The history of Argentina olive growing has two differente beginnings; or better said one of them is proved and another one that has been transmitted as a story that is not absolutely confirmed. Everbody knows this land owes the pleasure of tasting that green fruit, wich is preserved in brine, to Don Francisco de Aguirre, who sowed in 1962 the first olive specimens in the region of Cuyo, an area that recalled him his homeland.
Nevertheless, that's not the end of the story: by the late 17th century an order stipulated that all the olive trees existing within the boundaries of the River Plate Viceroyalty had to be removed in order to avoid commercial competition with Spain.
The story goes that in Aimogasta (the current province of La Rioja) an old lady avoided total devastation by covering a small olive plant with her poncho. This is the reason why there is a variety named in honor of the region where it was preserved: Arauco. The fact is that in Argentina there were only a few survivors left unharmed because they were kept within the Jesuit mission for almost five centuries, and it is thanks to said action that these latitudes were reforested.
For many years they were left in oblivion with the sole purpose of concentrating on protecting grapes from the frost, (due to the high altitued, produce try to prevent it from falling on the top of the vineyard). It was only in the 90's that the olive growing and the oilve-oil producting industries began to grow, boosted by a law aimed at promoting the sector, wich deferred tax payments to the fifth year after plantation maturity (according to experts, between 3 and 6 years are necessary to obtain the product, and plants reach their best development point about ten years after being sown).
Moreover, the unfortunate draught suffered by the Mediterranean region (the great producting center in the world) caused a rise in international prices, and consequently favored these two sector in Argentina.
The overall olive oil production in the world amount to 3 million tons, and out of this figure, 2.3 million tons come from just 3 countries: Spain, Italy and Greece. In the americas, however, Argentina is the top producer, with some 25,000 tons a year, wich are obtained frome the lands in the provinces os San Juan , Mendoza, La Rioja, Catamarca, Cordoba, Salta and Buenos Aires, and prusuante to report issued by the National Bureau of Food, the provinces of Rio Negro, Neuquen and San Luis are soon joining the list. The good part of this is tha the land in Argentina cost between US$ 2,500 to 3,500 and in Europe is above Euros 22,000 per hect.
International volumes shows broad differences, just as it happens with domestic consumption: whereas each greek inhabitant eats about 20kg a year, in Spain they use almost 8kg and in the USA (the main importer) around 700grs...; Argentina each citizen barely uses 190g a year. The fact is that the migratory wave that came between 1910 and 1940 was hardly able to modify the local tradition of using suet or butter, which was the custom at the time, and which was later replaced by seed oils (Argentina account for just above 10kg of soy oil a year), given teh very bad press that olive oil used to have.
According to the records that correspond to the 2006/2007 campaign, olive oil world exports almost reached 700,000 tons (accrued growth in relation to 1996/1997 reaches 67.3%). The ranking os sellers is lead by italy with a 32.3%. This country holds two differents roles since it also imports oil from Spain and Argentina, it changes the product label for an Italian brand and exports it, thanks to consumers' immediate association of this product to said country. Tunisia, Turkey's and Spain participations reach 17.6%, 11% and 16,9% accordingly.
Ever since the 90s' boom, and mainly as from the new century, Argentina's exports began to grow considerably. So important was this rise that only seven years afterwards argentina was able to hold the 10th position among the countries who sold their production to another 39 destinations - the USA stood out as the main global buyer. In fact, Argentina even attained a historical record last year when more than 14,000 tons were sold aboard, thus accountiing for an inflow of US$ 50 million. Consequently, national sales corresponding to the period January/October 2007 grew by 19.1% regarding, volume and 5.5% regarding the amount traded, if compared to 2006 figures. The USA (18%), Chile (7%) and Uruguay (5%).
This years appears to be positive too: according to a research issued by the National Bureau of Food, foreign sales for the first two montha reached a total volume of 1910 ton. Moreover, the International Olive Oil Council (IOOC) asserts that Argentina will produce in the 2007/2008 campaign the 1% of the overall olive oil volume in the world; hence it will keep its tenth position, wich is in fact highly significant, according in the potencial growing new olive plants.
If the tail wind continues and there are strong campaigns to promote the virtues of olive oil, we will keep on celebrating. So far, projections issued by this official body foresee that by 2012 productive values will be doubled and if new markets are attained (Japan, Rusia, China), there will be an optimum scenario. Go beyond this and sustain that during the next decade there will be some 100,000 tons of olives produced. No matter how, this gift from olive groves will keep pouring its beneficial oiliness on Argentina.
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Resurce: Argentime
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