Did you know that Argentina is the #1 exporter of natural honey, pears, lemon juice and soybean oil?
This publication will help you understand the Food & Beverage industry in Argentina, a leading economic sector in the country due to its available natural resources, experience and qualified human resources.
This document was produced by ProsperAr, Argentina´s Investment Development Agency.
If you need further assistance contact us at info@prosperar.gov.ar or use our website www.prosperar.gov.ar
2. Highlights
STRONG DRIVERS FOR DEMAND
The steady economic growth of highly-populated emerging markets combined
with an increase in the number of middle- and high-income consumers in these
countries is changing the global food and beverage industry. These factors have
led to a strong increase in the volume of demand and in the consumption of
traditional and high-end value-added products.
SOLID FOUNDATION FOR SUCCESS
Argentina’s remarkable human and natural resources provide exceptional
competitive advantages in foods and beverages, making the country a global
food supplier. Committed to high-quality standards, product innovation and
aggressive export strategies, the industry is prepared to meet the challenge of
an increasingly larger and more sophisticated global demand.
DIVERSE FIRM PROFILES AND PROFITABLE OPPORTUNITIES
With over US$17 billion in food exports, Argentina’s food beverage sector has
attracted some of the largest global players, as well as small entrepreneurial
firms that have successfully built the capacity to take advantage of new
opportunities. Along with the production of traditional food products, Argentine
companies have broken into unique niches serving premium customers.
OUTSTANDING SECTOR PERFORMANCE
The food beverage sector in Argentina has a reputation for innovation
and quality, combining exceptional natural resources with a technologically
advanced agro-industry. Attracting significant foreign and local investments,
production in the sector grew over 10% a year since 00.
3. I. Why Invest in Food Beverages in Argentina?
• A GLOBAL OPPORTUNITY. A key industry in the world the basis of technological improvements and economies
economy, the global food and beverage (FB) market is of scale. The sector has seen important developments
valued at approximately US$4 trillion with food sales in particular segments such as organic and functional
accounting for 70% of the market. Overall demand is foods, where growth and innovation have resulted in
driven mainly by the size of the world population, the the success of entrepreneurial initiatives. In the last
degree of urbanization and rising income levels. The five years, the sector has adopted aggressive export
spectacular growth of emerging markets will continue strategies, particularly targeted to reach beyond the
to contribute to expansion in demand in the future. regional market.
Simultaneous to this surge in volume, rising incomes
will increase the consumption of higher quality food • INNOVATION. Technology will continue to play a key
and food categories. These trends create a fast growing role in the sector’s dynamics. The huge scope for the
export market for Argentina’s premium products, which application of biotechnology is expected to make a
is reinforced by an attractive regional market and an contribution by providing nutritious foods to the growing
expanding domestic demand. world population. Argentina’s natural resources are
backed by the significant stock of professionals trained
• WORLD LEADER. Argentina’s vast expanse of fertile in disciplines related to the food and beverage industry,
arable land, high productivity levels and developed and over 10 firms dedicated to the development of
agro-industrial capacity shapes the country’s enormous biotechnology in the area of food ingredients.
potential as a global food supplier. With over US$17
billion in exports, Argentina is currently one of the • MAIN CHALLENGES. The current opportunity and
world’s major food exporters. The Argentine food the sector’s success in recent years present important
beverage sector is characterized by a combination of challenges to the Argentine food and beverage industry.
leading firms -national and international- with global Among other actions, the sector and relevant government
presence and a number of smaller innovative companies bodies will need to continue supporting the creation and
taking advantage of unique niches in the market. internationalization of entrepreneurial firms, leveraging
successfully the Argentine brand name and facilitating
• COMPETITIVENESS. Being the main recipient of Foreign the application of technology to the sector’s processes
Direct Investment (FDI) during the 1990s, the Argentine and products.
food-processing sector has become highly competitive on
4. II. Sector Structure and Performance
INDUSTRY STRUCTURE SECTOR PERFORMANCE
A key sector. The FB sector is at the core of the Top performance. In 2007, FB exports amounted
Argentine manufacturing industry. It is the country’s to US$17.8 billion—32% of total exports and 44% of
largest manufacturing sector in both total sales and manufacturing exports. The sector contributes around 5%
value-added (33.1% and 25% of the manufacturing to the country’s GDP and exhibited a compound annual
sector, respectively). The sector’s performance is of vital growth rate of 10% between 2002 and 2007. The sector
importance to the country’s sustainable growth trend accounts for 16% of the total expenditure on innovative
through its contribution to the country’s exports, and activities and 8% of the total RD investments performed
therefore trade surplus. in the manufacturing industry. Employing 30% of the
manufacturing industry’s workforce, its output per
Premium quality. Argentina has a significant employee grew 40% in the last five years.
comparative and competitive advantage in food and
beverages resulting from the combination of abundant Upgrading tradition. The FB sector has a long
and varied natural resources and highly qualified tradition in Argentina, and has undergone important
human resources, driving the development of world transformations during its history. Continuously
class products. Argentine food and beverage products incorporating technological advances, the industry has
are present around the globe, advancing the country’s become increasingly competitive. During the 1990s, the
reputation for innovation and quality. Committed to high- food-processing industry was the prime destination of FDI
quality health and environmental standards, the sector in the country, receiving US$9 billion. During that decade,
is fully prepared to meet challenging and increasingly United States firms were the largest investors, accounting
sophisticated consumer demands. for almost one-quarter of FDI, followed by Chilean,
French, Brazilian, and Mexican firms. Beverage firms were
Market. In addition to Argentine foremost firms– like the largest recipients of FDI, accounting for over 40% of
Arcor, Aceitera General Deheza (AGD), La Serenísima, the total (mainly beer and non-alcoholic beverages).
Refinerías de Maíz and Sancor, leading foreign
multinationals have long-standing operations in Dynamism. Currently, the sector shows strong dynamism,
Argentina– including Cargill, General Mills, Kraft Foods, recently reaching record production levels. Between 2002
Louis Dreyfus, Nestlé, Quickfood and Unilever. There are and 2007 production increased 63%.
also a growing number of smaller firms, focused on high-
end products, which are making their mark in a variety Profitable investments. The recent sustained
of segments and niches. These entrepreneurial firms are growth drove profitability and attracted local and foreign
taking advantage of profitable investment opportunities investments. During 2007, investment announcements
arising in the premium products segment. in the sector reached US$774 millions, being the
most relevant those by Coca-Cola (US$289 millions)
and Cervecería Quilmes (US$109 millions) aimed at
strengthening logistics, acquiring production technology
and reducing environmental impact.
Food Beverages Production Growth Food Beverages Exports Growth (in US$ milllions)
(Phisical production index 1997 = 100)
17.8
10 0,000
17,77
1.
10
118.8 1,9
10 1,000
107. 1,07
110 10,88
9,
100 9.1 10,000
7,
90 8.1
80 ,000
00 00 00 00 00 007 00 00 00 00 00 007
Source: National Institute of Statistics and Census (INDEC) Source: National Institute of Statistics and Census (INDEC)
5. C A SE S TU DY
ARCOR: Argentine Multinational with INDUSTRY SEGMENTS
worldwide presence in the food
beverages industry The food beverage industry processes agriculture,
livestock and fishing products into food and drinks for
humans or animals, and includes the production of
various intermediate products that are not directly food.
The industry is traditionally classified into the following
five groups: meat, fish, fruit, vegetables, oils and fats; dairy
products; grain mill products and prepared animal feeds;
other food products; and beverages.
The country’s most important segment is production,
processing and preservation of meat, fish, fruit, vegetables,
oils and fats with sales of US$25 billion and exports of
US$15 billion. China, Spain, and the Netherlands are the
main export destinations. Employment in this segment
accounts for 35% of the sector’s total workforce.
Arcor is an extraordinary example of an Argentine firm
with international presence and a culture of permanent Vegetable Oils. These products are one of Argentina’s
innovation, investment and the creation of competitive main export products. The oils are based on the abundant
advantages. Specialized in the production of candies, offer of oilseeds, among which soybean stands out.
cookies, chocolates, ice creams and other food products, Argentina is the world leader in vegetable oils: the leading
its wide offering reaches every consumer segment and producer and exporter of sunflower oil, first exporter
is in permanent expansion, with over 100 new products and third producer of soybean oil and second exporter of
developed each year. Founded in 191, Arcor is the peanut oil. The sector uses state-of-the-art technologies,
largest candy producer in the world. Arcor’s 1 industrial producing at competitive costs and reaching world-
plants (0 in Argentina, in Brazil, in Chile, 1 in Mexico class quality levels. Among other, the main players in
and 1 in Peru) produce 1,00 different products. The this segment are AGD, Cargill, Industrias de Maíz and
company employs 0,000 people and has total sales of Refinerías de Maíz. Increasing investments over the past
US$1.8 billion of which US$10 million were exports to five years led to an important expansion in production and
10 countries. Arcor has developed strategic alliances consolidated these firms’ roles as world players.
with partners such as Bimbo (forming Mundo Dulce to
produce chocolates and candies in Mexico) and Danone Cereals and mill products. This product category
(establishing Bagley Latinoamerica, the biggest cookie is Argentina’s fifth main export, exhibiting the highest
producing firm in South America). The permanent search export growth rates between 2002 and 2007 (198%).
for new opportunities and markets led Arcor to enter Exports exceeded US$700 million in 2007. Argentina
the ice cream market in 00, reinforcing the reputation
of their chocolate lines. Additionally they have Sales in FB by Segment (2007)
strengthened their production of sauces, canned foods,
solid sweets, dessert mixes, jams, jellies and dressings
through its acquisition of Benvenuto, a traditional leader
in the production of these goods. Traditionally, Arcor has
used its well-gained reputation and brands to expand
its lines and reach. The company guarantees the quality
of its products and complies with the most demanding
international norms.
Source: National Institute of Statistics and Census (INDEC)
6. CASE STUDY
belongs to the group of countries with the highest yields Cepas Argentinas: consumer knowledge
in corn and wheat. Currently 138 firms operate in the and permanent innovation
milling industry, and develop high quality products
to supply both the internal and export markets. Corn Cepas Argentinas is a business group specialized in the
processing produces a wide array of products that are production and distribution of foods and beverages.
directly consumed or serve as inputs for other industries, With a turnover of US$10 million and exports of US$
such as oil, flours, yeast, starch, sweeteners and gluten, million, the company has managed to position its brands
among many others. Wheat and corn processing has (such as Dr. Lemon, El Noble Repulgue, Fernet Lusera,
advanced towards a more diversified product offering, Giacomo, Le Vignoble, Pronto, and Terma) as leaders
with higher levels of differentiation and innovation. For in their respective categories. Cepas Argentinas is the
instance, fortified flours with minerals and vitamins first exporter of concentrated grape juice in the country
resulting from important RD investments have external through Le Vignoble. With Bacardi-Martini as an inter-
markets as their main destination national partner, is responsible for the marketing and
distribution of its products. The company has also market-
Meat, fish, fruits and vegetables. Cattle meat ing and distribution agreements for Cinzano and Campari
production is on its highest level and the value of meat products, which include the distribution, marketing and,
exports grew at an annual average rate of 35% between in some cases, the production of these international
2003 and 2006. Fish exports increased 14% and fruits and brands. In addition, Cepas Argentinas is in charge of the
vegetables expanded 17% during the same period. distribution of Bodegas Bianchi’s wines. The company
owns five industrial plants (including plants for the
Dairy Products. Sales in the dairy sector currently production of non-alcoholic and alcoholic herbal based
exceed US$4 billion. This sector exports over 15% of its beverages, alcoholic beverages, grape concentrated juice,
production, with practically no imports. The main export stuffed pasta and fresh and frozen empanadas) and two
destinations are Brazil and Algeria. This sector has seen distribution centers. A distinctive aspect is the company
a significant recovery recently, managing to surpass devotion to the continuous development of new products
its record production levels exhibited in 1998, with and markets.
cheese and milk growing at annual rates of 9% and 12%,
respectively since 2002. Cepas strongly believes that the driving forces of its
business are the value of its brands and its knowledge of
Beverages. The beverage segment has exhibited the consumers’ needs. One of the company’s distinguishing
most dynamic behavior in terms of production volumes: features is its ability to detect and generate new product
its output volume grew 86% between 2002 and 2007. The categories that are supported by significant investments
performance of some products, such as mineral waters, in RD. Cepas Argentinas is known for its outstand-
flavored waters and sports drinks stand out as particularly ing performance in brand image-building, endorsed by
attractive. continuous investment in advertising and promotion. As a
result of this business vision, the group ranks among the
first fast moving consumer goods companies in Argentina.
Exports in FB by Segment (2007)
Traditionally, the group’s exports were almost exclusively
focused on concentrated grape juice. In 00 Cepas Ar-
gentinas decided to focus its efforts on the development
of beverage and food brands abroad. This decision has
already produced encouraging results. Besides neighbor-
ing countries such as Uruguay and Paraguay, which have
always been supplied by the company, Cepas Argentinas
already exports products to an important number of
countries, including Australia, U.S., Canada, Italy, Japan,
Source: National Institute of Statistics and Census (INDEC) Netherlands, Spain, U.K., among others.
7
7. Food Beverages:
Unique Opportunities Wine Exports Growth
The sustained increase in income levels in Argentina 0 million liters US$ millions 00
0
during recent years fostered the return of premium food 00
00
and beverage brands to center stage in the marketplace. 0 0
in millions liters
in US$ millions
This domestic development is reinforced by a growing 00
00
0
global segment of middle- and high-income consumers. 10
00
In addition to these general trends, other factors such 100 10
as the rise of female participation in the labor force and 0
100
0
a growing number of health-conscious consumers have
0 0
created profitable investment opportunities. 1997 1998 1999 000 001 00 00 00 00 00 007
Source: National Viticulture Institute (INV)
WINES
The combination of soils, climates, altitudes and Canada, Brazil and Russia the main destinations (together
topographies in Argentina provide excellent agro- representing over half of the exports). The most exported
ecological conditions for the elaboration of different variety corresponds to Malbec, the flagship wine for
types of grape and wine. Our wines are positioned among Argentina. The five main wine exporters are Esmeralda
the best in the world, certified by important international (Catena Zapata), La Agrícola (Zuccardi), Norton, Peñaflor
awards. These endorsements have positively driven the (Trapiche and Las Moras) and Trivento.
international demand for Argentine wines.
Significant investments. Both local and foreign
Growing demand and production. With a production investment–mainly from the U.S., Chile, France, Spain
of 1,00 million liters in 007, Argentina is the world’s and Italy–have made possible the spectacular expansion
fifth major wine-producing country. Close to 80% of this of productive capacity. During the past decade, the
rampant production is intended for the domestic market, sector received over US$1 billion in investments from
which has become increasingly sophisticated over the beverage companies and investment funds. These
last years. Argentina’s domestic market–the seventh investments have resulted in improved quality and
largest wine market in the world–offers an important consistency, matching international standards. Cutting-
stimulus for local production. There are currently over edge technology similar to the one used by other major
700 wineries operating in the country, 70% of them in producing countries is now available in Argentina, and
the province of Mendoza, and the wine industry directly the country boasts an immense offering of high quality
employs more than ,000 people. products at competitive prices. The growth of the wine
industry has also promoted the development of wine-
Global presence. The rise of Argentine wine exports has tourism, attracting an increasing number of tourists and
been driven not only by a strong increase in volume, but driving significant investments.
by a significant increase in value. In the last 17 years,
while the volume exported of wines and must increased Alliances associations. Sector participants are
seven-fold, the value of wine exports multiplied by organized in several associations and initiatives.
over 0 times. In 007, export volumes increased 0% Beginning in the early 1900s, the Argentine Viticulture
( million hectoliters), with a 0% increase in export Association and The Mendoza Chamber of Winemakers
value, reaching US$ millions. Wines account for first addressed the needs of an emerging group of
7% of this amount, with the remainder corresponding producers interested in global exposure. The two
to musts and sparkling wines. The industry goal to organizations were independently responsible for
reach US$900 million exported by 011 is expected maintaining quality standards, establishing prices and
to be met well in advance. Last year, Argentine wines accounting for the needs of member companies. In
reached 11 countries, being the U.S., United Kingdom, August 001, the two organizations united to form
8
8. “Wineries of Argentina” (Bodegas de Argentina) that Public-private cooperation. The sector has achieved an
represents grape and fine wine producers accounting for important level of public-private coordination, which
80% of exports in the industry. resulted in the Strategic Plan Viticultural Argentina
00 that sets global action strategies and goals for
Companies associated with “Wineries of Argentina” both domestic and external markets. The Argentine
account for almost 0% of the local table wine market Viticultural Corporation is the public-private entity
and almost 80% of the local fine wine market. In addition gathering the major institutions in the sector, with the
to provincial representation, “Wineries of Argentina” mandate to manage and coordinate the implementation
supports national efforts to regulate wine production and of the Strategic Plan. The main overseeing public body
its market on behalf of the government. This association is the National Viticulture Institute (INV), a government
participated in MERCOSUR negotiations with member organization empowered to control all aspects of the
countries to develop commercial regulations for the growing and production aspects of the industry. In
wine industry in each country which went into effect in addition to drawing-up major rules and regulations, the
199. Today, the organization continues to participate in institute runs a large laboratory for quality control of
periodic MERCOSUR meetings. Argentina’s Winegrowing export wine. The INV also elaborates industry statistics.
Association -now part of “Wineries of Argentina”- is a
collection of exporters whose aim is the promotion of
their members’ products in the export market.
9
9. SOFT DRINKS AND FLAVORED WATERS
The soft-drinks market is dominated by carbonated Mineral and flavored waters. Mineral water
drinks, followed by flavored waters and mineral waters. consumption has recovered since the slump in 00, and
Volumes of carbonated drinks experienced a significant the sector recently accounted for 1% of the soft-drink
fall in 00 but have regained momentum since then, market, with sales reaching US$80 million. In 00,
with domestic market sales reaching .7 million the average domestic per capita consumption was
hectoliters in 00. There are more than 00 new brands liters–similar to other countries in the region but well
in the market, although the sector remains dominated by below more developed markets such as France (11
the product ranges of Coca-Cola and Pepsi (subsidiaries liters) or Germany (7 liters). Coca-Cola of Argentina is
of Mexico’s Coca-Cola Femsa and U.S.-based PepsiCo). one of the major players in the sector. Recently, there
has also been a huge growth in flavored mineral waters,
Rapidly growing product segments. Mineral water, which aim to compete with diet sodas. In 00 sales of
flavored waters and sports and energy drinks stand flavored waters grew by % and this growth trend is
out as attractive and rapidly growing segments. likely to continue.
The combination of rising incomes and increasingly
health-conscious consumers are driving demand. It is Sports and energy drinks. Growth rates in the sports
expected that sustained increases in real incomes should and energy drinks (111% growth in 007) segment is
continue to drive sales at the high end of the hot drinks attracting new investments. Specifically, the isotonic
market, such as cappuccino, specialty teas and flavored beverage market is also growing fast (7% in 007),
“gourmet” yerba mate. with PepsiCo (U.S.) as the leader with its Gatorade brand,
accounting for 9% of the market.
10
10. NUTRIFOODS
Consumers around the globe are increasingly interested Huge Potential. Argentina has the potential to emerge
in the health benefits of particular foods, and look as a leading world supplier in this attractive market.
beyond the basic nutritional benefits for food with The impressive growth rates observed in the local
disease preventing and health enhancing properties. FB industry and its propensity towards innovation
A more widespread understanding of how diet affects constitutes an important stimulus for the development
diseases, rising health-care costs and an aging and attraction of local suppliers. Several domestic
population have created a market for functional foods firms are present in the bioactive food ingredients
and natural health products. According to market industry and in that of food ingredients based on
statistics, the global functional food and nutraceutical bioprocesses. The local market for bio-produced
market is growing at a rate that is outpacing that of the food ingredients is estimated at over US$100 million.
traditional processed food market. . Some current developments include incorporating
functional ingredients into food products, such as
probiotic bacterial cultures; prebiotics (e.g. fructo-
oligosaccharides) from corn; bioactives concentrated
from berries and flax; and novel fibres from pulses.
11
11. Nutrifoods in the Spotlight: Berries
Phytochemicals in brightly coloured fruits and vegetables ,000 tons, of which 90% is exported, mainly to the U.S.
are suggested to be the bioactive compounds associated The local manufacturing industry is becoming increasingly
with reduced risk of cardiovascular disease and cancer. aware of the properties and potential of berries. More
Berry crops such as blueberries and cranberries have and more blueberries and cranberries are processed into
high concentrations of these compounds, apart from jams, jellies, drinks (especially teas), concentrates, purees,
important vitamins and minerals. U.S. Department juices and syrups, pie fillings, dairy products and sauces.
of Agriculture (USDA) studies rank the blueberry as They are canned and frozen in both retail and wholesale
the most important contributor of antioxidants, and packs. Fresh, frozen and dried berries are used in bakery
highlighted its antibiotics effects. products, nutrition bars, trail and snack mixes, cereals and
muesli. Berry extracts are used as coloring and flavoring
In the last decade, the Argentine production of berries agents, and dried concentrated extracts are being packed
(comprising today ,000 hectares) increased greatly, into capsules for sale as natural health products.
peaking at ,000 tons and employing 70,000 people.
Its development has been mainly fostered by the rampant Berries Exports (in tons)
increase in exports which grew at an average rate of %
00/0 8
during the last decade. Between 00 and 007 exports
00/0 1,8
grew %, reaching almost US$0 millions. Estimations
00/0 ,800
suggest that exports of berries will reach 1,000 tons in
00/07 ,99
008, an increment of 9%. Strawberries occupy the first
007/08 8,800
place with 0,000 tons, followed by the rapidly growing
008/09P 1,000
production of blueberries. Blueberry production reached
Source: Argentine Chamber of Blueberries and other Berries Producers (CAPAB)
1
12. ORGANIC FOODS
Argentina presents natural and competitive advantages
for the production of organic foods. Currently, both the
production and exports (98% of total production) of
organic products is increasing strongly. This performance
is based mainly on the opportunity of exporting fresh
products by taking advantage of the counter-season
with respect to the Northern hemisphere added to the
confidence on Argentina’s organic product certification
acquired via its renowned and consolidated normative
and control systems. Last year, the surface allocated
to organic cattle increased 17% (reaching million
hectares) and the one dedicated to organic food grew by
9% (1,000 hectares).
Global presence. Exports of organic products increased
significantly and during 007 reached 118 billion tons.
Since its beginning, the activity’s main destination has
been the E.U., accounting for 7% of total exports.
However, the U.S., presently accounting for 1%, has been
increasing its demand. Among these exports, processed
products stand out: they represented almost 0,000
tons and grew 0% last year. Since 199, Argentina
presents a specific regulatory framework for organic
vegetable production, which was completed in 199 with
the framework for animal organic production. This early
regulation allowed Argentina to be among the first in Latin
America to receive authorization to export to the E.U.
Domestic consumption, although still small, is rapidly
increasing, especially that of vegetables which currently
represent 0% of domestic consumption.
Organic Foods in the Spotlight: Premium Vegetables
An avid market for varied and high-quality vegetables regard, the “Argentine food: A Natural Choice” seal
in the Northern hemisphere fostered the exports of constitutes an important strategy aimed at strengthening
premium products, such as asparagus, cols and endives. its presence in these export markets. Fresh asparagus
Argentina is currently experiencing a significant growth reached exports of US$0,000, with endives and cols
in its exports, due to its work in cultivation technologies also registering important increases. The main markets
and post-sown innovations. Several firms are increasingly for these products are the U.S., Spain, France, Germany,
aiming at a product differentiation strategy. In this Switzerland, the Netherlands and neighboring countries.
1
13. III. Foundation for Success
RESEARCH AND DEVELOPMENT
Technological assistance. The country has a wide (FONCYT) has supported 120 research projects in
array of scientific and technical institutions dedicated the area of food technology between 1996 and 2004,
to upgrading and assisting the FB industry. One of the with average grants of US$50,000. Another relevant
most renowned national industrial research centers, the public initiative, the Argentine Technological Fund
National Institute for Industrial Technology (INTI), has (FONTAR), sponsored the FB industry with more than
a whole division dedicated to food production. Within US$13 million during the 2003-2006 period.
this division, four different areas are explored: Meat,
Diary products, Fruits and Vegetables, and Cereals
and Oilseeds. This center conducts valuable research GROWING BIOTECH INTEGRATION
applied to the production, processing, packaging and
commercialization of existing products as well as Biotechnology applications. More than 10
product development and upgrading. biotechnological firms in the country research and
produce food ingredients for the FB industry, with
Research capabilities. The National Council for total sales bordering US$60 million. Among the main
Scientific and Technical Research (CONICET) has users of these ingredients, five companies stand out.
many research institutions devoted to the FB industry. Three of them are domestically-owned–Alimentaria
These include the Research and Development Institute San Luis, Arcor and Georgalos–, and the other two–
in Food Cryogenic technology (CIDCA), the Center Industrias de Maíz and Refinerías de Maíz–have been
for Lactobacillus (CERELA), the Industrial Lactology acquired by global food companies. Two leading firms
Institute (INLAIN), and the Research and Development in the dairy sector (SanCor and La Serenísima-Danone)
Center in Industrial Fermentations (CINDEFI). have recently launched their probiotic milk lines by
incorporating Lactobacillus and Bifidobacterium
Funds for science and technology. The National strains that, as probiotic species, favor the intestinal
Fund for Scientific and Technological Research microbacterial ecosystem.
1
14. LOCAL SKILLS AND TALENT
Attracting the brightest minds. Argentina
presents an abundant flow of university graduates
in diverse disciplines related to the food beverage
industry. The federal government, through its
Ministry of Education, included “Food Engineering”
and “Bachelor in Science and Technology of Foods” as
priority disciplines. Students in those fields can enjoy
specially tailored scholarships aimed at increasing
the stock of educated professionals to meet a rising
sector demand. Two main associations, the Argentine
Association of Food Technologists (AATA) and the
Argentine Association of Food Industry Engineers
(AAIIA) represent industry professionals. NATURAL RESOURCES
Entrepreneurship. The FB sector has seen a Naturally rich. Argentina is one of the most
number of entrepreneurial firms penetrate attractive geographically varied and resource rich territories
niches. This is due to a large extent to the fact in the world. It is the second largest country in Latin
that Argentina offers a pool of young, motivated America and the eighth in the world. Along with its
and talented entrepreneurs. More than 65,000 2.8 million square kilometers Argentina is endowed
undergraduate and 4,600 graduate students from 103 with extraordinary fertile agriculture lands - almost
universities across the country enter the labor market 32 million hectares of arable land- perfectly fitted for
each year and the country ranks tenth in the Global agriculture and cattle production, and rich fisheries.
Entrepreneurship Monitor (2007) and counts with These resources endow Argentina with a remarkable
world-class business schools. potential as a global food supplier.
1
15. IV. Main Challenges
Industry players and government agencies face key
challenges to sustain growth and consolidate the sector’s
competitiveness. In themselves, these challenges present
attractive opportunities for the industry and Argentina.
• Support the creation and internalization of
entrepreneurial companies: the current scenario
presents outstanding opportunities for innovative
companies capable of developing differentiated products
for the world market. Encouraging the creation of
companies with a strong export focus to further develop
niche markets is a public sector priority.
• Facilitating the application of technology:
the industry will benefit greatly from a closer
integration between the FB sector and knowledge-
intensive activities such as biotechnology. The
widespread use of technology across the productive
process has the potential to increase efficiency and
improve the quality and nutritional properties of food
production.
• Leverage the Argentine brand name: a closer
identification should be achieved between local
products and Argentina’s prestige as a global food
supplier. Progressively, Argentina’s reputation for
quality food and the export market penetration of local
products should reinforce each other, taking advantage
of mutual synergies.
OUR CHALLENGES ARE YOUR OPPORTUNITIES.
SOURCES: The trends, data and figures included in this material were elaborated by ProsperAr on the basis of: National Institute of Statistics and Census; Center
of Studies for Production (CEP); Argentine Chamber of Blueberries and other Berries Producers (CAPAB); SAGPYA; National Viticulture Institute (INV); Bisang,
Gutman, Lavarello, Sztulwark and Diaz (comp.) “Biotecnología y desarrollo. Un modelo para armar”, UNGS-Prometeo, Buenos Aires, 00; National Fund for Sci-
entific and Technological Research (FONCYT); Argentine Technological Fund (FONTAR); “World Consumer Goods and Retail Outlook”, The Economist Intelligence
Unit; and “Global Food, Beverage and Tobacco. Industry Profile”, Datamonitor, 00.
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16. The information provided through this brochure does not constitute legal or professional advice whatsoever. ProsperAr (Agencia
Nacional de Desarrollo de Inversiones) reserves the right to revise, amend, alter or delete the information provided herein at any
time, but shall not be responsible for or liable in respect of any such revisions, amendments, alterations or deletions.
Photos: Photos: Argentinean Tourist Board, Stock Exchange and Pampa Gourmet.
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17. Argentina at a glance
Country profile
Official name República Argentina
Capital city Buenos Aires
Main cities Córdoba, La Plata, Mar del Plata, Mendoza, Rosario
Surface area .7 million square kilometers
Population 0. million inhabitants
Population growth 1.0% per year
Adult literacy rate 98%
Life expectancy at birth 7 years
GDP per capita (PPP) US$ 1,1
Currency Argentine peso ($)
Form of government Federal Presidential Republic
Political division autonomous provinces and the Autonomous City of Buenos Aires
Time zone GMT-0:00
Official language Spanish
Main Economic Indicators
00 00 00 00 007 008
GDP growth rate (annual %) 8.8% 9.0% 9.% 8.% 8.7% 7.0%
GDP (PPP) (millions of US$) ,99 7,01 19,8 9,70 ,10 7,80
GDP (millions of US$) 18,078 1,18 181,97 1,88 0,8 8,0
Exports of goods and services (millions of US$) ,9 9,8 7,0 ,7 ,088 8,08
Imports of goods and services (millions of US$) 18,87 7,90 ,99 1,10 , 7,9
Balance of trade of goods and services (millions of US$) 1,1 11,9 1,08 1,7 1,7 1,11
Trade surplus (% of GDP) 1.% 7.8% .% .% .9% .%
Current account surplus (% of GDP) .% .1% .9% .% .7% .%
Primary fiscal surplus (% of GDP) .% .9% .7% .% .% .1%
Gross capital formation (% of GDP, constant prices) 1.% 17.7% 19.8% 1.% .% .0%
Gross national savings (% of GDP, current prices) 19.% 0.% .7% .% .% .7%E
Foreign direct investment (millions of US$) 1, ,1 , ,7 ,7 7,979
Exchange rate ($/US$) .9 .9 .9 .07 .1 .1
Foreign reserves (millions of US$) 1,119 19, 8,077 ,07 ,17 ,8
Unemployment rate (% of EAP) 17.% 1.% 11.% 10.% 8.% 7.9%
Source: ProsperAr based on data provided by the Argentine National Institute of Statistics and Census, the Central Bank’s Market Expectations Survey (REM), the International Monetary Fund and the United Nations
Conference on Trade and Development (as of April 0, 009).
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18. ProsperAr is Argentina’s National Investment Development Agency
Our mission is to develop direct foreign and domestic investment to contribute
to Argentina’s competitiveness and sustainable development.
ProsperAr’s four main objectives are:
Provide services to investors
ProsperAr provides investors with personalized professional services throughout the investment
process, from initial advisory services to investment facilitation and aftercare. The Agency’s team
assesses on investment projects, responds to queries from investors and provides key business
information. Leveraging the Agency’s cooperative relationships with different government bodies,
ProsperAr’s integral services offer investors a unified one-stop support system.
Attract and generate investment
ProsperAr works in the promotion, attraction and expansion of both domestic and foreign investment.
We identify investment and innovation opportunities in high growth sectors, communicating
them to national and overseas investors through international missions, conferences, meetings and
publications. We work to build relationships that enable multinational companies to take advantage of
local, regional and global opportunities. We also encourage domestic firms to expand and develop their
businesses.
Boost the Investment Environment
ProsperAr works to strengthen Argentina’s investment environment. We interact with local and
multinational companies, as well as potential investors, identifying and removing possible obstacles to
doing business in Argentina. Through active dialogue with the private sector, and in coordination with
other government departments, we advocate for the formulation of policies and programs to optimize
the investment and innovation environment.
Promote the internationalization of local companies
ProsperAr promotes the growth and internationalization of Argentine firms. Fostering local vocation
for innovation and entrepreneurship and promoting overall competitiveness are key aspects of
the Agency’s strategy. Two programs “Entreprenuer Development” and “Pioneers” are in place to
strengthen local companies’ critical capacities in different growth phases. ProsperAr also assists
international companies to invest in and/or work with their local counterparts to form global joint
ventures.
ProsperAr is your strategic partner to invest and prosper in Argentina.
What ProsperAr can do for you:
Provide timely and relevant information on business sectors and geographical
locations in Argentina.
Help identify investment and innovation opportunities in strategic sectors.
Troubleshoot red tape and obstacles; facilitate the investment process and doing
business in Argentina.
Assist in building partnerships between foreign investors and local companies.
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19. To learn more about how investing in
FOOD BEVERAGES in Argentina
can benefit you, please contact us:
www.prosperar.gov.ar
info@prosperar.gov.ar
+54 11 4328 9510