It is a food little consumed in Argentina, but in the world it causes furor for its acceptance.

After facing five years of low production levels, dehydrated prune producers in Argentina are expecting a strong recovery in harvest volumes of more than 50%.

After five years of decline in production, prune producers in Argentina anticipate a remarkable recovery in harvest volumes, with a projected increase of more than 50%. According to a report by the Rural Development Institute (IDR), estimates for this year indicate a production in Mendoza of 121,245 fresh tons, which would translate into 40,000 dry tons destined for the industry.

Este repunte es particularmente relevante, considerando que la cosecha promedio de los últimos años no superó las 65.000 toneladas frescas. Si se cumplen estas expectativas, los productores recuperarán el promedio de los últimos diez años, estimado en 30.000 toneladas secas.

Francisco Araujo, coordinator of the Mendoza Industry Plum Cluster, commented: "For this 2024 campaign we had very mild weather. There were no frosts at the critical time of flowering, which will allow us to have an acceptable harvest, with a higher quantity than in previous years".

Despite this optimistic outlook, Araujo pointed out that there is a "logical" concern among producers about possible pressure on prices, due to the high inventory levels of a product 90% of which is destined for the international market.

"With a supply of prunes that is at least 50% higher than what we had been producing, there is a concern that there may appear to be an oversupply of prunes," he said.

However, he clarified that this situation is not yet confirmed, since the harvest has not yet begun and the new marketing year starts at the end of February, at which time prices will be established.

This year's production is expected to exceed 120,000 tons of fresh prunes.

Enzo García, a producer from the department of General Alvear, who grows fruit trees, vineyards, vegetables and livestock, said: "Despite being an excellent year for dried prunes, prices are discouraging".

Garcia revealed that he was not able to sell all of last year's prune and still has some kilos from the previous year. In this context, he warns that the current prices would barely cover the costs of drying the fruit.

With 32 years of experience in this activity, which he inherited from his father, García will start harvesting in two weeks. He has 12 hectares of plums, which produce 300,000 kilos of fresh fruit. This year, he expects to exceed 400,000 kilos.

Location

The prune business is mainly concentrated in the province of Mendoza, especially in the south, where 80% of the cultivated area and 90% of the industry are located. More than 90% of production is exported, while domestic consumption is low, around 2,000 tons per year. The main destination markets are Brazil, Russia, the United States and Europe.

"In recent years, Argentina has seen a decrease in its production, which had historically reached higher levels. This has reduced the cultivated area from 17,000 to 10,000 hectares, affecting Argentina's presence in international markets due to a less abundant and consistent exportable supply," commented Araujo.

According to the IDR report, the productive area has decreased since the 2010/11 season, reaching this year, according to the 2021 prune grower census, 9,657 productive hectares (plantations from 6 to 40 years old).

In the foreign market, Argentina competes with Chile, the main producer and exporter of this type of prune in the world. Chile produces and exports three times more than Argentina, with a similar surface. Chile has 12,000 hectares compared to Argentina's 10,000 hectares, but is more efficient due to climatic and macroeconomic factors.

Araujo pointed out that Chile has a great competitive advantage over Argentina thanks to free trade agreements with many countries, which allow it to sell the prune at a better price. For example, in Europe, Chile enters without tariffs, while Argentina faces a 10% levy. In China, the Argentine product has a 30% tariff. "Every time we try to open a market, it is very difficult because our main competitor has a much more open and aggressive foreign trade policy than Argentina," he noted.

Another important market is Russia, a client of Argentina since 2000, which has been among the main export destinations. According to a report by the Observatorio Ciruela Industria, in 2021, before the start of the war with Ukraine, 1,316 tons were exported to Russia, ranking second after Brazil, with 6,856 tons.

With the beginning of the invasion of Ukraine, shipments to Russia were suspended, although some companies are beginning to resume them. However, the economic problems resulting from the conflict have reduced consumption.

Araujo said that the "two major challenges of this sector, which generates a lot of employment and territorial roots in Mendoza, are: the incorporation of technology in the farms and the creation of foreign trade mechanisms that allow Argentina to compete on an equal footing with Chile in this product, especially valued for its nutritional qualities worldwide. We produce healthy food for the world".

Source: LA NACION