• Location of Suppliers and Producers of organic product in Argentina and in the Mercosur area.
• Investment Analysis for projects related to the production and exporting of organic products from Argentina to the United States.
• Market studies of Argentina's organic marketing channels.
• Research of government regulations related to the certification process of organic products in Argentina.

We also participate in investment project related to the production of organic products in Argentina and in the countries of the Mercosur (Brazil, Uruguay, and Paraguay). Presently, Argentina has about 400,000 acres of certified organic land producing meat, cereals, fruits, vegetables and herbs. Other organic products produced in Argentina are olive oil, raisins, wine, cheese, olives, juices, pear and apples pure, and honey. Argentina has been appointed by the International Federation of Organic Agriculture Movements (IFOAM) as the host country of the next Scientific Conference that will be held in Buenos Aires in November of 1998. This event will provide an unique oportunity to take a closer look to new developments in organic production in Argentina and in the Mercosur area.

• Background
• Areas dedicated to organic production
• Exports
• Domestic Market
• Organizations involved in organic production
• Certifiying Agencies
• Organic Producers in Argentina
• Non-Profit Organizations

BACKGROUND

In 1992 Argentina has been recognized by the European Union as a country with a certified organic production program that involves public agencies, private certifyng firms and agricultural producers. Since Argentina does not have a subsidy program for agriculture producers as there are in many European countries, organic producers must faces a much more difficult economic environment than their Europeans counterpart. But this fact also shows the excellent natural conditions of the Argentinian soil, climate and know-how for the production of organic products.

Argentina is also the only country in American continent that has been recognized as an organic producers as a whole and each company does not need to go through the process of certification in a case by case basis.

Because of the approval by the European Union, Argentinian organic products enter the European Union after being certified by the Argentine agencies. For beef and other animal product, Argentine certifying agencies has formed alliances with their European counterparts until the European Union sets their own rules for clasifying organic products of animal origin.

The organic movement in Argentina recognizes the importance of working with government agencies, and international organization in order to have organic products certifiy through a transparent process and increase the credibility of potential buyers from other countries. The experience of the last years shows that transparency of the organic certifying process and clear rules have benefit Argentinian producers since they have seen a steady increase in their sales to other countries and new markets have opened for Argentinian organic products.

Most of the importers of organic products from Argentina are in Europe where 82% of exported organic products go, follow by the Unites States that buys about 17% of the products that are being exported. Other new markets are Sweeden, Switzerland and Japan.

AREAS DEDICATED TO ORGANIC PRODUCTION

The area estimated in 1995 for organic production was about 115,000 hectares but this estimate was lower than the final amount, that was closer to 140,000 hectares (One hectare is equal to 2.2 acres). The estimated area for October of 1996 was 206,000 hectares, an increase of 40% over the amount from the previous year. From the total amount, 31,000 hectares are dedicated to organic agriculture, or 15% of the total; and 176,000 hectares are dedicated to cattle raising, including natural pastures and forests.

The most important increases in organic agriculture were found in the production of flax, sunflower, and fruits including citrus, apples and pears. In industrial organic products the higher increases were found in the production olive oil, wine, sunflower nuggets, breads, mate tea, grapes juices, and apple concentrate and juice. In organic animal products the higher increases were found in the production of organic chicken, organic milk and a very high increase in the production of organic beef. Also, an increase in production is expected for organic honey since the number of beehives has triple since last year.

EXPORTS

The volume of organic products has shown a steady increase since 1992 and the amount of organic product exported in 1996 was more than 7,000,000 kilograms ( 1 kilograms is equivalent to about 2.1 pounds). The main products exported in 1996 were: fresh fruits (apples, pears, citrus and honeydew melons) with 48% of the total; cereals and seeds for oil production (sunflower, soybean, buck wheat, flax, corn) with 41% of the total; industrial products such as olive oil, were 4% of the total; vegetables (garlic, onions, eggplants, pepers, zuchini, etc.) were 5% of the total. It is interesting to note that 74% of the total organic production in Argentina is for export and the total organic production is about 10,000,000 kilogrames (about 21,000,000 pounds).

The main market for Argentine organic products were in European Union and in the United States, but new markets in 1995 were Sweeden, Switzerland and Japan, that have never bougth organic products from Argentina.

Meat and fresh vegetables shipments are made by airfreight and other organic products are shipped by ship. The most used port in Europe are Hamburg in Germany, Roterdam in the Netherlands, Brussels and Antwerp in Belgium; in the United States the ports used for sending organic products were Philadelphia in the East Coast and Oakland in the West Coast.

DOMESTIC MARKET

It is difficult to estimate what has happened in the domestic organic market in the last year since there has been a reduction of about 20% of the food market in the last year due to a sharp decrease in the economic activity in the last year.

There has been a change in the channels of distribution of organic products in Argentina. Traditional channels such as small dietetic stores have decrease their participation in this sector, but there has been an increase in the sale through supermarkets. Also direct sales has decrease but the customers of this type of business are more loyal than customers of other marketing channels. There has been more interest from the general public for organic products but higher prices for this type of product put a limit on the expansion of the market for organic products.

ORGANIZATIONS INVOLVED IN ORGANIC PRODUCTION

In Argentina we find non-gubernmental, private and gubernmental organization involved in the control, promotion, production and marketing aspects of organic production.

The most important non-governamental organization is MAPO (Movimiento Argentino para la Produccion Organica - Argentine Movement for Organic Production). Some of the important goals achieved by this organization are: Formulation and implementation with the SAPyA (Department of Agriculture and Ganaderia) of the National Program for the Development of Organic Agriculture in Argentina; organization of IFOAM' 98 in Argentina; signature of an agreement with the EXPORT-AR Foundation and SAPyA in order to promote Argentine Organic Products in the world markets; organization of seminars and courses related to production of organic products; organization and implementation of a survey of organic products in different marketing channels; organization of meetings with governamental officials from SENASA (National Service for Animal Health) and IASCAV in order to reach agreements on how to apply the regulations related to the production of organic products; and compilation of data related to systems of organic production, and biological methods allowed in organic production.

IASCAV (Argentine Institute for Agriculture Vegetable Health and Quality ) approves the private certifyng agencies that are authorized for certifying organic products in Argentina. SENASA (National Service for Animal Health) also participates in certifying private agencies.

CERTIFYING AGENCIES

In order to be classified as an organic producers, a certifying agency must certify that the producer has not use, for a period that varies between one to three years, chemicals not allowed under the regulations set by the Argentinian government.

The certifying agencies are private companies that their sole activity is to control and certify the activities of organic producers. In order to conduct their activities they must be certify by the IASCAV and by SENASA.

There are nine certifying agencies in Argentina, but the most important is Argencert that controls about 150.000 hectares of the 200.000 hectares approved for organic production. Argencert works with the Belgium firm Ecocert and all the products certify by Argencert are recognized in Europe and can be commercialized directly in the European Union.

The certifying agencies investigate which are the sources of pollution near the areas that are being certify and conduct period inspection to the soil and products that are in the process of certification.

Other certifying agencies are:

• APROBA (Organic Producers of the Buenos Aires Province). A non-profit asociation that is located in the city of La Plata, capital of the province of Buenos Aires.
• OIA S.A. a private company located in the city of Buenos Aires.
• Fundacion Mokichi Okada a non-profit organization located in the city of Buenos Aires.
• Ambiental S.A. a private company located in the city of Buenos Aires.
• A.P.P.R.I located in the city of Buenos Aires.

ORGANIC PRODUCERS IN ARGENTINA

Argentina produces a wide range of organic products that include fruits and vegetables, aromatic herbs and species, olive and olive oil, honey, and milk and dairy products. These products are produced in provinces with different climates, soil conditions, topography and infrastructure.

Fruits and Vegetables.

Among of the organic fruits and vegetables producers in Argentina we find the firm Frezzi S.A.C.I.A.G.that commercialize, under the brand Pasafre, organic grapes and raisins. Frezzi S.A.C.I.A.G. has been involved with organic agriculture since 1990 and is certified by Argencert. The vineyards and the industrial plant are located in Chilecito, in La Rioja province, in a valley of the "precordillera de los Andes," where the appropriate climate and soil contribute to the obtainment of an excellent quality product. When grapes reach maturity, they are harvested and placed in special trays in ordet to get dry under the sun. Once they reached the optimal dehydration degree, grapes are collected and stored in conservation chambers until their final production and packing process. The elaboration process is carried out by mechanical means and comprises the following activities: 1) Bunch disarming; 2) Small stick removal; 3) Sizing; 4) Washing; 5) Sugar coating; 6) Selection; and 7) Packing. Raisins are exported to Brazil and Germany.

The first organic citrus products were produced by Macha S.A., company led by Judith Sokolowicz. This company produces organic oranges, lemons, tangerines and grapefruits near the National Park "El Palmar" in the province of Entre Rios. These citrus are exported to Europe for the production of jams, juice concentrates, pulps, and oils.

Organic apples and pears are produced by a consortium called "Productores Argentinos Integrados S.A." located in the city of General Roca in the province of Rio Negro. This consortium is formed by the following companies: Agro Roca, Alcazar and Fruticultores Empacadores de General Roca, and has plantations in Alto Valle at the province of Rio Negro. "Productores Argentinos Integrados S.A." produces pears from the varieties Williams, Red Barlett, Beurre D'Anjou, Nijisseiki, Abate Fetel, Packham's Triumph, Housi and Beurre Bosc; and apples from the varieties Gala, Red and Golden Delicious, Granny Smith and Fuji. Another producer in the region of the Alto Valle of the Rio Negro province is "Expofruit Argentina" that also produces organic pear and apples pure.

Fresh organic vegetables, onions, garlic are produced by "El Trebol del Sur" from San Rafael, Mendoza, in western part of Argentina. "El Trebol del Sur" commercializes its products with the brand "Green Valley," and owns five small farms with a total area of 204 hectares. Organic onions are also produce by "Argentbio" and in the Uco Valley, in the Mendoza province and by "Expofruit" in Valle Medion of Rio Negro province.

Aromatic Herbs and Species

Aromatic herbs and spicies are produced by "Lavandas de la Sierra" at Sierra de la Ventana in the province of Buenos Aires. This company produces organic oregano, thyme, french tarragon, sage, lemon balm, rosemary, savory, cedron, dill, hyssop, coriander, fennel, and lavenders such as lavandula vera and lavandins. "Bio-Dinamica Gebira" located in the province of San Luis, produces wild herbs and organic herbs such as, alfalfa, basil, clary, lemon balm, oregano, parsley, rosemary, sage, tarragon and thyme.

Olives and Olive Oil

Olives and olive oil are produced near the city of Cruz del Eje in the province of Cordoba by the firm "Olivares San Nicolas." This company has one thousand two hundred hectares planted with olive trees and produces five million kilos per year of olives of different varieties. "Olivares San Nicolas" also produces olive oil that is exported to the United States. Also in Cruz del Eje, the firm "Agropecuaria Paso Viejo S.A.," produces organic olives and olive oil. The olive oil is produced using olives harvested by hand and processed before 24 hours elapse, avoiding fermentation, which is harmful for the oil quality.

In Coronel Dorrego,province of Buenos Aires, the firm "Biolive" owns 1,500 hectares dedicated to the production of organic olives and olive oil. At this farm, tree clearance prunings allow the soils to receive the fallen branches and be naturally fertilized by the animals that graze around. Once harvested, olives are automatically aired, washed and weighted without being manipulated. Milling is carried out with three continuous lines whose processing capacity amount to 150,000 kg. per day. The olive oil obtained is stored in a warehouse with twenty stainless steel tanks of automatic filling, which maintain the oil unalterable.

Beef, Chicken and Other Products

Organic dairy products are produce at the ranch "Tatay" located in Carmen de Areco, province of Buenos Aires. But among the organic products that has shown a very high increase in production are organic chicken and organic beef. Organic chickens are produce by "La Recordacion" in the province of Entre Rios, and certified by Argencert S.R.L.. Production stems from a slow growth genetics and colorful plumage. Breeding takes place outdoors (shed and field), allowing the ckickens to enjoy their feed while they walk and are exposed to sunstroke. Nutritionists prepare the blended feed formula on the basis of proteinaceous and energetic inputs of natural and organic origin only (animal powders, skin pigmentary substances and hormones are excluded). Therefore, animals are normally induce to develop their defenses, growing free of systematic and preventive intakes.

"EcoPampa" is a consortium of eighteen beef producers that produces organic beef in several ranches with a total area of 105,000 hectares. Cattles live their whole life completely free, enjoying the huge and natural areas, selecting by themselves the herbs that are part of their feed. Fattening is not speeded up by using hormones, antibiotics, agrochemicals or other substance which are harmful to human health or the environment.

"Bugar S.A." is another consortium of organic producers located in the province of Buenos Aires that owns 5,900 hectares. This company was founded in 1980 and the produces, processes and markets the following products: buck wheat, dinkel wheat or old wheat, kidney beans, millet, flax, sunflower oil, candied sunflower, pinea pine nuts, industry oats, industry corn, cucurbitaceae oil, cucurbitaceae jam, cowslip oil, coriander oil, honey, natural wool, lamb meat and beef. "Bugar S.A." owns a processing plant located at the city of Tres Arroyos in the south of the Buenos Aires province.

Organic cheese are produced by "Dairy Industries Fenix" from Colon in the province of Entre Rios. The production of organic milk is certified by OIE (Agricultural International Organization) and cows are feed only with natural pastures.

Organic honey is produced by the firm "Lafitar" in the provinces of Santa Fe and Entre Rios. This honey is of a caramel color and the beehaves are located in the huge area of islands near the cities of Cayasta, in Santa Fe, and Victoria, in Entre Rios, by the Parana river.

NON-PROFIT ORGANIZATIONS

The program Suka Kollus was started by COREBE (Regional Comission for the Bermejo River) and is located seventy kilometers south from La Quiaca in the northern province of Jujuy.

The aim of this project is to improve the diet and provide new sources of income for low-income inhabitants of this area of the Santa Victoria hills. The project will begin the production of organic vegetable with potatos and after the trial phase it will add other vegetables such as tarwi, quinua (traditional plants) and other vegetable.

The community owns an electric generator but does not have access to telephone lines. The inhabitants use barter as a way of exchange goods and there is a small health center and municipal building in the community. Irrigation channels are used to bring water from the natural watershed and guano, natural muds and natural pastures are used, for improving organic production.

The inhabitants mixed water with lime and build small walls on the side of the channels, called suka uma, where the water will run from nearby watesheds. This type of production has been previously tested in Bolivia and brings back the tiwanakota technology.

The aim of the project is to use manual techniques for cultivation in order not to damage the soil. Planting vegetables such as potato, onions, garlic and lima beans and using a rotation technique of this vegetables, the producers expect to enrich the soil. This project complements cattle raising that is carry out in an extensive way and is not very well managed.

COREBE and members of the "Trabajar II" program expect to increase solidarity among the participants of the program through the training and production process, since the production of vegetables belongs to the whole community. The techniques used in the program is expected to be used also in other communities, such one in Zayate, near Abra Pampa, and in the high river basin of the Bermejo River.