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International Resources: Global Market Profile: Argentina

Argentina

https://www.cia.gov/library/publications/the-world-factbook/flags/ar-lgflag.gif

As part of its commitment to providing its members with market analysis and insight, PMA has compiled the following information about Argentina from the Argentine Secretariat of Agriculture and Attaché Reports submitted by the U.S. Department of Agriculture’s Foreign Agricultural Service, as well as the CIA World Factbook, embassy sites, and business etiquette reference guides.

Table of Contents

 

Fresh Fruit, Vegetable, and Flower Market

Fruit and Vegetable Market

Argentina is a major world exporter of pears.  Other important fruits produced are apples, table grapes, and citrus fruits such as lemon and grapefruit.  The main markets for Argentine fresh fruit are the United States, Spain, Belgium, Italy, Turkey, the Netherlands, Chile, France and Mexico.  Argentina is advantaged by its geographical location in the southern hemisphere, which enables it to supply northern hemisphere countries with fruits during counter-seasons. 

Argentina is the principal onion supplier to South American countries, in particular Brazil. Other vegetables are exported to Spain, the Netherlands, Mexico, China and the United States.

Major commodities imported by Argentina include bananas and pineapple, which are supplied mainly by Ecuador; peppers are another popular import.

Fresh Flower Market

Argentina imports fresh cut flowers from suppliers such as Ecuador, Colombia, Chile and Brazil.

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Consumer Trends

Consumers with high- and middle-high incomes, representing about 10 million people, are the primary buyers of imported items. 

Argentine consumers are practical, refined and demanding.  They want food items more quickly, easier, healthier, and cheaper.

After the economic crisis in the early 2000s, consumers shopped in several stores to find the best price and value. Now that the crisis is over, Argentines buy in a smaller number of stores closer to the home.  Consumers generally believe prices are lower in smaller supermarkets and grocery stores than in larger supermarket chains and stores. As a result of the economy recovering, wealthier consumers are growing in number.

Those with medium-high and high incomes usually shop in superstores where they can find a wide selection of items.  Wholesalers, smaller Asian supermarkets, and grocery stores have increased their market share since 2002.  However, as of 2006 supermarket chains have made recoveries and are growing in popularity.  Women, the majority over 36 years old, represent eight out of ten retail decision makers. Children have an important role in food purchases.

More wealthy consumers, who account for about 10 percent of the population, buy premium brands, pay little attention to prices, and are health conscious.  The next 20 percent of consumers (in terms of affluence) buy well-known brands and concentrate on value.  Consumers are becoming increasingly preoccupied with healthy foods, expressing concern about cholesterol and fat in the diet.  However the majority of people  still observe a diet characterized by beef, French fries, salad, and pasta. Younger generations are more open to United States culture and food.  Hot and spicy foods are not very popular.  Ethnic, kosher, and organic foods are slowly grabbing more shelf space.  Consumer tastes and habits are increasing and sophistication and there is a niche for specialty products such as exotic fruits.

Less than 10 percent of Argentina’s population (39 million, as of 2007) lives in rural areas.  One-third of the total population lives in Buenos Aires city and suburbs and represents about 50 percent of total consumption.

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Entering the Argentine Market

Products are imported to Argentina generally through direct imports by supermarkets, local agents who work closely with large retail chains, and local importers and processors. Purchasing managers of large retail companies attend international food shows or buying missions to identify products.  Through these events they create direct contact with the foreign supplier or local agent to import products directly.   In order to succeed in trade, the exporter must be committed to devoting the time and resources necessary to create a market for his or her products.

Promotional activities launched by the private sector and different countries lessened as a result of the economic adversities; recently, however, promotional campaigns are being employed and countries are promoting their products through their embassies in Buenos Aires.

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Trade Agreements

Argentina is a member of Mercosur and CAS, and has trade agreements with the following countries:

  • Brazil, Paraguay, Uruguay- Mercosur
  • Bolivia, Brazil, Chile, Paraguay, Uruguay- CAS-REDPA    

Argentina has bilateral trade agreements and negotiations with the following countries:

  • Bolivia
  • China
  • Egypt
  • India
  • Israel
  • Morocco
  • The Netherlands
  • Pakistan
  • Russia
  • Angola
  • Armenia
  • France
  • Croatia
  • Cuba
  • Colombia
  • Chile
  • Ecuador
  • United States
  • Spain
  • Philippines
  • Guatemala
  • Hungary
  • Jamaica
  • Mexico
  • Peru
  • South Africa
  • Tunisia
  • Ukraine
  • Turkey
  • Vietnam
  • Venezuela

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Food Standards and Regulations

Local food production and marketing regulations are set in the Código Alimentario Argentino (Argentina Food Code); however, these standards are being gradually replaced by Mercosur regulations.

There are three government bodies that regulate imports:

SENASA (National Service of Agricultural and Food Safety and Quality) deals with fresh, chilled and frozen products and by-products of animals and plants.  Products are imported through SENASA by an approved local importer who requests an import permit, which is taken to Customs to have the product released.

The products which are imported through SENASA must have a label with the following information, in Spanish:

  • Importer’s name and address
  • Country of origin
  • Establishment of origin
  • Ingredient declaration
  • Temperature range for maintenance requirements
  • Minimum durability

INAL (National Food Institute) regulates processed food products intended for direct human consumption, health supplements, and all beverages except wine.  Importers must obtain a “Certificate of Free Circulation” to submit to Customs for release of the product.

INV (National Wine Institute) regulates wine products.  An importer must ask for an analysis and shipment control by the INV as soon as the product arrives at the local warehouse.  The INVA will then issue a “Certificate of Free Circulation”.

Products labeled as “organic” must originate from a country whose organic standards have been approved by SENASA and found equivalent to Argentine organic regulations.  Prior to export products must be certified by Argentine certifying bodies approved by SENASA.

http://www.fas.usda.gov/gainfiles/200708/146292009.pdf

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Business Protocol

  • The standard greeting is a handshake, with direct eye contact and a smile.  The eldest or most important person is greeted first. Maintain eye contact so show interest.
  • It is extremely important to use titles.  Directly address a person by using only his or her title.  A physician or Ph.D is called Doctor; teachers are Profesor, a lawyer is called Abogado, and an engineer is Ingeniero.  Those without professional titles should be addressed as Mr., Mrs. or Miss and their surnames.
  • Business meetings should be made by appointment one to two weeks in advance.  Avoid scheduling appointments in January and February, which are vacation times, the middle of July, and the two weeks before and after the Christmas holiday.
  • Business dress is formal and conservative but stylish.  Men should wear dark colored, conservative business suits; women should wear dresses or elegant business suits.  Accessories of good quality are important for both men and women.  Dressing well will create a good impression.
  • If invited to someone’s home, dress well—men in a jacket and tie and women in a dress or a shirt and blouse.
  • Usually Argentines favor third-party introductions over introducing oneself, so you should wait for your host or hostess to make introductions at a small gathering.
  • Upon leaving, say good-bye to each person individually.
  • Translate one side of your business card into Spanish, and present the card so the Spanish side faces the recipient.
  • When invited to dine at an Argentine’s home, you should arrive 30 to 45 minutes late and bring a small gift for the hostess.  Good gifts include a bottle of imported liquor (particularly scotch and French champagne), flowers, and chocolates. Gifts are opened upon receiving.
  • Do not give knives or scissors, which indicate a desire to sever the relationship.
  • Wait for the host or hostess to instruct you where to sit.
  • Tables manners are Continental: the fork is held in the left hand and the knife in the right. Wait to start eating until the host/hostess invites you to begin.
  • Keep hands in sight when eating, and wait for a toast to be made before drinking.
  • It is courteous to leave a small amount of food on your plate when you are finished eating.  You should also place your knife and fork across your plate with the prongs facing down and the handles facing to the right.
  • Avoid pouring wine if possible.  There are many rituals and cultural taboos of wine-pouring and you do not want to inadvertently offend anyone.
  • Make a telephone call to your hosts the next day to thank them.
  • Argentines make use of a network of family and friends to call upon for help or assistance.  If a favor is done for you, eventually you will be asked to re-pay it.  Name-dropping and nepotism can be used to your benefit and do not have negative connotations as in many Western countries. 
  • People like to do business with those they know and trust. Argentines favor face-to-face meetings above contact though telephone or writing, which is considered impersonal.
  • You should not immediately begin discussing business; small talk helps to establish a rapport.
  • Business lunches are unusual outside of Buenos Aires, as most people eat this meal at home.  Business dinners are popular and generally take place in restaurants.
  • Show deference to people in positions of authority.
  • Arrive on time for meetings, even though your counterpart may be late.  Your counterpart may also answer telephone calls and attend to other business during the meeting.
  • Decisions are not reached at meetings; they are made at the top of the company.  Business is very bureaucratic.
  • Although Argentines like to be direct, they have a hard time disagreeing.  Avoid confrontation.
  • All printed materials should be in both English and Spanish.
  • A sweeping gesture starting from under the chin and going up over the top of the head means “I don’t care” or “I don’t know”.

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Export Business Reminders

  • Use metric terms.
  • Ensure that all sales documentation is correct.
  • Be patient regarding requests for documentation, ingredients lists, production process, and quality assurance, and respond to such requests with diligence and in a timely fashion.
  • Remember the date is written Day/Month/Year.
  • Use letters of credit to reduce risk.
  • Hedge export values with your bank if you are concerned about exchange rate risk.
  • Set up wire transfers for payments.

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Related Links and Government Resources

 

Government Resources

 

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