Francisco Gobee. General Coordonator and Co-founder of AOG Group (Argentina Olive Group)
What is olive growing like in Argentina?
This is similar to the wine growing boom that occurred in Argentina between 2000 and 2010, where there were the exportations of wines had an annual growth rate of 10% and the cultivation surface area for wine growing increased 6% to reach about 250,000 hectares. A change that tested the sector in the country was incorporating more technology, which improved quality and promoted a more proactive attitude to open higher value markets. This change was reflected in the increased contribution of developed markets. Varieties were planted that were suitable for the planting areas, making use of the previous knowledge acquired. The same is happening with national olive growing, the drop in domestic consumption (315 grams per capita) led to the search for markets abroad and to commercially develop together with the exporters for an unexpected growth potential This was promoted through the Argentine Agency for Investment and Foreign Trade with the participation of the ICBC Foundation.
Argentina was and is identified as an important supplier of quality wines, as well as Extra Virgin Olive Oils. Its geographical position has given it a comparative advantage at the country level in terms of the «freshness» of its oils in the off-season (southern hemisphere). This allows Europe to still have freshly produced oils in non-productive months (northern hemisphere).
The area with olive trees has grown significantly from 30,000 hectares in the ’80s to over 110,000 hectares today. Modern plantations have surpassed traditional ones. The provinces of greatest growth have been Catamarca and La Rioja (+350%), managing to acquire a very important olive-growing cluster for its regional economy.
The AOG Group (Argentina Olive Group), today integrated by producers from the provinces of La Rioja and Catamarca, has been operating for more than 10 years with great success as a group of producers’ association within a national export consortium.
It should also be noted that the industrial capacity grew from 2000 to date by +360% from 12 plant varieties to more than 45 plant varieties today. And many of them have international quality standards.
Argentine quality is achieved by the technification, harvest logistics (factories inside the plantations), where the owners of the plantations are also the owners of the factories. And there is a blend of varieties that exceed the IOC and USDA standards at present.
The available land is being offered at a very low price with potential for increased real estate. Also, the know-how of more than 30 years of the new olive growing in Argentina brings a unique opportunity for long term investment.