Argentina offers prospects for seed potato exporters

The political revolution in Argentina gives the economy a boost. The Dutch agricultural sector could definitely profit from it. Willem Aalders of Latam Produce states this on the eve of the Dutch trade mission to Argentina.

Aalders has worked in Argentina since 2010. Latam Produce is a service provider that functions as an extension for producers and exporters of agricultural products from Argentina for the European market and the other way around. The company is the primary contact for European customers. The Netherlands is the distribution centre for the processing of the products, such as potatoes, garlic, and sweet corn. The company also exploits its own agricultural company in Argentina. Aalders also provides services for Dutch companies that want to be active in Argentina.

New Argentinian government is thorough

In December 2015, the new Macri government took office and it seems like it is already paying off in Aalders' experience. "President Macri tries to create closer economic bonds with foreign countries. The unnecessary and frustrating rules from the Kirchner government will disappear. I welcome the new policy. Argentina will be more attractive for Dutch companies," says Aalders on the eve of a Dutch trade mission to Argentina. This will take place from 4 to 8 September led by State Secretary Van Dam.

According to Aalders, the mission starts at exactly the right moment. "Governments and businesses in Argentina are trying to create closer bonds with foreign countries. The Dutch agricultural sector is known for its innovation. At this moment, the agricultural sector can respond to the economic recovery of this country."

Chances for Dutch agricultural sector

Argentina is a country with an economic perspective with regard to agriculture and horticulture, according to Aalders. The average potato production has decreased from 40 to 30 tons per hectare during the past 5 years. Lack of qualitatively good seedlings is one of the main reasons. Aalders:

"The borders are opening again, payments are possible again. For exporters of seed potatoes the prospects will be better as soon as the import ban of European seedlings has been lifted."

"It looks like it might happen at any moment, because an Argentinian delegation that was inspecting the Netherlands seemed impressed by the Dutch approach."

The Argentinian expert sees many possibilities for companies that work with improving vegetable seeds and for suppliers of agricultural machines. "For what sector does this not apply? The agricultural sector in Argentina is able to and wants to invest. The Dutch agricultural sector is number one in the world and that is very well known in Argentina. Agricultural businesses can finally make their move."

An entrepreneur with a business of a thousand hectares is seen as a small producer in Argentina. The size of the companies and further upscaling that is happening right now offers many chances for agricultural businesses that are active in the agricultural mechanization and automation, according to Aalders.