Exportar News February

Special Report on Russia 2nd part

Newsletter de Fundación ExportAr

February 2012

February 2012

www.exportar.org.ar

Fundación ExportAr

Organic Cosmetics Anamê Vio Case

Rasic Hnos S.A. Citrusvil S.A. Extraberries S.A. Vergara y Cía. S.A. Argentbio

Rivara S.A. Ceras Argentinas S.R.L El Mundo Árabe José Ignacio de Mendiguren Cámara Argentina del Maní

Gulfood 2012 Fruit Logistica 2012 BioFach 2012 Prodexpo 2012

Foreword

In February 2012, Fundación ExportAr organized several promotional activities at important commercial venues. For the relevance at the sector and the importance of the event or the target market, it is worth mentioning the participation at Fruit Logistica, Gulfood, and BioFach International Trade Fairs.

In this issue of News, we would like to highlight the outstanding record of participants from Argentine companies at Fruit Logistica 2012, the most important international expo for the fruits and vegetables sector. At the same time, the participation of companies from the City of Buenos Aires, the Provinces of Buenos Aires, Córdoba, Corrientes, Entre Ríos, San Juan, Santa Fe, and Tucumán at BioFach 2012, the leading expo in biological products, has been remarkable. The same can be said of agrifood companies at Prodexpo, the most important commercial fair of this sector in Russia and Eastern Europe. Finally, forty-eight companies from the food and beverages sector attended the International Fair Gulfood 2012, which is a doorway to the Arab world.

Likewise, this issue details the history and experience of several entrepreneurs who have participated in promotional activities organized and supported by Fundación ExportAr.

Juan Usandivaras News

1

The Newsletter from Fundación ExportAr

STAFF

February 2012

Contents 4

Fruit Logistica 2012 8 The Market

Administrative Board-President Miguel Acevedo

9 The Sector 10 Interview | Citrusvil S.A.

Administrative Board-Secretary Secretary for International Economic Relations Amb. Cecilia Nahón

12 Interview | Extraberries S.A.

Administrative Board-Treasurer Undersecretary of Investment Development and Trade Promotion Amb. Carlos Alberto Bianco Executive Director Juan Usandivaras Manager Diego Nelli News Editor-in-Chief Eduardo Bevacqua

14

Prodexpo 2012 17 Entrevista | Vergara y Cía. S.A. 20 The Market

News Staff Héctor Lorenzo Verónica Scornik Javier González Ojeda Rosario Menéndez Cecilia Jobe

21 The Sector

News Contributors Sebastián Fratto Bárbara Bonelli Josefina Gorriti Julio Jozami News Designers Pablo Caruso Sebastián Feinsilber Omar Baldo Flavia Visconte

22

Gulfood 2012 24 Interview | Argentine Peanut Chamber 27 Peanuts 28 Interview | Ceras Argentinas S.R.L.

News English Version M. Verónica Muñoz, PhD Sarah Lynn Taylor

30 Interview | Rasic Hnos S.A. 32 The Market

Typography: Bree, © Type together

33

w w w . e x p o r t a r . o r g . a r Total or partial reproduction of the articles and photographs is allowed provided you cite “News”, the Newsletter of Fundación ExportAr, as the source of the materials in any reproduction, publication, distribution, or transfer of the materials.

2

News

The Arab World, by Julio Jozami

www.exportar.org.ar

46

BioFach 2012

48

Feature Story |

Anamê Vio Organic Cosmetics 54 Interview | Argentbio 56 Interview | Rivara S.A.

58

60

José Ignacio de Mendiguren, Argentine Industrial Union President. Al Invest: Key Cooperation Program between Latin America and Europe Special Report. Russia (2nd part)

Activities 77

78 79 80 81 82 83

83 84

Rounds PRE-MICA 2012 Fairs Arteaméricas 2012 Pdac 2012 Boston Seafood 2012 Fimec 2012 Alimentaria Barcelona 2012 Fidae 2012 Expocomer 2012 Foodex 2012 Cebit 2012 Expo West 2012 Salón de Gourmets 2012

Training How to Succeed in International Business Rounds Seminar. First Steps towards Exports Foreign Trade for Forest Industrial Sector

News

3

Fruit Logistica 2012 The Leading Fair for the International Fresh Produce Trade exhibits different products and new trends.

Berlin, Germany February 8-10 Foods, Fruits, and Fresh Vegetables

Fruit Logistica, the most important fruit and fresh vegetables fair, was held at the Messe Berlin fairgrounds in Berlin, Germany, February 8-10, 2012. The exhibition was organized by Messe Berlin GmbH in conjunction with Fruchthandel Magazin.

Germany is the main economic power of the European Union and the fourth economy in the world due to its high educational level, remarkably developed economy, the affluence of tourists, and its strategic geographic location. In fact, Germany is a fundamental connection between Central and Eastern Europe.

Due to the central role of small and medium size enterprises (SMEs), Germany’s economy is oriented towards foreign markets.

It imports industrial materials to cover its industrial demands; so it is a potential market for many of our products.

organizer and qualified exporter of International Trade Fairs.

These events gather thousands of visitors and professionals from different industrial sectors eager to exhibit their services and products, as well as to discover new trends. Participating in Trade Fairs is essential to enter into the German market; these events are also important to access other international markets. In fact, representatives from countries all over the world visit these venues seeking products or innovations for their own nations.

Although Germans look for competitive prices, they highly value the quality, freshness, flavor, and smell of every product, and also its packaging and presentation. As a consequence, Fruit Logistica offers the best products and a great variety of packaging and labeling.

At the same time, visitors and tourists from all over the world come to Germany because of its history and landscape, its traditions and well-known gastronomy. Germany is an open economy where different products find their ‘niche’ market.

Fruit Logistica is the most important event for fruit and vegetable companies; it is the meeting place for anyone people involved in this sector and a great opportunity to contact buyers and make efficient commercial relationships. Both new and old companies participate in this event, with providers and international distributors.

Due to its location, Germany has always been an important commercial center. Its strategic position in Central Europe has historically made Germany a necessary stop on trade routes between different countries. Thus, it has evolved into a skillful

The Leading Fair for the International Fruits and Fresh Vegetables Trade exhibits different products and new trends.

4

News

News

5

The fair also offers the chance to attend seminars, conferences, and similar activities on current issues. This comprehensive expo covers a wide range of topics from planting crops to product distribution and logistics. There are exhibitions of flowers and plants, fruits and fresh vegetables, exotic products, dried fruits and nuts, species and herbs. As fruits and vegetables are delicate and perishable products, it is essential to have a good understanding of their logistic knowhow. The fair offers solutions and support on how to manipulate, pack, label, and transport these products.

Fruit Logistica 2011 was attended by 2,400 exhibitors from eightyfour countries and 56,000 professionals from 132 nations (90 percent of the visitors were buyers and 78 percent were companies’ managers).

Foreign visitors composed ninety percent of the participants, which gave the event a clear international scope.

This year, the “Pavilion of the Americas” was located in Hall 25, and also covered parts of Halls 23 & 26.

6

News

Argentine Participation Over the last decade, the amount of German imports from Argentine origin has notably grown. We have exported apples, pears, citrus, fruit & vegetable juices and preserves, fresh vegetables, among others. Our participation has become necessary to consolidate our existing trade partners and to contact potential buyers.

Over the last three years, Argentine exports to Germany showed a considerable increase, not only in agrifoods, but also in copper related products, auto parts, pharmaceutical supplies, engines, agricultural tools, and leather goods, among others.

The presence and support of Victorio Taccetti, Argentine Ambassador in Germany, was indispensable to promoting bilateral commercial relations between both countries. The Ambassador held a reception in his residence for all Argentine visitors to welcome them and express his support of all fair participants.

The Argentine Pavilion set up by Fundación ExportAr was located in Hall 25 and was 828m2. There were fifty-nine national companies who exhibited their services and products, a good example of Argentine’s export capacity. The most important products were lemons, pears, apples, oranges, tangerines, blueberries, cherries, plums, peaches, pomegranates, garlic, and onions.

Fruit Logistica 2012

It is important to highlight that Argentina was the Latin American country with the biggest stand at the exhibition and the largest number of exhibitors. In 2012, we had the best performance ever.

presence at Fruit Logistica 2012. In all, Argentine exhibitors were able to make 1,625 commercial contacts, with 652 becoming potential buyers. The estimated sales in the midterm could be over $60 million dollars.

Fruchthandel Magazin, the specialized fair publication, included a three-page article and several photographs on the Argentine

Participating Companies Acheral S.A. Agrícola Mares S.A. All Lemon Fundación ExportAr Argentinian Fresh Fruits & Goods S.R.L. Agro Ruggeri S.A. Argentina Exportadora S.A. (ARGESA) Austral Agribusiness S.A. Bauza Javier Gustavo S.A. Cauquen Argentina S.A. Cerezas Argentinas S.A. Citrícola Ayui S.A.A.I.C. Citromax S.A.C.I. Citrusvil S.A Coexco S.A. Consejo Federal de Inversiones Consorfrut Argenti S.A. Cooperativa Colonia San Francisco Ltda Cooperativa Exportadora Citrícola de Corrientes Ltda.

Cosur S.A.

CTM Cooperativa Tabacalera de Misiones Ltda.

Don Roberto S.A. Ecofrut S.A. Emelka S.A. Expofresh S.A. Extraberries S.A. Fama Importadora y Exportadora S.A. Frutales S.A. Frutos del Litoral Frutucuman S.A. Global ID Grupo Novati Jas Jet Air Service Argentina S.A. Instituto de Desarrollo Productivo de Tucumán Jet Cargo S.A. Masmud Kingberry Kleppe S.A. La Patria S.R.L.

Latin Lemon Ledesma S.A.A.I. Mono Azul S.A. M Dodero Compañía General de Servicios S.A. Montever S.A. MFruit S.R.L. – Morresi Fruit Nobel S.A. Prodol S.A. Productores Argentinos Integrados S.A. Productos Ivia Veracruz S.A. Salentein Fruit S.A. S.A. San Miguel FGF Trapani S.R.L. Trébol Pampa S.A. Tres Ases S.A. Trevisur S.A. Vicente Carbajo Vicente Trapani S.A. Zamagro S.R.L.

News

7

The Market The German Federal Republic is located in Central Europe. It has 357,021 km2 and a population of 81.5 million of inhabitants.

Its GDP for 2010 was $3.31 trillion dollars, while its GDP per capita was $37,745 dollars. The services sector is the largest component of German GDP (71%), followed by the industrial sector (28%), with the agricultural sector representing only 0.9%.

Most of the country’s products have high technological value, like electronics, machinery, shipbuilding, chemicals, and automotives. The European Union plays a key role in German foreign trade. Thus, 63% of its exports are destined for EU countries; 58.4% of the imports come from EU countries.

In 2010, exports reached over $1.3 billion dollars. The main destinations were France (10.1% of total shipments), the USA (6.7%), UK (6.6%), Netherlands (6.6%), Italy (6.3%), Austria (5.7%), Belgium (5.2%), and China (4.7%).

Regarding German imports, there was an estimated trade exchange of $1 billion dollars in 2010. The products purchased included oil and related products, foods, textiles, and metals. These products came from Netherlands (13% of total imports), France (8.2%), Belgium (7.2%), China (6.8%), Italy (5.6%), and UK (4.7%).

The bilateral commerce between Argentina and Germany totaled $4.4 billion dollars in 2010. Out of this amount, $1.7 billion dollars represented shipments to Germany. In this sense, Germany is the seventh most important export destination of Argentina.

Our main exports are copper minerals (with shipments totaling $379 million dollars and consisting of 21.5% of the total exports), followed by meat ($349.4 million dollars and 19.8%), and ground transportation materials ($278.1 million dollars and 15.7%).

8

News

Fruit Logistica 2012

The Sector Argentina is one of the main producers of fruits and fresh vegetables in the world. In 2010, Argentina’s export of these goods totaled $2.79 billion dollars. The products for export include: fresh fruits (totaling $1.05 billion dollars); fresh prepared vegetables, fruits, and legumes ($957 million dollars); fresh vegetables and legumes ($646 million dollars); and dried or processed fruits ($133 million dollars).

Main destinations for fruits and fresh vegetables in 2010 were Brazil (with a share of 28.5%), the Russian Federation (11.9%), Netherlands (10.4%), and the USA (7.4%). All of these destinations received 58% of Argentine total shipments.

Main products for exports are: Fresh Pears: in 2010, pears accounted for $333 million dollars, exported mainly to Brazil, Russia, and Italy Fresh Garlic: sales for $194 million dollars to Brazil, Mexico, and France Lemons: shipments for $191 million dollars to Netherlands, Spain, Russia, and Italy Fresh Apples: exports for $139 million dollars to Brazil, Russia, and Algeria White Beans: shipments for $135 million dollars to Spain, Italy, and Turkey Tangerines: sales for $118 million dollars to Russia, Netherlands, and UK Blueberries: exports for $115 million dollars to the USA, UK, and Netherlands Onions: shipments for $102 million dollars to Brazil, Netherlands, and Paraguay

News

9

InterviewI Francisco J. Rotella, Commercial Manager of Citrusvil S.A.

Citrus for Export Citrusvil S.A. began as a primary producer of citrus in the 1970s and quickly incorporated the packaging and marketing of these products.

It started exporting soon after and became a global brand for lemons and related products. Francisco J. Rotella, Commercial Manager, participated in Fruit Logistica, where he met their customers in person and contacted potential buyers.

By Verónica Scornik

Citrusvil was born 30 years ago. How did it grow?

Citrusvil is a subsidiary of Lucci Group. It was born in the early 1970s primarily as a lemon producer. At the beginning of the 1980´s it expanded to include the packaging and trade of fresh fruit, first in the national market and later exporting citrus fruits internationally. Citrusvil was a pioneer in this sector in the Province of Tucumán.

Citrus production starts in our own nurseries and we have plantations across the piedmont areas of Tucumán.

Experts and professionals follow Good Agricultural Practices (GAP).1 Citrusvil also has modern industrial production plants and two fresh fruit packaging locations.

- A number of Good Agricultural Practices (GAP) codes, standards and regulations have been developed in recent years, which aim to codify agricultural practices at farm level for a broad range of commodities. Even though in Argentina adherence to GAP is not compulsory, the National Institute of Industrial Technology (INTI) certifies those companies who followed these norms.

1

10

News

Fruit Logistica 2012

How many people work at Citrusvil? What are your strengths?

What was your experience at Fruit Logistica like this year?

The Lucci Group has 800 employees; 370 people work at Citrusvil.

400 temporary employees work during the industrial fresh fruit season. Our strengths are our industrial manufactures and the fresh fruit production.

Our participation in Fruit Logistica 2012 in Berlin was very positive. It is the most important fair of the year where we can meet our clients in person. In this sense, the fair becomes the best opportunity to discuss our past business year and our plans for the upcoming one. We also get to know new potential buyers.

For example, this year we started doing business with several East European countries. We want to expand our presence in this market. Fundación ExportAr has also offered an excellent service.

The organization of the Argentine Pavilion within the fair was remarkable and many visitors stopped by our exhibition stand during the three-day fair. Again, its support has been very good.

This company belongs to Lucci Group which has several different businesses. What are the characteristics of citrus industries?

Lucci Group is concentrated in lemons and related products, and also in biodiesel, sugar cane, soy, cattle breeding, and building industry. The fresh fruit market is very dynamic and inelastic, with several key factors: weather, production, international competence (Spain, Turkey, and South Africa), international market situations, and micro/macro economic variables.

What markets do you export to? What are your short and mid-term goals?

Our lemons are traded in the most competitive markets all around the world. Our brand is also well-known for its quality in Europe, Asia, the Middle East, and Canada.

You participated in several International Trade Fairs such as Fruit Logistica, SIAL China or SIAL Paris, and also in Business Rounds organized by Fundación ExportAr. What have you gained from these experiences and Fundación ExportAr’s support?

What can you say about the future of this sector?

We have an uncertain future due to both endogenous and exogenous factors that could negatively impact the citrus industry in general, and lemon production in particular.

What are your goals for this year?

Our main goal is to expand the activities of the Lucci group.

Citrusvil plans to keep offering high quality industrial and fresh fruit products to cover the needs of our clients all around the world.

We have obtained infrastructure, a good presence, and a place to display our products in exhibition stands at those events.

News

11

Fruit Logistica 2012 Interview I Carlos Stábile, Project Manager of Extraberries S.A.

“We are eager to access the Asian market” Carlos Stábile, Project Manager of Extraberries S.A., shares his satisfaction with the results at Fruit Logistica. He affirms that “support from Fundación ExportAr is essential and, each time we participate in a fair with them, we know we have all the necessary guarantees for a successful event”.

When and how was the company born?

Extraberries S.A. started in 2006 and, by mid-2007, it had a blueberry plantation of 50 hectares. Today, we have 200 hectares with high quality blueberry crops, fully equipped with state-ofthe-art technology which provides an early crop which meets the demand of international markets.

Premium varieties of blueberries are grown in farmlands that process nearly 3 million kilograms of fruit per season. The selection, harvest, and processing of the blueberries, as well as proper packaging and conservation in modern chilling rooms, are strictly controlled. There are modern processing lines, an enormous area for classifying the fruits, a fumigation chamber, cooling as well as freezing tunnels and chambers. Fresh water reservoirs supply the

necessary humidity (by means of both drip and spray irrigation), and anti-frost protection in the agricultural fields guarantees the quality of the product.

How was your experience at Fruit Logistica?

We have been attending Fruit Logistica over the past years because it is the most important fresh produce fair in the world. The results are very positive. Even though there were fewer visitors than in previous years, they were still many potential buyers. I mean, there were fewer visitors, but of a higher quality than in the past.

What markets do you export to? Where do you want to expand to?

Our main markets are the USA, Canada, and Brazil in the Americas; Holland, UK, Germany, Italy, France, and Spain in Europe. We indirectly access many more destinations through our European importers and distributors.

What are your short-term goals?

We want to enter into the Asian, Middle Eastern, and Russian markets; apart from consolidating our businesses in Brazil and Europe.

What fairs or trade events do you plan to attend?

We may participate in the Asian Fruit Logistica, PMA, and probably others that are suited to our products.

How important are these promotional events for your company and the support of Fundación ExportAr? Both have a vital importance for our business. Fundación ExportAr provides an important service by organizing promotional activities for Argentine exporters. It is very safe to participate in events with the support of Fundación ExportAr, because we know that everything is checked and set up to guarantee excellent presentation of our products and services.

12

News

Fruit Logistica 2012

Fundaci贸n ExportAr Agreement

SENASA at International Exhibitions The National Service of Agrifood Health and Quality (Senasa) takes part in different national and international exhibitions in order to give advice to exporters and importers of agrifood on phytosanitary requirements that the Argentine Republic and buyer countries of said products demand.

Under the agreement between Fundaci贸n ExportAr and Senasa, a decentralized organization of the Ministry of Agriculture, Livestock, and Fisheries of the nation, during 2011 Senasa will participate in different fairs and exhibitions at national and international levels, to give advice to agrifood exporters and importers about phytosanitary requirements that the Argentine Republic and buyer countries demand of said products.

It is very common for Senasa to show its activities in different national fairs. With this agreement the authorities of the organization have decided to widen their scope and participate in well-known international exhibitions related to the agrifood industry and contribute to the development of the international trade of these products.

The purpose of the agreement between these two organizations is to implement the necessary means and actions to reach mutual technical complementation and carry out in a coordinated way projects in areas of mutual interest, working in cooperation through different activities.

In this regard, Senasa and Fundaci贸n ExportAr jointly assist small and medium agrifood exporters abroad, as well as boosting imports, in matters related to quality and health in agrifood.

This joint work permits collaboration in the design of the necessary conditions for the development of actions towards the fulfillment of the export policies set forth by the national government.

Thus the Senasa widens its regional scope by participating in these international meetings, adapting and accompanying its main goal which is to strengthen the role of the state on animal and vegetable health, food safety and environment care.

News 13News

For further information: www.senasa.gov.ar 0800-999-2386

News

News 13

13

Prodexpo 2012

Moscow, Russia February 3-17, 2012 Foods and Beverages

Fundación ExportAr organized the participation of Argentine companies and organizations in the 9th edition of Prodexpo, the agrifoods sector’s most important fair in Russia and Eastern Europe.

The Ministry of Agriculture and Foods of the Russian Federation and the National Governments supported this international event, which was held in the ZAO Expocentre (Krasnaya Presnya) in the city of Moscow.

Elena B. Skrynnik, Minister of Agriculture, was in charge of the official opening ceremony. She welcomed 600 companies from fifty-five countries from all around the world as well as 1,500 Russian companies. It is the first time in Prodexpo’s history that the Minister of Agriculture has ever opened the Fair.

For the past 18 years, Prodexpo has defined the development of the domestic food industry of the region, and it has played a key role in stimulating the Russian food market. Over the past five years, the evolution of the Russian economy has been very positive, with annual growth of five to seven percent as well as an increase in disposable income. While there has been a rise in consumer’s goods and agrifoods, the national food production is

14

News

not enough, so Russia depends on imports to cover local demands.

As a consequence, Russia is a potential market for Argentina and Prodexpo appears to be an excellent commercial platform for doing businesses and learning about the market demands.

Russia has a population of more than 140 million people; the GDP per capita was $15,900 dollars in 2010. This means that the country has a medium-high income, a skillful workforce, sophisticated consumers, and important infrastructure needs.

The Russian economy keeps showing positive numbers after the global economic crisis in 2008, with an average annual growth of four percent.

The transition from a centrally focused economy to a market economy is still in progress. Russia is a member of the World Trade Organization which means a commitment to further liberalize the market and create new business opportunities.

In order to succeed in new markets, local presence is essential, particularly when services or products require post-sale support.

To do so, it is important to make agreements with representatives in Russia, who can provide help in dealing with languages barriers and different local commercial traditions. The most common strategy is choosing a good distributor or a network of distributors that could offer logistical support, including customs tariffs advice, warehouse and storage information, and transportation.

Prodexpo has been famous for many years thanks to its international scope. In fact, in recent years, the number of exhibitors and the size of the fairgrounds have increased more than fivefold. Traditional exhibitors from Europe, Latin America (Brazil, Mexico, and Argentina), and Australia now share spaces with Asiatic countries who have become very active in the Russian market. Thus, exhibitors from Thailand, Korea, and China have increased their number every year. This same trend can also be applied to other countries in the region.

The fairgrounds of Prodexpo 2012 were 102,000m2, making it the largest floor area ever. It had official pavilions from Argentina,

Armenia, Australia, Austria, Azerbaijan, Belgium, Brazil, Bulgaria, Byelorussian, Canada, Chile (who participated again after being absent for many years), China, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Holland, Hungary, India, Iraq, Ireland, Iceland, Israel, Italy, Japan, Korea, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Macedonia (for the first time), Malaysia, Mexico, Moldova, Poland, Portugal, Romania, Serbia, Singapore, Slovakia, Spain, South Africa, Sri Lanka, Switzerland, Thailand, Turkey, the United Kingdom, Ukraine, United Arab Emirates, Uruguay, and the United States of America.

Prodexpo was divided in seventeen thematic pavilions: Vodka, Confectionery, Fish and Seafood, Four International Halls, among others. Regarding visitors, sixty percent of participants were from Moscow; thirty percent from Russian regions and ten percent were foreigners.

As the size of the exhibition grounds has increased, it is now easy to enjoy high quality products from leading companies, innovative products (from the organic, dietary, and functional sector), and high-tech foods (like dried, frozen, canned, or fast foods).

News

15

Prodexpo 2012 Argentine Products on Exhibition during the Fair -Meat and Poultry

-Gastronomy related products

-Fish

-Frozen Food

-Cheese and Dairy Products

-Juices, Sodas, Water

-Groceries and Condiments

-Fruits and Vegetables

-Vegetable Fats

-Alcoholic Beverages

-Dried Fruits and Nuts

-Tobacco, Cigars and Cigarettes

-Confectionery and Bakery

-Organic Food

-Teas and Coffees

-Packaging and Storage Equipment

-Sauces and Canned Food -Preservatives

During the expo, several importers from the foods sector as well as representatives from supermarket chains visited the exhibition stand. In fact, due to the location of the Argentine Pavilion, more people visited the stand than in previous years. Our pavilion of 42m2 had five totally-equipped areas. Wenfor S.A., a representative of Chilean and Argentina wines, also had its own exhibition stand.

Argentine companies made 140 commercial contacts and 37 of them (26.5 percent) are likely to end up in deals or partnerships.

Two other companies closed deals during the fair, one of them reaching $100,000 dollars.

After attending Prodexpo, all participating companies estimated an annual increase in future sales of $11.3 billion dollars.

Finally, all the participants expressed a desire to attend the next edition of this fair, which will take place on February 11-15, 2013.

There were also competitions, workshops, and seminars about new technological trends in food production, dietary and organic foods.

Participating Companies Arcor Europe: Confectionery, chocolates, cookies, foods Cirexa S.A.: Pitted and unpitted tenderized prunes Pietrelli Prunes: Pitted and unpitted prunes; natural condition prunes Vergara y CĂ­a. S.A.: Prunes, raisins, sunflower seeds, dried fruits and nuts, pop corn, peanuts, olive oil, crackers & cookies, and legumes

16

News

Interview | Oscar Vergara, Founder of Vergara y Cía. S.A.

We have been the pioneers Oscar Vergara has dedicated his life to foreign trade. He created Vergara y Cía. S.A. 14 years ago. Today the company has twenty-five employees and exports their products to sixty-eight countries. Vergara actively participates in promotional events all around the world. He was one of the first traders of Argentine prunes in the Russian market. He affirms that “since the beginning, we have participated with Fundación ExportAr in International Trade Fairs”.

By Cecilia Jobe and Héctor Lorenzo

How was Vergara and Cía. S.A. born?

In 1991, I discovered a niche market and decided to start selling these products. It was a good opportunity for me, particularly seeing how Argentina organized its exports and the structure of the international market. I became a sales, or purchasing, agent of foreign and local companies. I was by myself, but later I found a Chilean partner company with which I commercialized legumes, honey, candied peanuts, and pop corn. We later became one of the main Argentine brokers of these products.

I worked with my Chilean partners until 1997, when Vergara y Cía. S.A. was born as a family company. We thought that we needed an aggressive presence in the fairs to obtain new clients

and markets. We participated in at least seven or eight fairs per year with Fundación ExportAr. Today, we have eleven traders and twenty-five employees in total.

We organize teams to supply different markets, focusing on our ten top products, the “VIP products”, which are in high demand.

We have customers all around the word. In 2010, we sent shipments to sixty-eight destinations. We don’t have a final report on 2011 yet, though Russia and Algeria have been very important players. We also sell to Europe and the Middle East. We sell dried fruits and nuts, prunes, raisins, candied peanuts, white kidney beans, popcorn, and sunflower seeds among other products.

News

17

Prodexpo 2012

To what countries did you export in 2011?

We have customers all around the word. In 2010, we sent shipments to sixty-eight destinations. We don’t have a final report on 2011 yet, though Russia and Algeria have been very important players. We also sell to Europe and the Middle East. We sell dried fruits and nuts, prunes, raisins, candied peanuts, white kidney beans, popcorn, and sunflower seeds among other products.

What are your plans for 2012 in terms of new markets?

We are constantly looking for new markets. Last year, we started working with Kazakhstan and Moldavia. We used to reach them through Russian distributors, but they decided to contact us directly. We are selling peas and popcorn to Pakistan. Last year, we sold peas and Argentine chickpeas to Russia due to the increase in Canadian prices.

Are you planning to offer more products for export?

We want to increase the scale of what we are exporting now.

Everywhere, particularly in the northern hemisphere, companies from this sector work together with several related products. A peanut producer also sells prunes, raisins or any other dried fruit.

We have specialized experience in these products as well. We don’t deal with soy, oils, bulk grains or cereals, because those are not what we produce.

How was your experience at Gulfood?

When we participated in Gulfood (Dubai) for the first time in 1999, there was only one other Argentine company in attendance. There was no Argentine Pavilion. Our experience in February 2012 was completely different. I was impressed at the size of our exhibition stand. Dubai is a key business center in the area, for both the Arab World and Southeast Asia. Many customers from Singapore, India, and Pakistan visited the fair.

18

News

Participating in these fairs is a key promotional investment for us: it is a meeting place for our clients and even new providers.

We share information and management logistics in general. We are committed to help customers and providers; we have a good business reputation and people trust us.

What are your plans for 2012 regarding your participation in Trade Fairs or International Promotional Events?

Since January, we have attended Prodexpo in Moscow and Gulfood in Dubai. In the near future, we will participate in Food & Hotel Asia (in Singapore), World Food (in Moscow), and other specialized exhibitions.

What do you think of the support from Fundación ExportAr? It is excellent. We have worked jointly with Fundación ExportAr since the beginning, back in 1998. Their service has improved year after year, with more professional support during the events.

Argentina has an important presence in International Trade Fairs which results from Fundación ExportAr’s strategic plan and the commitment of its people.

In 2011, we worked on our internet graphic design, e-mail, and brand manual to improve our logo, colors, formats, etc. When we reached our stand at the expo, our logo was already on display, which benefitted us enormously; it was one less thing to worry about.

I would also like to point out that we have received support from many Commercial Officers from several embassies. For example, the Russian embassy has always supported exhibitors who want to do business with them. We also had an excellent experience in Hong Kong last year.

Interview | Oscar Vergara, Founder of Vergara y Cía. S.A. How long have you been attending Prodexpo?

Since 1999, we have been participating in this Trade Fair. At that time, Brazil was our trade partner, but unstable currency caused several problems. We decided to look for new options and the Russian market was ready for us. In fact, today it is our main trade partner.

We reached this market in a very peculiar way; it required a huge effort. I always like to share this anecdote to illustrate what we faced then. We used to sell our products to a company from Holland and another from Germany, which were the main importers of dried fruits and nuts. I sensed that Eastern European countries were important consumers. However, when I asked about the Russian market, they replied that it was a dangerous venue and dismissed my interest.

In fact, it was a peculiar historical moment after Russia lifted the

Iron Curtain. In 1999, I participated in Prodexpo (Moscow) for the first time and I found that my two European distributors were also exhibitors in Moscow. This meant that the demand was real and the market was interested in my products, though they didn’t want to share that with me.

It took me almost two years to close my first deal with the Russian market. In 2002 I sent the first shipment of prunes from San Rafael.

They were very well received so we kept sending containers. Today, Russia is the main destination of Argentine prunes. And we have been the market pioneers. In fact, Russian demand grew so quickly that it exceeded our local production. We were producing six or seven thousand tons then, and today we ship almost forty to fifty thousand tons to Russia.

Entrepreneur Profile Oscar Vergara took his first steps in foreign trade when he was 18 years old. He started as an assistant and still keeps that hardworking attitude with him today. “When Vergara started, we were only three people: my son, his closest friend, and myself; my daughter and my brother-in-law joined us later. We are a family business although my son and daughter have no special privileges at all: we believe in working as a team”.

The story is the same for many other successful entrepreneurs from Argentina who have started from scratch: from door to door, delivering packages. They have built-up their companies thanks to their tenacity, hard-work, and skills. It is always important to share these life experiences. Figures, statistics, graphics and charts clearly show the growth, revenue or success of many entrepreneurs. However, Oscar’s story talks about something else: it is the experience of a man who was able to build a strong company that has an international scope and an important local role from the ground up.

News

19

The Market The Russian Federation is 17,075,400km2 and is the largest country in the world, covering one-eighth of our planet. With a population of 140 million inhabitants, Russia has a very dynamic economy. The service sector is the largest component of the Russian GDP with 59%, followed by the industrial sector at 37%, and the agriculture sector that represents only 4%.

Due to the commercial surplus and the growth of its GDP over the last years, Russia is an important holder of international reserves followed by China, Japan, and Saudi Arabia.

Russia plays a leading role in the energy sector and it is the second most important global producer of oil after Saudi Arabia.

It supplies 12% of global production and oil exportation. At the same time, it is an important producer of natural gas, and has the largest natural gas reserves. Energy and fuels represent 79 % of its total exports.

In 2011, Russian exports reached $498.6 billion dollars. Its main trade partners were European Union countries which received 48% of the shipments. Russian exports to Germany were 8.2% of the total shipments, Netherlands 6%, the USA 5.6%, China 5.45, and Turkey 4.6%.

In 2011, Russian imports reached 310 billion dollars. It has a diversified list of providers. Germany accounted for 14.7% of the total imports, China 13.5%, Ukraine 5.5%, Italy 4.7%, and Byelorussia 4.5%.

Regarding bilateral commerce between Argentina and Russia, our exports to Russia reached $764 million dollars in 2011.

The main products exported were fresh fruits (with shipments totaling $224 million dollars, representing 29.3 percent of the total imports), meat ($193 million, 25.3%), residues from food industries and fodder ($74 million, 9.6%), diary ($57 million, 7.5%), fruits and oilseeds ($47 million, 6.1%), and preparations of fruits, fresh vegetables and legumes ($40 million, 5.3%).

These six main products represent 83% of the total shipments sent to Russia in 2011.

20

News

Prodexpo 2012

The Sector Although Russia is the largest country in the world, only twenty percent of its surface area is arable land. This is the reason for Russia’s deficit in the food sector, which represent 18% of the total imports. Food is the second greatest imported good in Russia. This is a beneficial situation, with plenty of opportunities for agro-exporting countries and counter-season producers, for Argentina.

Among food items for export, fresh fruits reached $1.1 billion dollars. The main destination was Brazil (shipments totaling $242 million dollars), followed by Russia (for $223 million and 19.2% share of the total exports).

The most important fruits sent to Russia were pears (totaling $130 million dollars), tangerines ($60 million), and grapes or raisins ($22 million).

These fruits were produced by the provinces of Río Negro (which represents 40% of the total exports), followed by Mendoza (13.3%), and Entre Ríos (13%).

Regarding meat exports in 2011, we sent shipments worth $2.1 billion dollars. Russia was our third most important destination, representing 9.2% of our total exports.

The main producers of meat for export are in the provinces of Buenos Aires (59.3% share of the total export), Santa Fe (13.15%), and Córdoba (11.6%).

News

21

Gulfood 2012 “This fair again reported a record visitor attendance” affirmed the CEO of Dubai World Trade Center

Dubai, United Arab Emirates February 19-22, 2012 Foods, Beverages, Hospitality, and Related Equipment

Since 1987, the International Foods, Beverages, Hospitality, and Equipment Fair has been held at the International Convention and Exhibition Centre in Dubai.

This year, 68,681 professionals, from 152 different countries from the Middle East, North & Center of Africa, India, and Russia, visited the fair; they. This shows an increase of 11 percent more participants than in 2011. There were 3,800 exhibitors from 88 countries and 110 international pavilions, which displayed trendy products and innovations. In all, it was an unparalleled business platform full of opportunities.

Fundación ExportAr organized the Argentine Pavilion for the eighth time. It was 324m2, divided in two islands of 162m2. According to the information reported from participants, they were able to make 4,377 new business contacts with 905 being likely to end up in a future deal.

Twenty-three Argentina companies closed deals during the fair, totaling approximately $5.71 million dollars. Thanks to this experience, participating companies estimate to earn $61.9 million dollars.

Gulfood is considered one of the most prestigious food fairs in the world. Argentine exhibitors highlight the importance of its location: “Dubai is a strategic place, between China and Europe.

22

News

Buyers from Middle East, Asia, and Europe visit this fair. Lots of buyers from the Arab world also attend this event”.

In the annual international Trade Fair calendar, Gulfood is an essential meeting place because of its size, impact, and quality.

Important exporters mention that “the number of visitors is impressive. We should also consider who these potential buyers are: important buyers whose large volume purchases can positively change a company’s future”.

Argentine companies displayed several products: Foods: popcorn, microwave popcorn, candied sunflower seeds, beans, white kidney beans, squash, white chickpeas, peanuts, peas, prunes, raisins, olive oil, canned fruits, peeled tomatoes, fruit marmalade, canned peaches, fruit cocktail, peach pulp, apricots and pears, dried vegetables, dried fruit (apples, pears, peaches, apricots, prunes, strawberries, berries, tropical fruits), sweet potato & quince jams, jelly, several products in syrup, honey, wax, propolis, glucose, honey powder, nuts, corn syrup, date syrup, fruits pulp, fruit juices, lamb, halal beef burgers, coffee, yerba mate, tea, milk, powdered milk, tomato sauce, tomato paste, soups, pasta, powdered juices, mineral water, cheese, chicken, processed cuts, oils, frozen bakery products, chocolates, sweet cookies and “alfajores” among other.

Gulfood 2012

Services: Halal Argentine products (slaughtered, supervised, and certificated services according to Islamic norms). Helal Saeed Almarri, CEO of Dubai World Trade Centre and organizer of the Fair said that “Gulfood has become a key business center for global food and beverage industries. Its global scope is undeniable, and it grows larger year after year”.

Gulfood exhibits the following products: foods, beverages, ingredients, packed products, non-alcoholic beverages, seafood, bakery and confectionery, frozen and chilled foods, dairy, processed foods, cooling equipment, hotel supplies and services, food processing machinery, food packaging and labeling, codes and measuring equipment, hospitality technology, tableware and accessories, display cases, disposable items, storage systems, food related retail equipment.

Participating Companies at the Argentine Pavilion Aceitera General Deheza Agro Uranga S.A. Alberto L. Marchionni S.A. Alemar S.R.L. All Food S.A. Andreoli S.A. Arcor Argensun S.A. Argentina de Graaf S.A. Cámara Argentina del Maní Centro Islámico de la República Argentina CEPA (Centro de Empresas Procesadoras Avícolas) Ceras Argentinas S.R.L. Cirexa S.A. Conosud

Cremer y asociados Curcija S.A. Desde el Sur S.A. – Food Way S.A. Exportando S.A. Farm Products S.R.L. Frutagro Exportadora e Importadora S.A. Geoallianz S.R.L. Gregorio, Numo y Noel Werthein S.A. Gruposur Export S.R.L. Hallar Company JC Impex S.A. José María Lazara S.A. Kineta Laboratorios Argentinos Farmesa S.A.I.C. Loitegui S.A. Ministerio de Comercio Exterior, Turismo e Inversiones – Provincia de Chubut

Murray Food Products Naiman S.A. Nexus Business International Ovobrand S.A. Paramerica S.A. Pietrelli Prunes Planta Madero Productos Ferraris Productos Genero S.A. Rasic Hnos. S.A. Rocío de miel S.A. Snack Crops S.A. The Halal Catering Argentina Tucumán – IDEP Vergara y Cía. S.A.

News

23

Interview | Beatriz Ackermann, CEO from the Argentine Peanut Chamber

Making Our Peanuts Reach Arab Countries

24

News

Gulfood 2012

The Argentine Peanut Chamber had an important presence at Gulfood Dubai Fair. Beatriz Ackermann, CEO, explains that this event was very useful: “It was about time for us to expand our products to nontraditional markets. Considering those areas where we are still absent, we decided upon two new destination regions: the southeast of Asia and the Arab countries. With the support of the Argentine Embassy in Japan, we have started working in Asia. For the Arab countries, we chose Dubai as our best presentation card”.

How large is the volume of peanut exports from Argentina? Which are the main destinations?

When was the Argentine Peanut Chamber born? What are its goals?

The peanut industry is an emblematic sector in the region of Córdoba, which exclusively exports manufactures of industrial origin (MOA) with added value (candied peanuts; peanut butter, paste, oil, meals and pellets). Until 2005, Argentina used to export 250,000 tons per year; while today, we export 600,000 tons of peanuts and related products totaling $800 million dollars. Since 2007, Argentina has become the first global exporter of peanuts and peanut related products, followed by China and the USA.

The Argentine Peanut Chamber (CAM) was born in 1975 and has always worked towards achieving its main goals: promote continuous sector efficiency and quality in production; promote exports, production development, and innovations in products; provide member training support; establish good relations with public and private institutions; and promote products in local or foreign markets.

Where is the largest peanut region? What is its surface?

There are around thirty areas in the south of Córdoba in which peanuts are produced. 12,000 people are employed full time and thousands more work in peanut related activities. Thanks to this production of peanuts, this region has unique records: zero unemployment, high school attendance rates, retention of families in their places of origin, and highly developed communities which care about social promotion.

The success of Argentina’s peanut industry can probably be attributed to the organization of the different players into a closely knit group. Peanut growers, industrial representatives, seed providers, university graduates, research centers, labs, machinery or equipment manufacturers, technicians, and service providers, all work jointly to develop a peculiar synergy.

The Argentine peanut cluster is a pioneer for implementing systems of food safety and quality assurance. Since the very beginning of the peanut farming cycle, Good Agricultural Practices are applied.

In 2005 all of our processing plants started to follow Good Manufacturing Practices (GMP) and then HACCP systems (Hazard Analysis and Critical Control Points). Nowadays these plants even have certifications under BRC standards (British Retail Consortium) and ETI (Ethical Trading Initiative).

Who are its members?

The Argentine Peanut Chamber is conducted by representatives of all segments involved in the peanut producing chain: cooperatives of producers, shellers (exporters), brokers, surveyors, customs agents, consultants, logistic companies and other services representatives. Since August 2001 the Argentine Peanut Foundation (entirely financed by CAM) supports and coordinates research programs in the peanut sector.

How was your experience at Gulfood?

Dubai is not just a luxurious destination, but a necessary doorway to Arab markets. This is the reason for our participation in Gulfood. We have already integrated Argentine peanuts into European and Russian markets, so CAM decided to expand its trading zones and try nontraditional markets. We set up two main goals regarding new destinations: the southeast of Asia and the Arab world. Thanks to the support from the Argentine Embassy in Tokyo and ProCórdoba Agency, we have started working in Asia. We thought Dubai was the best scenario to display our products in the Arab World.

News

25

Interview | Beatriz Ackermann, CEO from the Argentine Peanut Chamber

Was it a positive experience?

Gulfood was an excellent starting point for us. The Chamber shared an exhibition stand with several peanut companies within the Argentine Pavilion which was organized by Fundación ExportAr. We worked hard during the four-day fair and met visitors from the United Arab Emirates, Pakistan, India, Iran, Saudi Arabia, Yemen, Oman, Qatar, Egypt, Libya, Algeria, Lebanon, and Turkey, among others.

In the Middle East, peanuts come from India and China, though they are familiar with the prestigious Argentine peanuts. Many buyers want better options and quality, though prices are always a priority. Many confectionery producers had several inquiries; peanut butter producers and snack retailers also contacted us.

It is worth mentioning that visitors had high expectations for the next Argentine peanut harvest, due to the lack of global peanut stocks and the reduced number of suppliers available this year.

Many Arab distributors need to receive peanuts before Ramadan (at the beginning of July) because it is the peak time to buy.

history of the Province of Córdoba; it was launched internationally in 2007 with the support of Fundación ExportAr and ProCórdoba Agency. Since then, CORDOBA PEANUTS has gained prestige and international recognition, while it participated in Trade Fairs and Business Missions all around the world. This brand guarantees premium quality in the agricultural and manufacturing practices under strict sanitary norms, and guarantees nutritional properties and phytobiological specific characteristics.

Since 2000 INTA (Federal Institute for Agricultural Technology), the State University of Cordoba and CEPROCOR (Provincial Central Laboratory) have been studying peanuts grown in Cordoba and found an amazing content of Fiber, Protein, Sugar, Iron, Calcium, Magnesium, Potassium, Copper and Zinc, as well as healthy fats.

CORDOBA PEANUTS have very low acidity levels, remarkable stability and extraordinarily high Tocopherol (antioxidant) concentration.

Due to the presence of international tourists, the demand of high quality products has risen. Thus, a new market for gourmet, or delicatessen, products is being opened.

How are peanuts considered within the food sector?

Even though peanuts are legumes (not an oilseed), in international trade they are included in the sector of “nuts” or “dry fruits”, along with almonds, cashews, hazelnuts, macadamias, pecans, pistachios, pine nuts and other less known varieties.

In many countries such as the Philippines, Gambia, Nigeria, Senegal, Malawi, and Ghana, peanuts are a main source of protein. Likewise, consumption of peanuts and peanut products is a deeply-rooted gastronomic habit in other countries. For Chinese, Indian, and many African Sub-Saharan populations, peanuts and peanut oil are a basic food in the everyday family table. Peanut butter is one of the most popular food traditions in the USA; Europeans love peanuts in their snacks and chocolate candies.

Peanuts have extraordinary nutritional properties; their versatility makes them as accessible as they are popular.

What is the importance of CORDOBA PEANUTS Certification of Origin?

CORDOBA PEANUTS is a quality company that is certified exclusively by the Argentine Peanut Chamber, under a strict control and inspection system. This is the first local brand in the Exports from Leading Peanut Exporting Countries (in metric tons per year) Country

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

254,777

226,060

201,050

202,652

176,311

256,000

409,000

423,000

398,600

442,900

496,000

CHINA

399,970

706,000

770,000

761,000

690,000

600,000

600,000

400,000

400,000

400,000

350,000

USA

253,678

158,406

252,986

148,023

18,436

3, 170,000

192,000

205,000

280,000

217,000

250,000

ARGENTINA

Source: Peanut Argentine Chamber

26

News

Gulfood 2012

Peanuts

By Javier González Ojeda The peanut (Arachis hypogaea) is a legume that originated in South America. It is an annual herbaceous plant with multiple uses and by-products; peanuts are well known all around the world.

Main Peanut producers are mostly located in Asia and Africa (China, India, Nigeria, Indochina, and the USA). Argentina is among the top ten main producers in the world.

Peanut cultivation is concentrated in the Province of Córdoba which grows eighty-five percent of the total production, followed

by Salta, San Luis, and La Pampa. Cordoba is the southernmost region that produces peanuts in the world; main locations are in Río Cuarto, Juárez Celman, General San Martín, and Tercero Arriba.

As a result, local economies are based in peanut production. The Argentine Peanut Chamber (CAM) estimates that the peanut industry employs 12,000 people full-time.

The main peanut by-products are candied peanuts as well as peanut paste, butter, oil (crude and refined), meal, pellets, and expellers.

Peanuts are not commodities so there are no international prices to refer to. It is an elaborated product, quite not homogenous, so the differences in its quality and its crops affect global pricing.

In fact, peanuts are traded with a higher added value than other nuts or dried fruits. That being said, however, prices set by C&F from Rotterdam port serve as guidelines. In this sense, the price of peanuts is very volatile and depends upon the volume and quality of what has been produced.1

The importance of Argentine peanut production lies in the role it has in the international market. In this sense, Argentine peanuts are acknowledged for being one of the best quality products in the world. This high quality has carved a favorable niche in European markets which make up almost sixty percent of the total international purchases.

Low local consumption rates, permits the exportation of almost ninety percent of all Argentine peanut production. In fact, the annual per capita consumption is close to 270 grams, even lower than in the Netherlands which consumes 5 kilograms per capita.

Argentina has become the first global exporter of peanuts. Most of the shipments are to the USA, Russia, Australia, Canada, and Algeria.

Strict European Union sanitary norms are sometimes a barrier for many Asian countries (like China, India, Vietnam), or some African nations (Nigeria and Senegal). This is an advantage for Argentine production, because its high quality places it easily in the EU market.

In order to export peanuts, particularly to the EU market, Argentina has strict food safety procedures in place. Inspectors from SENASA monitor quality in sophisticated labs located in each manufacturer plant (which are certified ISO18025). In the European Union, Argentine peanuts are used in snacks and candies, and as a highly quality ingredient in gourmet products. Retail packages of peanuts are in high demand.2

Argentine Peanut Production (in tons) PRODUCTION CAMPAIGNS

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

YIELD (Has.) *

251,000

223,000

155,000

172,000

215,000

168,000

220,000

233,000

290,000

228,700

307,441 324,092 [e]

HARVEST (TM / Ha) ** PRODUCTION (TM) *

2.30

2.36

2.20

2.50

3.20

3.10

3.15

3.30

3.25

3.86

577,300

526,280

341,000

430,000

688,000

520,800

693,000

768,900

942,500

882,782

3.36

2011/12 2.90 [e]

1,033,323 941,499 [e]

Source: Peanut Argentine Chamber * The provinces of Córdoba, San Luis, La Pampa, and Salta are included ** Average production (including loss & changes) [e] Estimations from CAM and Cereal

-Balance of Argentine economy. Chapter 15: Peanut Supply Chain (p. 533) -Balance of Argentine economy. Chapter 15: Peanut Supply Chain (p. 544)

1 2

News

27

Interview | María Julia Arroyo, Ceras Argentina S.R.L.

A Family Company that Keeps Growing and Expanding Ceras Argentinas S.R.L. was born more than 20 years ago. It is a family business that processes and exports beeswax and honey.

They sell to Latin America, Spain, the USA, Georgia, and Japan. They want to access markets in the rest of Europe and the Middle East as well. María Julia Arroyo, daughter of the founder, is in charge of the business with her brother Francisco. She highlights the importance of participating in Gulfood: “We were mostly able to contact buyers from the Middle East. It is also important to attend this event and maintain some continuity in Trade Fairs”.

28

News

Gulfood 2012

CERAS ARGENTINAS S.R.L. is a family business that has been operating in the beeswax market since its beginnings in the 90’s.

It specializes in beeswax for beekeeping activities and for export; and adapting it for its application in the food, pharmaceutical, cosmetics, and candle industries, among others.

Are honeycombs in demand?

Francisco and María Julia Arroyo, son and daughter of the company’s founder, are in charge of this business today. Along with several young professionals, they all try daily to enhance the quality of their products and services, and to develop new products for this innovative entrepreneurship. María Julia Arroyo talked about her company and experience with exporting their products.

So, this is why you decided to participate in Gulfood 2012?

When was the company born?

In 1994, Miguel A. Arroyo created this company using German equipment and machinery, which allowed him to obtain one of the most competitive products in the market. This technology for beeswax block production completely changed our company.

Today, we have a modern manufacturing plant located in the town of Pigué (Province of Buenos Aires) especially designed under International Quality and Food Harmlessness Standards (BPM, POES and HACCP) in order to satisfy the requirements of the strictest market.

How do you promote your products in new markets?

Thanks to the support of Fundación ExportAr we participated in Foodex (Japan) and we exhibited Argentine beeswax, which is globally celebrated for its quality. This enabled us to expand our trading markets and the volume of our exports. We also found new venues, not just for beeswax products, but also honey. Jointly with E-LIXI S.R.L. we started producing honeycombs.

Yes, honeycomb is considered a delicatessen product with high nutritional values, and it is 100% natural. It is a product elaborated by honey bees in their nests and directly extracted from the hives. It is not altered or transformed by beekeepers.

Exactly. We participated in Gulfood to promote this product and contact potential distributors in the region, particularly in the Middle East. In the short term, we hope to send our products to this area. We wish to attend Gulfood next year too because it’s important to maintain a constant presence in fairs in order to strengthen commercial relations.

To what markets do you export your products?

We are exporting beeswax blocks to Germany, the USA, and Japan. We are preparing our first shipment to Spain and Georgia. We want to grow steadily in these markets. Regarding honeycombs, we are only dealing with Japan, at the moment, but we hope to access Middle Eastern and European markets soon.

What is your position in Latin American markets?

We ship honeycombs to several countries and we hope to access Brazilian markets which are constantly growing. In May, we will attend the Beekeeping Trade Fair in this country.

News

29

Interview | Mariano Durán, Manager of Rasic Hnos. S.A.

Steadily Making their Way in the Arab Countries Rasic Hnos. S.A., which runs the prestigious brand “Cresta Roja”, again participated in Gulfood and had a very positive experience. “People were waiting in line to talk to us at the stand” affirmed Mariano Durán, Manager of Foreign Trade. Rasic Hnos. S.A. exports their products to China, Venezuela, and Chile, while being also in Europe and Africa.

Rasic Hnos. S.A. also known for the prestigious brand “Cresta Roja” has been located in the Province of Buenos Aires for more than 60 years. The company has two processing plants equipped with the latest technology, where more than 380,000 birds are daily processed. It has set up a fully integrated high-tech vertical structure in charge of the entire productive process: Reproduction farms, Hatcheries, Grow-out farms, Feed-mills, processing plants (where whole birds, cut-up, frozen, marinated and pre-cooked products are made), water treatment plants, and genetics labs.

Today, the company exports thirty percent of its total production, while seventy percent is for the domestic market (wholesalers, logistic operators, and supermarkets). Mariano Durán, Manager of Foreign Trade, talked about their experience in Gulfood, as well as their achievements and goals regarding international markets.

30

News

When did you start exporting?

The first export of “Cresta Roja” chicken started almost twelve years ago when we shipped chicken feet to China. In 2003, we sent whole chickens and some cuts. We grew from making $4 million dollars per year to $90 million. Today, our company has 3,200 employees and earns revenues of $380 million dollars. We mainly export our products to China and Venezuela, followed by Chile, some African countries, Europe, and other Asian countries too.

Gulfood 2012

What were your first steps towards exporting like?

What makes Gulfood so special?

“Cresta Roja” started participating in many International Food Trade Fairs seeking buyers abroad. First, we did it by ourselves.

Later, Fundación ExportAr offered their help and services, so we started working together.

Gulfood is a hot spot, with lots of visitors interested in products.

Several potential buyers have visited us in the past years; even if we haven’t done business yet, they keep showing up. Their presence shows how the market grows; and also how they look for the best options and prices to replace old providers. In order to sell in Arabia, you need a sponsor and it takes tons of time to establish this relationship.

What fairs have you participated in?

One of the first fairs we attended was a Food Expo in Tokyo, Japan. We shared the exhibition stand with other companies and producers of wine, tea, flour, oils, and manufacturers of tea bag packaging machines. We were the only representatives from the aviary industry. The idea was to sell boneless chicken, a complex product due to the requirements of the Japanese market. The experience was excellent and very productive; we contacted many new customers.

Fundación ExportAr was in charge of everything, from the design of the stand, to our lodging and transportation. It was very interesting meeting people from other industrial sectors and working as a team with other producers and Argentine entrepreneurs. On this occasion, the big star was Argentine wine, which is highly welcomed by the Japanese.

We also participated in Gulfood, the annual food expo in Dubai.

This fair is held in a strategic location that connects four continents.

We were the first Argentine aviary company to participate in such an event with the support of Fundación ExportAr. We had a small exhibition stand managed by two people from our foreign trade department. An anecdote? People were waiting in line to talk to us at the stand.

What does Gulfood mean to you?

Gulfood is highly important because it is a door to access the Arab world which consumes a lot of chicken. Perhaps, the characteristics of this product are not so appealing in that region. In fact, their chickens are quite small in size, between 700 grams and 1.3 kilograms, with white meat, and are sold per unit; our chickens have yellow meat and weigh than 2.5 kilograms (so they are sold per weight). This market needs large quantities of products because it’s big and keeps growing. Today, we cover small niche markets not available for Brazilian producers, but we can go for more.

Finding a sponsor was our main goal this year at Gulfood, because we are growing and can participate in new markets. We will be building our third processing plant in Lobos, Province of Buenos Aires. It will be able to process 380,000 birds daily. Its state-of-theart technology will enable us to offer products according to the particular needs of specific markets.

How is Argentine aviary industry considered in international markets?

Argentina is well-known for the quality of its chickens and related products. Brazil supplies most countries in the Arab world.

Participating in Gulfood allows us to directly compete for this market, and access other regions, such as India, Vietnam, Turkey, and particularly China, which has great potential due to mass consumption.

How was the support from Fundación ExportAr? We are proud of our joint efforts with Fundación ExportAr. They have helped us in reaching new customers and presenting our products all around the world, not just as chicken producers but also under the “marca país” label. They have always shown high professionalism while being there for us and listening to our suggestions. We are deeply thankful for all the effort they put into Argentine products, supporting our companies and entrepreneurs.

News

31

Gulfood 2012

The Market In 2011, exports to Middle East totaled $3.3 billion dollars, which represented an increase of 18 percent compared to the previous year. Due to weather conditions, this region had a demanded $3.08 billion dollars in food products The United Arab Emirates (UAE) is a federation of seven emirates located on the Eastern coast of the Arab Gulf. The constituent emirates are Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Quwain, Ras al-Khaimah, and Fujairah.

UAE is a prosperous well developed country, with a life expectancy of 78.2 years. Eighty-one percent of its inhabitants are foreign nationals. Its GDP per capita is $48,500 dollars.

Extractive industries and services have a central role in the economy because UAE is a financial center in the region and an important tourist destination. In fact, tourism made up 20 percent of the national GDP in 2011.

Several economic policies have sought to promote industrial diversification though they are still depending on hydrocarbons production, such as petrochemicals, aluminum, and steel industries. In the last years, building industries have grown greatly.

Agriculture is less important because the region only has 3.2 percent of arable land, very few water resources (annual rainfall reaches 33mm), and high temperatures (summer average temperatures are between 26째 and 45째 Celsius). Thus, it represents 0.7 percent of national GDP, which means that UAE is an obvious food importer.

Argentina is the second largest food provider for UAE from Latin America after Brazil, and followed by Mexico. In 2011, Argentina gained $332 million dollars in shipments in 2011. Its main exports represented 84.1 percent share of total exports, and included oils and fats ($117 million dollars), cereals ($68 million), fodder ($25 million), chemicals ($9 million), and dairy ($9 million).

32

News

The Arab World

By Julio Jozami* *This article is an excerpt from the report “Argentina and the Arab World: A New Approach Towards their Relationship�

With a total surface area of 13.8 thousand Km2, 72% of which is located in Africa and 28% in Asia, the Arab territory stretches from the southern and eastern coasts of the Mediterranean Sea, as well as both banks of the Red Sea, the eastern half of the Arabian Sea and the Atlantic coast of North East Africa.

News

33

The Arab world is divided into five politically, economically and socially exclusive geographic subregions1, consisting of twentytwo countries and 370 million people all of whom have distinctive races, religions and age-old cultural traditions.

On March 22, 1945 delegates from seven Arab countries: Egypt, Iraq, Libya, Saudi Arabia, Syria, Jordan and Yemen, met in Cairo and signed the Charter of the Arab League that today binds these countries together.2

The cradle of ancient civilizations – including the Egyptians, Phoenicians, Chaldeans, Babylonians, Assyrians, Armenians, Canaanites – it was also the guardian of the Hellenic tradition during centuries of barbarism in the East, giving us the calendar, the alphabet and the foundations for the first libraries in Europe.

The Arabs simultaneously taught Aramaic, Greek, Latin and Arabic in their Universities and benefited the Ancient world with their knowledge and inventions. Noteworthy advancements included developments in the Arts, science, architecture, philosophy and the social sciences, all of which were precursors to the Renaissance and Eastern Enlightenment. The development of advanced navigational instruments and techniques also facilitated important geographic discoveries of period.

Arabs in Argentina

According to Herodotus, the Phoenicians were the earliest navigators of the Mediterranean as well as the first to sail around Africa, landing at various locations in the costal Americas.

During their reign, the Arabs developed revolutionary commercial methods, banishing the use of force and replacing it, initially, with a barter system.

Despite their fortuitous ancestry, until the mid-20th century, the union between Arab countries was all but non-existent. The reasoning behind this situation is clear: when external trade arrangements were established in Argentina (exportation of natural resources to third party countries and the importation of manufactured goods to supplement internal production), the Arab countries could not acquire our production directly since they were subject to colonial dominance.3

The historic visits to Libya made by Emperor Peter II, in 1871 and 1876, prompted Syrian and Lebanese immigration to our continent, due largely to the oppressive political and social climates in their countries under the rule of the Ottoman Empire.

Arabs make up the third immigrant group, followed by the Spanish and Italian, as a consequence of mass migration during the end of 19th and early 20th centuries. Arab immigrants – largely from Lebanon and Syria – settled throughout the country and with the clear intention of integrating themselves into the local culture; they inserted themselves deeply into national work.

Today, two-thirds of the world’s gas and petroleum recourses reside in Arab territories.

Arab sub-regions are: Mashreq countries (Middle East), Maghreb countries (northwest of Africa), Gulf countries, Massr (northeast of Africa), and East Mediterranean Basin.

The Arab League countries are: People’s Democratic Republic of Algeria, Kingdom of Bahrain, Union of the Comoros, Republic of Djibouti, Arab Republic of Egypt, Republic of Iraq, Hashemite Kingdom of Jordan, State of Kuwait, Lebanese Republic, Libya, Kingdom of Morocco, Islamic Republic of Mauritania, Sultanate of Oman, State of Palestine, State of Qatar, Kingdom of Saudi Arabia, Somali Republic, Republic of the Sudan, Syrian Arab Republic , Republic of Tunisia, United Arab Emirates, and Republic of Yemen.

3- Except for Saudi Arabia that unified in 1932, Arab countries become independent after the Second World War. 12-

34

News

The Arab World This was accentuated after the fact by the Society of Nations when, after resolving the First World War, it distributed the governance of Arab countries, that until then had been part of the Ottoman Empire, between France and Great Britian.4 These member countries included the northern stretches of Africa that were colonized by France, Great Britain and Spain; Italy had seized Libya. Except for Saudi Arabia, the remaining Gulf countries (Yemen, Bahrain, Kuwait, Oman, Qatar, and the United Arab Emirates) suffered under British rule as did Egypt, Sudan, and Somalia. French protectorates included: Comoros, Djibouti, Mauritania, Morocco, and Tunisia.

Recently, during the 70’s, a stronger bond formed within the Arab world that continued to grow during the 90’s and has significantly broken loose since 2003.

Complimentary Economics with Argentina The economies of Arab countries complement that of Argentina and because of this an ample playing field exists in which to develop exchange and cooperation. It deals with markets in obvious expansion with high demographic growth rates and significant need for food, agro-industry, mid-level goods and adequate technology in their states of development.

In these sectors, Argentina has obvious comparative advantages and can gain an important increase in its sales that could be even better stimulated if the commerce is a two-way street. Consequently, an increase in our sales to the Arab world would foster the growth of exchange thanks to these new links.

The structural conditions of Argentina – a nation with ample geographical diversity and a largely temperate climate, devoid of racial and/or religious controversy and with a low demographic density and a culturally advanced population; an excellently rated labor force; self-sufficient in energy sources and food; boasting a subsoil rich in minerals and an extensive, under-exploited coastline – are recognized and highly valued by government officials, business owners and investors from Arab countries that periodically make visits to our country.

Many sectors of our economy can receive monetary support from Arab countries in advantageous terms and without contradictory conditions.

Various nuclear states in the Gulf Cooperation Council: Saudi Arabia, the United Arab Emirates, Kuwait y Qatar5 are principal exporters of capital, and have recently taken a turn in their investments worldwide in favor of physical assets and direct investments in industries, farming and service companies. Presently, direct investment by Arab investors is scarce. Fortunately, this situation has already begun to reverse itself. In other words, the two main container terminals of South America belong to Argentina and are being operated by a company in the United Arab Emirates that maintains terminals 1 and 2 at Puerto Nuevo, until 2019; DPWorld, a company that began operating in 1994 and is responsible for managing it.6 The Paris Peace Conference created the United Nations on June 28, 1919. It also signed with Turkey the Treatise of Sevres (August 1920) establishing “administrative mandates” in Iraq, Palestine, Jordan, Lebanon, and Syria. UK was in charge of them during the first three years, followed by France during the remaining two.

5The Gulf Cooperation Council was created on May 25, 1981. Bahrain and Oman are also member countries. Its goal is to integrate and coordinate political, economic, and military forces in order to overcome their vulnerability because they have highly desirable natural resources though a reduce country surface and population. In 1983, they established a Free Trade Area among the six-member countries which aims to become a Customs Union and later a Trade Union. During the last session of the Supreme Council that was held in Kuwait on December 14-15, 2009, they decided to establish a Common Currency and Central Bank. They also discussed the creation of a railways system among the member countries and the electrical integration program.

6DPWorld was founded in 2005 after unifying Dubai Ports Authority (DPA) and Dubai Ports International (DPI). It has 45 container terminals in 31 countries. When they started their activity in Puerto Nuevo, terminals were in very bad shape; however today they are a primer example in the world.

4-

News

35

In December 2011, the Saudi Arabian company Almarai Co., the largest integrated dairy producer in the Middle East, reported the purchase of the Argentine company Fondomonte S.A. for $83 million dollars to ensure the supply of fodder for its dairy farms.

Fondemonte owns three fields with a total surface area of 12,306 hectares – producing largely corn and soybeans. This acquisition provides the policy framework for the outlawing of any crop that requires intensive use of water for cultivation before the end of 2016.

Our country needs one of three nutrients necessary for the production of fertilizers; although Argentina has nitrogen and potassium it lacks phosphoric resources. Morocco is the third largest producer of phosphates in the world (followed by the United States and Russia) and counts on two-thirds of the tested reserves; Tunisia is the fifth largest producer, Jordan the eighth and Algeria is the fourteenth. We must establish joint enterprises with these resource producing countries for the production of these consumables in Argentina.

In December of 2011, the Moroccan company OCP (Oficina Cherifiana de Fosfatos, according to its acronym in French), one of the primary producers of phosphates and agricultural fertilizers worldwide, began operations in Argentina with a direct presence.

The pharmaceutical market in Arab countries has grown significantly in recent years; the Argentine sector demonstrated itself to be responsible, internationally, in dealing in conjunction with various enterprises.

Existing Difficulties and a Willingness to Overcome Them Real obstacles exist to successfully enhance these relationships: the distance between Argentina and the Arab world, which increases the cost of insurance and shipping; the limited understanding between the economic participants; the absence of Arab banks in our country as well as security companies and specialized consultants.

Until recently, there was also a lack of direct air and sea routes.7 Expensive supportive infrastructure established a significant restriction within the market. However, we must also remember that the state of things coincided perfectly with the total absence of a policy aimed at rectifying the situation. This shift in attitudes allows us to envision a promising new market horizon.

Furthermore, it has contributed to the achievement of a long term realization of commercial efforts aimed at the Arab world and the attendance at trade shows and expositions, like Gulfood en Dubai, the International Fair of Algeirs, Horeca in Libya, and Saudi Food in Saudi Arabia among others.8

Argentina-Arab Commercial Exchange As a consequence of this, the direct commercial links between Argentina and Arab countries are very new. It is clear that it occurred in import and export markets, indicating the general target values for the Arab market, which on a whole hide any noteworthy disparities in the individual performance of the twenty-one countries that make up the network, even though fifteen of them represent more than 90 percent of the total exchanges.

7At the beginning of March 2010, Akbar el-Baker, President of Qater Airways, announced direct flights between Buenos Aires and the region. There is also a plan to establish flights with Emirates Airlines that since 2007 has been connecting United Arab Emirates with Sao Paulo (Brazil). In fact, since January 3, 2012, there has been a daily connection Buenos Aires-Rio de Janeiro-Dubai.

8These promotional activities are supported by the Argentine Chancellery, FundaciĂłn ExportAr, and PROARGEX (Argentine Agrifood Promotion of Exports Project).

36

News

The Arab World

Sales to the Arab World In 1955 Argentine exports to the Arab world were scarcely $448,700 dollars. In 1973 the total had risen to $44.91 million dollars; in 1974 the total reached $132.07 million dollars. Until 1989, with various fluctuations, the total maintained itself at a very low level, catching up this year to $152.06 million dollars.

Since 1990, a tendency towards inflection created and continued to increase the volume of exports, totaling $970.38 million in 1996.

From 1989 until 1996 the total of Argentine exports rose by 149 percent, while those exports directed to Arab countries totaled 538 percent, more than tripling what would have been a proportional increase.

In the years that followed, the increase continued and in 2002 it reached $1.35 billion dollars in exports.

Since 2003, this growth trend has accelerated our sales to the Arab world rising from $4.32 to $5 million dollars in 2008 – indicating an increase of 320 percent between 2002 and 2008. This percentage exceeded the operative growth in total Argentine sales to the world which had diminished by 273 percent. Consequently, during these years the participation of Arab countries in Argentine exportation rose from 5.3 to 6.2 percent.

As a result of the world financial crisis – which began in 2008 and drastically worsened in 2009 – Argentina’s sales to the Arab world reduced by $3.06 million dollars during this period, only to rebound by 19.3 percent in 2010, totaling $3.65 million dollars.

2011 produced a noteworthy increase in exportation which rose $6.10 million dollars, reaching an alltime high, even though there was an increase of 67 percent more than in the previous year.

It is worth mentioning that the evolution of the United Arab Emirates, which in 1992 imported products corresponding to 36 tariffs, increasing to 167 lines in 2001, in order to reach 479 positions in 2008, with a noteworthy addition in manufacturing in the agricultural sphere as much as in the industrial field.

News

37

Sales to the Arab World With respect to our countries sales affecting the Arab World, we must mention that these events are both scarce and erratic. In 2000, our sales totaled $121.8 million dollars – the equivalent of only 11.1 percent of Argentine exports to the Arab World, which not only reversed itself but was intensified. However, in 2011 the $636.08 million dollars brought in only represented 10.4 percent of Argentina’s total sales, despite representing an increase of 209 percent compared to the previous year.

In this way the triangle effect, which includes third world countries, is due partly to the lag in our export activity with Arab countries, which occurs in importation, and possibly on an even larger scale. We have purchased phosphates, cork, mineral fertilizers and chemicals, dates and innumerable Arabian goods from European countries with a price inflation that is derived from dealing with a middle man.

Final Considerations for Commercial Exchange Argentina’s total sales to Arab countries comprise approximately only 0.7 percent of what they buy from the world. Similarly, the total of Arab exports to Argentina represents only 0.5 percent of our country’s total imports from the world. This confirms the enormous possibilities that exist to create opportunities for greater commercial exchange.

On a similar note, we must emphasize that it is essential to increase our sales to the Arab world, even though a significant inequality exists between our imports and exports which could give rise to an undeniable retaliation, by means of sales from Arab countries to other markets that are based on more balanced exchange.

38

News

We must look at what has been said above from the point of view of our decision to create an associative link that not only implies the exchange of goods, but also reciprocal investment and the sharing of technology and knowledge to create a joint entrepreneurial framework in our country.

Both our country, as well as the Arab world, cannot deny the effects of the global financial crisis that was rumored at the end of 2007 and whose most severe consequences were plainly visible by the end of 2008 and during 2009. The generally low level of global commercial activity, one of the inevitable consequences, affected our external sales in general; furthermore, the Arab world also purchased less food – the principal sector of goods exported from Latin America to the Middle East as well as the United States and European countries.

The member states of the Gulf Cooperation Council were seen as being acutely effected by the financial crisis as holders of the securities of the central countries. The inventory value of these sovereign holdings dropped an average of 30% during 2009, in spite of the bankruptcy of Lehman Brothers in September 2008. In conclusion, we want to recalculate the relative surplus of our commerce with the Arab World.

On the other hand, in 2010 Argentine sales to Arab countries represented 5.33 percent of the country’s total exports and only 3.07 percent of total global commerce. The positive exchange balance with these countries represented 27.8 percent of the total surplus of the commercial balance for Argentina. In 2000, when the total surplus of Argentina’s exterior commerce was only $1.16 billion dollars, the positive figure of the Arab world was $974.2 million dollars. From this point on, during that year, the percentage of participation between Argentina and Arab countries, in relation to our exterior commerce surplus, totaled 83.50 percent. In 2011, sales to the Arab world had exceeded the figures for 2010 by 67 percent, signifying a new all-time record. Arab-Argentine trade made up 52.85 percent of the total surplus of our external commerce.

The Arab World Regional Integration and Interregional Cooperation The reality is that global commerce is concentrated in broad economic arenas which blur national borders in the search for better markets. It is essential that emerging countries specify their geographic integration and foster their capacity for growth in an ample regional framework. At the same time, these countries must interact to arrive at the necessary scale to incorporate investments and the sustainable development of technological resources.

Because of this, the link between countries that are committed to self-sustainable development is logical and preserves their ability to make independent decisions in the face of demands and conditions implemented by political powers and institutions that represent their strategic interests.

Regionalization, as a form of integration, helps these countries to surpass the asymmetry that, individually, creates political and economic unity in blocks, augmenting the possibility for an advantageous entrance in the international market.

South America is going through a very promising period, in spite of the consolidation of governments and national movements by popular demand with identical objectives: independent growth and social democratization, which has re-established the need for continental solidarity in order to secure their individual destiny as well as that of the group. This similar positioning, with respect to global economic order and world politics, is expressed in spite of the 4th Summit of the Americas – held the 4-5th of November 2005 in Mar de la Plata – in which the four Mercosur countries, as well as Venezuela, objected to incorporation into the FTAA or Free Trade Area of the Americas.

Their efforts were rewarded with the inclusion of the following paragraph in the final declaration of the Summit: “Other members maintain that they still have not been provided the necessary conditions to achieve a fair and balanced free trade agreement with access to markets that are free of subsidies, commercial distortion and which takes into account the needs of all participating business partners and their different levels of development and the breadth of their economies.” As a result, the constitution of UNASUR (USAN-the Union of South American Nations) has created a Council of Defense in South America, whose foundation is the Declaration of Santiago Chile (March 2009), and the creation of the Bank of the South, which was signed in Parlamar, Isla Margarita, September 26, 2009 in Venezuela by Argentina, Bolivia, Brazil, Ecuador, Paraguay, Uruguay and Venezuela and which was ratified by both houses of the Argentine Congress on September 7, 2011.

The Presidents considered the following: “that the financial and economic structures of South America appear to have limitations in terms of the expansion of financial markets; what make national savings flow towards economies that are more developed instead of being invested into regional projects, orienting these resources internally in order to raise the availability of liquidity, re-energizing investment, correcting asymmetry; developing an integrated infrastructure, promoting employment and initiating an efficient cycle, which is fundamental for the transformation of the economy, society and regional economics”.9

Venezuela, Ecuador, and Bolivia needed Congress ratification. The approval from Uruguay Congress is clear. Upon the creation of UNASUR, Chile and Peru rejected their membership and Colombia remained as observer. To start operating, it needs the simple majority of state members and two-thirds of the $10 billion dollars capital. Brazil needs to grant $6 billion, Argentina and Venezuela $2 billion each, Ecuador and Uruguay $400,000 each, Bolivia and Paraguay $100,000 each. The agreement was signed on December 9, 2007, by the presidents of all member countries plus Colombia who wants to participate in the Bank of the South.

9-

News

39

The interaction between South America and other regions is an on-going process in the way in which the possibility of interregional cooperation creates individual opportunities out of each block and member country. In this way, we emphasize the organization of the Africa-South America Summit which later dealt with difficult negotiations, achieved over the course of various years that finally exceeded limited visions.10 This same decision created dialogue and cooperation South to South. The firm conduct in favor of interregional integration also capacitated the creation of the Summit of Arab-South America Countries (ASPA) attended by Chiefs of State.11 As a result of these long-disputed discussions, the signing of the free trade agreement between Mercosur was confirmed in July 2010 in the city of Tucumán, under the direction of the President pro tempore of Argentina and the Republic of Egypt. This accord is the first step towards the successful creation of a free trade area between South America and the Arabic countries of the southern Mediterranean coast.

Mercosur (Common Southern Market) and Palestine signed a Free Trade Treaty on December 20, 2011 according to the 42nd Summit of Presidents of the block which took place in Montevideo. They also worked on the realization of two agreements very similar to those of Morocco – which will, undoubtedly extend to the Maghreb area – with Jordan and member countries of the Gulf Cooperation Council.

Having said this, South America and the Arab countries have begun to consolidate their links through concrete actions of interregional cooperation. Lastly, the cooperation between regions with identical needs for sustainable, integrated development is the keystone to finally removing the international bipolarity that exists – with the eventual individual inclusion of other players – in favor of equalitarian multilateralism between nations and regional groups.

The first Summit was held at Abuya, Nigeria, on November 26-30, 2006. Heads of state from 61 countries, 49 from Africa and 12 from South America, participated in the Second Summit, with the theme of “Closing gaps, opening up opportunities” at Margarita Island, Venezuela, on September 27, 2009.

10-

ASPA First Summit was held in Sao Pablo, Brazil on May 10-11, 2005. South American countries participated as South American Community of Nations established on December 5, 2004 at Cuzco, Peru. ASPA Second Summit was held in Doha, Qatar, on March 31, 2009. Chiefs of State from South American countries participated as members of the UNASUR (created on April 17, 2007 at Margarita Island, Venezuela). ASPA Third Summit was planned to be held on February 2011 at Lima, Peru; however it had to be cancelled due to political and social problems in the Arab World.

11-

40

News

The Arab World

Argentina’s Recovery since 2003 Many years of political missteps, that only consolidated the financial sector and activities that were included in the dependent agricultural exporter and anti-industrialist outline, brought about a point of inflection during the beginning of the new millennium; the consequence of which was the inevitable collapse and impoverishment of the lower and middle classes.

Argentina had followed the recommendations of the Washington Consensus to the letter for many years.12 However, in order to break this vicious cycle of tightening up and recession, since May 2003 it has had to face the reconstruction process by which to reorganize its production infrastructure and decimated industrial sector as the only means of securing jobs, housing, health, and education for all of its citizens.

In order to ensure the results of this sustainable development model with equality and social inclusion – supported fundamentally by the strengthening of the internal market – the growth of the external sector is of primary importance. Therefore, Argentina’s wealth will be derived from the increased incorporation of high quality raw materials, requiring the participation of emerging markets in order to invest in manufacturing technology that does not require middle class. In order to do this, it is necessary to look to the developing world and, especially, to those countries who economies complement our own.

This is the ideal course to raise productivity as a whole and to gain access to higher levels of industrial complexity; at the same time, it will permit the development of centers for scientific investigation as well as an increase in technological innovation, both of which are essential for future growth.

Into this framework is inserted the proposal for a greater, more intense and higher opinion among Arab countries, in which the large part of the benefits of cooperation between nations with complementary economies has yet to be realized. In this way, the strategic concept addresses the conduct of the state and entertains favorable expectations thanks to the joining of the majority of the leaders and people of South America in similar positions.

This posture contributes to the stout defense of our individuality in the context of a new world order in which each nation will hold the best position that will only be defended, and secured, by that country’s hard work and persistence.

To this end one must assume that regional integration is essential.

It is essential the dialogue between regional groups with similar characteristics and goals in order to face the unavoidable challenge of integral development.

In November 1989, the British economist John Williamson prepared a document for the meeting between the International Institute of Washington and economic authorities of Latin American countries. He said that he “wrote this reference document describing a set of ten relatively specific economic policy prescriptions that people in Washington thought necessary to implement in Latin America at that moment”. This understanding was reached among Washington, DC based institutions such as the International Monetary Fund (IMF), World Bank, the USA Congress, the Federal Reserve, and the US Treasury Department. Williamson guidelines were a Decalogue of neoliberal polices aimed to deregulate, privatize, and open the economies of crisis-wracked developing countries in the Americas. Fourteen year later and jointly with Pedro-Pablo Kuczinsky, he wrote a book entitled “After the Washington Consensus: Restarting Growth and Reform in Latin America” (Institute for International Economics, 2003). In this book, he explains further these ten policies; he apologizes and corrects some misunderstandings, acknowledging in part his failure of his previous recommendations and the severe crisis caused to Latin American countries by them.

12-

News

41

A qualitative change in the relationship We have enumerated the advantages that could be derived from changing the focus of the relationship between Argentina and Arab countries by transforming it into a true association in favor of joint development. This analysis finds its primary support in the complimentary elements that exists between the economies of Arabic countries and Argentina, which could be enhanced by innumerable similarities and coincidences, as much political as social and cultural.

Similarly, our country has successfully passed technology – horizontally – in the form of nuclear energy.

The exploitation of agriculture and livestock, and cooperating in other scientific and technological fields has been essential. Also, Argentina has studied and researched the implementation of joint efforts in Argentina and Arab countries through direct reciprocal investments. These actions are accompanied, and as an additional benefit, by a sensible increase in commercial exchange that, inevitably, will produce a change in the quality of the relationship.

A situation where the restrictions are raised on external commerce, derived from the reduction of activity in the first world and the consistent drop in its purchasing power has special relevance to the behavior of Arab countries. These countries significantly increase their purchases without restrictions and prefer to invest in sectors of our economy which contribute to the capital that could be derived from an immediate increase in our ability to export.

A stout determination exists in the governments of Argentina and Arab nations to strengthen the existing links between them according to this new dimension. The work consists of establishing an associative relationship that does not only imply an exchange of goods, but also reciprocal investments and the sharing of technology and knowledge, realized through joint enterprises.

In this way, as well as through other initiatives, it is worth pointing out that the global food supply, with the inclusion of high value added, will be confronted by our country in cooperation with the Arab countries and their surplus of capital from the exploitation of gas and oil.

During the first two weeks of October 2010, the Saudi Arabian Minister of Agriculture, Dr. Fahad A. S. Balghunaim, visited our country accompanied by an impressive delegation of public servants, entrepreneurs and investors. The delegation was received in a special audience with the President Cristina Fernández de Kirchner and the Minister of Agriculture, Livestock and Fisheries, Dr. Julián Domínguez.

Dr. Balghunaim explained that his government had decided to change the strategy that was adopted in 1978 to achieve alimentary independence with the slogan, “food safety and self-sufficiency at any cost”.

The Saudi Arabian explained that they depend totally on fossil water and irreplaceable and unsustainable aquifers for crop cultivation, especially for the production of wheat. As a result, the decision was made to obtain self-sufficiency through production outside of the country in association with a host country and its investments. Bearing this in mind, and later thanks to a study of global conditions with regards to raw materials in food cultivation, they selected five countries that had outstanding comparative advantages.

Argentina was at the top of this list, taking into consideration that not all of the aspects were based solely in the context of production, but also with relation to social, political and cultural conditions.

42

News

The Arab World

In relation to the studies made by Saudi Arabia in order to select Argentina as a partner, it is worth mentioning the Food Price Index – an index of farming prices maintained by the Food and Agriculture Organization, an agency within the United Nations dealing with Diet and Agriculture – in February 2011. The index records the real farming prices since 1990. At the same time, the World Bank Food Price Index, recorded by the World Bank, reflects the 43% increase in the prices between June 2010 and January 2001.

On the other hand, the World Bank, in its 2008 ranking, “Index of Comparative Advantages for the Cultivation of Crops and Production of Food,” which uses an average global value of 1, indicates that the average index for South America is 2.2; Brazil 3.6, Chile 3.9, Colombia 2.6, Mexico 0.6 leaving Argentina with the highest index: 5.4. Our country was also given the highest index in the continent in relation to the amount of uncultivated arable land that would not require deforestation. All of this information was presented in the meeting of the Food and Agriculture Organization, which took place in Rome in June of 2011 during the election of the new Director.

By the end of November 2010, Minister Domínguez, with an important delegation of public servants and engineers, traveled to Saudi Arabia in order to continue discussions and finalize the relative vision. The effects of being able to sign an agreement marked an occasion for subscribing to the framework during the projected visit of the President and the immediate implication of the proposal. Meeting outside of the Saudi kingdom, thanks to health complications, postponed the presidential visit which, undoubtedly will be made early in 2012.

It is not by chance that this important situation has come about thanks to the creation of the Agro-Industrial and Agro-Business Plan discussed in my research “Argentina and the Arab World: A New Approach towards their Relationship”.

In conclusion, Argentina intends on creating a partnership with Arab states that – while securing sovereignty and agricultural self-sufficiency of our business partners, also affirms the availability of important financial resources – allows us to enhance the scope of our external commerce and contributes to recreating an Argentine paradigm for natural food for the world.

We say “recreate” the paradigm because today Argentines, when we talk about food, think that the complex agro industrial sector, in the transformation of our primary products thanks to science, advanced technologies and new manufacturing systems produced by Argentines and incorporated through the efforts of our workers and national enterprises; today we speak of the value that, with a significantly high proportion of small and medium sized companies, adding our high quality production to the industry.

Argentina and the Arab world, with the support of its respective, dynamic comparative advantages, will confront this enormously significant project that will make possible interregional cooperation for joint development that is both autonomous and sustainable.

News

43

Share of the Surplus of Argentine Commercial Balance

14000 12000 10000 8000 6000 4000

54.9%

33.5%

2000 0

2010

2011

Worldwide

Arab Countries

Evolution of Trade Exchange Argentine-Arab 7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

Exports 44

News

Imports

0

20 11

8

9

20 1

20 0

20 0

6

20 07

20 0

4

20 05

20 0

20 03

1

20 02

0

20 0

20 0

19 99

19 98

96

19 97

19

19 95

19 94

19 93

19 92

91 19

19 90

19 89

19 88

19 87

0

The Arab World

Trade Exchange between Argentina & Arab Countries (2011) COUNTRY ALGERIA

EXPORTS IMPORTS TOTAL 1, 645, 447,722

3, 520,887

1, 641, 926,835

15, 817,628

422

15, 817,206

245,616

16,177

229,439

10, 505,443

0

10, 505,443

1, 698, 021,950

74, 043,343

1, 623, 978,607

IRAQ

59, 923,573

14,718

59, 908,855

JORDAN

177, 875,632

816,683

177, 058,949

KUWAIT

25, 331,753

7, 169,903

18, 161,850

LEBANON

81, 306,308

741,052

80, 565,256

LIBYA

60, 160,272

0

60, 160,272

MAURITANIA

16, 500,367

621

16, 499,746

MAROCCO

423, 639,741

143, 384,735

280, 255,006

OMAN

58, 964,289

24, 295,174

34, 669,115

1, 558,573

0

1, 558,573

11, 434,972

290, 872,898

-279, 437,926

628, 034,506

33, 762,523

594, 271,983

0

78,463

-78,463

8, 382,036

210,880

8, 171,156

SYRIA

383, 041,700

2, 060,042

380, 981,658

TUNISIA

283, 443,025

6, 802,823

276, 640,202

UNITED ARAB EMIRATES

332, 218,915

48, 117,333

284, 101,582

YEMEN

183, 090,833

172,925

182, 917,908

BAHRAIN COMOROS DJIBOUTI EGYPT

PALESTINE QATAR SAUDI ARABIA SOMALIA SUDAN

TOTAL

6,104,944,854

636,081,602

5,468,863,252

Fuente: Elaboraci贸n propia en base UNCTAD STAT 2011

News

45

BioFach 2012 “BioFach and Vivaness 2012�: the most important exhibition duo on ecologic, organic, and healthy products and services was held at Nuremberg, Germany, on February 15-18, 2012.

Nuremberg, Germany February 15-18, 2012 Organic Foods

BioFach is the annual platform for services and organic products, from their manufacturing and certification, to adding value and marketing. BioFach is the world leader in organic and natural products, and the fair is held jointly with Vivaness, the Trade Fair for Natural Personal Care & Wellness. This successful exhibition duo offers certified organic food and beverages from the agroindustrial sector (80 percent) and cosmetics sector (20 percent). It is sponsored by the International Federation of Organic Agriculture Movements (IFOAM).

Each year, BioFach and Vivaness hold the most important International Trade Fair on hot topics related to the organic market.

Several seminars, events, workshops, and conferences take place during the expo, and have become significant discussion venues for professionals in this area because they share data and new developments.

In 2012, four activities focused on cosmetics, beauty and body care, and natural products. They presented cosmetic and natural products, household supplies, and wellness products.

Visitors participate in these kinds of activities because this sector keeps growing year after year. According to the organizers, organic products have a market of 60 billion EUROS; so they are satisfied with the results of BioFach 2012 considering the large volume of

46

News

visitors: 45,820 professionals from 130 countries. This number represents an increase of more than a thousand people compared to 2011; furthermore, 2,698 exhibitors participated in the event.

Among attendees, there were 1,200 specialized journalists, and 8,000 congress participants. On this occasion, many visitors, those in a decision-making capacity, attended the fair.

At the same time, nine percent of the participants were manufacturers, producers, wholesale and retail sellers from 121 different countries. They were eager to show cutting-edge products and trends from the organic industry. Another successful achievement was the increase in space for exhibitors: the fairgrounds grew larger (4 percent more than in previous years).

BioFach has become the main venue of the food sector, wine, natural cosmetics and body care, internationally oriented to BIO. BioFach is the largest monographic exhibition in the European region for biological products that meet certification requirements (ISO 65, EN 45011) of the EU. This fair is distinguished by its uniqueness, international importance and innovative power. It applies strict admission criteria to ensure the quality of the products on display. The general public is not admitted to the event. Visitors are very diverse; representatives from more traditional firms have participated offering brand new organic products.

BioFach

BioFach2012 fostered exchange between exhibitors and companies. It emphasizes ethical and responsible values which are the basis of the global organic products and services market.

India was the guest of honor and had a large exhibition stand.

The Argentine Pavilion (139m2) was located in Hall 2 next to other countries from the Americas. In our pavilion, twenty-one companies and organizations exhibited their products: 12 companies had their own stands and the remaining 9 companies displayed their products in working stations at the “Organic Business Center”.

This center was very successful; in fact, it is the fourth time we created this space within the Argentine Pavilion and we will keep doing so.

Argentine companies made 152 business contacts during the fair; almost 215 from them will close deals in the near future. During the fair, sales reached $4.7 million dollars; and sales after the event are estimated at $15 million. At the same time, fifteen companies have already closed deals since the fair and all the participants are eager to repeat the experience with Fundación ExportAr next year.

Participating Companies

Claus Rättich is manager of Nuremberg Messem, which is one of the most important fair organizers in the world. He affirmed that “the success of the organic product sector is due to local and international sales. The demand sometimes is even greater than what is available. This is so inspiring, and it’s always good to meet people again. The experience in the pavilions and across the halls was excellent”.

Biograins S.A.

Biocardales S.A.

Rivara Corn Mill & Oils

Argentbio S.R.L.

Ecoholding S.R.L.

Argencert S.A.

L.I.R.A. S.A. – Pasafre

Sassaroli Agribusiness

Nutrin S.A.

S.A.

Pronut S.R.L.

Neofarms

Gobierno de Santa Fe

Cassab Ahun S.R.L.

Letis S.A.

South-at organic raw

Trading Sur

material

Lavandas de las sierras

Arquimedes Carrizo &

Onsibon S.A. – Anamê Vio

Asoc

Organic Suppliers S.R.L.

News

47

Organic The booming global organic market has steadily grown in the last ten years.

Argentina exports ninety-eight percent of its organic products. In 2010, Anam锚 Vio started producing organic cosmetic products under the first Argentine certified brand. Graciela Ceballos, Director and project developer, shares her passion for these eco products with high growth potential.

By Ver贸nica Scornik

48

News

Interview | Graciela Ceballos, Director of Anamê Vio

c Beauty

For twenty years, Graciela Ceballos worked at traditional cosmetic companies and participated in International Trade Fairs of traditional cosmetic products. In 2004, while attending one of this fairs, the label “organic & natural” caught her attention. She asked questions, made inquires, and started researching on this topic.

“My first experience with organic products was while visiting BioFach”, she explained. “I walked around the fair during the four days and then I stayed a whole month researching the European market.” She visited organic markets in the main cities of England, Germany and France, all countries with a highly developed organic industry. “These are the most developed markets, with a high educational level and knowledge of what organic and natural means. They know exactly what is organic and what is not.”

When she got back to Argentina, Ceballos decided to make a move and sent an e-mail to all of her contacts, asking about the difference between organic and natural products. She was surprised to find out that many professionals had no clear idea of the difference was.

She realized that this market had great potential, so she kept researching and studying it. “I contacted all of the embassies and asked for a market report on organic products. I realized that it was constantly growing despite the global economic crisis. Even though today this is a sort of small market, more people are becoming aware of their health and care about it.”

She states that people between 35 and 50 years old are the main consumers of this market: “they are professionals who care about their body, eat healthy food, read packaging labels on what they eat, and exercise. Even though this caught my attention, I ended up falling in love with this project.”

Organic, Bio, or Ecologic Los consumidores argentinos no estamos acostumbrados a leer las etiquetas de los Argentine consumers are not used to reading packaging labels on what we buy, which is something quite common in many other parts of the world. As a consequence, these labels can state that a lotion is natural even if just one of its components it is. This causes misunderstanding on what natural means. In fact, the use of “natural” is not regulated in our country so it can be wrongly applied to many products.

Organic, Bio, or Ecologic are all synonyms; they can be used whenever a product has a high percentage of natural ingredients and has been monitored (through its harvest, processing, and packaging) by a certified institution. It is also important that this label implies a control of the preservatives, emulsifiers, colorings, silicones, anti-oxidants, synthetic fragrance or derived from petroleum.1 In this sense, Ceballos explains that “we do not realize that our skin is the most important organ of our body and needs special care, like avoiding toxic products. When I understood this, I quit using traditional lotions and moved to bio lotions”.

1- Source: Article by Carolina Priog. “Karpet Bazzar”, February 2012.

News

49

Tips for Consumers of Organic Cosmetic Products When you buy an organic cosmetic product: • The product should have certification seals in the packaging. It is also important to read the ingredients.

• According to the law, it should read “Organic Agricultural Product from Vegetal Origin” • Its due date is earlier than a traditional product because it has no chemical additives. On average, it lasts a year.

• The fact that a product is natural and organic is not a synonym for antiallergenic. If a person is allergic to a component, his/her body will react. For example, many people are allergic to specific trees and plants and, notwithstanding, there is nothing more natural than that since it is Mother Nature in its essence. Still, it is possible to experience allergic reactions.

• Organic products should avoid sun exposure and drastic temperature changes.

• Our products must be applied in small quantities. Upon excessive application, they may tend to form a sort of film, which is basically an excess of cream. In this case, the excess must be removed.

Organic Cosmetics VS Traditional Cosmetics

Developing a Business Plan

Organic cosmetic is not just a commercial phenomenon. In fact, it is a way of life which has a different understanding of personal skin care and wellbeing.

After her research trip, Graciela Ceballos had to find a special lab with the capacity to produce organic cosmetics. “Anamê Vio was born to be organic”, she affirms. After all the back and forth, it took her almost five years to start producing: “We failed several times at the beginning. It is very hard to achieve the formulas and make the products last” because they do not have preservatives.

Anamê Vio cosmetics were officially launched in the USA during BioFach 2010 in Boston, and on February 2011 in Europe.

“Organic is an agricultural product that has been cultivated and processed according to several factors: its inner purity; the natural cycles; the responsible use of resources; sustainable growth without genetic modified seeds; the rejection of fertilizers, herbicides, synthetic chemical pesticides; and a fair price”, says Anamê Vio’s Director.

Ceballos further explains: “I believe organic and traditional are two opposite sides of the road. When you use a traditional lotion, you apply several chemicals –many unhealthy for your skin. Organic cosmetics have natural ingredients. An organic norm regulates the manufacturing process of these raw materials. The result is a healthy product without herbicides, pesticides or chemicals derived from petroleum, among other things”.

Even though these products have great potential, Ceballos believes that the organic market is very complex. There are lots of obstacles; for example, obtaining all the necessary national or international supplies is not easy, especially considering the certification process they should undergo. She explains that “organic supplies are limited, so this industry is challenging.”

The Director of Anamê Vio adds that “organic means a variety of different natural ingredients”. The company obtains local raw materials, such as aloe Vera, blueberries, honey, olive oil, alcohol, rose hip, and geranium; and all of them are organic certified.

They import other ingredients, like the shea butter (produce from fruits of the Butyrospermum pakii, a wild tree in central Africa).

Blueberries are essential “because they offer all what our skin needs: amino acids, vitamins, essential oils, essential omega-6 & omega-9 fatty acids, and antioxidants”. Blueberries are wellknown everywhere, so it is also a marketing strategy.

Regarding the launching of the company, Ceballos affirms that “it was a huge achievement and required a lot of effort. More than 20 people worked very hard to do it. Chemists, developers, lab technicians, engineers, and lawyers” (because you need to learn about rules and regulations from each market you want to access).

50

News

Interview| Graciela Ceballos, Director of Anamê Vio

To Be or Not To Be (Organic) At the national and international level, there are private and state institutions in charge of certifying the organic label of certain products. In the 1990’s, the International Agricultural Organization (OIA) started regulating food processing, and became the first to certify Argentine cosmetics. Ceballos says that Anamê Vio products are certified by the OIA: “They certify our manufacturing process and validate that we are 95% organic”. Even though OIA means local regulations, they have signed agreements with the United States Department of Agriculture (USDA) through the National Organic Program, which depends on the Food and Drug Administration (FDA). “In fact, they declare if you can be organic or not”, and she adds: “In 2009, we received our first organic certification from the United States, so our products have a seal from USDA.” On the other hand, she feels very confident about the project of Anamê Vio when dealing with these organizations, their strict requirements and permanent inspections: “I feel safe because I have the formula of each cosmetic line”. Through the USDA, the company can also reach markets such as Japan and Canada.

“Furthermore, Argentine regulations (Law15127) are equivalent to the European Union Organic Standards. We are authorized to sell all over the world because our formulas enable us to do so”.

A key concept related to organic products is “traceability”.

It enables the producer to trace their final product from the customer back to the field and materials it came from. Organic products need to cover all its background sourcing to guarantee its authenticity; and organic certification requires documentation of various items and processes.

Ceballos explains that “the tracking system depends upon each certificate. My product has a final certification which labels it as organic, and it is based on raw materials and processes. As a result, my product is 95 percent organic”.

Organic cosmetics have many things to be proud of, though things are not so easy. Organic cosmetics are more expensive and they expire sooner than traditional products. However, Ceballos feels these are not truly obstacles to get new customers, because those who buy organic products “are not like buyers of traditional cosmetics.” Even though organic cosmetics expire after two years, Anamê Vio gives a one-year guarantee on cosmetics: “this is our decision because we don’t want our products to lose freshness and be less effective.”

Organic consumers are “captive customers because once they start caring about their body and what they consume, they don’t quit”; thus, it is not so easy to reach these customers. For Ceballos, “it is a small niche market with growth potential because people are changing their minds and their consumption habits”.

Anamê Vio’s director studied ancient civilizations: “I researched tribal customs and the age of Cleopatra, on their fermentation techniques. I think we are becoming more primitive, using our hands to manufacture products instead of machines.”

News

51

National and International Scope Today, Anamê Vio exports its products to the USA and is about to close deals in Spain, Germany, Italy, and Canada. In this context, Ceballos explains the importance of participating in international trade fairs like BioFach 2012.

“Our experience was very good because we had interesting meetings that created opportunities in Italy, Spain, and Germany. Participating in International Fairs is essential for us because our target markets are abroad. Thanks to the support from Fundación ExportAr, we can make our products globally recognized in the long-term”.

Ceballos acknowledges that “even though we export our products –which are not yet available for Argentine market- we find many interested people in the local market”. In fact, starting in June 2012, they will sell their products through their webpage, www.anamevio.com.

According to the Director, the Argentine consumer lacks information: “In Europe, people are ready for organic products, so it is easier to access their market. In Argentina, we lack education. Kids should learn what organic means while they are in school. In fact, it is a cultural element which implies attitudes and behaviors such as recycling trash, something so common in many other countries”.

The international scope of Anamê Vio relates also to a general market trend. Today, 98 percent of Argentine organic products are exported.2 Ceballos believes that the domestic demand will increase, though “the demand from abroad is high and sometimes what we produce is not enough. We are the third highest organic producer in the world (if we consider the total surface destined to organic cultivation). There aren’t so many organic producers because organic supplies are limited.” In this sense, one way of promoting local consumption of organic products is to teach people about what they are consuming, in order for them to recognize what is organic and what is not.

Regarding pricing of organic products, Ceballos admits that they are costly: “They are more expensive,

- Source: Clarin Newspaper, Ieco Supplement, September 18, 2011.

2

52

News

Interview | Graciela Ceballos, Director of Anamê Vio

because supplies are specially produce at a laboratory and can cost between five and thirty times more than other raw materials.” At the same time, organic products depend strongly on nature: if it rains or not, if it grows or not. “Producers cannot add anything to make products grow faster; they cannot intervene in the process or alter it.” She further explains how they have created different systems to complement organic production. For example, they use stones to remove insects. “In other countries, they have even taught dogs or other animals to eat what’s rotten or contaminated and does not affect their health.”

Organic for a Long Time If we talk about the organic market in general, a major destination of Argentine exports is the European Union, followed by the USA, who has grown significantly in the past years, adding value and industrialization.3 The sector has great potential, especially when seeing that consumers become more demanding. They are more interested in their health care, and in reading labels that guarantee the quality and origin of each product. These consumers will be more committed to the environment, being aware of key notions such as their ecological footprint.4 This growth trend is steady and the consumption of organic products keeps growing despite the economic global crisis of 2008.

Ceballos says that “even though we have a long way to go and it’s a fantastic experience, you need energy and patience because it’s a hard job. The sector has huge potential” and she defines it as a “great movement”. Finally, she expresses her enthusiasm on the success of Anamê Vio: “Ten years from now, we will be all around the world. So, we need to explain to people what organic means; we need to teach them about ‘being organic’.

- Source: Clarin Newspaper, Ieco Supplement, September 18, 2011.

- The ecological footprint is a measure of human demand on the Earth’s ecosystems. It is a standardized measure of demand for natural capital that may be contrasted with the planet’s ecological capacity to regenerate

3 4

News

53

Interview | Gustavo Miralles Brea, Managing Director of Argentbio

Argentbio: Passion for Healthy Products

Argentbio was founded in 1996 and has become a leading organic company in Argentina. Their products are well-known in Europe and North America, and they plan to access Oceania and Korea soon. Gustavo Miralles Brea is the Managing Director of Argentbio and Vice-president of MAPO (Argentine Movement for Organic Production). He shares their experience in BioFach 2012.

By Ver贸nica Scornik

How was Argentbio born? What were your goals?

Argentbio was founded in 1996 by a group of young entrepreneurs that believed in the natural potential of Argentina to offer organic products worldwide and decided to change their lives and dedicate themselves to the passion of producing and to commercializing natural, healthy, and sustainable foods.

We grew and developed jointly with the Argentine organic market.

Today we are a leading producer, packer, and exporter; and we are also local reference for organic production in our country. We sell fresh apples, garlic, and squash, as well as sugar, organic cane alcohol, and molasses & syrup. Our mission is to offer agricultural products using organic, sustainable farming practices to export safe and healthy food which meets high quality global standards.

54

News

How was the market for organic products when the company started? How has this sector evolved?

The organic market has grown at an annual rate of ten percent.

Europe is the main consumer of organic products (making up 60 percent of the global organic market), and the United States has significantly grown, making almost 35 percent of this market; followed by Switzerland, Japan, and countries from Oceania.

A qualitative analysis shows that semi-manufactured products have shown an important growth, while 15 years ago, raw materials were the key items in demand.

BioFach 2012 Which is the difference between organic and other type of products?

Where do you export to? What are your short and medium-term goals?

Organic production in Argentina is under Law25127, Regulatory Order 97/2001 and its modifications.

Argentbio directly commercializes its products, and keeps a fluent communication with its customers all around the world. It also has a program for participating in Trade Fairs which guarantees international visibility. We sell all of our fresh products during the Northern Hemisphere off-season; we are a counter-season producer. We sell to North America and Europe, particularly to Germany, UK, Netherlands, the USA, and Canada. In the short term, we plan to send shipments to Oceania and Korea.

According to this, organic is defined as ecological, biological or organic in any system of agricultural production and related agribusiness, as well as the systems of collection, capture and hunting, sustainable over time. By the sound management of natural resources and avoiding the use of synthetic chemical products and other real or potential toxic effects to human health, these systems must provide healthy products, maintain and/or increase soil fertility and biodiversity, conserve water resources.

Do organic crops need special care? What technologies are used for this type of crops?

Cultivating organic crops require enhancing biological cycles of the soil, by crop rotation, mixing crops, symbiotic associations, selected cover crops, organic fertilizers, and minimum tillage. All of these strategies aim to provide nutrients for plant and animal life.

In many agricultural regions, water supplies are contaminated by synthetic fertilizers and herbicides, which pose a great challenge for organic productions. These substances are forbidden so we use organic fertilizers, such as animal or green manure, and compost.

We also foster more biodiversity (in reference to the cultivated lands and permanent vegetation) that enhance soil structure and water filtration. Well managed organic systems that save nutrients highly reduce the risk of underground water pollution.

Organic agriculture also reduces the use of non-renewable energy because it does not need agrochemical substances which are manufactured spending large quantities of fossil fuels. It also mitigates the greenhouse effect and global warming because it sequesters carbon in soil and plants.

Where is the main production of organic products?

According to the last SENASA statistics, most of the organic production is mainly in the Province of Misiones (26 percent) due to the organization of small cooperatives that gather local producers; followed by the Province of Mendoza, Buenos Aires, and Formosa (12 percent each province), then Río Negro (9 percent), and finally Chubut (4 percent). All these locations comprise 75 percent of the total organic producers in the country. The remaining 25 percent are located in the Provinces of Neuquén, Entre Ríos, San Juan, and Santiago del Estero (almost 3 percent each of them).

Since 1993, Argentina has been incorporated in the organic certification system through the Regulatory Code 2092/91 from the European Union. What has changed since then? And what about Regulatory Codes NOP and JAS?

What percentage of your current turnover is accounted for by exports?

In fact, ninety-five percent of our sales are shipped abroad.

What are your plans for this year? Are you seeking for new products?

Due to the geographic location of our farmlands at the Uco’s Valley (Province of Mendoza), we are considering an organic vineyard project.

You are the President of the Argentine Chamber of Organic Certified Producers (CAPOC). What is the role of this institution for organic producers?

In 2010, CAPOC and MAPO became the same institution and, right now, I am the Vice-President of this organization. Our goals at MAPO are promoting organic products, sharing information on the benefits of organic production and food systems, certifying the quality of organic markets, and defending the interests of the Organic Movement and its members.

How was your experience at BioFach with Fundación ExportAr? Have you obtained new business deals?

Have you attended other promotional events organized

by Fundación ExportAr? We have continuously participated in BioFach during the last 12 years because it is the most important Trade Fair for organic products. It is a fantastic place for buyers and sellers; and it enables contact with peers and competitors, and reviewing our customer base. We also save a lot of money and time, because we arrange meetings with our customers from all over the world.

Fundación ExportAr organized this event and it was highly professional and well done. People in charge really know what they are doing and they are fully dedicated to supporting our businesses and our products. They know our sector and what we need, and the result is a high attendance rate at the exhibition events.

Thanks to this regulative framework and the natural conditions of our geography, Argentina has positioned itself as the third supplier country of raw organic material worldwide. As a consequence, Argentine organic products are directly accessed by the European market without undergoing re-certification processes. Now, we have an easy and direct relation with main global markets.

Fulfilling the regulation of NOP and JAS gave Argentina free access to the American and Japanese markets.

News

55

Interview | Diego Rivara, Manager of Rivara S.A.

“BioFach is a Key Fair for Our Products” RIVARA S.A. has more than fifty years in the agrifood business.

In 2004, they opened a functional foods plant as a response to the global demand of healthy and natural foods. Today, their organic products are all over the world. Diego Rivara, Commercial Manager, shares his experience at BioFach 2012.

By Verónica Scornik

RIVARA S.A. has a long history in Argentine agricultural industries. When and why did you decide on expanding into organic products?

Which organic products are your specialties?

In 1997, we realized that we were able to produce organic. In fact, we already have the whole chain integrated, from the seeds and crops to the processed flour. This situation is very profitable for us, because we can control different organic materials and guarantee the whole process of our manufactured products. We decided to go organic because we wanted to support sustainable agriculture and add value to our products.

When did you start exporting and where? Where do you plan to ship in the short/medium term?

What was the response of your customers?

We started meeting customers who were interested in these products while participating in fairs and international organic product events. When we decided to enter the organic market, we had no specific customers or demand.

We produce flours and oils, though we also sell organic grains.

We started exporting in 1998 and Switzerland was our first trade partner, followed by other European countries. We want to consolidate our presence in those countries with which we have commercial ties, such as the United States, Australia, Holland, Denmark, Mexico, Korea, New Zealand, and Switzerland. Japan is also an interesting destination for this type of product.

What percentage of your current turnover is accounted for by exports?

In fact, thirty percent of RIVARA sales are shipped abroad.

Did you need to incorporate new technologies for organic products?

We had to learnt a lot and trained our staff, especially in the organic agricultural area which differs from traditional processes.

At RIVARA we constantly train our people. Regarding technologies, working with quality regulations such as BPM and HACCP implies an adaptation to the manufacturing of organic products.

56

News

What are your plans for this year?

We want to build a new plant for extracting oils and flours, which will enhance our oleaginous and grain processes by fifty percent.

BioFach 2012

Organic products have grown a lot in the last ten years.

Do you think they will keep growing at the same pace?

This sector has a great potential to keep growing at this pace, and even faster. It is also true that one of the limits we have is the availability of raw materials, which deeply affects regular business development.

BioFach is a key meeting point for our business, because every year we are able to close deals and meet our customers from all around the world. It also grants the opportunity of seeing the global position of organic products in the European market, and analyzing the short-term situation, which is essential for our business.

Europe is one of our main export destinations and a world leader in organic products. Our experience this year at BioFach was very good, because we closed deals for almost $650,000 dollars FOB.

How was your experience at BioFach with Fundaci贸n ExportAr? Were you able to close new deals at your meetings? Have you participated in previous activities with Fundaci贸n ExportAr? Since 1998, we have attended BioFach with the support of Fundaci贸n ExportAr. We also participated in Fancy Food (fair on foods & beverages at the United States), SIAL China (fair on foods at China), All Things Organic (fair on foods, at the USA), El Corte Ingl茅s (Spain), and Lafayette Gourmet (fair on foods, France).

News

57

Interview | José Ignacio de Mendiguren, President of Argentine Industrial Union (UIA)

Al Invest: The Most Important Co-Operation Program between Latin America and Europe José Ignacio de Mendiguren, President of Argentine Industrial Union (UIA), highlights the achievements of the Al Invest Program. This initiative was organized

by UIA jointly with Fundación ExportAr; and it aims to foster internationalization and competitiveness of Argentine companies. De Mendiguren also emphasizes the strength of our national productive sector within the context of the economic crisis: “The performance of the industrial sector in 2011 showed the strengths of the Argentine productive structure. It was able to face a global crisis and a complex international context, more competitive. Industries recovered quickly and effectively.”

How do you evaluate the job done jointly with Fundación ExportAr at the Al Invest Program?

Jointly articulating activities has been a gradual process throughout these two years. The Al Invest Program aims to foster competitiveness and internationalization of Latin American companies. Like all other cooperation programs (and even UIA and Fundación ExportAr), this program follows its own rules. Finding an efficient coordination among the people involved has been a means to achieve our most important goal: grant companies all the possible benefits available for their entrepreneurships.

58

News

Regarding our institution, UIA collaborates through specific activities and proposals focused on a case-by-case basis. These activities add up to the knowledge and expertise of Fundación ExportAr. As a consequence, companies that participate in a joint action with Al Invest have several benefits with no additional cost.

Which main industrial sectors are participating in the Program?

The main industrial sectors participating in Al Invest are metallurgy, clothing, auto parts, foods, timber & furniture, software, and plastics. UIA organized 15 different activities to fulfill the Program’s goals. For example, to promote international growth, we participated jointly with Fundación ExportAr in activities such as trade fairs and international missions, export consortiums, market reports on specific sectors, and training seminars on exporting.

What has been the impact or effect of these joint actions according to participating companies?

Participating companies have responded very positively to these activities. Each assessment tool has its own effectiveness indicator.

According to the evaluation developed by the Program in Brussels, Argentine companies have shown a high level of satisfaction with the benefits from the Program. Each joint action tries to include a differential which is the suggestions of those who will participate in the activities. We seek to enhance proposals adding the voices of those who do not belong to both organizations.

What measures do you suggest under the present economic global crisis?

In the last decades, there have been high levels of speculative activity in the financial sector, which has caused a decoupling of the productive sector from the real economy. In this process, private agents and financial markets have been globalized; however, they have not evolved in parallel to regulatory international institutions, or to the global liquidity-provision schemes (similar to those in national systems). Within this framework, in 2008 we experienced one of the worst global economic crisis in our history.

It is important to understand that the key to succeed is the added value we have as Argentineans, which means the ability to transform who we are and strengthen what we are. We don’t need just to survive, but to be creative in a world that moves towards creativity, intelligence, and teamwork.

The favorable performance accumulated during the year, and new investments in many activities, enables us to expect a positive industrial performance in 2012. However, we should also acknowledge that we experience slow economic growth. Another central factor is that the performance is uneven and depends on each particular sector.

Thus, although the performance of industries was positive throughout the year, according to production records (in several sectors), it is still uncertain if the final balance of local companies tied up to exports and international sales. The complex global scenario and several signs of economic slowdown in the Brazilian market also add to this situation. It is worth mentioning the different costs associated to each industrial sector. All these listed factors will have more or less influence depending on the economic policies implemented, which can foster the industrial activity in a macro and microeconomic context of production.

What are UIA goals in the medium-term?

Our main goal is for Argentina to double its GDP in the next two presidential terms. With this purpose in mind, we are working to overcome Argentina’s pending issues: reducing regional asymmetries; fighting the “primarization” of our economy, and fostering the complementation between redistribution and inversion.

All of these issues imply strategies and clear goals that define who we are as a nation. We believe that we need to create people committed to creating a future in the long term. To reach this goal, analysis and action should be up to the task.

From UIA, we want to overcome past antinomies that are useless and have caused relegation and backwardness: farms VS industries; countryside VS cities; domestic market VS global market; market VS state; SMEs VS large firms; capital VS labor. Our job as a nation is to work towards seeking a consensus based on mechanisms to solve legitimate disagreements.

UIA’s commitment lies in our productive force which seeks to add value through investments and innovations. Our mission is to face the new global context under the flag of excellence in production and added value.

In order to achieve this goal, we need to take a sort of Copernican turn in the way we think, which means we need to do things in new ways and move away from what we are used to doing. It is time to innovate, in the broad sense of this word: we need to innovate not just in science and technology, but in the social, political, and economic spheres.

How do you evaluate the performance of the industrial sector in 2011?

The performance of the industrial sector in 2011 showed the strengths of the Argentine productive structure. It was able to face a global crisis and a complex international context, more competitive. However, the productive activity of different sectors shows a very heterogeneous dynamic.

AL INVEST-UIA Team: Bruno Misisca, Jazmin Kleinerman, and Nicolás Eliçabe

News

59

Russia Second Part

60

News

Dossier Russia

Bilateral Trade: Argentina-Russia

Russian foreign trade is strongly linked to Europe. In fact, the exchange, both in imports and exports, represented 45 percent of total Russian commerce abroad in 2010. Thus, they do give priority to this market at the expense of other commercial venues. However, it is also important to acknowledge that Argentina has strong ties with Russian Federation and, during the last years, the commercial bilateral relation has grown to the extent that we are the second Latin American trade partner of Russia, after Brazil. In 2010, Argentine imports totaled 0.37 percent of all Russian purchases; while Russian exports to Argentina were almost 0.05 percent; this represents a clear growth trend. If we compare the first eight months of 2010 and 2011, Argentine exports increased by 28 percent and imports by 114 percent. This showed a positive trading balance for 2011, though a negative variation in of 80 percent in 2010.

According to the International Trade Undersecretary of the Ministry of Foreign Affairs, the bilateral relation between 2005 and 2010 has been favorable for Argentina. The following charts and graphics show an annual trade balance of $1.17 billion dollars. In 2005, bilateral foreign commerce totaled $865.46 million dollars, while in 2010 it reached $1.03 billion (an increase of 14.08 percent). Argentine exports dropped by 23.1 percent between 2009 and 2010; which indicated a decrease of almost $190 million dollars (from $819.72 million dollars to $630.41). However, data from last year looks promising: during the first eight months of 2011 exports reached $418 million dollars, and this year they have already reached $535.11 million (showing a variation of 28 percent).

On the other hand, Argentine imports have decreased by 23.1 percent. In 2009 they totaled $109.37 million dollars while in 2010 they reached $356.9 million.

Bilateral Trade Argentina-Russia (dollars in millions) Years Exports Imports Total

2005 670,59 194,87 475,72

2006

2007

2008

2009

2010

(8M)2010

(8M)2011

901,39

784,57

963,34

819,72

630,41

418,08

535,11

244,05

430,31

755,89

109,37

356,90

233,66

500,13

657,34

354,26

207,45

710,35

273,51

184,42

34,98

Total Trade

865,46

1.145,44

1.214,88

1.719,23

929,09

987,31

651,74

1.035,24

Source: Fundaci贸n ExportAr basedon data from DIGCE/DIMEX and Info-Just

News

61

Evolution of Bilateral Trade: Argentina-Russia (dollars in millions)

Source: Fundación ExportAr based on data from DIGCE/DIMEX and Info-Just

Evolution of Bilateral Trade: Argentina-Russia (dollars in millions)

Exports Imports

Source: Fundación ExportAr basedon data from DIGCE/DIMEX and Info-Just

Regarding the composition of Argentine exports to Russia, five main groups –fresh fruits, meat and residues from food industries, dairy products, oilseeds, legumes/fresh vegetables & fruits– made up 78.42 percent of shipments in 2010. In the following graphic, fresh fruit sales were the most important (31 percent of the total exported), closely followed by meat and offal (30 percent); dairy products (9 percent), oilseeds (5 percent), and finally preparations of legumes, fresh vegetables and fruits (4 percent).

62

News

Dossier Russia

Composition of Argentine Exports to Russia (2010) 4%

Fruits and Oilseeds Dairy Products

Preparations of Legumes, Fresh Vegetables, and Fruits

5%

9% 31 %

Other

Fresh Fruits

21 %

30 %

Meat & Offal

Source: Fundación ExportAr basedon data from Argexim

Regarding the composition of Argentine exports to Russia, the main industrial sectors –MOA (Manufactures of Agricultural Origin), MOI (Manufactures of Industrial Origin), and PP (Primary Products/Commodities)– have not shown significant changes between 2006 and 2010. In 2006, sales of MOA made up 75.9 percent of the total shipments ($684.3 million dollars); while MOI represented 18.2 percent ($164.1 million) and PP only 5.9 percent ($52.8 million). There were no shipments of fuels. In 2010, figures remain alike though proportions change slightly: MOA led exports by 55.8 percent ($354.8 million dollars); the other two sectors also grew. PP made up 38.3 percent ($243.5 million dollars) while MOI was 5.9 percent ($37.4 million). Furthermore, Argentina sold fuels to Russia between 2007 and 2009; although in 2010 fuels and energy were not exported.

Composition of Argentine Exports to Russia-Main Chapters (2006) MOI

Primary Products

6%

18 %

76 %

MOA

Source: Fundación ExportAr based on data from Argexim

News

63

Composition of Argentine Exports to Russia-Main Chapters (2010)

Primary Products

38 %

56 %

6%

MOA

MOI

Source: Fundaci贸n ExportAr based on data from Argexim

Composition of Argentine Exports to Russia (dollars in millions)

Year 2006

Year 2010

MOA

MOI

Primary Products

Source: Fundaci贸n ExportAr based on data from Argexim

64

News

News

64

Dossier Russia

Regarding the composition of Argentine imports from Russia, five main products made up 93.49 percent of our purchases in 2010. These products were manure (totaling $236.84 million dollars, and 66 percent share of the total of imports); cast iron and steel ($40.26 million, 11 percent); mineral fuels, mineral oils and distillation products, bituminous matters, mineral waxes ($36.65 million, 10 percent); rubber and articles thereof ($11.16 million, 3 percent); paper pulp manufactures ($8.75 million, 3 percent).

Composition of Argentine Imports from Russia (2010) Manure

Cast Iron & Steel

Mineral Fuels, Oils and distillation products, bituminous matters, mineral waxes

Other Paper and Cardboard, Paper Pulp, and Articles Thereof Rubber and Articles Thereof

Source: Fundaci贸n ExportAr based on data from Argexim

News

65

Business Opportunities

The charts above show that bilateral trade between Argentina and Russia has been very dynamic for the past five years. From 2005 to 2008, this exchange grew almost 99 percent before the global economic crisis. From 2008 to 2009, the balance was negative, and bilateral trade dropped 46 percent. However, between 2009 and 2010, the variation was 6.3 percent which shows a recovery that continues to increase the exchange. The first eight months of 2010 totaled $651.7 million dollars and the beginning of 2011 registered $1.03 billion. This made up an increase of 59 percent.

Exports have yet to completely recover. In 2010 our sales to Russia were only one percent of our total exports. Russia is our 29th export destinations.

Identification and Analysis of Potential Sectors for Sustainable Exports It is possible to identify two main potential sectors for our exports. On the one hand, we have important commercial ties with several import areas of Russia.

On the other hand, we have few ties with other commercial Russian sectors that might be further exploited.

Russian Imports Strongly Connected with Argentina As was mentioned above, in 2010 Argentine exports to Russia mainly focused on five key chapters: Edible fruits (31 percent of the total exported), meat and offal (30 percent); dairy products, mild and honey (9 percent), oilseeds (5 percent), and finally preparations of legumes, fresh vegetables and fruits (4 percent).

66

News

Dossier Russia

Russian Imports and Argentine Exports in 2010 (in dollars) Russian Sales Share in Total Exports

Chapters

All Russian Imports

All Argentine Exports

Argentine Exports to Russia

Share in Russian Imports

Edible Fruits

$5,291,123,184.00

$ 1,203,267,714.00

$ 208,656,940.00

17.34%

3.94%

Meat & Offal .

Dairy Products, eggs, natural honey

$5,821,467,468.00

$ 1,693,919,821.00

$ 188,130,518.00

11.11%

3.23%

$2,053,678,404.00

$ 1,056,781,317.00

$ 59,557,784.00

5.64%

2.90%

Fruits & Oilseeds

$1,230,763,501.00

$ 5,337,873,106.00

$ 31,482,441.00

0.59%

2.56%

Preparations of Legumes & Fresh Vegetables

$1,353,606,641.00

$ 942,481,431.00

$ 24,809,404.00

2.63%

1.83%

Source: Fundación ExportAr based on data from Intracen/Comtrade, the World Trade Center, and Global Trade Tracker

Edible Fruits

First, when analyzing Argentine exportation of edible fruits, it is important to consider two key factors: the sustained growth of foreign sales from 2006 to 2010; and the many different international markets that received our exports. Regarding sustained growth, exports generated $170 million dollars in 2006, though in 2010 it reached $209 million, which means an increase of 23 percent despite the effects of the global crisis (late 2008 & 2009). On exports destinations, today Argentine shipments travel to many new locations.

In 2010, Argentina exported five main products: fresh pears, lemons, fresh apples, blueberries and other berries, and tangerines. All of these goods made up 73.6 percent of exportable edible fruits. Shipments to Russia were also influenced by this market trend; thus 85.9 percent of all edible fruits bought were pears (35%), tangerines (16.1%), apples (10.8%), lemons (15.9%), and grapes (8.1%).

Finally, it is important to highlight that pears were the second-most popular product in the Russian Federation in 2010, making up 11.5 percent of the total exports, barely exceeded by boneless and frozen beef (14.2%).

Meat and Offal

When analyzing Russian purchases of meat and residues from the food industry, almost 48.1 percent consists of boneless and frozen beef. In 2010, shipments reached $91 million dollars.

Horse or donkey meats were $35 million dollars while unfrozen meat offal was $17 million.

These three groups made up 76 percent of Argentina’s total sales. Even though the volume of meat exports grew almost 30 percent between 2008 and 2009, the total exports of this sector have dropped since 2010.

News

67

Milk and Dairy Products

Almost all Russian purchases of dairy products in 2010 consisted of four items: butter, mozzarella cheese, milk powder, and hard cheese. In fact, these four products made up 84.3 percent of the total of dairy products exported to Russia in 2010; while the remaining 15.7 percent consisted of other types of cheese (7.3%), dried egg yolks (3.1%), and butyric oil (0.6%). If we consider that 45 percent of dairy products come from the Province of Santa Fe and 30 percent from Córdoba, then all Russian purchases were covered by these two regions.

According to recent data, during the first semester of 2011, Argentine exports of butter reached 1,125 tons, which means an increase of 125 percent compared to the same period in 2010. During this year, Russia will again be a key buyer of Argentine butter with purchases totaling 1,125 tons. The first destination of this product is the United Arab Emirates (1,212 tons) followed by Russia (1,125), Saudi Arabia (930), and Egypt (750 tons).

Fruits and Oilseeds

In 2010, oilseed and oleaginous fruits made up 8 percent of Argentine total exports. It was also the fourth product sold to Russia. In fact, an analysis of Russian purchases in 2010 shows that 98 percent of total sales consisted of raw peanuts ($31 million dollars).

Shipments also included rape or colza seeds, sunflower seeds and related products. This sector had a more diversified performance and made up 2.2 percent of the total trade.

Between 2006 and 2010, the volume of exports quadrupled (showing an annual growth of 67 percent).

Preparations of Legumes and Fresh Vegetables

Russian imports of prepared legumes and fresh vegetables in 2010 were concentrated in four main products. Roasted peanuts were in high demand: they reached $20.3 million (making up 82.2 percent of this sector). Grape juices and must (excluding those of brix value of 31 or lower) reached $2.3 million dollars (9.6%), while jams and fruit purees made $1.7 million (7.2%). Russian purchases also included apple juices (excluding those of brix value of 20 or lower) and citrus fruit juices (making up 0.5% and 0.6% respectively).

Áreas de importación rusa con menor vínculo comercial con la Argentina

68

News

Dossier Russia

Russian imports less connected with Argentina The previous analysis gave a detailed description of eighty percent of Argentina’s total exports to Russia in 2010. In fact, the five sectors listed above have shown a variation in demand from 2006 to 2010. The average annual variation registered during the five-year period was 23.8 percent, which means that the tendency has a positive slant. Considering the effect of the global economic crisis however, there was a decrease in the final months of 2008 and during the first semester of 2009.

Argentine exporters had to face to big challenges: consolidating the exportable offer, while increasing and diversifying sales in the medium term. This second facto has a great potential. In fact, it is possible to find important ‘niche’ markets in the Russian economy; Argentine producers can efficiently supply these needs.

What follows is a list of potential products that Argentine manufacturers can offer to the Russian Federation. This list is the result of a statistical analysis on exports and imports between Argentina and Russia in recent years.

Products were chosen based on the following criteria: • • •

the variation rate of the imported product was higher than 15 percent (between 2004 and 2009) within the top ten exporters of said product, there is a country without tariff benefits Russian imports of said product are higher than $30 million dollars annually

At the same time, two particular cases do not follow all of the previously mentioned criteria (and are identified with an asterisk in the list): • •

when Argentina is among the top five global exporter of said product OR when said products have already been exported to Russia, and there exists a potential for expanding its outreach

News

69

The criteria of the selected products also relates to the particularities of the Russian market. Even though the list has potential products, it is neither exclusive nor excluding.

Interested companies can add or change criteria according to the needs and reality of their production centers.

It is advisable to consider this list as a general guide, though not all the goods included can pose comparative advantages for beneficial insertion in the local market.

$1.5 million. Even though in 2009 sales increased by 428 percent totaling $6.5 million dollars, between 2009 and 2010, there was a significant drop (minus 76 percent).

•Russian imports increased from $63.82 million dollars in 2006 to $99.87 million in 2010. In those five years, purchases grew by 56 percent. In 2010 Argentine sales were 1.6 percent of the total Russian purchases of jelly and marmalade.

What follows shows the products with greater potential:

Tariff Subheading N° 040690

Item: Hard cheese (moisture less than 36 percent) Facts & Analysis: •In 2010 Russia imported these goods for $10.86 million dollars.

•In 2009 our total shipments of these items reached almost $22 million dollars. Shipments to Russia were 8 percent of the total exported. Russia was the fourth buyer of Argentine jelly & marmalades.

Tariff Subheading N° 220429

Item: Wine of Fresh Grapes (Including Fortified Wines) and •Main exporters (from 2006 to 2010) were Ukraine, Lithuania, Germany, Poland, and Finland.

•Argentine exports of hard cheese were unstable. In 2006, we obtained $27.49 million dollars which increased in 2007, totaling $37 million. The global economic crisis in 2008 had a significant effect on this item, and revenues this year were $24.09 million. However, in 2009 the sales dropped to $5.7 million; while in 2010 sales began to recover. In the meantime, Russian imports in 2010 increased to $11.19 million. Despite the recovery tendency of last year, the variation between 2006 and 2010 has a negative balance (minus 59 percent).

•From 2006 to 2010, Argentina exported hard cheese to Russia for $106 million dollars.

•In 2010 all of our shipments of this item totaled $107.37 million dollars. Russia bought $10.8 million, which was 10 percent of our national sales. Russia was the fifth largest buyer of Argentine hard cheese.

Tariff Subheading: 200799 Item: Jelly & Marmalade Facts & Analysis:

Grape Must (in containers holding 2 liters or less)

Facts & Analysis: •In 2010 Russia imported these goods for $154.89 million dollars.

•Main exporters (from 2006 to 2010) were Slovenia, Netherlands, Germany, Serbia, and Turkey.

•Argentine exports of these items experienced an important drop. First, there was a constant growth from $16.35 million dollars in 2006 to $35.89 million in 2008 (reaching high records), which means a variation of 119 percent. The global economic crisis in 2008 had a significant effect on these items. In 2010 sales of wines of fresh grapes dropped to $1.1 million dollars. Thus, the variation between 2006 and 2010 has a negative balance (minus 93 percent).

•In 2010 our total shipments of these items reached $49 million dollars. Russia bought $154.89 million from different countries. In fact, Argentine exports to all destinations have decreased, while Russia has increased its purchases of wine of fresh grape (from $22 million dollars in 2006 to $154.89 million in 2010). Even though Argentine exports were one percent of Russian purchases in 2010, Russia’s demand of wine of fresh grape is steady and holds great potential for our producers.

•In 2010 Russia imported these goods for $99.87 million dollars.

•Main exporters (from 2006 to 2010) were Spain, Ukraine, Italy, Bulgaria, and Moldavia.

•Argentine exports of jelly and marmalade progressively increased until 2010. The variation from 2006 to 2010 has a positive balance of 25.6 percent. In 2006, we obtained $1.23 million dollars that increased in 2010, totaling

70

News

Tariff Subheading N° 300410

Item: Medicaments containing Penicillin, Streptomycin or their derivatives, in forms or packing for retail sale Facts & Analysis: •In 2010 Russia imported these goods for $490 million dollars.

Dossier Russia

•Main exporters (from 2006 to 2010) were Slovenia, Netherlands, UK, Serbia, and Turkey.

of medicaments with alkaloids is growing (56 percent) and holds great potential for our producers.

•Russia bought Argentine medicaments for $6.9 million dollars from 2006 to 2010, while 1.4 percent of these imported goods came from different countries.

Tariff Subheading N° 300490

•Russian demand of medication with penicillin shows a significant variation of 799 percent. These items have a constant growth from $310, 410 dollars in 2006 to $2.78 million dollars in 2010.

Item: Medicaments containing Streptokinase, in forms or packing for retail sale Facts & Analysis: •From 2006 to 2010, Russia imported these goods for $24.76 billion dollars.

•In 2010 all of our total shipments of these items reached $21.6 million dollars. Russian bought four percent of the total exports in 2010.

•Main exporters (from 2006 to 2010) were Germany, Finland, Austria, France, and Poland.

Tariff Subheading N° 300440

•Russia bought Argentine medicaments for $6.5 million dollars in 2006 and $22 million in 2010, which indicates a clear increase and a total variation of 238 percent.

Item: Medicaments containing Alkaloids or their derivatives, in forms or packing for retail sale Facts & Analysis: •In 2010 Russia imported these goods for $2.30 billion dollars.

•From 2006 to 2010, Argentina exported these medicaments with streptokinase for $67.2 million dollars, which represents 0.2 percent of Russian total imports of this item.

•In 2010 our total shipments of these items reached $334.4 million dollars.

•Main exporters (from 2006 to 2010) were Hungary, Austria, Germany, India, and Bulgaria.

•Argentine exports of medicaments with alkaloids were unstable. In 2006, sales increased though they later dropped, even though Russian demand constantly grew.

Tariff Subheading N° 391390

Item: Natural Polymers (natural rubber) and modified natural polymers nesoi in primary forms Facts & Analysis:

•Russia bought Argentine medicaments with alkaloids for $3.2 million dollars from 2006 to 2010, which represents 4.1 percent of the total demand of Russia. In fact, Russian purchases decreased (a variation of minus 33 percent).

•Even though Argentine exports of these items decreased, showing a variation of minus 33 percent, Russia’s demand

•From 2006 to 2010, Russia imported these goods for $67.5 million dollars.

•Main exporters (from 2006 to 2010) were China, Germany, the USA, Denmark, Netherlands, and Finland.

•Russia bought Argentine polymers for $280,000 dollars in

News

71

2008. This grew in 2010 reaching $350,000 dollars.

China, Finland, Poland, and Lithuania.

•In 2010, Argentine exports of polymers totaled $81.4 million dollars. Russian total imports reached $21.9 million, which shows an increase of 131 percent

•Russian purchases of this item have increased by 138 percent since 2006, reaching a peak total of $27.9 billion dollars in 2007.

Tariff Subheading N° 392330

Item: Carboys, bottles, flasks and similar articles of

•In 2010, Argentine exports of these plastic products totaled $33.2 million dollars. This same year, Russia imported $712.9 million dollar’s worth of these products, although purchases to Argentina were not important.

plastics for the conveyance or packing of goods

Facts & Analysis: •From 2006 to 2010, Russia imported these goods for $372.5 million dollars.

•Main exporters (from 2006 to 2010) were Poland, Ukraine, Germany, and Austria.

•Russian purchases decreased after the global crisis in 2008, showing a negative balance of minus 28 percent.

•There have not been Argentine exports of this item to Russia since 2006.

•In 2010, Argentine exports of these plastics totaled $58.3 million dollars. In fact, 70 percent of these exports were shipped to Brazil. This same year, Russian total imports of these totaled $61.7 million dollars

Tariff Subheading N° 392690

Item: Plastic washers (and other articles of plastic) Escenario: Facts & Analysis: •From 2006 to 2010, Russia imported these goods for $54.44 billion dollars.

•Main exporters (from 2006 to 2010) were Germany,

72

News

Tariff Subheading N° 401110

Item: New pneumatic radial tires, of rubber, of a kind used on automobiles Facts & Analysis: •From 2006 to 2010, Russia imported these goods for $3 billion dollars.

•Main exporters (from 2006 to 2010) were Germany, South Korea, Finland, Poland, and Estonia.

•Argentine exports of rubber tires were unstable. In 2006, there was a peak in exports to Russia totaling $853,361 dollars; followed by a decrease.

•In 2010, Argentine exports of these rubber tires totaled $170.3 million dollars, and were mainly shipped to Brazil (68 percent of total exports). This same year, Russian total imports of these items reached $615.2 million dollars, which indicates an increase of 46.2 percent compared to 2006.

Dossier Russia

Tariff Subheading N° 640399

Item: Footwear w/outer soles of rubber, plastics & uppers of

Russian total imports of these items reached $2.94 billion dollars.

leather, not covering ankle, made on a base or platform of wood, w/o insole or metal

Facts & Analysis: •From 2006 to 2010, Russia imported these goods for $6.58 billion dollars. Only 0.02 percent came from local manufacturers.

•Main exporters (from 2006 to 2010) were China, Finland, Estonia, Germany, and Lithuania.

•Russia’s purchasing of this item from Argentina considerably decreased. In 2006, Argentina sold footwear totaling $865,000 dollars, but since 2007 the exports have dropped. In 2010, there appeared to be a recovery in this market.

•In 2010, Argentine exports of plastics totaled $6.2 million dollars, mainly to countries in our region. This same year, Russian total imports of these items were for $1.75 billion dollars, which represents an increase of 163 percent compared to $666,900 million dollars in 2006.

Tariff Subheading N° 841480

Item: Air compressors (reciprocating or piston) Facts & Analysis: •From 2006 to 2010, Russia imported these goods for $3.12 billion dollars.

•Main exporters (from 2006 to 2010) were Ukraine, the USA, Germany, Belgium, and Lithuania.

•From 2006 to 2010, Russia purchased air compressors from Argentina for $1.9 million dollars. In fact, 51 percent of these revenues were from 2006; and sales decreased sharply after this period. This exchange later recovered to reach $689,000 dollars.

•In 2010, Argentine exports of these air compressors totaled $73.1 million dollars. This same year, total Russian imports of this item were for $897 million dollars, which represents an increase of 90 percent compared to 2006.

Tariff Subheading N° 732690 Item: Iron or steel articles, nesoi Facts & Analysis:

•From 2006 to 2010, Russia imported these goods for $1.69 billion dollars.

•Main exporters (from 2006 to 2010) were China, Finland, Italy, Germany, and the USA. •Argentina exported large amounts of these items mainly to Latin American countries.

•From 2006 to 2010, Argentine exports of iron and steel articles totaled $293.5 million dollars. During this same period,

Tariff Subheading N° 843230

Item: Seeders, planters and transplanters for soil preparation or cultivation Facts & Analysis: •From 2006 to 2010, Russia imported these goods for $742.8 million dollars.

•Main exporters (from 2006 to 2010) were Ukraine, Germany, the USA, Canada, and Lithuania.

•Most of Argentine exports were sent to Uruguay (38 percent), other parts of Latin America, and Europe.

News

73

•In 2008, exports reached a peak record totaling $8.4 million dollars (more than a half of all the exports during 20062010). In 2007, the second largest shipment was sent for $5.1 million dollars, while in 2006 and 2009 sales averaged $950,000 dollars. In 2010, Russian purchases reached $1.6 million. Argentine exports of this item from 2006 to 2010 totaled $17 million dollars.

•In 2010, Argentina exported these machines to seventeen countries, totaling $23.5 million dollars. This same year, Russian total imports of these items reached $72.6 million dollars, which represents an increase of 40 percent compared to 2006 but a decrease of 77 percent compared to 2008.

In fact, in 2008 there was a sales record of $311.6 million dollars.

and today we sell 109 percent more than in 2006. Russian purchases had variations, with the highest sales record reaching $287,000 dollars in 2009 only to drop 31 percent in 2010.

•In 2010, Argentina exported these items to 89 countries, totaling$69.6 million dollars. This same year, total Russian imports reached $1.29 billion dollars, which represents an increase of 226 percent compared to 2006.

Tariff Subheading N° 853710

Item: Electric control panels, for voltages not exceeding 1,000 wattsEscenario: Facts & Analysis:

Tariff Subheading N° 847989 Item: Isostatic press Facts & Analysis:

•From 2006 to 2010, Russia imported these goods for $3.06 billion dollars.

•Main exporters (from 2006 to 2010) were Italy, Poland, Finland, Germany, and Netherlands.

•Argentine exports of this item were not concentrated in a single market. In fact, Argentina sent shipments to more than sixty different destinations, mainly to Venezuela which received 19 percent of our total exports.

•From 2006 to 2010, Russia imported these goods for $3.14 billion dollars.

•Main exporters (from 2006 to 2010) were Italy, China, Finland, Germany, and Sweden.

•Argentina exported this item to more than a hundred countries, mainly within Latin America (Brazil, Venezuela, and Chile) •From 2006 to 2008 Argentina saw a sales increase, from $15,000 dollars in 2006 to $128,000 in 2008, which means a variation of 759 percent. In 2009, there were no sales at all, but in 2010 there was a small recovery (for only $1,748 dollars).

•Argentina sent shipments to Russia for $507,000 dollars in 2007. In 2008 there was a 36 percent decrease of exports compared to the previous year; and in 2009 there were no sales at all. However, in 2010 this market was recovering and Argentine exports reached a total of $14,000 dollars. From 2006 to 2010 total sales to Russia reached $847,000 dollars.

•In 2010, Argentine exports of these panels totaled $29.4 million dollars. This same year, Russian total imports of these items were for $762.8 million dollars, which represents an increase of 106 percent compared to 2006.

•In 2010, Argentine exports of these presses totaled $45 million dollars. This same year, Russian total imports of these items were for $686 million dollars, which represents an increase of 61 percent compared to 2006.

Tariff Subheading N° 901890

Item: Blood transfusion apparatuses Facts & Analysis: •From 2006 to 2010, Russia imported these goods for $3.55 billion dollars.

Tariff Subheading N° 848180

Item: Taps, cocks, valves & similar appliances for pipes, boiler

•Main exporters (from 2006 to 2010) were Japan, Hong Kong, Finland, Germany, and the Netherlands.

shells, tanks, vats or the like, hand operated, copper, nesoi

Facts & Analysis: •From 2006 to 2010, Russia imported these goods for $4.16 billion dollars.

•Main exporters (from 2006 to 2010) were Italy, China, Finland, Germany, and Lithuania.

•Argentine exportation of this item has progressively grown,

74

News

•Argentine exports of this item to Russia were unstable; in 2006 and 2007 there were no shipments. In 2008 the exports totaled $1.4 million dollars.

•In 2010, Argentine exports totaled $13.8 million dollars.

This same year, Russian total imports of these items were for $815.8 million dollars, which represents an increase of 87 percent compared to 2006.

Dossier Russia

Tariff Subheading N° 901920

Item: : Ozone, oxygen and aerosol therapy, artificial respiration or other therapeutic respiration apparatus, and parts and accessories thereof.

Facts & Analysis: •From 2006 to 2010, Russia imported these goods for $871.7 million dollars.

•Main exporters (from 2006 to 2010) were China, Holland, Finland, Germany, and the USA. •In 2010, Russia was the second largest importer of Argentine oxygen apparatus after Brazil.

•Argentina constantly sent shipments to Russia. The record high was in 2010, totaling $3.7 million dollars. In 2008, Russian purchases reached $3.6 million.

•In 2010, Argentine exports of oxygen apparatuses to 45 countries totaled $15.6 million dollars; and Russia received 10 percent of them. This same year, Russian total imports of these items were for $248.7 million dollars.

75

News

News

75

imรกgenes: Vacavaliente

Exporting More Design Ministerio de

Relaciones Exteriores y Culto 76

News

Activities

Rounds International Business Round PRE-MICA 2012 City of Formosa, Argentina March 29-31 Music, Textile Design, Audiovisual

Within the framework of Pre-MICA, an International Business Round is being held in the City of Formosa (Argentina) on March 29-31, 2012. Pre-MICA expo is located in the NEA region (provinces of Chaco, Corrientes, and Formosa).

The Argentine Market of Cultural Industries (known as MICA in Spanish) aims to place Argentine cultural industries in the international market; thus, it shows the quality and competitiveness of Argentine products.

This expo concentrates all the areas of cultural industries in the same fair grounds. MICA seeks to promote businesses, exchange of information, and present local products to the world. The areas participating in this expo are publishing and record companies, performing arts groups, design, videogames, and audiovisual.

• Fairs • Rounds • Promotion of Services • Training

In this opportunity, taking into account a report from the National Secretary of Culture, the Pre-MICA event is mainly focused in music, textile design and audiovisual arts because these are the main productive areas in the region. The Pre-MICA expo has different activities: products are displayed by producers and institutional stands; productions training sessions, shows, and live performances from each sector; and Business Rounds with international visitors (mainly from Latin America, Buenos Aires, and Córdoba).

The Ministry of Foreign Affairs organizes the Business Round jointly with Fundación ExportAr and the National Secretary of Culture. This activity is held in the afternoons, during the three-day fair. In the mornings, several meetings with producers and training sessions take place; in the evenings, live shows and performances are scheduled. The general public can also attend them.

News

77

Fairs ARTEAMERICAS 2012 Miami, United States of America March 2-5 Arts & Antiques

ARTEAMERICAS is being held at the Miami Beach Convention Center from March 2-5, 2012. It is the most important expo of Latin American art; thus Latin American countries exhibit their goods and display their culture.

Art galleries from all over the Americas exhibit their artists. It is a good opportunity to meet both, well known artists and talented, new young artists who shock visitors with their avant-garde and sophisticated pieces.

ARTEAMERICAS showcases paintings, sculptures, and multimedia conceptual art, which is easily recognizable thanks to the distinctive style of each artist. Visitors admire their creativity while museums, galleries, and art collectors are captivated by their audacity. The fair is diverse and people can enjoy exhibited pieces in a comfortable setting that promotes culture.

This year, the 10th ARTEAMERICAS opens to share the creativity of artists from different countries who expose the beauties, traditions, and folk culture of each nation. At the same time, Argentina is the “guest of honor” and our gallery “Rubbers International” will be celebrated.

It is the first time Fundación ExportAr has organized the exhibition stand (443m2) at this fair, jointly with the galleries and their curators.

Participating galleries at ARTEAMERICAS 2012 are: Consorcio de Arte, Centro de Edición Taller Galería, LZ Fine Art, Hoy Arte Hoy, Carla Rey Arte Contemporáneo, Acuarell Arte Contemporáneo, Solange Guez + Arte Contemporáneo, Fundación Leopoldo Torres Agüero Rozanes, GP Espacio de Arte, Vía Margutta, Daimon Arte, Aldo De Sousa Gallery, Galería Rubbers International, Artistas a la carta, Artis Galería, Document – Art Gallery, and Buenos Aires Fine Arts.

78

News

PDAC 2012 Toronto, Canada March 4-7 Mining

The most important Trade Fair of metal minerals in the world is being held at the Metro Toronto Convention Center from March 4 to 7, 2012, in the City of Toronto.

Consultants, CEOs, mining professionals, manufacturers, geoscientists, mining service providers, marketing and sales agents, investors, legal and financial experts, and environmentalists, they all gather at this international event which offers a global perspective on developing sustainable mining practices as well as opportunities for investments. There are solutions for several areas, such as explorations, development, production, and investments.

The fair offers technical sessions, workshops, presentations, and forums for professionals in this sector to learn about new trends and innovations in the mining sector.

PDAC 2011 had 27,714 visitors (25 percent were foreigners). It also had representatives from 120 countries in addition to exhibitions from 64 provincial, federal and international governments. At the “Trade Show” Hall, there were 609 exhibition stands from 354 companies; while in the “Investors Exchange” Hall were 613 from 582 companies.

This is the 11th time we have participated in PDAC thanks to the support from the National Secretary of Mining. The Secretary Jorge Mayoral and officers from provincial and the national governments all participate as Argentine representatives.

Fundación ExportAr organizes the National Pavilion (N°923) in the “Trade Show” Hall. The stand has a comfortable design for business meetings between manufacturers and providers. It seeks to exhibit Argentine resources, foster investments, and promote services and the exportation of minerals from our country.

Fairs BOSTON SEAFOOD 2012 Boston, United States of America March 11-13 Seafood

FIMEC 2012 Rio Grande do Sul, Brazil March 20-23 Footwear Suppliers

The International Boston Seafood Show is held at the Boston Convention & Exhibition Center on March 11-13, 2012.

This important trade fair is organized by Diversified Business Communications, and sponsored by the National Fisheries Institute, Seafood Business.

FIMEC, the International Trade Fair of the Leather and Footwear Industries, is one of the most important global fairs of this sector.

It is held on March 20-23, 2012, at the Parque de Exposi莽oes Da Fenac in the City of Novo Hamburgo, at the State of Rio Grande do Sul, Brazil.

It is the most important fair from the fishery sector in the USA and one of the main trade expos in the world. Participating in the fair means having the opportunity to meet and enhance the commercial relations between American importers and/or distributors and international agents. It also enables access to new markets and trends, as well as opportunities to learn about innovative technology.

Due to the request from exhibitors and visitors, this 36th edition of FIMEC is earlier than usual. In fact, it opens the year-round of international fairs; so it is followed by APLF (Hong Kong, China) and Lineapelle (Bologna, Italy).

Boston Seafood offers seminars on market orientation, prices and supplies, quality standards, and environmental regulations.

Several lectures, workshops, special events, and training sessions take place with people from educational centers and universities.

Buyers from more than 76 different countries walk around the exhibition; 26 percent of visitors are international buyers. In fact, six out of 10 buyers close deals, having a purchasing power of 3.6 billion dollars in total.

At Boston Seafood, the following products are exhibited: fresh, frozen, live seafood with added value; processing, freezing, and cooling equipment and appliances; organizations and services; quality control; financial services, associations and e-commerce; packaging; among others.

Fundaci贸n ExportAr organizes the National Pavilion (36m2) with six workstations. Its main goal is to help national companies participating in the event. They are: Coomarpes S.A., Frigor铆fico Del Sudeste S.A., Pesca Argentina S.A., Bentonicos Argentina and Sur Trade S.A. (Dispesa). They offer sole, whiting, hake, grouper, sea bass, sea snail, angelfish, narrow nose smooth-hound, flat head fish, and salmon, among others.

More than 600 exhibitors come from different countries, such as Brazil, Argentina, Germany, China, Egypt, Slovenia, France, UK, Italy, Japan, Turkey, and Uruguay. They offer a wide variety of products, technology, fashion, and international trends.

There are more than 1,200 companies displaying their products, such as leather and its manufactures, chemicals, components, footwear machinery and equipment, and leather goods.

Visitors and professionals of this sector have different purchasing and international profiles, so there are always potential buyers for unique products and the opportunities for new markets.

In this fair edition, the fairgrounds are 1,000 to 1,500 m2 larger than in 2011, with a total surface area of 40,000m2.

Fundaci贸n ExportAr, jointly with the Argentine Chamber of Footwear Industry Suppliers (CAIPIC), organizes the National Pavilion (40m2). Participating Argentine companies are Menini Componentes, Rafias Pri-Sim, Hebillas Pit N. and Curtiembre Napolitana.

News

79

Fairs ALIMENTARIA BARCELONA 2012 Barcelona, Spain March 26-29 Foods & Beverages

The 19th edition of Alimentaria Barcelona opens its doors at the Fira de Barcelona exhibition center on March 26-29, 2012. This biennial expo is one of the most important international venues for the foods & beverages sector.

Exhibitors, buyers, and international visitors participate in this event, seeking new commercial contacts, new products, prices, and new markets. It also exhibits the very highest quality food and beverage specialties for sophisticated buyers.

Manufacturers, distributors, exporters and importers, all visit this excellent event. The fairgrounds are organized into 14 different shows conceived around product types or location of origin: “Multiproducto”, mixed food products show; “Pabellón Internacional”, international exhibitors grouped by place of origin; “Pabellón de Autonomías”, exhibitors grouped by autonomous region; “Alimentación Ecológica”, organic food show; “Intervin”, wine and spirits show; “Olivaria”, olive oil and vegetable oil show; “Interlact”, milk and dairy products show; “Expobebidas”, water, soft drinks, beer, must and cider show; “Intercarn”, meat and meat products show; “Mundidulce”, sweets, biscuits and confectionery show; “Restaurama”, food service and hospitality show; “Expoconser”, preserves and semi-preserves show; “Interpesca”, fish and seafood, aquaculture and farmed fish products show; “Congelexpo”, frozen foods show; and “Vegefruit”, fruits, vegetables, and fresh produce show.

Visitors benefit from the structure of this fair; walking around is an efficient and expedite activity. Attendees are professionals from the food industries, such as distributors, importers or exporters of foods and beverages, representatives of chains or food warehouses, and specialized stores.

Fundación ExportAr organizes the National Pavilion (153m2) where Argentine companies display their exportable services and products.

80

News

FIDAE 2012 Santiago, Chile March 27- 30 Aerospace & Aeronautics

FIDAE, the International Trade Exhibition for Aerospace and Defense, is held on the military grounds at the International Airport Arturo Merino Benítez in Santiago (Chile) on March 27-30, 2012.

FIDAE is the main aerospace and defense fair in Latin America, and a very important expo in the world. The fair has been running for over 30 years and it is an international venue. The location enables several activities: air shows; exhibition stands; specific workshops on aerospace, defense, and national security. Everything is available on the grounds for easy access. There are product exhibitions related to civil and commercial aviation, defense, airplane maintenance, airport equipment, space technology, and homeland security.

FIDAE is a gateway for new technologies and artifacts from this sector. It is an excellent opportunity to contact professionals and promote exportable goods and services.

Visitors attending this fair belong to different areas: civil and military aviation, defense technology, maintenance, space technology, weapon systems, armaments and combat control, airport equipment and services, land systems, homeland security, organizations and associations, specialized press, and financial services among others.

The Argentine embassy in Santiago greatly supports promotional activities and organizes a meeting on March 26th for the Argentine delegation of 120 people.

Fundación ExportAr, jointly with the Argentine Chancellery through its Foreign Trade Support Program (PDCEX), and the National Minister of Defense organize the National Pavilion (120m2). It is an island exhibition stand that displays products and services from more than thirty companies and national institutions. They also coordinate the Pampa aviation show during the fair.

Fairs EXPOCOMER 2012 City of Panama, Republic of Panama March 21-24 Multisectorial

EXPOCOMER, the main multisectorial Latin American Trade Fair, is held at the Centro de Convenciones Atlapa, in the City of Panama on March 21-24, 2012.

In its 29th edition, EXPOCOMER has a variety of innovative products, new technologies and trends from different industrial sectors. Buyers, exhibitors and visitors can enjoy special presentations, forums, commercial missions, and performances during the fair. It also provides a Business Center where exhibitors can meet more than 2,500 companies.

This is an obvious international venue, with exhibitors coming from Argentina, Byelorussia, Brazil, Canada, China, Colombia, Costa Rica, Cuba, Dominican Republic, El Salvador, Ecuador, France, India, Iran, Italy, Japan, Korea, Malaysia, Mexico, Panama, Peru, Poland, Puerto Rico, Russia, Taiwan, Spain, the USA and Venezuela.

Each product displays its seal of origin label which guarantees the multicultural scope of this event. The products on display are: foods, beverages, liquors, tobacco, clothes, footwear and handbags, textiles & fabrics, leather, watches and jewelry, perfumery, cosmetics, furniture and home appliances, office furniture, graphic arts, educational materials, toys, sports goods, computer & communication technology, hardware, construction equipment & materials, raw material, manufacturing machinery, transportation equipment, and medical, pharmaceutical, laboratory equipment & products. It also offers all types of service providers related to textile, food, construction & technology.

FOODEX 2012 Tokyo, Japan March 6-9 Foods & Beverages

FOODEX, the International Food & Beverages Exhibition, is held in Makuhari Meese in Japan on March 6-9, 2012. Its fairgrounds have a surface area of more than 28,000m2. In this 37th edition of FOODEX, 2,400 companies from sixty countries will exhibit their products and services, while 85,000 visitors will walk around the fair.

FOODEX is the most important trade fair of the foods and beverages industries in Japan and in the Asian market. It has a great variety of products: aviary products (fresh, frozen, dried), grains, dairy, processed meats, processed seafood, healthy foods, condiments & spices, bakery, delicatessen, cooked foods, organic foods, packaged foods, desserts; alcoholic beverages, sake, liquors, beer, wines, soft drinks, coffee, tea, mineral water, Japanese tea, health drinks; logistics and food delivery.

FOODEX has become an efficient platform to access the Japanese and Asian markets. Consumers from this region seek high quality foods and are open to new flavors and tastes. They are also interested in multicultural foods and different dietary traditions.

Exhibitors have a great opportunity to display their products and start exporting them to manufacturers and representatives from organizations of the aviary, livestock or fishery industries, constructors, store designers, wholesalers & retailers, sellers, and governmental agents (municipal and national officers).

Fundación ExportAr organizes the National Pavilion (36m2) and helps those companies participating in this important event.

In 2011, the fairgrounds totaled 10,989m2. There were 585 exhibitors in 1,271 exhibition stands. Thirty-five countries participated in the fair with more than 15,500 visitors in attendance.

Fundación ExportAr is organizing the National Pavilion (located in Sala B, “Los Tapices”) and supporting the participation of Argentine companies in this important event.

News

81

Fairs CEBIT 2012 Hannover, Germany March 6-10 IT & Telecommunications

EXPO WEST 2012 Anaheim, United States of America March 8-11 Organic Products

CeBIT, the world’s largest trade fair showcasing digital IT and telecommunication solutions, is held at Deutsche Meese AG in Hannover, Germany, on March 6-10, 2012.

Natural Products Expo West, along with Expo East, is the main Trade Fair of natural, organic, and healthy products in the USA. It is held at the Anaheim Convention Center on March 8-11, 2012.

The key target groups are users from industry, the wholesale/ retail sector, skilled trades, banks, the services sector, government agencies, scientific investigation centers and all users passionate about technology. All of them can learn about new market trends, innovative products as well as state-of-the-art technology for home and work environments.

This event is a great opportunity for doing easy and efficient business. Buyers, importers, wholesalers, leaders of organic and/or natural store chains visit this annual expo. In fact, seventy percent of them buy products and ninety-four percent have purchasing capacity.

International Trade Fairs enable visitors to compare different markets and the exportable products and services from other countries. When we talk about IT and telecommunications, this scenario is highly important, because it is a constantly growing industry. It demands the best leading edge technology.

CeBIT offers an international platform for comparing notes on current industry trends, networking, and product presentations in different markets.

In its 2011 edition, CeBIT had 4,200 exhibitors from seventy countries. Several projects started during the event with total investments reaching 10 million EUROS. In 2012, the Program Al Invest (from Fundación ExportAr jointly with UIA) organizes the National Pavilion (135m2) located in Hall 9B16. Argentine companies are strongly supported by Fundación ExportAr and Al Invest; so several Business Rounds are organized to help our companies access and contact new markets.

The exhibitions grounds include areas for Health and Beauty, Natural Foods, and Organic Natural Life. Each of these sectors offers a variety of products: -Health and Beauty: lotions, hair care products, aromatherapy, massage, baby care, cosmetics, dental care, essential oils, painkillers, orthopedics, and analgesics -Natural Foods: special foods in bulk, cooled and frozen foods, agrifoods, baby foods, bakery, beverages, preserves, candies, desserts, dairy products, prepared and functional foods, beef, nut butter, jams, sauces, aperitifs, soups, soy foods, species and condiments, sweeteners, vinegars, and salad dressings -Natural Life: recycling products, “green” cleaning supplies, gifts, textiles, furniture, and clothing -Organic Foods: organic edibles, refrigerated, dried, and frozen foods, snacks and beverages, health and beauty supplements -Pet Products: foods, toys, vitamins, herbal supplements, and candies -Supplements: vitamins, minerals, herbs, aloe vera, hive products, amino acids, antioxidants, dietary products, energy bars, functional foods, garlic, green foods, sport, fitness, flower essences, homeopathy, medicinal infusions, and natural remedies.

Fundación ExportAr organized the Argentine Pavilion (12m2) with workstations for displaying products of national companies.

82

News

Fairs SALÓN DE GOURMETS 2012 Madrid, Spain March 5-8 Gourmet Foods

“Salón Gourmets” is being held at Madrid, Spain, on March 5-8, 2012. After 26 years, Salón Gourmets is the most important International Trade Fair for the European market. The fair is organized by Grupo Gourmets who amaze producers and consumers of delicatessen with new products and sophisticated trends.

Salón Gourmets is an extraordinary event that is very efficient for doing business. Food and beverage manufactures, producers, and even artisans gather together with professionals from restaurants, agrifood distributors or entrepreneurs, wholesale and retail sellers, regional chain leaders, importers, professionals from supermarkets, hotels, bars, and catering industries.

Each edition of Salón Gourmets is very interesting for visitors and exhibitors because it offers roundtables, conferences, contests, and exhibitions.

Salón Gourmets displays different products: oils; salted and smoked foods; coffee, tea and infusions; canned fish and vegetables; foie gras and duck; dairy products; legumes and pasta; honey and confectionery; bakery and chocolatiers; prepared meals; fresh products; sauces, vinegars and species; wine, sparkling wines, champagnes, liqueurs, spirits, water, beer, and juices.

The international scope of the fair is demonstrated in the variety of exhibition stands from Poland, Italy, France, Germany, Argentina, Australia, Belgium, Bulgaria, Canada, Colombia, the USA, Holland, Hungary, Morocco, Mexico, New Zealand, Portugal, UK, and Czech Republic.

Training Seminar: “How to Succeed in an International Business Round” City of Formosa, Formosa March 29

Fundación ExportAr, jointly with the National Ministry of Culture, organizes the seminar “How to Succeed in an International Business Round” in the City of Formosa.

The seminar program includes the following topics: Basic Sequence for Exporting, How to Succeed in an International Business Round, How to Associate for Exporting Together. Professional experts are in charge of these topics. The seminar closes with a Q&A session between attendees and the lecturers.

The presentation about “Basic Sequence for Exporting” deals with all the necessary aspects of exportation. It also discusses things to consider when going international; access into the target market, methods of making and collecting payments, transportation, and people involved in this process.

The lecture on “How to succeed in an International Business Round” focuses on Commercial Promotion Tools, particularly International Trade Fairs and International Business Rounds.

All information related on how to participate in these events is covered: for example, what can be offered, the market demands, the role of competitors, consumer’s profiles, and the importance of stating clear goals before attending this type of event.

Regarding the presentation on “How to Associate for Exporting Together”, it is important to discuss the role of SMEs in exports as well as the importance of associating with other companies, and the organization and participation in Export Groups or Consortiums.

Fundación ExportAr supports Argentine companies during the expo and organizes our National Pavilion (of 42m2).

News

83

Training Seminar: “First Steps in Exporting” City of Corrientes, Corrientes March 20

Fundación ExportAr, jointly with Corrientes Exporta, organizes the seminar “First Steps in Exporting” at the Salón Vañek of the Cultural Institute of the City of Corrientes.

The seminar program offered by Fundación ExportAr includes the discussion of: the basic aspects of foreign trade necessary for exporting procedures; the promotional activities organized by municipal, provincial, and national institutions; tips on internationalizing Argentine products; and institutional information about Fundación ExportAr. Participants realize that the program is essential for regional SMEs, particularly if they want to participate in foreign trade or continue their businesses abroad. The main purpose is to offer theoretical and practical high quality training to help companies become active participants in competitive international markets.

The seminar program includes the following topics: How to Participate in International Business Rounds; Basic Sequence for Exporting; FOB Price Calculation; Sample and Documentations Shipments. Each seminar closes with a Q&A session between participants and lecturers.

In general, participants pay special attention to the information shared. They are eager to learn about what they need and the problems they have when they want to offer their services and products in foreign markets.

Seminar: “Foreign Trade for Forestry Sector” City of Concordia, Entre Ríos March 13

Fundación ExportAr, jointly with the Government of Entre Ríos, organizes the seminar “Foreign Trade for Forestry Sector”.

Its goal is to foster the Forestry Industries’ presence in international markets. Fundación ExportAr organizes courses and seminars for particulars or companies, especially for SMEs, with the purpose of training those participants who want to export their products or make their firms go global.

Regarding Forestry Industries, a large amount of production comes from the Province of Entre Ríos due to its climate and soil conditions, which are excellent for the production of pine and eucalyptus trees. This production takes place in the Department of Federación, Concordia, San Salvador, Colón, Uruguay, and Gualeguaychú. Poplars and willows are planted in the Delta region.

The Province of Entre Ríos consists of twelve percent of the total forest areas of Argentina, so it is in the third place at a national level. Entre Ríos is also the fourth region of tree-planted lands, the second producer of salicaceaes, and third of eucalyptus.

The Secretary of Commerce, Industry, and Development of the Government of Entre Rios contacted Fundación ExportAr requesting a training seminar for this forestry sector, particularly on exporting this type of goods. The seminar is held at the Administrative Commission for the Special Fund of Salto Grande (Cafesg). It is specifically organized for representatives of forestry industries, foreign trade professionals, and students from foreign trade careers.

The seminar program includes the following topics: Companies Internationalization; First Steps towards Exporting; Argentine Forestry Exports; Analysis and Methodology Applied to Exports: A Real Case Scenario; Main Markets for Imports; Business Strategies; Exports Requirements for Forestry Sector; A Forestry Successful Case from the Province of Entre Ríos.

84

News

Special Report on Russia 2nd part

Newsletter de Fundación ExportAr

February 2012

February 2012

www.exportar.org.ar

Fundación ExportAr

Organic Cosmetics Anamê Vio Case

Rasic Hnos S.A. Citrusvil S.A. Extraberries S.A. Vergara y Cía. S.A. Argentbio

Rivara S.A. Ceras Argentinas S.R.L El Mundo Árabe José Ignacio de Mendiguren Cámara Argentina del Maní

Gulfood 2012 Fruit Logistica 2012 BioFach 2012 Prodexpo 2012