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Argentina’s olive exports set new record

December 15, 2007 5 min read

Argentina is the southern hemisphere’s biggest olive producer and almost nobody outside the trade could name a single Argentine brand. That combination — large volumes, low visibility — explains most of what the industry is.

La Rioja & Catamarca
the heartland
Arauco
the national cultivar
Brazil
the anchor market
Apr–Jun
harvest, counter-season
Irrigated desert
the growing model

Argentina’s olive industry sits in some of the driest country on earth : the arid west, in La Rioja, Catamarca, San Juan and Mendoza, where annual rainfall is measured in low hundreds of millimetres and the groves live entirely on irrigation drawn from Andean melt. It is farming as engineering, and it produced, in the space of a couple of decades, a genuinely large olive sector in a country with no Mediterranean coastline at all.

How the industry was built

The modern Argentine olive boom was policy-driven. Deferral schemes and regional development incentives from the 1990s made planting in the poor northwest attractive to investors, and land was cheap enough that scale was easy. What went in was not the smallholder patchwork of the Mediterranean but large, uniform, irrigated blocks designed from the start for mechanised management.

Two consequences follow. First, Argentine olive farming is capital-intensive and consolidated : a relatively small number of large operations account for a large share of output. Second, an industry planted for investment reasons rather than culinary ones tends to be built around volume and export logistics rather than around a domestic taste tradition — Argentina is not, historically, a big olive-oil-consuming nation compared with Spain or Greece.

12345Argentina’s olive westIrrigated groves in the arid northwest and CuyoKey olive regionOlive-growing areaPicked: Apr–Jun

1La Rioja 2Catamarca (Aimogasta) 3San Juan 4Mendoza 5Córdoba
La Rioja and Catamarca dominate table olives and oil ; San Juan and Mendoza add scale, with everything dependent on Andean irrigation.

The Arauco, and why table olives matter more than you think

Argentina’s signature cultivar is the Arauco, a large, elongated green olive named for the town in La Rioja and generally held to descend from Spanish stock brought over in the colonial period. It is a dual-purpose olive but it is above all a table olive — big, meaty, firm, well suited to the Spanish-style lye cure and to stuffing.

That matters commercially, because a great deal of Argentina’s olive export earnings come from table olives rather than oil, and table olives behave differently in trade. They are sold on size, colour, firmness and defect rate ; they travel in drums and barrels of brine ; and they are bought by processors and repackers rather than by consumers. The margin sits with whoever puts them in the final jar, which is rarely the grower.

Main region La Rioja and Catamarca, with San Juan and Mendoza
Signature cultivar Arauco — large green dual-purpose olive
Also grown Arbequina, Picual, Frantoio, Manzanilla and others
Water Entirely irrigated : Andean melt and groundwater
Harvest April to June — counter-season to the Mediterranean
Export form Table olives in bulk brine ; oil largely unbranded
Main markets Brazil above all, plus the United States and Europe

Why Brazil is the whole ballgame

Brazil is one of the world’s largest importers of table olives and grows almost none of its own. For Argentina it is next door, inside the same customs union, and culturally primed for olives through Italian, Spanish and Portuguese immigration. The result is a dependence that flatters the export figures and worries anyone who thinks about risk : a single neighbouring market can absorb a very large share of the crop.

The exposure is currency as much as appetite. When the Brazilian real weakens or the Argentine peso strengthens, Argentine olives become expensive in their main market overnight, and volumes that looked structural turn out to have been priced. This is the standard fragility of an export industry with one dominant customer, and it is worth remembering whenever a record export figure is announced : records in this sector are frequently exchange-rate events wearing agricultural clothes.

What to take from it

  • Argentine olive growing is irrigated desert agriculture — water, not rainfall, sets the limits.
  • The Arauco is the national olive : large, green, made for stuffing and the Spanish-style cure.
  • Much of the value is in table olives, sold in bulk brine to repackers.
  • Export records often reflect exchange rates as much as harvests.
  • The counter-season harvest gives fresh oil in the northern summer — a genuine advantage worth seeking out.

Argentine olives: common questions

Where are olives grown in Argentina?

Mainly in the arid northwest — La Rioja and Catamarca — with substantial plantings in San Juan and Mendoza. All of it depends on irrigation, largely from Andean snowmelt.

What is the Arauco olive?

Argentina’s signature cultivar : a large, elongated green olive from La Rioja, thought to descend from Spanish stock, used mainly as a table olive and well suited to stuffing.

Why does Argentina export so much to Brazil?

Brazil is a very large table-olive market that grows almost none of its own, sits next door within the same customs union, and has a strong olive-eating culture from southern European immigration.

When is the Argentine olive harvest?

Roughly April to June — the opposite of the Mediterranean season, which means Argentine oil is at its freshest during the northern hemisphere summer.

Is Argentine olive oil any good?

It can be very good, particularly from cooler, higher sites and from early-picked fruit. Its low profile abroad reflects marketing and bulk selling far more than quality.

From the trade

Argentina is the classic case of a country that grows well and sells anonymously. I have tasted Argentine oils that would embarrass mid-range Italian bottles, and watched them leave in drums to be blended into something with a Mediterranean name on the front. If you can find an Argentine single-estate oil in your northern summer, buy it : it will be six months fresher than anything from Spain or Italy on the same shelf. That counter-season advantage is the industry’s best card and it almost never plays it.

Based on the structure of the Argentine olive sector, its cultivars and its export markets.