Argentina Raisin Output Rebounding

WASHINGTON - Nov 20/15 - SNS -- Raisin production in Argentina should rebound through 2016 on a return to favorable weather conditions, but exports will likely remain low, argues the U.S. agricultural attache for the country.

The coming year's crop is expected to reach 32,000 metric tons (MT), with exports totaling 25,500 MT in both 2015 and 2016, up 56% from 2014. However, exports are not expected to fully recuperate due to decreased competitiveness by local exporters.

About 95% of Argentine raisins are produced in the Province of San Juan, which is located alongside the Andes Mountains in western Argentina. The remainder is primarily produced in the Provinces of Mendoza and La Rioja. Based on private sources' estimates, for 2016, area planted to raisin grapes will remain unchanged at 6,600 hectares from the previous two calendar years, as no significant land investment is expected in the near future since farm-gate prices have been relatively low. Flame and Fiesta are the fastest growing raisin grape varieties in Argentina.

Since the Province of San Juan is a very dry region, with an annual average rainfall of eight inches or less, all plantations are irrigated. The main source of water is melted snow from the Andes. Although there is still available land for raisin production in the province, area expansion depends largely on irrigation, and not all producers have access to irrigation due to its high cost.