PRIMARY PRODUCTION

• Until the beginning of the 90’s, the olive oil industry went through a long critical period caused by the groundless discrediting campaign suffered by the product due to its alleged cholesterol content, in addition to the lower price of sunflower and corn oils. All these led to a nearly total replacement of olive oil by seed oils in Argentine consumption
• By the mid of the last decade, the dry seasons in the Mediterranean Area, and the excellent world market conditions increased the international price of oil. In our country, such circumstance was favoured by the promotional laws which provided for a revival of the sector.
• Before this change, there were 19,600 h planted with olive trees for commercial development in Argentina, of which only 40% corresponded to varieties for oil production.
• The main production areas of oil olives production were Rivadavia, in Mendoza, Cruz del Eje, in Cordoba and Great San Juan, in San Juan.
• The varietal offer was not very precise and shipments with many different qualities, variety and ripeness degree were the commoner.
• Due to its lower sales value, the oil olive harvest was related to the table olive offer. In general, when there was a lack of labor, table olive and not oil olive was harvested, while the oil olive remained in the plant for longer periods of time and lost its industrial quality.
• This behaviour was, and yet, it is particularly important in the case of olives of early ripeness varieties such as Farga, which ripes simultaneously with the Arauco variety.
• The principal varieties planted were Farga and Frantoio in Mendoza, Frantoio and Arbequine in San Juan and Arbequine and Nevadillo in Cordoba.
• Act 22021 favoured the capital settlement in marginal areas by differing the payment of national taxes.
• This promoted the plantation of over 70,000 h of olive trees, of which 70% corresponded to oil or double purpose varieties. There were other plantations which did not benefit from the above mentioned law.
• Nearly 33,000 h of oil varieties had been implanted towards the end of 2003.
• The new plantations have monovarietal patches of 330 plants/h, watered by drip irrigation, and the plants are being conducted for mechanical harvesting.
• Based on the surface planted towards the end of 2003, by the end of the present decade, the oil olive offer would be over 350,000 tons, with a significant concentration in the offer of Arbequine, Coratine, Barnea, Frantoio, Manzanilla oil and Picual.

INDUSTRIAL PRODUCTION

• During the 90’s, the Argentine production of olive oil increased from 6,000 to 8,000 tons, due to the recovery of existing plantations.
• Only after the year 2000 the national production of olive oil began to increase due to a greater availability of raw material originated in the new plantations.
• However, and because of serious climate events, the 2004/2005 harvest is the first one that really evidences the productive rising of olive oil.
• At present, the Argentine olive production has no worldwide relevance, however, towards the end of the present decade or halfway through the next one, the national olive oil production will exceed 100,000 tons, therefore the country would become one of the first 10 producers.
• As it is possible that the industry received the raw material classified according to variety, Argentina could become one of the most important productive poles of varietal oils and of “consumption blend” in the world.
• Notice that the growth in the raw materials offer has been accompanied by an integral development of the oil extraction industry and by its re-distribution in the country. As the raw materials offer increases, the olive oil production moves towards the provinces of Catamarca, La Rioja and San Juan.

• The technological change implied a significant increase in the grinding capacity and a change in the type of process. The new oil factories have an average grinding capacity of 100 ton/day, and nearly all correspond to the two phase extraction system (ecologic system).
• As regards regional distribution, at the beginning of the 90’s almost 60% of the capacity installed was in Mendoza, while it is presently equitatively distributed among Mendoza, Catamarca, La Rioja and San Juan.
• According to the survey made by the end of 2004, 52 new factories were opened in the past years, in addition to the 20 corresponding to traditional olive-cultivation, therefore the present production capacity exceeds 150,000 tons of oil per season.
• The great capacity installed would provide an excellent reception logistics of raw materials, guaranteeing that olives will be ground within 24 hours of reception.
• The national production has two main advantages: the counter season and the possibility of producing big quantities of virgin oil of excellent quality to be classified by variety.
• Another important change at industrial level is the type of finished product. Until the beginning of this decade the production destination was the Mercosur, characterized as a consumer of an oil with sensorial flaws, but with the rising of new markets the industry began to make different products, according to the demands of “new consumer” countries. In general these were flawless medium to mild fruited virgin oils.

INTERNAL CONSUMPTION

• UIT 200 to 220 g/inh./year, the internal consumption of olive oil is insignificant if compared to seed oil (12l/inh./year). However, there is a growing tendency (in 1990 the consumption was 60 g/inh./year).
• The low consumption was the result of the discrediting campaign that began in the 70’s and which effects are still being sensed.
• 15% of the product consumed corresponds to foreign makes bottled in origin (Spain and Italy).
• 80% of the internal consumption is made in glass bottles of 500 cc.
• Olive oil consumption at restaurants has increased in the past years.

EXPORTS

• With an exported average of 6,000-7,000 tons, Argentina has no worldwide relevance.
• During the last years, exports had great fluctuations as a result of climate events affecting the production and export balances.
• Until 2 years ago, the main destination of Argentine exports was Brazil, absorbing 85% of the total.
• In the last two years, there has been a significant change in destinations and in the type of exported products.
• Argentina is no longer an olive oil exporter (formerly pure) and has slowly become a seller of virgin oils. In 2004, with 3,450 tons, virgin oils exports corresponded to 65% of the total, while olive oils (formerly pure) represented only 24% (1,305 tons).
• As regards the presentation, there is a growing tendency in the sale of fractioned products: 60% of virgin oils and 70% of olive oils for 2004. The commonest export containers are the bottle of 500 cc and the can of 500 cc.
• In the case of olive oil, Brazil absorbed 100% of fractioned oils and 70% of bulk oils. The rest of the bulk was sold in the extended Mercosur.
• In the case of virgin oils, notice the share of the United States, which absorbed 22% of fractioned oils and 54% of in bulk. This is the type of oil which is evidencing a larger variety of destinations: the EU, South Africa, Australia, Japan and Canada, among others.
• Also notice the important place Argentina is taking as exporting country of organic extra virgin olive oil.

• As the national production increases, exportable balances will be greater, and it is estimated that towards the end of this decade Argentina will become the fifth world exporter and possibly the price referent for leading extra virgin oils.

IMPORTS

• The import of olive oil from the EU has a compensatory fee of US$ 0.99/k of oil, independently from the type and form of presentation.
• This fee was established as a result of a survey showing the existence of a subsidy for olives production in the EU, threatening to damage national industry and the relationship between both.
• We must point out that this is only applicable to the olive oil from the EU, therefore all shipments entering the country must have a certificate of origin.

COMPANIES

• There are over 80 companies devoted to olive oil extraction in the country, many of which have recently entered the trade circuit.
• As the new plantations were entering the productive circuit, it appeared the alternative of carrying out the a façon production, a system by which the companies deliver the olives and in exchange receive a percentage of the oil obtained. This alternative is the commonest for the present campaign.
• There are over 90 trademarks, among producing and fractioning companies.
• The leading trademarks in retailing distribution are: Lira, Cocinero, Mazzola, San Juan de los Olivos and Oleovita. There is a wide variety of trademarks in the direct sale to restaurants and shops.
• Until 2 years ago, 60% of the market was supplied by companies which fractioned oil without being producers. The most important were Molinos Río de la Plata with Lira and Cocinero, and Refinerías de Maíz with Mazzola.
• In the past 3 years, some of the most prestigious national trademarks have changed owners: Titarelli, Otoyan and Setubal, Yancanello, Mazzola and Copisi.

ASSOCIATIONS AND CHAMBERS OF THE SECTOR

Asociación Olivícola de Catamarca (ASOLCAT) asolcat@arnet.com.ar - Asociación Olivícola Argentina (ASOLIVAR) asolivar@ssdenet.com.ar - Asociación de Productores Olivícolas de Traslasierra (APROT) mfmoujan@arnet.com.ar - Cámara Olivícola de Mendoza (COMZA) mariobustoscarra@ccecuyo.com.ar - Cámara Olivícola de La Rioja (COR) camaraolivicola@arnet.com.ar – Cuenca del Pichanas pasoviejo@arnet.com.ar