresh blueberry export volume grew last season as the share of shipments to the USA declined. This is partly due to the competitive reality that Peru too has increased its dedication to organics with a strong focus on the U.S. market; even as Peru’s weekly volumes in the U.S. market started to decline in December, they were still roughly 15 times that of Argentina’s. In the 2021 calendar year Argentina’s export volume worldwide fell by 23%, but in the USA it was down by more than 41%, illustrating the extent of this shifting market orientation.

Argentina will likely face even greater competition from Peruvian organics within the coming years, further accentuating the need identified by the industry to increase its share of air-freight exports; a trend that was making positive progress but has been slowed somewhat by the pandemic and associated shipping delays.

Meanwhile, in Europe exports to the Netherlands were down marginally but volumes were up in markets such as Germany, Spain and even Israel. What is noteworthy from the 2021 statistics is that Argentina’s export value declined at approximately the same rate as volume, meaning on price a per kilo basis the fruit held up well considering the volume pressure from other countries. This stable performance may stem from a more than 25% increase in exports of fresh organic blueberries, for which growers report healthy premiums can be achieved.