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Argentina’s cherry exports to China

Argentina’s efforts to expand cherry exports to China, considering the competition with Chile and the potential impact of the Chancay Port:

Argentina’s Cherry Export Ambitions in China:

Argentina gained access to the Chinese cherry market in 2019 and is working to grow its exports. Its cherry season (November-February) complements Chile’s, potentially supplying the Chinese market during winter, especially for Lunar New Year. Patagonia is a key production region, known for high-quality cherries.

However, Argentina faces significant challenges:

Logistics & Distance: Shipping times are longer (around 40 days) compared to Chile’s 20-25 days, impacting freshness.

Competition: Chile overwhelmingly dominates the Southern Hemisphere cherry market in China, supplying over 90% of off-season imports.

Quality Control: Maintaining quality over long transit is crucial.

Tariffs: Unlike Chile, Argentina does not have a Free Trade Agreement (FTA) with China, meaning its cherries face a 10% tariff.

Despite these hurdles, opportunities exist: air freight trials for premium markets, strengthening trade ties with China, and leveraging the Lunar New Year demand. In 2022/23, Argentina exported about 4,000 tons of cherries to China, a small fraction of Chile’s 370,000 tons.

The Potential Game-Changer: Peru’s Chancay Port

The new Chancay Megaport in Peru, expected to open in late 2024, could significantly benefit Argentina’s cherry exports to China by:

Reduced Transit Time & Costs: It could cut shipping times to China by approximately 10-15 days, potentially making Argentine cherries more competitive and fresher upon arrival.

Improved Cold Chain & Efficiency: The port’s modern cold storage and efficient handling facilities are vital for perishable goods.

Diversification: It offers an alternative to relying on congested Chilean ports.

Enhanced Competitiveness for Lunar New Year: Shorter transit could ensure fresher cherries for the crucial pre-Lunar New Year demand.

However, challenges remain, including the need for cost-effective land transport from Argentina to Chancay, Chile’s entrenched dominance, and Peru potentially prioritizing its own fruit exports.

Chile’s Dominance in China’s Cherry Market:

Chile’s overwhelming lead in cherry exports to China is due to several factors:

First-Mover Advantage & FTA: Chile secured market access and a zero-tariff FTA with China much earlier (2005/2006).

Optimized Supply Chain: Chile has highly efficient air and sea freight routes and master-level cold chain management.

Massive Production Scale: Chilean cherry orchards are about ten times larger than Argentina’s, with a strong focus on the Chinese market.

Strong Marketing & Branding: “Chilean Cherries” are a recognized luxury gift for Chinese New Year, backed by strong marketing and e-commerce partnerships.

Can Argentina Catch Up?

While Chile will remain the top supplier, Argentina has the potential to grow, leveraging its late-season advantage and the Chancay Port. However, it needs to overcome the lack of an FTA, smaller production scale, and weaker brand recognition. Investment in orchards, improved logistics, and targeted marketing will be crucial for Argentina to become a more significant competitor in China’s lucrative cherry market. https://www.facebook.com/jeff.mah.5/videos/1935560960606703/?__cft__[0]=AZVuNw3NRzca-Sbl1SaYQg6Yi26lP-1_cKCXzFJQ4fwBLkh1eWxurigSuLLexW-yZxOZda4971yEJBkrvSfBalvnjMME1IbKWdSrWY5JRHoyvXfPW5YeX38AWI9vl8fpG9-bAmv6_0AMXf4f1OKhL45hEjdaKh4ApmoUBJukYfWfjA&__tn__=%2CO%2CP-R

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Argentina and China signs railway contract

12-11-20 China Railway Construction Corporation and the Ministry of Transport of Argentina on Fri signed a contract worth $2.6 billion to improve the General San Martin Cargo Railway, the largest railway project signed by a Chinese company in Latin America.

The line is one of the South American country’s three main cargo railways, connecting western productive provinces with the eastern agricultural export region.

Argentine President Alberto Fernandez presided over the signing of the 2.6 billion-U.S. dollar contract, the biggest contract in a series of railway agreements signed Friday with Chinese companies.

Under the contract, the CRCC will provide the engineering, technology and equipment.

The agreement seeks to rehabilitate the railway corridors of the San Martin line, improve its infrastructure to boost cargo capacity from 3 million to 9 million tons, and increase train operational speed from 40 to 90 km per hour, according to the president’s office.

The project will renovate 1,813 km of the railway line, benefiting the provinces of Buenos Aires (center-east), Santa Fe (center), San Luis (west), Cordoba (center) and Mendoza (west), and eventually directly generate some 16,830 jobs.

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Cauchari photovoltaic solar project in Jujuy Province, Argentina

9-26-20 The China-built Cauchari photovoltaic solar project in Jujuy Province, Argentina, the largest solar project in the country was put into use on Sat. The project is to bring self-sufficient electricity and an annual income of $50 million to the province.

The Cauchari solar project in Argentina’s northernmost province Jujuy is one of the biggest photovoltaic (PV) solar power projects in South America. Located at an elevation of more than 4km above the sea level, it is also the world’s highest-altitude solar power project.
Construction on the 300MW Cauchari solar project phase one was started in October 2017, with an investment of £301m ($390m). The phase one was inaugurated after the completion of trial run in October 2019.

The 300MW Cauchari solar farm, with an estimated lifespan of 25 years, is expected to generate approximately 660GWh of clean electricity a year, which will be enough to power more than 160,000 households.

It is further planned for a 200MW expansion in the next phase to bring the total capacity to 500MW, which will be enough to meet the electricity needs of approximately 260,000 Argentine homes.