Fresh, not Frozen: BA, Entre Ríos and Tucumán have ramped up U.S. blueberry exports with LAN Cargo.

Global demand for strawberries and blueberries has been on the rise, which is good news for the three Argentine provinces that produce the bulk o’ the berries: Buenos Aires, Entre Ríos and Tucumán. And while Argentina is South America’s third largest exporter of strawberries (after Brazil and Chile), she’s moved up to number two (behind Chile) on the blueberry chart. Agronomy engineer Daniel Kirschbaum told La Gaceta that blueberry demand is up thanks to the fruit’s many nutritional and aesthetic qualities. Kirschbaum, an INTA director and University of Florida IFAS graduate, says blueberry production is creating both jobs and foreign investment in Argentina with greater quantities now being exported at more competitive prices. Argentina’s competitive edge is also a success story in logistics for both Tucumán and LAN Cargo. “Thanks to the agreement with LAN we could open to U.S. markets, since the export duration is only 20 hours,” said Tucumán Governor José Alperovich. LAN Cargo General Manager Carlos Larraín says his company is now “the bridge between the fruit harvested in Tucumán and served one day later on the tables of Americans.”

FreshPlaza.com published the export numbers, while the Buenos Aires Herald has a more in-depth piece on “The Blueberry Route” between Tucumán and Miami. ThePacker.com says Tucumán and Concordia have just come through the coldest August on record, so the route may ramp up a little slower this year. “Argentina is going to be a little bit delayed,” says Dave Bowe of Dave’s Specialty Imports. “They’ve had some freeze damage, so supplies are going to be down a little bit. But overall, the weather has not been conducive.”

For more information on Argentina agribusiness opportunities, see our archives and download the new edition of InvestBA Privada.

Analysts are bullish on the future of renewable energy in Argentina and other LatAm countries.

Argentina, like most Latin American countries, has historically wrestled with energy supply issues, especially during the peak summer and winter months. This winter was no exception, as a gas shortage prompted the federal government to cut service to over 300 large industrial customers in order to ensure a steady supply to residential customers battling the cold. Out of this most recent energy shortage came some positive developments including U.S.-based Apache supplying Pampa Energia with 800,000 cubic meters of natural gas per day and the announcement of a $47 million pipeline that will carry 27 million cubic meters a day from Bolivia to Salta. But perhaps the most encouraging news regarding Argentina’s energy future came courtesy of Bloomberg New Energy Finance’s Latin America Clean Energy Market Outlook H1 2010. The report says Latin America is “ready for take-off” when it comes to renewable energy. “The report notes that political stability and recent economic growth have combined to create an unprecedented demand for energy across Latin America,” writes Bloomberg’s Ethan Zindler adding, “Since 2005 when investment was $2.9bn, investment surged to $18.1bn in 2008. The region saw a pull-back in 2009 to $16bn due to the recession but is now poised to get back on track.” The report says Argentina will be a leader in wind, already has systems in place for biofuels and holds great potential for biomass development. Given all these factors, “Argentina could be the Saudi Arabia of renewable energy,” says the president of the Argentina Renewable Energy Chamber, Carlos Saint James. Argentina is now the fifth largest producer of biodiesel, behind Germany, the US, France and Brazil, according to Power-Gen Worldwide. (Full article)

With global demand & changing consumption patterns, olive oil has grown into a $10 billion dollar industry.

Of all the agribusiness investment opportunities in Argentina and Uruguay, olive oil estates are some of the youngest and most promising. Increasingly health conscious consumers in foreign countries are stoking global demand for olive oil which has tremendous health benefits including heart disease protection and colon cancer prevention. Industry publication Olive Oil Times says Argentina has capitalized on growing demand in both aging and emerging markets like China and recent droughts in the Mediterranean to emerge as a major producer of aceite de oliva. The online magazine features an interview with Luis Feld, agribusiness expert, former president of the Terranova winery and current owner of a large olive oil estate in the Cuyo region that produces the Vero Andino product line. Even though Feld only planted his first trees five years ago, the success prompted his group to launch a company that markets and sells fractional ownership opportunities in other Cuyo-based olive oil estates. With global consumption approaching 3 million tons per year and average price per ton around US$3,600, we are talking about a roughly US$10 billion industry. In addition to annual rents of 18-20%, the group touts olive oil fractionals as “an attractive alternative for those who believe land, water and agribusiness are strategic businesses of the future.” For more information on agribusiness opportunities in Argentina and Uruguay, visit our archives or download the July 2010 edition of InvestBA Privada.

Extra, extra! The first issue of our premium content e-newsletter, InvestBA Privada, arrives on Friday.

After several months of planning and design, we’re very pleased to announce the arrival of our premium content e-newsletter, InvestBA Privada. While the blog often gravitates toward current events, Privada gives our readers a much closer look at macroeconomic trends in Argentina and Uruguay, detailed investment opportunities and general lifestyle topics like golf, wine and polo. In the July issue, for example, we profile commercial properties from Mendoza to Montevideo, feature some very unique Argentine wines and size-up the Argentine and Uruguayan teams preparing for this month’s World Cup. We also profile a beautiful new luxury golf development in Buenos Aires and several historic properties in Montevideo’s Ciudad Vieja, recently featured by NuWire Investor. Future Privadas will feature cultural, legal and financial advice, as well as one-on-one interviews with local business and design professionals. If you would like to receive Privada, just click here. While you’re signing up, be sure to tell us what type of content you would like to see in future editions. And because we hate spam (el spam here in Argentina) as much as you do, your information will not be shared with any third parties. The only item you receive from us will be the bi-monthly Privada. ¡Disfrútalo!

Argentine workers enter the Melissa Underground Mine operated by Pan American Silver Corp.

Whether its G. Gordon Liddy or the guy who Matt Damon beat up in Good Will Hunting, you can’t turn on the TV without being bombarded by gold pitchmen. And while yearly gold charts look like the left side of a mountain, the rise in silver prices over the past two years is equally impressive. Marc Davis of BNW Newswire says the impetus for greater silver exploration is definitely there, but we’re just not seeing it worldwide…with one notable exception. “Argentina posted a 55% jump in silver output in 2009 to 15.5 million ounces over the previous year. One of the world’s few remaining stable democracies that is mineral-rich but underdeveloped, this geographically large Latin American nation is set to continue to ramp-up its output in the coming years,” writes Davis. He says the major players in the region are three Vancouver-based companies: Silver Standard Resources (NASDAQ: SSRI), Pan American Silver Corp. (NASDAQ: PAAS), Extorre Gold Mines (TSX: XG) and Australia’s Andean Resources (TSX: AND). Davis explains why silver is a good play going forward: “A number of key 21st century applications such as solar panels and flat screen television panels are forecast to contribute strongly to heightened demand. Furthermore, the marketplace for semiconductors (microchips) – which are used in an array of portable electronic devices and other high-tech applications – is experiencing explosive growth.” (Full story at Resource Investor)

Production was down, but the 2010 vintage is already being compared with '02. (Photo: Die Guito)

“Better Late Than Never.” That’s how Wine Spectator describes the 2010 harvest in Argentina, a year marked by a slow sugar start, some potentially-damaging weather fluctuations and, ultimately, a lower level of wine production compared to 2009. But fear not, the finished product is still outstanding. “Argentinean winemakers are pleased with lower alcohol levels and ripe tannins which they believe have produced an elegant vintage,” writes James Molesworth. That’s the general consensus from the various winemakers interviewed by WS including Bodegas O. Fournier, Achával-Ferrer and Bodega Catena Zapata. Yields were down anywhere from 10-25% for most of the vineyards in Mendoza, but the lower alcohol levels have produced some beautifully-balanced tempranillos and syrahs. Across the border in Chile, Molesworth says the 2010 growing season was hurt by the earthquake, although some “cool-climate varieties such as Sauvignon Blanc and Pinot Noir” fared well. In other regional wine news, one Chilean producer hopes to boost sales by reaching out to a unlikely group of oenophiles: football fans. Concha y Toro, Chile’s largest exporter of branded wines, just inked a deal with the UK’s Manchester United and will begin advertising alongside Budweiser at home games in the legendary club’s Old Trafford stadium. A Man U rep tried to explain the deal’s synergy, “This is a partnership that unites the two great passions in Latin America: football and wine.” Despite the enthusiasm and Concha’s creative attempt to reach more Asian buyers, we’re not anticipating a Malbec Lounge at the Monumental or Tuesday Tastings at the Bombonera anytime soon. (Wine Spectator 2010 Southern Hemisphere Harvest Report)

Agribusiness, infrastructure and technology are just three of the Argentina/India opportunities.

While Argentina and India are still worlds apart in many respects, the 9,287-mile gap between Buenos Aires and Mumbai seemed a little less distant last week. A delegation form the City of Buenos Aires including Mayor Mauricio Macri just completed a week-long Trade Mission to India for a series of meetings with CEO’s, trade groups and government officials. Macri’s administration celebrated the arrival of Tata Consultancy Services last year, so the gobierno porteño is encouraging other Indian firms to initiate operations in the nascent Technology District. “Mr Macri also pointed to Argentina’s comparative strengths in agriculture and urged Indian firms to invest in the south American country, says Inida’s Orissadiary.  “He added that physical infrastructure development holds the key to Argentina’s growth process and invited Indian companies to consider participating in Argentina’s infrastructure projects.” At the Confederation of Indian Industry’s India-Latin America Conclave, Jyotiraditya Scindia, India’s Minister of State for Commerce & Industry, offered a message of trade escalation and diversification in the region. Scindia encouraged Indian companies to ramp up exports of manufacturing and high value-added products to “other major countries like Mexico, Argentina, Peru, Chile and Uruguay.” (The bulk of Indian exports currently go to Brazil). Agribusiness was another major theme of the Argen-India dialogue with Buenos Aires encouraging more Indian investment in the sector. A meeting between Mayor Macri and the Chairman of Godrej Industries may bear fruit in the coming year. A $1.8 billion conglomerate, Godrej is Inida’s leading manufacturer of oleochemicals.

Foreign investors like Troy Resources are tapping abundant mineral deposits in San Juan Province.

Casposo, a gold and silver mine in Argentina’s San Juan province is on the fast track toward producing its first gold in September, less than a year after initial excavation commenced. The news was the highlight of Troy Resources (ASX:TRY) quarterly earnings call earlier today. Australia-based Troy is an aggressive mid-tier gold producer with South American mining operations in Argentina and Brazil. Troy purchased the Casposo project in May 2009, delivered an encouraging resource estimate in July and received board approval to move forward in August. While the company lowered full-year production estimates for their Brazilian project, Andorinhas, the progress at Casposo was described by CEO Paul Benson as “the highlight for this quarter.” According to Mining Weekly, “Troy estimated that the Casposo project hosted an indicated mineral resource of more than 2.3 million tons, grading at 5.4 grams/ton gold and 201.7 grams/ton silver.” The company’s indicated resources for the mine are 414,600 oz gold and 15.3MM oz silver, and the block model above indicates the depth and quality of the resources at Casposo. Troy anticipates the project will produce its first gold in September, which is good timing considering the planned cessation of operations later this year at the company’s Australian mine, Sandstone. Today’s news comes as more foreign investors are discovering the abundant untapped resources in the San Juan Province which can be found on our Properties map north of Mendoza on the Chilean border.

Argentina soy farms like this one for sale can be found in the InvestBA Property Database.

As farmers in Argentina and Uruguay ride a wave of recovery, exports are booming and banks are poised to increase lending dramatically, according to Bloomberg. We’ve covered the bullish forecasts regarding this year’s corn and soy crops, and now it appears the banks have taken notice.  “Banco Galicia, Argentina’s second-biggest farm lender, expects agricultural loans to increase about 40 percent this year after no growth in 2009,” says Bloomberg, while “HSBC forecasts an expansion of as much as 30 percent to a record volume.” Argentine farmers are expected to produce 54.5 million metric tons of soybeans and 21.4 million tons of corn this year, annual increases of 65 percent and 69 percent from 2009. Bankers and farmers are equally optimistic given the record harvests coincide with an improving interest rate environment. Across the river, cattle farmers in Uruguay continue to fill the gap left by falling production levels in Argentina. Beef exports from Uruguay rose 27% in March to 203,465 tonnes compared to March 2009, according to Meat Trade News Daily. 40 percent of Uruguay’s beef exports went to Russia and Asia with Russia demanding 90 percent more beef and Asian markets buying 122 percent more Uruguayan beef compared to 2009. According to Ag Weekly, “the USDA increased production estimates of soybean crops from Brazil and Argentina, the world’s No. 2 and No. 3 producers, but said strong demand from China will help consume the bumper crops. “

A soybean oil dispute highlights the degree of dependence between Argentina and China.

The Argentina-China bilateral trade relationship is experiencing some mild turbulence thanks to a recent rift over soybean oil exports. The pairing of the world’s largest soybean oil exporter (Argentina) with the world’s largest consumer (China) was a match made in import/export heaven. But like all good relationships, jealousy often surfaces when one partner seems to be gaining the upper hand (the market dominance of China’s manufactured imports), followed by feelings of anger and retaliation (Argentina’s subsequent raising of tariffs to protect local industry). China, not universally recognized as the global arbiter of export purity, has countered by shifting more licensing authority to the government and simultaneously questioning the quality of Argentine soybean oil imports: moves which have dramatically slowed the pace of imports. So with China brooding in the master bedroom and Argentina sleeping on the sofa, will the relationship fall apart? Not likely, says Thomas Mielke, the executive director of Oil World, and it boils down to one word: dependence. “Neither the U.S. nor Brazil has the capacity to crush enough oil to meet China’s demand, making it ‘risky’ for China to continue rejecting Argentine imports,” Mielke said.  The true test comes later this month when two Argentina soy shipments are scheduled to arrive in China. Gustavo Lopez of Agritrend agrees that dependence will ultimately smooth over this oily long distance dispute, “Each country needs the other, and doesn’t want this to get out of hand.” (WSJ.com article)