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Spanish version

29-Nov-02
Argentine honey exportations on the rise

The devaluation of the Argentine peso in relation to the American dollar was one of the main elements that during the beginning of this year affected the Argentine macro economic panorama. During the first months of 2002, many sectors viewed exportations as a profitable exit after a decade dominated by importations.

Apiculture is one of the few activities that during that period already counted with mechanisms for exporting honey, wax and royal jelly extracts, which allowed the effects of the recent devaluation to act as a benefit.

Argentina exports 95% of its honey production to 34 countries, but the greatest volume is shipped to Germany, Great Britain and U.S. who also is the main consumer of Argentine wax (the U.S. purchases 47% of Argentine exportations of the product).

Currency benefits have turned apiculture into a newly competitive sector and this, together with the experimented exporting infrastructure already in place, allowed this year's exportations to reach 73,000 tons for a value of over U$S 100 million.

A recent study by local agricultural organization Rafaela INTA based on 18 establishments in the Argentine province of Santa Fe indicated that "the devaluation allowed the improvement of economic results of the apicultural enterprises studied, both for the previous and current campaigns. These advantages translated into a reduction in size of the apicultural enterprise unit with an important increase in the population of economically viable enterprises."

A total of 95 firms are dedicated to exporting honey, 10 of which cover almost 70% of the total volume commercialized. With this exportation boom, many cooperatives and apicultural groups dared to start involving themselves in foreign sales and the result, according to the numbers, seems to be encouraging.

A promising future

The Argentine apicultural production has shown a positive tendency during the last five years. Although devaluation is a decisive point in the increase of revenue, the work and vision of producers and exporters began many years ago. Organic characteristics together with the quality, humidity, health and taste of Argentine honey are highly valued. The care taken regarding these factors allowed the opening of many markets.

According to estimates by the Argentine Department of Agriculture, the 2002-03 campaign assures an even better perspective. Argentina has the chance to compete with the U.S. for second place in world honey production – and would settle into place as the first in international exportations. The next local honey harvest could top 100,000 tons.

In relation to international prices, the study presented by INTA Rafaela details that the drop of sales by China was translated into a price increase for producers that went from "U$S 0.80-0.90 per kg. (2000-2001 campaign) to current values of U$S 1.47 (prices for producers – November 2002, including tax withholdings)".

But what about profitability? In a document presented by Hector Ticco, an expert from the Economic and Social Study Group of INTA Pergamino, he concluded that "favorable perspectives in markets and prices, together with local conditions, allow us to assure that apiculture will continue having an interesting development - turning into an important employment alternative or in a diversification for mixed exploitations of the region."

A long way to go

With this encouraging context, the challenges for Argentine apiculture are placed on two levels: external and internal. Regarding the first, the apicultural chain will have to create strategies in order to strengthen the nation's position for defining prices and quality. Producers, exporters, the government and cooperatives are directly involved in this assignment.

On the other hand, Argentina will be forced to continue with the activity's innovative profile. Particularly, during this year a serious effort was dedicated to elaborating an Apicultural Law bill, the implementation of a National Register of Apicultural Producers and a traceability system for honey. But there is still long way to go. There is no doubt that the challenges of the following campaign will be based on financing, the incorporation of technology and the conquering new markets.

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