Argentina BUSINESS

Question 1

Outline reasons for the boom in Argentine wine exports since the early 2000s.

Outline reasons for the decline in exports since 2018.

Answer 1

Boom now #5 by production vol

1. Re-orientation towards quality Malbec –> 60% of exports
2. Inward investment
3. Cheap peso
4. Entry into MERCOSUR FTA

Bust exports peaked in value in 2012

1. Inflation causing higher costs
2. Poor vintages → El Nino ‘16 + frost ’17
3. Restrictions on foreign-owned land

Question 2

Outline efforts to promote Argentina’s wine industry and any potential threats.

Answer 2

1. COVIAR body → modernising image of Argentina
2. World Malbec Day → Wines of Argentina

Question 3

What are some potential opportunities and threats to the Argentinian industry?

Answer 3

Opportunities

1. New regions being planted e.g. Patagonia
2. New varieties and styles being produced
3. Investment in Argentine wine production - cutting edge viti and vini

Threats

1. Over-reliance on Malbec
2. Inflation harming domestic consumption (80%)
3. Inflation harming exports

Question 4

Describe the production structure of the Argentinian industry.

Answer 4

small - 60% of vineyards are >5ha and many family owned

FeCoViTa - 29 co-op collective is one of world’s largest producers by volume