Food Processing Equipment

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Market Overview 

The U.S. continues to hold its position as the largest supplier of food processing equipment to Argentina. While local production figures are almost non-existent, imports are estimated to account for 70 to 85 percent of the total market. Imports experienced a peak surge in 2011 and are expected to return to more moderate growth levels, due to a weakened demand both locally and internationally.

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Sub- Sector Best Prospects

U.S. exports may continue to find opportunities in the following specialized areas: equipment for fat and vegetable oil extraction and processing, a subsector which had a 37.5 percent market share for U.S. products in 2011; poultry equipment, which represented a 26 percent market share; and machines for cleaning, sorting or grading seed, grain or dried leguminous vegetables, where imports from the U.S. had a 23 percent market share in 2011. Parts for food processing equipment are also a good prospect for U.S. exports, given the trend to repair existing machines due to the rising cost in peso terms of imports, and the virtual lack of local credit for capital goods.

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Opportunities

The food processing equipment market in Argentina relies heavily on imports by large domestic food processing companies and food exporters. Market growth is largely tied to investment in technology and the expansion strategies of these companies. U.S. products are often sought out, particularly in the higher-end technology segment.

Scarce financing available to the local market is an issue. However, two U.S. banks operate in Argentina to offer loans to importers of U.S. equipment using U.S. EXIM Bank guarantees, which increases opportunities for sales of U.S. technology.

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Key Figures

(In US$ thousands)	2010	2011	2012est	2013est
Total Market Size	175,080	235,840	239,360	243,000
Total Local Production	100,000	105,000	109,200	113,500
Total Exports	49,850	64,560	67,140	69,825
Total Imports	122,200	195,400	197,300	199,300
Imports from the U.S.	26,600	36,000	36,720	37,500

Note: Statistics are based on the following Mercosur Common External Tariff (MCET) Codes: 8433.60; 8433.60.90; 8434; 8434.20; 8434.20.10; 8434.20.90; 8435; 8435.10.00; 8435.90.00; 8436.2; 8437; 8437.10.00; 8437.80; 8437.80.10; 8437.80.90; 8438; 8438.10.00; 8438.20; 8438.20.10; 8438.20.90; 8438.30.00; 8438.40.00; 8438.50.00; 8438.60.00; 8438.80; 8438.80.10 8434.80.20; 8438.80.90; 8479.20.00

Total Market Size = (Total Local Production + Total Imports) – (Total Exports)

Data Sources:

2011 import market share: United States: 18.4%; Italy: 16.5%; Brazil: 12.5%; Germany: 7.6%

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Trade Events

In Argentina

Wine Processing

Event: Dates: Place: Organizer: Description:

Sitevi Mercosur May – June 2014 (TBD) UCIM Exhibition Center City of Mendoza, Province of Mendoza Exposium America Latina   International Exhibition of Equipment and Techniques for Wine, Fruit-Growing and Wine-Making Sectors held every two years.

Dairy

Event: Dates: Place: Organizer: Description:

Mercolactea May 8-11, 2013 San Francisco Rural Association  San Francisco, Province of Cordoba  Diario La Nacion and Inforcampo Exposiciones S.A.  International Exhibition for the Dairy Industry.

Bakery

Event: Dates: Place: Organizer: Description:

FITHEP Mercosur June 10-14, 2013 Costa Salguero Convention Center City of Buenos Aires  Publitec S.A. Editora International Exhibition of Technology for Ice Cream, Confection, Chocolate, Bakery, Pasta, Pizza, and Convenience Products. Takes place every two years.

Agribusiness

Event: Dates: Place: Organizer: Description:

Exposición Rural July 18-30, 2013 La Rural Exhibition Center City of Buenos Aires  Sociedad Rural Argentina y La Rural S.A. International Exhibition of Livestock, Agriculture, and Industry.

Food Technology

Event: Dates: Place: Organizer: Description:

Tecno Fidta September 16-19, 2013  Costa Salguero Convention Center City of Buenos Aires  Indexport Messe Frankfurt S.A.  International Exhibition of Food Technology, Additives and Ingredients. Takes place every two years.

Food and Beverage

Event: Dates: Place: Organizer: Description:	SIAL Mercosur August 2014 (TBD) Costa Salguero Convention Center City of Buenos Aires  Reed Exhibitions, La Rural, and Alimentaria Exhibitions International Exhibition of Food and Beverage Equipment and Suppliers.
Event: Dates: Place: Organizer: Description:	Envase/Alimentek August 6-9, 2013 Costa Salguero Convention Center City of Buenos Aires  Instituto Argentino del Envase (Argentine Packaging Institute) Food and beverage processing machinery and equipment show.
Event: Dates: Place: Organizer: Description:	FIAR May 8-11, 2013 Municipal Convention Center  Rosario, Santa Fe Province Municipality of the City of Rosario Rosario International Food Fair. Food and beverage processing machinery and equipment show. Held every two years.

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Useful Links

Argentine Web Sites

Government

Food Industry Suppliers

Food Products

Meat and Poultry

Wine

Dairy

Packaging

U.S. Web Sites

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Contact Information

Please feel free to contact the U.S. Commercial Service Argentina Specialist mentioned below for additional information or assistance.

Liliana Paz
Food Processing and Packaging Equipment Sector Specialist
U.S. Commercial Service Argentina
Embassy of the United States of America
Av. Colombia 4300
C1425GMN Buenos Aires, Argentina
Phone: (54-11) 5777-4519
Fax:    (54-11) 5777-4203
Email: Liliana.Paz@trade.gov

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