How Mendoza has managed to increase exports – ElSol.com.ar – Diario de Mendoza, Argentina

Mendoza's exports have increased 12.4% over the past year compared to 2017, according to Indec's report "Provincial Origin of Exports". It's about $ 1,520 million, almost half of those in the Cuyo area.

In comparison with the rest of the region, for example, Mendoza had a positive margin. While exports from San Juan and San Luis have declined, Mendoza's international trade has surpbaded that of other major provinces such as Buenos Aires, Córdoba and Santa Fe.

"This is good news in the difficult times that accompany the economy, the value of the amounts may be due to price improvements and especially production: when the dollar went into 2018, what would be sent It has been developed, "said Mario Bustos Carra, director of the Cuyo Chamber of Commerce.

Wine continues to top the list of the most exported products, with value as an indicator, followed by preparations of vegetables, legumes and fruits. In addition, plastics and manufactures accounted for significant growth, accounting for 7.9% of the provincial total.

According to ProMendoza and the Cuyo Chamber of Commerce, these products were mainly intended for the NAFTA bloc countries, Mercosur and the European Union, where businessmen took advantage of different economic situations to boost their exports.

Between crisis and decisions

According to ProMendoza director Mario Lázzaro, the 2018 panorama was positive, but the results are varied. This depends not only on the internal and external economic situation affecting each sector, but also on the influences whose outcome is considered more relevant.

"Garlic is the best example of the unpredictable that we can reverse.We have come to export 50 million pounds and now, 76 have been reached, the best figure in 10 years, but in value, it has dropped, "said Lázzaro.

This is explained by the fact that China has also recorded a good harvest, but with a difference in volume: its exports are 20 times higher than local ones, so that the price of garlic has dropped . "We were able to compete thanks to the exchange rate rally in May, but revenues also dropped," added the business man.

However, in other sectors, the opposite has occurred, as in the case of fishing, which has sold best in Bolivia, or pear, which has reached the European market. The highest level was wine, thanks to this last sector too.

"The bulk wine that left Argentina was about 90 million liters, including 67 million Mendoza," Lázzaro explained. What has been taken advantage of is the freezing of Europe in 2017, which resulted in a low harvest. With this "window", Mendoza has reinforced the absence of its main competitors, such as the wine of Spain.

"Before 2018, we accounted for less than 1% of the world bulk wine market, now we are at 3%." That does not seem to be a huge number, but it does mean a feat, "said the director of ProMendoza.

With regard to split wine, the last quarter was marked by a recovery in international sales, due to both the dollar and Christmas shopping, particularly in the United States and the United Kingdom. With the value of the peso before 2018, it was not profitable for producers to focus on the lower value product, which does not exceed two dollars. However, the industry took advantage of the devaluation to recover customers in this area, which has a larger volume of consumers.

One of the surprises also came in the plastics sector and their manufactured products, the sector that increased its exports to Mendoza. These are products manufactured by the companies of the local petrochemical park, especially for the export of polypropylene.

"Brazil has had a greater local opening.A few weeks ago it reopened the border for pear and apple after a plague threat, but before placing Mendoza as a supplier of polypropylene, instead of". export from Asia and Europe, "explained Lázzaro.

Something similar happened with metalworking, which increased its exports by taking advantage of Chile's construction levels: when they observed urban growth, they focused on providing materials. "On exports from the province, $ 90 million is explained by these companies," concluded the director.