Citrusvil is an Argentine company that began as a citrus producer in the 1970s and has since expanded into packaging and exporting citrus fruits globally. It has grown to include modern production facilities and packaging locations, employing over 1,000 people total in the Lucci Group. Citrusvil's strengths include owning its own nurseries and plantations, following good agricultural practices, and having packaging and export experience since the early 1980s.

1. Organic Cosmetics
Anamê Vio Case
www.exportar.org.ar
NewsletterdeFundaciónExportArFebruary2012
February 2012
Fundación ExportAr
Special Report on Russia 2nd
part
Rasic Hnos S.A.
Citrusvil S.A.
Extraberries S.A.
Vergara y Cía. S.A.
Argentbio
Rivara S.A.
Ceras Argentinas S.R.L
El Mundo Árabe
José Ignacio de Mendiguren
Cámara Argentina del Maní
Gulfood 2012
Fruit Logistica 2012
BioFach 2012
Prodexpo 2012

3. 1News
In February 2012, Fundación ExportAr organized several promotional activities at important
commercial venues. For the relevance at the sector and the importance of the event or the
target market, it is worth mentioning the participation at Fruit Logistica, Gulfood, and BioFach
International Trade Fairs.
In this issue of News, we would like to highlight the outstanding record of participants from
Argentine companies at Fruit Logistica 2012, the most important international expo for the fruits
and vegetables sector. At the same time, the participation of companies from the City of Buenos
Aires, the Provinces of Buenos Aires, Córdoba, Corrientes, Entre Ríos, San Juan, Santa Fe, and
Tucumán at BioFach 2012, the leading expo in biological products, has been remarkable. The
same can be said of agrifood companies at Prodexpo, the most important commercial fair of this
sector in Russia and Eastern Europe. Finally, forty-eight companies from the food and beverages
sector attended the International Fair Gulfood 2012, which is a doorway to the Arab world.
Likewise, this issue details the history and experience of several entrepreneurs who have
participated in promotional activities organized and supported by Fundación ExportAr.
Foreword
Juan Usandivaras

4. 2 News
Fruit Logistica 2012
8 The Market
9 The Sector
10 Interview | Citrusvil S.A.
12 Interview | Extraberries S.A.
Prodexpo 2012
17 Entrevista | Vergara y Cía. S.A.
20 The Market
21 The Sector
Gulfood 2012
24 Interview | Argentine Peanut Chamber
27 Peanuts
28 Interview | Ceras Argentinas S.R.L.
30 Interview | Rasic Hnos S.A.
32 The Market
The Arab World, by Julio Jozami
February 2012
STAFF
Administrative Board-President
Miguel Acevedo
Administrative Board-Secretary
Secretary for International Economic Relations
Amb. Cecilia Nahón
Administrative Board-Treasurer
Undersecretary of Investment Development
and Trade Promotion
Amb. Carlos Alberto Bianco
Executive Director
Juan Usandivaras
Manager
Diego Nelli
News Editor-in-Chief
Eduardo Bevacqua
News Staff
Héctor Lorenzo
Verónica Scornik
Javier González Ojeda
Rosario Menéndez
Cecilia Jobe
News Contributors
Sebastián Fratto
Bárbara Bonelli
Josefina Gorriti
Julio Jozami
News Designers
Pablo Caruso
Sebastián Feinsilber
Omar Baldo
Flavia Visconte
News English Version
M. Verónica Muñoz, PhD
Sarah Lynn Taylor
Typography: Bree, © Type together
Total or partial reproduction of the articles and photographs is allowed
provided you cite “News”, the Newsletter of Fundación ExportAr, as the source
of the materials in any reproduction, publication, distribution, or transfer of
the materials.
w w w . e x p o r t a r . o r g . a r
4
14
22
33
Contents
The Newsletter from Fundación ExportAr

5. 3News
54 Interview | Argentbio
56 Interview | Rivara S.A.
Feature Story |
Anamê Vio
Organic
Cosmetics
Special Report. Russia (2nd part)
José Ignacio de Mendiguren, Argentine Industrial Union
President. Al Invest: Key Cooperation Program between
Latin America and Europe
48
60
58 Activities
Rounds
PRE-MICA 2012
Fairs
Arteaméricas 2012
Pdac 2012
Boston Seafood 2012
Fimec 2012
Alimentaria Barcelona 2012
Fidae 2012
Expocomer 2012
Foodex 2012
Cebit 2012
Expo West 2012
Salón de Gourmets 2012
Training
How to Succeed in International Business
Rounds
Seminar. First Steps towards Exports
Foreign Trade for Forest Industrial Sector
77
78
79
80
81
82
83
83
84
BioFach 201246
www.exportar.org.ar

6. 4 News
Fruit Logistica, the most important fruit and fresh vegetables
fair, was held at the Messe Berlin fairgrounds in Berlin, Germany,
February 8-10, 2012. The exhibition was organized by Messe Berlin
GmbH in conjunction with Fruchthandel Magazin.
Germany is the main economic power of the European Union and
the fourth economy in the world due to its high educational level,
remarkably developed economy, the affluence of tourists, and its
strategic geographic location. In fact, Germany is a fundamental
connection between Central and Eastern Europe.
Due to the central role of small and medium size enterprises
(SMEs), Germany’s economy is oriented towards foreign markets.
It imports industrial materials to cover its industrial demands; so it
is a potential market for many of our products.
At the same time, visitors and tourists from all over the world come
to Germany because of its history and landscape, its traditions and
well-known gastronomy. Germany is an open economy where
different products find their ‘niche’ market.
Due to its location, Germany has always been an important
commercial center. Its strategic position in Central Europe has
historically made Germany a necessary stop on trade routes
between different countries. Thus, it has evolved into a skillful
organizer and qualified exporter of International Trade Fairs.
These events gather thousands of visitors and professionals from
different industrial sectors eager to exhibit their services and
products, as well as to discover new trends. Participating in Trade
Fairs is essential to enter into the German market; these events
are also important to access other international markets. In fact,
representatives from countries all over the world visit these venues
seeking products or innovations for their own nations.
Although Germans look for competitive prices, they highly value
the quality, freshness, flavor, and smell of every product, and also
its packaging and presentation. As a consequence, Fruit Logistica
offers the best products and a great variety of packaging and
labeling.
Fruit Logistica is the most important event for fruit and vegetable
companies; it is the meeting place for anyone people involved in
this sector and a great opportunity to contact buyers and make
efficient commercial relationships. Both new and old companies
participate in this event, with providers and international
distributors.
The Leading Fair for the International Fruits and Fresh Vegetables
Trade exhibits different products and new trends.
The Leading Fair for the International Fresh
Produce Trade exhibits different products and
new trends.
FruitLogistica2012
Berlin, Germany
February 8-10
Foods, Fruits, and Fresh Vegetables

7. 555News

8. 6 News
The fair also offers the chance to attend seminars, conferences, and
similar activities on current issues. This comprehensive expo covers
a wide range of topics from planting crops to product distribution
and logistics. There are exhibitions of flowers and plants, fruits and
fresh vegetables, exotic products, dried fruits and nuts, species and
herbs. As fruits and vegetables are delicate and perishable products,
it is essential to have a good understanding of their logistic know-
how. The fair offers solutions and support on how to manipulate,
pack, label, and transport these products.
Fruit Logistica 2011 was attended by 2,400 exhibitors from eighty-
four countries and 56,000 professionals from 132 nations (90
percent of the visitors were buyers and 78 percent were companies’
managers).
Foreign visitors composed ninety percent of the participants, which
gave the event a clear international scope.
This year, the “Pavilion of the Americas” was located in Hall 25, and
also covered parts of Halls 23 & 26.
Argentine Participation
Overthelastdecade,theamountofGermanimportsfromArgentine
origin has notably grown. We have exported apples, pears, citrus,
fruit & vegetable juices and preserves, fresh vegetables, among
others. Our participation has become necessary to consolidate our
existing trade partners and to contact potential buyers.
Over the last three years, Argentine exports to Germany showed
a considerable increase, not only in agrifoods, but also in copper
related products, auto parts, pharmaceutical supplies, engines,
agricultural tools, and leather goods, among others.
The presence and support of Victorio Taccetti, Argentine
Ambassador in Germany, was indispensable to promoting bilateral
commercial relations between both countries. The Ambassador
held a reception in his residence for all Argentine visitors to
welcome them and express his support of all fair participants.
The Argentine Pavilion set up by Fundación ExportAr was located in
Hall 25 and was 828m2. There were fifty-nine national companies
who exhibited their services and products, a good example of
Argentine’s export capacity. The most important products were
lemons, pears, apples, oranges, tangerines, blueberries, cherries,
plums, peaches, pomegranates, garlic, and onions.

9. 7News
Acheral S.A.
Agrícola Mares S.A.
All Lemon
Fundación ExportAr
Argentinian Fresh Fruits & Goods S.R.L.
Agro Ruggeri S.A.
Argentina Exportadora S.A. (ARGESA)
Austral Agribusiness S.A.
Bauza Javier Gustavo S.A.
Cauquen Argentina S.A.
Cerezas Argentinas S.A.
Citrícola Ayui S.A.A.I.C.
Citromax S.A.C.I.
Citrusvil S.A
Coexco S.A.
Consejo Federal de Inversiones
Consorfrut Argenti S.A.
Cooperativa Colonia San Francisco Ltda
Cooperativa Exportadora Citrícola de
Corrientes Ltda.
Cosur S.A.
CTM Cooperativa Tabacalera de
Misiones Ltda.
Don Roberto S.A.
Ecofrut S.A.
Emelka S.A.
Expofresh S.A.
Extraberries S.A.
Fama Importadora y Exportadora S.A.
Frutales S.A.
Frutos del Litoral
Frutucuman S.A.
Global ID
Grupo Novati
Jas Jet Air Service Argentina S.A.
Instituto de Desarrollo Productivo de
Tucumán
Jet Cargo S.A.
Masmud
Kingberry
Kleppe S.A.
La Patria S.R.L.
Latin Lemon
Ledesma S.A.A.I.
Mono Azul S.A.
M Dodero Compañía General de
Servicios S.A.
Montever S.A.
MFruit S.R.L. – Morresi Fruit
Nobel S.A.
Prodol S.A.
Productores Argentinos Integrados S.A.
Productos Ivia
Veracruz S.A.
Salentein Fruit S.A.
S.A. San Miguel
FGF Trapani S.R.L.
Trébol Pampa S.A.
Tres Ases S.A.
Trevisur S.A.
Vicente Carbajo
Vicente Trapani S.A.
Zamagro S.R.L.
Participating Companies
It is important to highlight that Argentina was the Latin American
country with the biggest stand at the exhibition and the largest
number of exhibitors. In 2012, we had the best performance ever.
Fruchthandel Magazin, the specialized fair publication, included
a three-page article and several photographs on the Argentine
presence at Fruit Logistica 2012. In all, Argentine exhibitors were
able to make 1,625 commercial contacts, with 652 becoming
potential buyers. The estimated sales in the midterm could be over
$60 million dollars.
Fruit Logistica 2012

10. The Market
The German Federal Republic is located in Central Europe. It has 357,021 km2 and a population of 81.5 million of inhabitants.
Its GDP for 2010 was $3.31 trillion dollars, while its GDP per capita was $37,745 dollars. The services sector is the largest
component of German GDP (71%), followed by the industrial sector (28%), with the agricultural sector representing only
0.9%.
Most of the country’s products have high technological value, like electronics, machinery, shipbuilding, chemicals, and
automotives. The European Union plays a key role in German foreign trade. Thus, 63% of its exports are destined for EU
countries; 58.4% of the imports come from EU countries.
In 2010, exports reached over $1.3 billion dollars. The main destinations were France (10.1% of total shipments), the USA
(6.7%), UK (6.6%), Netherlands (6.6%), Italy (6.3%), Austria (5.7%), Belgium (5.2%), and China (4.7%).
Regarding German imports, there was an estimated trade exchange of $1 billion dollars in 2010. The products purchased
included oil and related products, foods, textiles, and metals. These products came from Netherlands (13% of total imports),
France (8.2%), Belgium (7.2%), China (6.8%), Italy (5.6%), and UK (4.7%).
The bilateral commerce between Argentina and Germany totaled $4.4 billion dollars in 2010. Out of this amount, $1.7
billion dollars represented shipments to Germany. In this sense, Germany is the seventh most important export destination
of Argentina.
Our main exports are copper minerals (with shipments totaling $379 million dollars and consisting of 21.5% of the total
exports), followed by meat ($349.4 million dollars and 19.8%), and ground transportation materials ($278.1 million dollars
and 15.7%).
8 News

11. 9News
The Sector
Argentina is one of the main producers of fruits and fresh vegetables in the world. In 2010, Argentina’s export of these
goods totaled $2.79 billion dollars. The products for export include: fresh fruits (totaling $1.05 billion dollars); fresh prepared
vegetables, fruits, and legumes ($957 million dollars); fresh vegetables and legumes ($646 million dollars); and dried or
processed fruits ($133 million dollars).
Main destinations for fruits and fresh vegetables in 2010 were Brazil (with a share of 28.5%), the Russian Federation
(11.9%), Netherlands (10.4%), and the USA (7.4%). All of these destinations received 58% of Argentine total shipments.
Main products for exports are:
Fresh Pears: in 2010, pears accounted for $333 million dollars, exported mainly to Brazil, Russia, and Italy
Fresh Garlic: sales for $194 million dollars to Brazil, Mexico, and France
Lemons: shipments for $191 million dollars to Netherlands, Spain, Russia, and Italy
Fresh Apples: exports for $139 million dollars to Brazil, Russia, and Algeria
White Beans: shipments for $135 million dollars to Spain, Italy, and Turkey
Tangerines: sales for $118 million dollars to Russia, Netherlands, and UK
Blueberries: exports for $115 million dollars to the USA, UK, and Netherlands
Onions: shipments for $102 million dollars to Brazil, Netherlands, and Paraguay
Fruit Logistica 2012

12. 10 News
Citrusvil S.A. began as a primary producer of citrus in the 1970s and
quickly incorporated the packaging and marketing of these products.
It started exporting soon after and became a global brand for lemons
and related products. Francisco J. Rotella, Commercial Manager,
participated in Fruit Logistica, where he met their customers in person
and contacted potential buyers.
Citrus
forExport
By Verónica Scornik
Citrusvil was born 30 years ago. How did it grow?
Citrusvil is a subsidiary of Lucci Group. It was born in the early
1970s primarily as a lemon producer. At the beginning of the
1980´s it expanded to include the packaging and trade of fresh
fruit, first in the national market and later exporting citrus fruits
internationally. Citrusvil was a pioneer in this sector in the Province
of Tucumán.
Citrus production starts in our own nurseries and we have
plantations across the piedmont areas of Tucumán.
Experts and professionals follow Good Agricultural Practices
(GAP).1
Citrusvil also has modern industrial production plants and
two fresh fruit packaging locations.
InterviewI Francisco J. Rotella, Commercial Manager of Citrusvil S.A.
1
- A number of Good Agricultural Practices (GAP) codes, standards and regulations have been developed in recent years, which aim to codify agricultural practices at farm level for a broad
range of commodities. Even though in Argentina adherence to GAP is not compulsory, the National Institute of Industrial Technology (INTI) certifies those companies who followed these norms.

13. 11News
How many people work at Citrusvil? What are your
strengths?
The Lucci Group has 800 employees; 370 people work at Citrusvil.
400 temporary employees work during the industrial fresh fruit
season. Our strengths are our industrial manufactures and the
fresh fruit production.
This company belongs to Lucci Group which has several
different businesses. What are the characteristics of
citrus industries?
Lucci Group is concentrated in lemons and related products, and
also in biodiesel, sugar cane, soy, cattle breeding, and building
industry. The fresh fruit market is very dynamic and inelastic, with
several key factors: weather, production, international competence
(Spain, Turkey, and South Africa), international market situations,
and micro/macro economic variables.
What markets do you export to? What are your short and
mid-term goals?
Our lemons are traded in the most competitive markets all around
the world. Our brand is also well-known for its quality in Europe,
Asia, the Middle East, and Canada.
You participated in several International Trade Fairs
such as Fruit Logistica, SIAL China or SIAL Paris,
and also in Business Rounds organized by Fundación
ExportAr. What have you gained from these experiences
and Fundación ExportAr’s support?
We have obtained infrastructure, a good presence, and a place to
display our products in exhibition stands at those events.
Fruit Logistica 2012
What was your experience at Fruit Logistica like
this year?
Our participation in Fruit Logistica 2012 in Berlin was very
positive. It is the most important fair of the year where we can
meet our clients in person. In this sense, the fair becomes the best
opportunity to discuss our past business year and our plans for
the upcoming one. We also get to know new potential buyers.
For example, this year we started doing business with several
East European countries. We want to expand our presence in this
market. Fundación ExportAr has also offered an excellent service.
The organization of the Argentine Pavilion within the fair was
remarkable and many visitors stopped by our exhibition stand
during the three-day fair. Again, its support has been very good.
What can you say about the future of this sector?
We have an uncertain future due to both endogenous and
exogenous factors that could negatively impact the citrus industry
in general, and lemon production in particular.
What are your goals for this year?
Our main goal is to expand the activities of the Lucci group.
Citrusvil plans to keep offering high quality industrial and fresh
fruit products to cover the needs of our clients all around the
world.

14. 12 News
Fruit Logistica 2012
Interview I Carlos Stábile, Project Manager of Extraberries S.A.
When and how was the company born?
Extraberries S.A. started in 2006 and, by mid-2007, it had a
blueberry plantation of 50 hectares. Today, we have 200 hectares
with high quality blueberry crops, fully equipped with state-of-
the-art technology which provides an early crop which meets the
demand of international markets.
Premium varieties of blueberries are grown in farmlands that
process nearly 3 million kilograms of fruit per season. The selection,
harvest, and processing of the blueberries, as well as proper
packaging and conservation in modern chilling rooms, are strictly
controlled. There are modern processing lines, an enormous area
for classifying the fruits, a fumigation chamber, cooling as well as
freezing tunnels and chambers. Fresh water reservoirs supply the
Carlos Stábile, Project Manager of Extraberries S.A., shares his
satisfaction with the results at Fruit Logistica. He affirms that “support
from Fundación ExportAr is essential and, each time we participate in
a fair with them, we know we have all the necessary guarantees for a
successful event”.
necessary humidity (by means of both drip and spray irrigation),
and anti-frost protection in the agricultural fields guarantees the
quality of the product.
How was your experience at Fruit Logistica?
We have been attending Fruit Logistica over the past years because
it is the most important fresh produce fair in the world. The results
are very positive. Even though there were fewer visitors than in
previous years, they were still many potential buyers. I mean, there
were fewer visitors, but of a higher quality than in the past.
What markets do you export to? Where do you want to
expand to?
Our main markets are the USA, Canada, and Brazil in the Americas;
Holland, UK, Germany, Italy, France, and Spain in Europe. We
indirectly access many more destinations through our European
importers and distributors.
What are your short-term goals?
We want to enter into the Asian, Middle Eastern, and Russian
markets; apart from consolidating our businesses in Brazil and
Europe.
What fairs or trade events do you plan to attend?
We may participate in the Asian Fruit Logistica, PMA, and probably
others that are suited to our products.
How important are these promotional events for your
company and the support of Fundación ExportAr?
Both have a vital importance for our business. Fundación ExportAr
provides an important service by organizing promotional activities
for Argentine exporters. It is very safe to participate in events
with the support of Fundación ExportAr, because we know
that everything is checked and set up to guarantee excellent
presentation of our products and services.
“We are eager to accessthe
Asianmarket”

15. 13News
Fruit Logistica 2012
13 NewsNews News 13
For further information:
www.senasa.gov.ar
0800-999-2386
Fundación ExportAr Agreement
SENASA at
International
Exhibitions
The National Service of Agrifood Health and Quality (Senasa) takes part in
different national and international exhibitions in order to give advice to
exporters and importers of agrifood on phytosanitary requirements that the
Argentine Republic and buyer countries of said products demand.
Under the agreement between Fundación ExportAr and Senasa, a decentralized organization of the Ministry
of Agriculture, Livestock, and Fisheries of the nation, during 2011 Senasa will participate in different fairs
and exhibitions at national and international levels, to give advice to agrifood exporters and importers about
phytosanitary requirements that the Argentine Republic and buyer countries demand of said products.
It is very common for Senasa to show its activities in different national fairs.With this agreement the authorities of
the organization have decided to widen their scope and participate in well-known international exhibitions related
to the agrifood industry and contribute to the development of the international trade of these products.
The purpose of the agreement between these two organizations is to implement the necessary means and actions
to reach mutual technical complementation and carry out in a coordinated way projects in areas of mutual interest,
working in cooperation through different activities.
In this regard, Senasa and Fundación ExportAr jointly assist small and medium agrifood exporters abroad, as well
as boosting imports, in matters related to quality and health in agrifood.
This joint work permits collaboration in the design of the necessary conditions for the development of actions
towards the fulfillment of the export policies set forth by the national government.
Thus the Senasa widens its regional scope by participating in these international meetings, adapting and
accompanying its main goal which is to strengthen the role of the state on animal and vegetable health, food
safety and environment care.

16. 14 News
Fundación ExportAr organized the participation of Argentine
companies and organizations in the 9th edition of Prodexpo, the
agrifoods sector’s most important fair in Russia and Eastern Europe.
The Ministry of Agriculture and Foods of the Russian Federation
and the National Governments supported this international event,
which was held in the ZAO Expocentre (Krasnaya Presnya) in the
city of Moscow.
Elena B. Skrynnik, Minister of Agriculture, was in charge of the
official opening ceremony. She welcomed 600 companies from
fifty-five countries from all around the world as well as 1,500
Russian companies. It is the first time in Prodexpo’s history that the
Minister of Agriculture has ever opened the Fair.
For the past 18 years, Prodexpo has defined the development
of the domestic food industry of the region, and it has played a
key role in stimulating the Russian food market. Over the past
five years, the evolution of the Russian economy has been very
positive, with annual growth of five to seven percent as well as
an increase in disposable income. While there has been a rise in
consumer’s goods and agrifoods, the national food production is
not enough, so Russia depends on imports to cover local demands.
As a consequence, Russia is a potential market for Argentina and
Prodexpo appears to be an excellent commercial platform for
doing businesses and learning about the market demands.
Russia has a population of more than 140 million people; the
GDP per capita was $15,900 dollars in 2010. This means that
the country has a medium-high income, a skillful workforce,
sophisticated consumers, and important infrastructure needs.
The Russian economy keeps showing positive numbers after the
global economic crisis in 2008, with an average annual growth of
four percent.
The transition from a centrally focused economy to a market
economy is still in progress. Russia is a member of the World Trade
Organization which means a commitment to further liberalize the
market and create new business opportunities.
Prodexpo2012
Moscow, Russia
February 3-17, 2012
Foods and Beverages

17. 15News 15News 15News
In order to succeed in new markets, local presence is essential,
particularly when services or products require post-sale support.
To do so, it is important to make agreements with representatives
in Russia, who can provide help in dealing with languages barriers
and different local commercial traditions. The most common
strategy is choosing a good distributor or a network of distributors
that could offer logistical support, including customs tariffs advice,
warehouse and storage information, and transportation.
Prodexpo has been famous for many years thanks to its
international scope. In fact, in recent years, the number of
exhibitors and the size of the fairgrounds have increased more
than fivefold. Traditional exhibitors from Europe, Latin America
(Brazil, Mexico, and Argentina), and Australia now share spaces
with Asiatic countries who have become very active in the Russian
market. Thus, exhibitors from Thailand, Korea, and China have
increased their number every year. This same trend can also be
applied to other countries in the region.
The fairgrounds of Prodexpo 2012 were 102,000m2, making it
the largest floor area ever. It had official pavilions from Argentina,
Armenia, Australia, Austria, Azerbaijan, Belgium, Brazil, Bulgaria,
Byelorussian, Canada, Chile (who participated again after being
absent for many years), China, Cyprus, Denmark, Estonia, Finland,
France, Germany, Greece, Holland, Hungary, India, Iraq, Ireland,
Iceland, Israel, Italy, Japan, Korea, Kazakhstan, Kyrgyzstan, Latvia,
Lithuania, Macedonia (for the first time), Malaysia, Mexico,
Moldova, Poland, Portugal, Romania, Serbia, Singapore, Slovakia,
Spain, South Africa, Sri Lanka, Switzerland, Thailand, Turkey, the
United Kingdom, Ukraine, United Arab Emirates, Uruguay, and
the United States of America.
Prodexpo was divided in seventeen thematic pavilions: Vodka,
Confectionery, Fish and Seafood, Four International Halls, among
others. Regarding visitors, sixty percent of participants were from
Moscow; thirty percent from Russian regions and ten percent
were foreigners.
As the size of the exhibition grounds has increased, it is now easy
to enjoy high quality products from leading companies, innovative
products (from the organic, dietary, and functional sector), and
high-tech foods (like dried, frozen, canned, or fast foods).

18. 16 News
During the expo, several importers from the foods sector as well
as representatives from supermarket chains visited the exhibition
stand. In fact, due to the location of the Argentine Pavilion, more
people visited the stand than in previous years. Our pavilion of
42m2 had five totally-equipped areas. Wenfor S.A., a representative
of Chilean and Argentina wines, also had its own exhibition stand.
Argentine companies made 140 commercial contacts and 37 of
them (26.5 percent) are likely to end up in deals or partnerships.
Two other companies closed deals during the fair, one of them
reaching $100,000 dollars.
After attending Prodexpo, all participating companies estimated an
annual increase in future sales of $11.3 billion dollars.
Finally, all the participants expressed a desire to attend the next
edition of this fair, which will take place on February 11-15, 2013.
There were also competitions, workshops, and seminars about
new technological trends in food production, dietary and organic
foods.
Arcor Europe: Confectionery, chocolates, cookies, foods
Cirexa S.A.: Pitted and unpitted tenderized prunes
Pietrelli Prunes: Pitted and unpitted prunes; natural
condition prunes
Vergara y Cía. S.A.: Prunes, raisins, sunflower seeds, dried
fruits and nuts, pop corn, peanuts, olive oil, crackers &
cookies, and legumes
Participating Companies
-Meat and Poultry
-Fish
-Cheese and Dairy Products
-Groceries and Condiments
-Vegetable Fats
-Dried Fruits and Nuts
-Confectionery and Bakery
-Teas and Coffees
-Sauces and Canned Food
-Preservatives
-Gastronomy related products
-Frozen Food
-Juices, Sodas, Water
-Fruits and Vegetables
-Alcoholic Beverages
-Tobacco, Cigars and Cigarettes
-Organic Food
-Packaging and Storage Equipment
Argentine Products on Exhibition during the Fair
Prodexpo 2012

19. 17News
Oscar Vergara has dedicated his life to foreign trade. He created Vergara y
Cía. S.A. 14 years ago. Today the company has twenty-five employees and
exports their products to sixty-eight countries. Vergara actively participates in
promotional events all around the world. He was one of the first traders of
Argentine prunes in the Russian market. He affirms that “since the beginning,
we have participated with Fundación ExportAr in International Trade Fairs”.
Interview | Oscar Vergara, Founder of Vergara y Cía. S.A.
We have been
thepioneers
By Cecilia Jobe and Héctor Lorenzo
How was Vergara and Cía. S.A. born?
In 1991, I discovered a niche market and decided to start selling
these products. It was a good opportunity for me, particularly
seeing how Argentina organized its exports and the structure of
the international market. I became a sales, or purchasing, agent
of foreign and local companies. I was by myself, but later I found
a Chilean partner company with which I commercialized legumes,
honey, candied peanuts, and pop corn. We later became one of
the main Argentine brokers of these products.
I worked with my Chilean partners until 1997, when Vergara y
Cía. S.A. was born as a family company. We thought that we
needed an aggressive presence in the fairs to obtain new clients
and markets. We participated in at least seven or eight fairs per
year with Fundación ExportAr.
Today, we have eleven traders and twenty-five employees in total.
We organize teams to supply different markets, focusing on our
ten top products, the “VIP products”, which are in high demand.
We have customers all around the word. In 2010, we sent
shipments to sixty-eight destinations. We don’t have a final report
on 2011 yet, though Russia and Algeria have been very important
players. We also sell to Europe and the Middle East. We sell dried
fruits and nuts, prunes, raisins, candied peanuts, white kidney
beans, popcorn, and sunflower seeds among other products.

20. 18 News
To what countries did you export in 2011?
We have customers all around the word. In 2010, we sent
shipments to sixty-eight destinations. We don’t have a final report
on 2011 yet, though Russia and Algeria have been very important
players. We also sell to Europe and the Middle East. We sell dried
fruits and nuts, prunes, raisins, candied peanuts, white kidney
beans, popcorn, and sunflower seeds among other products.
What are your plans for 2012 in terms of new markets?
We are constantly looking for new markets. Last year, we started
working with Kazakhstan and Moldavia. We used to reach them
through Russian distributors, but they decided to contact us
directly. We are selling peas and popcorn to Pakistan. Last year, we
sold peas and Argentine chickpeas to Russia due to the increase
in Canadian prices.
Are you planning to offer more products for export?
We want to increase the scale of what we are exporting now.
Everywhere, particularly in the northern hemisphere, companies
from this sector work together with several related products. A
peanut producer also sells prunes, raisins or any other dried fruit.
We have specialized experience in these products as well. We
don’t deal with soy, oils, bulk grains or cereals, because those are
not what we produce.
How was your experience at Gulfood?
When we participated in Gulfood (Dubai) for the first time in 1999,
there was only one other Argentine company in attendance. There
was no Argentine Pavilion. Our experience in February 2012 was
completely different. I was impressed at the size of our exhibition
stand. Dubai is a key business center in the area, for both the Arab
World and Southeast Asia. Many customers from Singapore, India,
and Pakistan visited the fair.
Participating in these fairs is a key promotional investment for
us: it is a meeting place for our clients and even new providers.
We share information and management logistics in general. We
are committed to help customers and providers; we have a good
business reputation and people trust us.
What are your plans for 2012 regarding your
participation in Trade Fairs or International
Promotional Events?
Since January, we have attended Prodexpo in Moscow and
Gulfood in Dubai. In the near future, we will participate in Food
& Hotel Asia (in Singapore), World Food (in Moscow), and other
specialized exhibitions.
What do you think of the support from Fundación
ExportAr?
It is excellent. We have worked jointly with Fundación ExportAr
since the beginning, back in 1998. Their service has improved
year after year, with more professional support during the events.
Argentina has an important presence in International Trade Fairs
which results from Fundación ExportAr’s strategic plan and the
commitment of its people.
In 2011, we worked on our internet graphic design, e-mail, and
brand manual to improve our logo, colors, formats, etc. When we
reached our stand at the expo, our logo was already on display,
which benefitted us enormously; it was one less thing to worry
about.
I would also like to point out that we have received support from
many Commercial Officers from several embassies. For example,
the Russian embassy has always supported exhibitors who want
to do business with them. We also had an excellent experience in
Hong Kong last year.
Prodexpo 2012

21. 19News
How long have you been attending Prodexpo?
Since 1999, we have been participating in this Trade Fair. At that time,
Brazil was our trade partner, but unstable currency caused several
problems. We decided to look for new options and the Russian
market was ready for us. In fact, today it is our main trade partner.
We reached this market in a very peculiar way; it required a huge
effort. I always like to share this anecdote to illustrate what we faced
then. We used to sell our products to a company from Holland and
another from Germany, which were the main importers of dried fruits
and nuts. I sensed that Eastern European countries were important
consumers. However, when I asked about the Russian market, they
replied that it was a dangerous venue and dismissed my interest.
In fact, it was a peculiar historical moment after Russia lifted the
Iron Curtain. In 1999, I participated in Prodexpo (Moscow) for the
first time and I found that my two European distributors were also
exhibitors in Moscow. This meant that the demand was real and the
market was interested in my products, though they didn’t want to
share that with me.
It took me almost two years to close my first deal with the Russian
market. In 2002 I sent the first shipment of prunes from San Rafael.
They were very well received so we kept sending containers. Today,
Russia is the main destination of Argentine prunes. And we have
been the market pioneers. In fact, Russian demand grew so quickly
that it exceeded our local production. We were producing six or
seven thousand tons then, and today we ship almost forty to fifty
thousand tons to Russia.
Entrepreneur Profile
Oscar Vergara took his first steps in foreign trade when he was 18 years old. He started as an assistant and still keeps that hard-
working attitude with him today. “When Vergara started, we were only three people: my son, his closest friend, and myself; my
daughter and my brother-in-law joined us later. We are a family business although my son and daughter have no special privileges
at all: we believe in working as a team”.
The story is the same for many other successful entrepreneurs from Argentina who have started from scratch: from door to door,
delivering packages. They have built-up their companies thanks to their tenacity, hard-work, and skills. It is always important
to share these life experiences. Figures, statistics, graphics and charts clearly show the growth, revenue or success of many
entrepreneurs. However, Oscar’s story talks about something else: it is the experience of a man who was able to build a strong
company that has an international scope and an important local role from the ground up.
Interview | Oscar Vergara, Founder of Vergara y Cía. S.A.

22. 20 News
The Market
The Russian Federation is 17,075,400km2 and is the largest country in the world, covering one-eighth of our planet. With
a population of 140 million inhabitants, Russia has a very dynamic economy. The service sector is the largest component of
the Russian GDP with 59%, followed by the industrial sector at 37%, and the agriculture sector that represents only 4%.
Due to the commercial surplus and the growth of its GDP over the last years, Russia is an important holder of international
reserves followed by China, Japan, and Saudi Arabia.
Russia plays a leading role in the energy sector and it is the second most important global producer of oil after Saudi Arabia.
It supplies 12% of global production and oil exportation. At the same time, it is an important producer of natural gas, and
has the largest natural gas reserves. Energy and fuels represent 79 % of its total exports.
In 2011, Russian exports reached $498.6 billion dollars. Its main trade partners were European Union countries which
received 48% of the shipments. Russian exports to Germany were 8.2% of the total shipments, Netherlands 6%, the USA
5.6%, China 5.45, and Turkey 4.6%.
In 2011, Russian imports reached 310 billion dollars. It has a diversified list of providers. Germany accounted for 14.7% of
the total imports, China 13.5%, Ukraine 5.5%, Italy 4.7%, and Byelorussia 4.5%.
Regarding bilateral commerce between Argentina and Russia, our exports to Russia reached $764 million dollars in 2011.
The main products exported were fresh fruits (with shipments totaling $224 million dollars, representing 29.3 percent of the
total imports), meat ($193 million, 25.3%), residues from food industries and fodder ($74 million, 9.6%), diary ($57 million,
7.5%), fruits and oilseeds ($47 million, 6.1%), and preparations of fruits, fresh vegetables and legumes ($40 million, 5.3%).
These six main products represent 83% of the total shipments sent to Russia in 2011.

23. 21News
The Sector
Although Russia is the largest country in the world, only twenty percent of its surface area is arable land. This is the reason
for Russia’s deficit in the food sector, which represent 18% of the total imports. Food is the second greatest imported
good in Russia. This is a beneficial situation, with plenty of opportunities for agro-exporting countries and counter-season
producers, for Argentina.
Among food items for export, fresh fruits reached $1.1 billion dollars. The main destination was Brazil (shipments totaling
$242 million dollars), followed by Russia (for $223 million and 19.2% share of the total exports).
The most important fruits sent to Russia were pears (totaling $130 million dollars), tangerines ($60 million), and grapes or
raisins ($22 million).
These fruits were produced by the provinces of Río Negro (which represents 40% of the total exports), followed by Mendoza
(13.3%), and Entre Ríos (13%).
Regarding meat exports in 2011, we sent shipments worth $2.1 billion dollars. Russia was our third most important
destination, representing 9.2% of our total exports.
The main producers of meat for export are in the provinces of Buenos Aires (59.3% share of the total export), Santa Fe
(13.15%), and Córdoba (11.6%).
Prodexpo 2012

24. 22 News
Since 1987, the International Foods, Beverages, Hospitality, and
Equipment Fair has been held at the International Convention and
Exhibition Centre in Dubai.
This year, 68,681 professionals, from 152 different countries
from the Middle East, North & Center of Africa, India, and Russia,
visited the fair; they. This shows an increase of 11 percent more
participants than in 2011. There were 3,800 exhibitors from 88
countries and 110 international pavilions, which displayed trendy
products and innovations. In all, it was an unparalleled business
platform full of opportunities.
Fundación ExportAr organized the Argentine Pavilion for the eighth
time. It was 324m2, divided in two islands of 162m2. According
to the information reported from participants, they were able to
make 4,377 new business contacts with 905 being likely to end
up in a future deal.
Twenty-three Argentina companies closed deals during the
fair, totaling approximately $5.71 million dollars. Thanks to this
experience, participating companies estimate to earn $61.9 million
dollars.
Gulfood is considered one of the most prestigious food fairs in
the world. Argentine exhibitors highlight the importance of its
location: “Dubai is a strategic place, between China and Europe.
Buyers from Middle East, Asia, and Europe visit this fair. Lots of
buyers from the Arab world also attend this event”.
In the annual international Trade Fair calendar, Gulfood is an
essential meeting place because of its size, impact, and quality.
Important exporters mention that “the number of visitors is
impressive. We should also consider who these potential buyers
are: important buyers whose large volume purchases can positively
change a company’s future”.
Argentine companies displayed several products:
Foods: popcorn, microwave popcorn, candied sunflower seeds,
beans, white kidney beans, squash, white chickpeas, peanuts,
peas, prunes, raisins, olive oil, canned fruits, peeled tomatoes, fruit
marmalade, canned peaches, fruit cocktail, peach pulp, apricots
and pears, dried vegetables, dried fruit (apples, pears, peaches,
apricots, prunes, strawberries, berries, tropical fruits), sweet potato
& quince jams, jelly, several products in syrup, honey, wax, propolis,
glucose, honey powder, nuts, corn syrup, date syrup, fruits pulp,
fruit juices, lamb, halal beef burgers, coffee, yerba mate, tea,
milk, powdered milk, tomato sauce, tomato paste, soups, pasta,
powdered juices, mineral water, cheese, chicken, processed
cuts, oils, frozen bakery products, chocolates, sweet cookies and
“alfajores” among other.
Gulfood2012
“This fair again reported a record visitor
attendance” affirmed the CEO of Dubai World
Trade Center
Dubai, United Arab Emirates
February 19-22, 2012
Foods, Beverages, Hospitality, and
Related Equipment

25. 23News 23News 23News
Services: Halal Argentine products (slaughtered, supervised,
and certificated services according to Islamic norms). Helal Saeed
Almarri, CEO of Dubai World Trade Centre and organizer of the
Fair said that “Gulfood has become a key business center for global
food and beverage industries. Its global scope is undeniable, and it
grows larger year after year”.
Gulfood exhibits the following products: foods, beverages,
ingredients, packed products, non-alcoholic beverages, seafood,
bakery and confectionery, frozen and chilled foods, dairy,
processed foods, cooling equipment, hotel supplies and services,
food processing machinery, food packaging and labeling, codes
and measuring equipment, hospitality technology, tableware and
accessories, display cases, disposable items, storage systems, food
related retail equipment.
Aceitera General Deheza
Agro Uranga S.A.
Alberto L. Marchionni S.A.
Alemar S.R.L.
All Food S.A.
Andreoli S.A.
Arcor
Argensun S.A.
Argentina de Graaf S.A.
Cámara Argentina del Maní
Centro Islámico de la República Argentina
CEPA (Centro de Empresas Procesadoras
Avícolas)
Ceras Argentinas S.R.L.
Cirexa S.A.
Conosud
Cremer y asociados
Curcija S.A.
Desde el Sur S.A. – Food Way S.A.
Exportando S.A.
Farm Products S.R.L.
Frutagro Exportadora e Importadora S.A.
Geoallianz S.R.L.
Gregorio, Numo y Noel Werthein S.A.
Gruposur Export S.R.L.
Hallar Company
JC Impex S.A.
José María Lazara S.A.
Kineta
Laboratorios Argentinos Farmesa S.A.I.C.
Loitegui S.A.
Ministerio de Comercio Exterior, Turismo e
Inversiones – Provincia de Chubut
Murray Food Products
Naiman S.A.
Nexus Business International
Ovobrand S.A.
Paramerica S.A.
Pietrelli Prunes
Planta Madero
Productos Ferraris
Productos Genero S.A.
Rasic Hnos. S.A.
Rocío de miel S.A.
Snack Crops S.A.
The Halal Catering Argentina
Tucumán – IDEP
Vergara y Cía. S.A.
Participating Companies at the Argentine Pavilion
Gulfood 2012

26. Making OurPeanuts
Reach Arab Countries
Interview | Beatriz Ackermann, CEO from the Argentine Peanut Chamber
24 News

27. 25News
The Argentine Peanut Chamber had an important presence at
Gulfood Dubai Fair. Beatriz Ackermann, CEO, explains that this event
was very useful: “It was about time for us to expand our products to
nontraditional markets. Considering those areas where we are still
absent, we decided upon two new destination regions: the southeast of
Asia and the Arab countries. With the support of the Argentine Embassy
in Japan, we have started working in Asia. For the Arab countries, we
chose Dubai as our best presentation card”.
How large is the volume of peanut exports from
Argentina? Which are the main destinations?
The peanut industry is an emblematic sector in the region of
Córdoba, which exclusively exports manufactures of industrial
origin (MOA) with added value (candied peanuts; peanut butter,
paste, oil, meals and pellets). Until 2005, Argentina used to export
250,000 tons per year; while today, we export 600,000 tons of
peanuts and related products totaling $800 million dollars. Since
2007, Argentina has become the first global exporter of peanuts
and peanut related products, followed by China and the USA.
Where is the largest peanut region? What is its surface?
There are around thirty areas in the south of Córdoba in which
peanuts are produced. 12,000 people are employed full time
and thousands more work in peanut related activities. Thanks to
this production of peanuts, this region has unique records: zero
unemployment, high school attendance rates, retention of families
in their places of origin, and highly developed communities which
care about social promotion.
The success of Argentina’s peanut industry can probably be
attributed to the organization of the different players into a
closely knit group. Peanut growers, industrial representatives, seed
providers, university graduates, research centers, labs, machinery
or equipment manufacturers, technicians, and service providers,
all work jointly to develop a peculiar synergy.
The Argentine peanut cluster is a pioneer for implementing systems
of food safety and quality assurance. Since the very beginning of
the peanut farming cycle, Good Agricultural Practices are applied.
In 2005 all of our processing plants started to follow Good
Manufacturing Practices (GMP) and then HACCP systems (Hazard
Analysis and Critical Control Points). Nowadays these plants even
have certifications under BRC standards (British Retail Consortium)
and ETI (Ethical Trading Initiative).
When was the Argentine Peanut Chamber born? What
are its goals?
The Argentine Peanut Chamber (CAM) was born in 1975 and
has always worked towards achieving its main goals: promote
continuous sector efficiency and quality in production; promote
exports, production development, and innovations in products;
provide member training support; establish good relations with
public and private institutions; and promote products in local or
foreign markets.
Who are its members?
The Argentine Peanut Chamber is conducted by representatives
of all segments involved in the peanut producing chain:
cooperatives of producers, shellers (exporters), brokers, surveyors,
customs agents, consultants, logistic companies and other
services representatives. Since August 2001 the Argentine Peanut
Foundation (entirely financed by CAM) supports and coordinates
research programs in the peanut sector.
How was your experience at Gulfood?
Dubai is not just a luxurious destination, but a necessary doorway
to Arab markets. This is the reason for our participation in
Gulfood. We have already integrated Argentine peanuts into
European and Russian markets, so CAM decided to expand its
trading zones and try nontraditional markets. We set up two main
goals regarding new destinations: the southeast of Asia and the
Arab world. Thanks to the support from the Argentine Embassy
in Tokyo and ProCórdoba Agency, we have started working in
Asia. We thought Dubai was the best scenario to display our
products in the Arab World.
Gulfood 2012

28. 26 News
Was it a positive experience?
Gulfood was an excellent starting point for us. The Chamber
shared an exhibition stand with several peanut companies
within the Argentine Pavilion which was organized by Fundación
ExportAr. We worked hard during the four-day fair and met
visitors from the United Arab Emirates, Pakistan, India, Iran, Saudi
Arabia, Yemen, Oman, Qatar, Egypt, Libya, Algeria, Lebanon, and
Turkey, among others.
In the Middle East, peanuts come from India and China, though
they are familiar with the prestigious Argentine peanuts. Many
buyers want better options and quality, though prices are always
a priority. Many confectionery producers had several inquiries;
peanut butter producers and snack retailers also contacted us.
It is worth mentioning that visitors had high expectations for the
next Argentine peanut harvest, due to the lack of global peanut
stocks and the reduced number of suppliers available this year.
Many Arab distributors need to receive peanuts before Ramadan
(at the beginning of July) because it is the peak time to buy.
Due to the presence of international tourists, the demand of high
quality products has risen. Thus, a new market for gourmet, or
delicatessen, products is being opened.
How are peanuts considered within the food sector?
Even though peanuts are legumes (not an oilseed), in international
trade they are included in the sector of “nuts” or “dry fruits”,
along with almonds, cashews, hazelnuts, macadamias, pecans,
pistachios, pine nuts and other less known varieties.
In many countries such as the Philippines, Gambia, Nigeria,
Senegal, Malawi, and Ghana, peanuts are a main source of
protein. Likewise, consumption of peanuts and peanut products
is a deeply-rooted gastronomic habit in other countries. For
Chinese, Indian, and many African Sub-Saharan populations,
peanuts and peanut oil are a basic food in the everyday family
table. Peanut butter is one of the most popular food traditions in
the USA; Europeans love peanuts in their snacks and chocolate
candies.
Peanuts have extraordinary nutritional properties; their versatility
makes them as accessible as they are popular.
What is the importance of CORDOBA PEANUTS
Certification of Origin?
CORDOBA PEANUTS is a quality company that is certified
exclusively by the Argentine Peanut Chamber, under a strict
control and inspection system. This is the first local brand in the
history of the Province of Córdoba; it was launched internationally
in 2007 with the support of Fundación ExportAr and ProCórdoba
Agency. Since then, CORDOBA PEANUTS has gained prestige and
international recognition, while it participated in Trade Fairs and
Business Missions all around the world. This brand guarantees
premium quality in the agricultural and manufacturing practices
under strict sanitary norms, and guarantees nutritional properties
and phytobiological specific characteristics.
Since 2000 INTA (Federal Institute for Agricultural Technology), the
State University of Cordoba and CEPROCOR (Provincial Central
Laboratory) have been studying peanuts grown in Cordoba and
found an amazing content of Fiber, Protein, Sugar, Iron, Calcium,
Magnesium, Potassium, Copper and Zinc, as well as healthy fats.
CORDOBA PEANUTS have very low acidity levels, remarkable
stability and extraordinarily high Tocopherol (antioxidant)
concentration.
Interview | Beatriz Ackermann, CEO from the Argentine Peanut Chamber
ExportsfromLeadingPeanutExportingCountries(inmetric tons peryear)
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
ARGENTINA 254,777 226,060 201,050 202,652 176,311 256,000 409,000 423,000 398,600 442,900 496,000
CHINA 399,970 706,000 770,000 761,000 690,000 600,000 600,000 400,000 400,000 400,000 350,000
USA 253,678 158,406 252,986 148,023 18,436 3, 170,000 192,000 205,000 280,000 217,000 250,000
Source: Peanut Argentine Chamber

29. 27News
By Javier González Ojeda
The peanut (Arachis hypogaea) is a legume that originated in
South America. It is an annual herbaceous plant with multiple uses
and by-products; peanuts are well known all around the world.
Main Peanut producers are mostly located in Asia and Africa (Chi-
na, India, Nigeria, Indochina, and the USA). Argentina is among
the top ten main producers in the world.
Peanut cultivation is concentrated in the Province of Córdoba
which grows eighty-five percent of the total production, followed
by Salta, San Luis, and La Pampa. Cordoba is the southernmost re-
gion that produces peanuts in the world; main locations are in Río
Cuarto, Juárez Celman, General San Martín, and Tercero Arriba.
As a result, local economies are based in peanut production. The
Argentine Peanut Chamber (CAM) estimates that the peanut in-
dustry employs 12,000 people full-time.
The main peanut by-products are candied peanuts as well as
peanut paste, butter, oil (crude and refined), meal, pellets, and
expellers.
Peanuts are not commodities so there are no international prices
to refer to. It is an elaborated product, quite not homogenous,
so the differences in its quality and its crops affect global pricing.
In fact, peanuts are traded with a higher added value than other
nuts or dried fruits. That being said, however, prices set by C&F
from Rotterdam port serve as guidelines. In this sense, the price of
peanuts is very volatile and depends upon the volume and quality
of what has been produced.1
The importance of Argentine peanut production lies in the role it
has in the international market. In this sense, Argentine peanuts
are acknowledged for being one of the best quality products in
the world. This high quality has carved a favorable niche in Eu-
ropean markets which make up almost sixty percent of the total
international purchases.
Low local consumption rates, permits the exportation of almost
ninety percent of all Argentine peanut production. In fact, the an-
nual per capita consumption is close to 270 grams, even lower
than in the Netherlands which consumes 5 kilograms per capita.
Argentina has become the first global exporter of peanuts. Most
of the shipments are to the USA, Russia, Australia, Canada, and
Algeria.
Strict European Union sanitary norms are sometimes a barrier for
many Asian countries (like China, India, Vietnam), or some African
nations (Nigeria and Senegal). This is an advantage for Argenti-
ne production, because its high quality places it easily in the EU
market.
In order to export peanuts, particularly to the EU market, Argen-
tina has strict food safety procedures in place. Inspectors from
SENASA monitor quality in sophisticated labs located in each ma-
nufacturer plant (which are certified ISO18025). In the European
Union, Argentine peanuts are used in snacks and candies, and as
a highly quality ingredient in gourmet products. Retail packages of
peanuts are in high demand.2
Peanuts
PRODUCTION CAMPAIGNS
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
YIELD (Has.) * 251,000 223,000 155,000 172,000 215,000 168,000 220,000 233,000 290,000 228,700 307,441 324,092 [e]
HARVEST (TM / Ha) ** 2.30 2.36 2.20 2.50 3.20 3.10 3.15 3.30 3.25 3.86 3.36 2.90 [e]
PRODUCTION (TM) * 577,300 526,280 341,000 430,000 688,000 520,800 693,000 768,900 942,500 882,782 1,033,323 941,499 [e]
Source: Peanut Argentine Chamber
* The provinces of Córdoba, San Luis, La Pampa, and Salta are included
** Average production (including loss & changes)
[e] Estimations from CAM and Cereal
Argentine Peanut Production (in tons)
Gulfood 2012
1
-Balance of Argentine economy. Chapter 15: Peanut Supply Chain (p. 533)
2
-Balance of Argentine economy. Chapter 15: Peanut Supply Chain (p. 544)

30. 28 News
Ceras Argentinas S.R.L. was born more than 20 years ago. It is a
family business that processes and exports beeswax and honey.
They sell to Latin America, Spain, the USA, Georgia, and Japan. They
want to access markets in the rest of Europe and the Middle East as
well. María Julia Arroyo, daughter of the founder, is in charge of the
business with her brother Francisco. She highlights the importance
of participating in Gulfood: “We were mostly able to contact buyers
from the Middle East. It is also important to attend this event and
maintain some continuity in Trade Fairs”.
A Family Company that
KeepsGrowingand
Expanding
Interview | María Julia Arroyo, Ceras Argentina S.R.L.

31. 29News
CERAS ARGENTINAS S.R.L. is a family business that has been
operating in the beeswax market since its beginnings in the 90’s.
It specializes in beeswax for beekeeping activities and for export;
and adapting it for its application in the food, pharmaceutical,
cosmetics, and candle industries, among others.
Francisco and María Julia Arroyo, son and daughter of the
company’s founder, are in charge of this business today. Along
with several young professionals, they all try daily to enhance the
quality of their products and services, and to develop new products
for this innovative entrepreneurship. María Julia Arroyo talked
about her company and experience with exporting their products.
When was the company born?
In 1994, Miguel A. Arroyo created this company using German
equipment and machinery, which allowed him to obtain one of
the most competitive products in the market. This technology
for beeswax block production completely changed our company.
Today, we have a modern manufacturing plant located in the
town of Pigué (Province of Buenos Aires) especially designed
under International Quality and Food Harmlessness Standards
(BPM, POES and HACCP) in order to satisfy the requirements of
the strictest market.
How do you promote your products in new markets?
Thanks to the support of Fundación ExportAr we participated in
Foodex (Japan) and we exhibited Argentine beeswax, which is
globally celebrated for its quality. This enabled us to expand our
trading markets and the volume of our exports. We also found
new venues, not just for beeswax products, but also honey. Jointly
with E-LIXI S.R.L. we started producing honeycombs.
Are honeycombs in demand?
Yes, honeycomb is considered a delicatessen product with
high nutritional values, and it is 100% natural. It is a product
elaborated by honey bees in their nests and directly extracted
from the hives. It is not altered or transformed by beekeepers.
So, this is why you decided to participate in
Gulfood 2012?
Exactly. We participated in Gulfood to promote this product and
contact potential distributors in the region, particularly in the
Middle East. In the short term, we hope to send our products
to this area. We wish to attend Gulfood next year too because
it’s important to maintain a constant presence in fairs in order to
strengthen commercial relations.
To what markets do you export your products?
We are exporting beeswax blocks to Germany, the USA, and
Japan. We are preparing our first shipment to Spain and
Georgia. We want to grow steadily in these markets. Regarding
honeycombs, we are only dealing with Japan, at the moment, but
we hope to access Middle Eastern and European markets soon.
What is your position in Latin American markets?
We ship honeycombs to several countries and we hope to access
Brazilian markets which are constantly growing. In May, we will
attend the Beekeeping Trade Fair in this country.
Gulfood 2012

32. 30 News
Rasic Hnos. S.A., which runs the prestigious brand “Cresta Roja”, again
participated in Gulfood and had a very positive experience. “People
were waiting in line to talk to us at the stand” affirmed Mariano Durán,
Manager of Foreign Trade. Rasic Hnos. S.A. exports their products to China,
Venezuela, and Chile, while being also in Europe and Africa.
Rasic Hnos. S.A. also known for the prestigious brand “Cresta
Roja” has been located in the Province of Buenos Aires for more
than 60 years. The company has two processing plants equipped
with the latest technology, where more than 380,000 birds are
daily processed. It has set up a fully integrated high-tech vertical
structure in charge of the entire productive process: Reproduction
farms, Hatcheries, Grow-out farms, Feed-mills, processing plants
(where whole birds, cut-up, frozen, marinated and pre-cooked
products are made), water treatment plants, and genetics labs.
Today, the company exports thirty percent of its total production,
while seventy percent is for the domestic market (wholesalers,
logistic operators, and supermarkets). Mariano Durán, Manager of
Foreign Trade, talked about their experience in Gulfood, as well as
their achievements and goals regarding international markets.
Steadily Making
their Way in the
Arab Countries
When did you start exporting?
The first export of “Cresta Roja” chicken started almost twelve
years ago when we shipped chicken feet to China. In 2003, we
sent whole chickens and some cuts. We grew from making $4
million dollars per year to $90 million. Today, our company has
3,200 employees and earns revenues of $380 million dollars. We
mainly export our products to China and Venezuela, followed by
Chile, some African countries, Europe, and other Asian countries
too.
Interview | Mariano Durán, Manager of Rasic Hnos. S.A.

33. 31News
Gulfood 2012
What were your first steps towards exporting like?
“Cresta Roja” started participating in many International Food
Trade Fairs seeking buyers abroad. First, we did it by ourselves.
Later, Fundación ExportAr offered their help and services, so we
started working together.
What fairs have you participated in?
One of the first fairs we attended was a Food Expo in Tokyo,
Japan. We shared the exhibition stand with other companies and
producers of wine, tea, flour, oils, and manufacturers of tea bag
packaging machines. We were the only representatives from the
aviary industry. The idea was to sell boneless chicken, a complex
product due to the requirements of the Japanese market. The
experience was excellent and very productive; we contacted many
new customers.
Fundación ExportAr was in charge of everything, from the design of
the stand, to our lodging and transportation. It was very interesting
meeting people from other industrial sectors and working as a
team with other producers and Argentine entrepreneurs. On
this occasion, the big star was Argentine wine, which is highly
welcomed by the Japanese.
We also participated in Gulfood, the annual food expo in Dubai.
This fair is held in a strategic location that connects four continents.
We were the first Argentine aviary company to participate in such
an event with the support of Fundación ExportAr. We had a small
exhibition stand managed by two people from our foreign trade
department. An anecdote? People were waiting in line to talk to
us at the stand.
What does Gulfood mean to you?
Gulfood is highly important because it is a door to access the Arab
world which consumes a lot of chicken. Perhaps, the characteristics
of this product are not so appealing in that region. In fact, their
chickens are quite small in size, between 700 grams and 1.3
kilograms, with white meat, and are sold per unit; our chickens
have yellow meat and weigh than 2.5 kilograms (so they are
sold per weight). This market needs large quantities of products
because it’s big and keeps growing. Today, we cover small niche
markets not available for Brazilian producers, but we can go for
more.
What makes Gulfood so special?
Gulfood is a hot spot, with lots of visitors interested in products.
Several potential buyers have visited us in the past years; even if we
haven’t done business yet, they keep showing up. Their presence
shows how the market grows; and also how they look for the
best options and prices to replace old providers. In order to sell in
Arabia, you need a sponsor and it takes tons of time to establish
this relationship.
Finding a sponsor was our main goal this year at Gulfood, because
we are growing and can participate in new markets. We will be
building our third processing plant in Lobos, Province of Buenos
Aires. It will be able to process 380,000 birds daily. Its state-of-the-
art technology will enable us to offer products according to the
particular needs of specific markets.
How is Argentine aviary industry considered in
international markets?
Argentina is well-known for the quality of its chickens and
related products. Brazil supplies most countries in the Arab world.
Participating in Gulfood allows us to directly compete for this
market, and access other regions, such as India, Vietnam, Turkey,
and particularly China, which has great potential due to mass
consumption.
How was the support from Fundación ExportAr?
We are proud of our joint efforts with Fundación ExportAr. They
have helped us in reaching new customers and presenting our
products all around the world, not just as chicken producers but
also under the “marca país” label. They have always shown high
professionalism while being there for us and listening to our
suggestions. We are deeply thankful for all the effort they put into
Argentine products, supporting our companies and entrepreneurs.

34. 32 News
The Market
In 2011, exports to Middle East totaled $3.3 billion dollars, which represented an increase of 18 percent compared to the
previous year. Due to weather conditions, this region had a demanded $3.08 billion dollars in food products
The United Arab Emirates (UAE) is a federation of seven emirates located on the Eastern coast of the Arab Gulf. The
constituent emirates are Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Quwain, Ras al-Khaimah, and Fujairah.
UAE is a prosperous well developed country, with a life expectancy of 78.2 years. Eighty-one percent of its inhabitants are
foreign nationals. Its GDP per capita is $48,500 dollars.
Extractive industries and services have a central role in the economy because UAE is a financial center in the region and an
important tourist destination. In fact, tourism made up 20 percent of the national GDP in 2011.
Several economic policies have sought to promote industrial diversification though they are still depending on hydrocarbons
production, such as petrochemicals, aluminum, and steel industries. In the last years, building industries have grown greatly.
Agriculture is less important because the region only has 3.2 percent of arable land, very few water resources (annual
rainfall reaches 33mm), and high temperatures (summer average temperatures are between 26° and 45° Celsius). Thus, it
represents 0.7 percent of national GDP, which means that UAE is an obvious food importer.
Argentina is the second largest food provider for UAE from Latin America after Brazil, and followed by Mexico. In 2011,
Argentina gained $332 million dollars in shipments in 2011. Its main exports represented 84.1 percent share of total exports,
and included oils and fats ($117 million dollars), cereals ($68 million), fodder ($25 million), chemicals ($9 million), and dairy
($9 million).
Gulfood 2012

35. TheArabWorld
33News
With a total surface area of 13.8 thousand
Km2, 72% of which is located in Africa and
28% in Asia, the Arab territory stretches
from the southern and eastern coasts of the
Mediterranean Sea, as well as both banks of
the Red Sea, the eastern half of the Arabian
Sea and the Atlantic coast of North East
Africa.
By Julio Jozami*
*This article is an excerpt from the report “Argentina and the Arab World: A New Approach Towards their Relationship”

36. 34 News
The Arab world is divided into five politically, economically and
socially exclusive geographic subregions1
, consisting of twenty-
two countries and 370 million people all of whom have distinctive
races, religions and age-old cultural traditions.
The cradle of ancient civilizations – including the Egyptians,
Phoenicians, Chaldeans, Babylonians, Assyrians, Armenians,
Canaanites – it was also the guardian of the Hellenic tradition
during centuries of barbarism in the East, giving us the calendar,
the alphabet and the foundations for the first libraries in Europe.
The Arabs simultaneously taught Aramaic, Greek, Latin and Arabic
in their Universities and benefited the Ancient world with their
knowledge and inventions. Noteworthy advancements included
developments in the Arts, science, architecture, philosophy and the
social sciences, all of which were precursors to the Renaissance and
Eastern Enlightenment. The development of advanced navigational
instruments and techniques also facilitated important geographic
discoveries of period.
According to Herodotus, the Phoenicians were the earliest
navigators of the Mediterranean as well as the first to sail around
Africa, landing at various locations in the costal Americas.
During their reign, the Arabs developed revolutionary commercial
methods, banishing the use of force and replacing it, initially, with
a barter system.
Today, two-thirds of the world’s gas and petroleum recourses reside
in Arab territories.
1-
Arab sub-regions are: Mashreq countries (Middle East), Maghreb countries (northwest of Africa), Gulf countries, Massr (northeast of Africa), and East Mediterranean Basin.
2-
The Arab League countries are: People’s Democratic Republic of Algeria, Kingdom of Bahrain, Union of the Comoros, Republic of Djibouti, Arab Republic of Egypt, Republic of Iraq, Hashemite
Kingdom of Jordan, State of Kuwait, Lebanese Republic, Libya, Kingdom of Morocco, Islamic Republic of Mauritania, Sultanate of Oman, State of Palestine, State of Qatar, Kingdom of Saudi Arabia,
Somali Republic, Republic of the Sudan, Syrian Arab Republic , Republic of Tunisia, United Arab Emirates, and Republic of Yemen.
3- Except for Saudi Arabia that unified in 1932, Arab countries become independent after the Second World War.
On March 22, 1945 delegates from seven Arab countries: Egypt,
Iraq, Libya, Saudi Arabia, Syria, Jordan and Yemen, met in Cairo
and signed the Charter of the Arab League that today binds these
countries together.2
Arabs in Argentina
The historic visits to Libya made by Emperor Peter II, in 1871
and 1876, prompted Syrian and Lebanese immigration to our
continent, due largely to the oppressive political and social climates
in their countries under the rule of the Ottoman Empire.
Arabs make up the third immigrant group, followed by the Spanish
and Italian, as a consequence of mass migration during the end of
19th and early 20th centuries. Arab immigrants – largely from
Lebanon and Syria – settled throughout the country and with the
clear intention of integrating themselves into the local culture; they
inserted themselves deeply into national work.
Despite their fortuitous ancestry, until the mid-20th century, the
union between Arab countries was all but non-existent. The
reasoning behind this situation is clear: when external trade
arrangements were established in Argentina (exportation of
natural resources to third party countries and the importation of
manufactured goods to supplement internal production), the Arab
countries could not acquire our production directly since they were
subject to colonial dominance.3

37. 35News
4-
The Paris Peace Conference created the United Nations on June 28, 1919. It also signed with Turkey the Treatise of Sevres (August 1920)
establishing “administrative mandates” in Iraq, Palestine, Jordan, Lebanon, and Syria. UK was in charge of them during the first three years,
followed by France during the remaining two.
5-
The Gulf Cooperation Council was created on May 25, 1981. Bahrain and Oman are also member countries. Its goal is to integrate and
coordinate political, economic, and military forces in order to overcome their vulnerability because they have highly desirable natural resources
though a reduce country surface and population. In 1983, they established a Free Trade Area among the six-member countries which aims to
become a Customs Union and later a Trade Union. During the last session of the Supreme Council that was held in Kuwait on December 14-15,
2009, they decided to establish a Common Currency and Central Bank. They also discussed the creation of a railways system among the member
countries and the electrical integration program.
6-
DPWorld was founded in 2005 after unifying Dubai Ports Authority (DPA) and Dubai Ports International (DPI). It has 45 container terminals in
31 countries. When they started their activity in Puerto Nuevo, terminals were in very bad shape; however today they are a primer example in
the world.
The Arab World
This was accentuated after the fact by the Society of Nations when, after resolving the First World War,
it distributed the governance of Arab countries, that until then had been part of the Ottoman Empire,
between France and Great Britian.4
These member countries included the northern stretches of Africa
that were colonized by France, Great Britain and Spain; Italy had seized Libya. Except for Saudi Arabia,
the remaining Gulf countries (Yemen, Bahrain, Kuwait, Oman, Qatar, and the United Arab Emirates)
suffered under British rule as did Egypt, Sudan, and Somalia. French protectorates included: Comoros,
Djibouti, Mauritania, Morocco, and Tunisia.
Recently, during the 70’s, a stronger bond formed within the Arab world that continued to grow during
the 90’s and has significantly broken loose since 2003.
Complimentary Economics with Argentina
The economies of Arab countries complement that of Argentina and because of this an ample playing
field exists in which to develop exchange and cooperation. It deals with markets in obvious expansion
with high demographic growth rates and significant need for food, agro-industry, mid-level goods and
adequate technology in their states of development.
In these sectors, Argentina has obvious comparative advantages and can gain an important increase
in its sales that could be even better stimulated if the commerce is a two-way street. Consequently, an
increase in our sales to the Arab world would foster the growth of exchange thanks to these new links.
The structural conditions of Argentina – a nation with ample geographical diversity and a largely
temperate climate, devoid of racial and/or religious controversy and with a low demographic density
and a culturally advanced population; an excellently rated labor force; self-sufficient in energy
sources and food; boasting a subsoil rich in minerals and an extensive, under-exploited coastline –
are recognized and highly valued by government officials, business owners and investors from Arab
countries that periodically make visits to our country.
Many sectors of our economy can receive monetary support from Arab countries in advantageous
terms and without contradictory conditions.
Various nuclear states in the Gulf Cooperation Council: Saudi Arabia, the United Arab Emirates, Kuwait
y Qatar5
are principal exporters of capital, and have recently taken a turn in their investments worldwide
in favor of physical assets and direct investments in industries, farming and service companies. Presently,
direct investment by Arab investors is scarce. Fortunately, this situation has already begun to reverse
itself. In other words, the two main container terminals of South America belong to Argentina and
are being operated by a company in the United Arab Emirates that maintains terminals 1 and 2 at
Puerto Nuevo, until 2019; DPWorld, a company that began operating in 1994 and is responsible for
managing it.6

38. 36 News
In December 2011, the Saudi Arabian company Almarai Co., the
largest integrated dairy producer in the Middle East, reported the
purchase of the Argentine company Fondomonte S.A. for $83
million dollars to ensure the supply of fodder for its dairy farms.
Fondemonte owns three fields with a total surface area of 12,306
hectares – producing largely corn and soybeans. This acquisition
provides the policy framework for the outlawing of any crop that
requires intensive use of water for cultivation before the end of
2016.
Our country needs one of three nutrients necessary for the produc-
tion of fertilizers; although Argentina has nitrogen and potassium
it lacks phosphoric resources. Morocco is the third largest produ-
cer of phosphates in the world (followed by the United States and
Russia) and counts on two-thirds of the tested reserves; Tunisia is
the fifth largest producer, Jordan the eighth and Algeria is the four-
teenth. We must establish joint enterprises with these resource
producing countries for the production of these consumables in
Argentina.
In December of 2011, the Moroccan company OCP (Oficina Che-
rifiana de Fosfatos, according to its acronym in French), one of the
primary producers of phosphates and agricultural fertilizers world-
wide, began operations in Argentina with a direct presence.
The pharmaceutical market in Arab countries has grown signifi-
cantly in recent years; the Argentine sector demonstrated itself to
be responsible, internationally, in dealing in conjunction with va-
rious enterprises.
ExistingDifficultiesandaWillingnesstoOvercomeThem
Real obstacles exist to successfully enhance these relationships: the
distance between Argentina and the Arab world, which increases
the cost of insurance and shipping; the limited understanding bet-
ween the economic participants; the absence of Arab banks in our
country as well as security companies and specialized consultants.
Until recently, there was also a lack of direct air and sea routes.7
Expensive supportive infrastructure established a significant restric-
tion within the market. However, we must also remember that the
state of things coincided perfectly with the total absence of a policy
aimed at rectifying the situation. This shift in attitudes allows us to
envision a promising new market horizon.
Furthermore, it has contributed to the achievement of a long term
realization of commercial efforts aimed at the Arab world and the
attendance at trade shows and expositions, like Gulfood en Dubai,
the International Fair of Algeirs, Horeca in Libya, and Saudi Food in
Saudi Arabia among others.8
Argentina-Arab Commercial Exchange
As a consequence of this, the direct commercial links between Ar-
gentina and Arab countries are very new. It is clear that it occurred
in import and export markets, indicating the general target values
for the Arab market, which on a whole hide any noteworthy dis-
parities in the individual performance of the twenty-one countries
that make up the network, even though fifteen of them represent
more than 90 percent of the total exchanges.
7-
At the beginning of March 2010, Akbar el-Baker, President of Qater Airways, announced direct flights between Buenos Aires and the region. There is also a plan to establish flights with Emirates
Airlines that since 2007 has been connecting United Arab Emirates with Sao Paulo (Brazil). In fact, since January 3, 2012, there has been a daily connection Buenos Aires-Rio de Janeiro-Dubai.
8-
These promotional activities are supported by the Argentine Chancellery, Fundación ExportAr, and PROARGEX (Argentine Agrifood Promotion of Exports Project).

39. 37News
Sales to the Arab World
In 1955 Argentine exports to the Arab world were scarcely $448,700 dollars. In 1973 the total had
risen to $44.91 million dollars; in 1974 the total reached $132.07 million dollars. Until 1989, with
various fluctuations, the total maintained itself at a very low level, catching up this year to $152.06
million dollars.
Since 1990, a tendency towards inflection created and continued to increase the volume of exports,
totaling $970.38 million in 1996.
From 1989 until 1996 the total of Argentine exports rose by 149 percent, while those exports directed
to Arab countries totaled 538 percent, more than tripling what would have been a proportional
increase.
In the years that followed, the increase continued and in 2002 it reached $1.35 billion dollars in
exports.
Since 2003, this growth trend has accelerated our sales to the Arab world rising from $4.32 to
$5 million dollars in 2008 – indicating an increase of 320 percent between 2002 and 2008. This
percentage exceeded the operative growth in total Argentine sales to the world which had diminished
by 273 percent. Consequently, during these years the participation of Arab countries in Argentine
exportation rose from 5.3 to 6.2 percent.
As a result of the world financial crisis – which began in 2008 and drastically worsened in 2009 –
Argentina’s sales to the Arab world reduced by $3.06 million dollars during this period, only to rebound
by 19.3 percent in 2010, totaling $3.65 million dollars.
2011 produced a noteworthy increase in exportation which rose $6.10 million dollars, reaching an all-
time high, even though there was an increase of 67 percent more than in the previous year.
It is worth mentioning that the evolution of the United Arab Emirates, which in 1992 imported
products corresponding to 36 tariffs, increasing to 167 lines in 2001, in order to reach 479 positions
in 2008, with a noteworthy addition in manufacturing in the agricultural sphere as much as in the
industrial field.
The Arab World

40. 38 News
Sales to the Arab World
With respect to our countries sales affecting the Arab World, we
must mention that these events are both scarce and erratic. In
2000, our sales totaled $121.8 million dollars – the equivalent of
only 11.1 percent of Argentine exports to the Arab World, which
not only reversed itself but was intensified. However, in 2011 the
$636.08 million dollars brought in only represented 10.4 percent
of Argentina’s total sales, despite representing an increase of 209
percent compared to the previous year.
In this way the triangle effect, which includes third world countries,
is due partly to the lag in our export activity with Arab countries,
which occurs in importation, and possibly on an even larger sca-
le. We have purchased phosphates, cork, mineral fertilizers and
chemicals, dates and innumerable Arabian goods from European
countries with a price inflation that is derived from dealing with a
middle man.
Final Considerations for Commercial Exchange
Argentina’s total sales to Arab countries comprise approximately
only 0.7 percent of what they buy from the world. Similarly, the to-
tal of Arab exports to Argentina represents only 0.5 percent of our
country’s total imports from the world. This confirms the enormous
possibilities that exist to create opportunities for greater commer-
cial exchange.
On a similar note, we must emphasize that it is essential to increase
our sales to the Arab world, even though a significant inequality
exists between our imports and exports which could give rise to an
undeniable retaliation, by means of sales from Arab countries to
other markets that are based on more balanced exchange.
We must look at what has been said above from the point of view
of our decision to create an associative link that not only implies the
exchange of goods, but also reciprocal investment and the sharing
of technology and knowledge to create a joint entrepreneurial fra-
mework in our country.
Both our country, as well as the Arab world, cannot deny the
effects of the global financial crisis that was rumored at the end
of 2007 and whose most severe consequences were plainly visi-
ble by the end of 2008 and during 2009. The generally low level
of global commercial activity, one of the inevitable consequences,
affected our external sales in general; furthermore, the Arab world
also purchased less food – the principal sector of goods exported
from Latin America to the Middle East as well as the United States
and European countries.
The member states of the Gulf Cooperation Council were seen as
being acutely effected by the financial crisis as holders of the securi-
ties of the central countries. The inventory value of these sovereign
holdings dropped an average of 30% during 2009, in spite of the
bankruptcy of Lehman Brothers in September 2008. In conclusion,
we want to recalculate the relative surplus of our commerce with
the Arab World.
On the other hand, in 2010 Argentine sales to Arab countries re-
presented 5.33 percent of the country’s total exports and only 3.07
percent of total global commerce. The positive exchange balance
with these countries represented 27.8 percent of the total surplus
of the commercial balance for Argentina. In 2000, when the total
surplus of Argentina’s exterior commerce was only $1.16 billion
dollars, the positive figure of the Arab world was $974.2 million
dollars. From this point on, during that year, the percentage of par-
ticipation between Argentina and Arab countries, in relation to our
exterior commerce surplus, totaled 83.50 percent. In 2011, sales to
the Arab world had exceeded the figures for 2010 by 67 percent,
signifying a new all-time record. Arab-Argentine trade made up
52.85 percent of the total surplus of our external commerce.

41. 39News
Regional Integration and Interregional Cooperation
The reality is that global commerce is concentrated in broad economic arenas which blur national
borders in the search for better markets. It is essential that emerging countries specify their geographic
integration and foster their capacity for growth in an ample regional framework. At the same time,
these countries must interact to arrive at the necessary scale to incorporate investments and the
sustainable development of technological resources.
Because of this, the link between countries that are committed to self-sustainable development is
logical and preserves their ability to make independent decisions in the face of demands and conditions
implemented by political powers and institutions that represent their strategic interests.
Regionalization, as a form of integration, helps these countries to surpass the asymmetry that,
individually, creates political and economic unity in blocks, augmenting the possibility for an
advantageous entrance in the international market.
South America is going through a very promising period, in spite of the consolidation of governments
and national movements by popular demand with identical objectives: independent growth and social
democratization, which has re-established the need for continental solidarity in order to secure their
individual destiny as well as that of the group. This similar positioning, with respect to global economic
order and world politics, is expressed in spite of the 4th Summit of the Americas – held the 4-5th
of November 2005 in Mar de la Plata – in which the four Mercosur countries, as well as Venezuela,
objected to incorporation into the FTAA or Free Trade Area of the Americas.
Their efforts were rewarded with the inclusion of the following paragraph in the final declaration of
the Summit: “Other members maintain that they still have not been provided the necessary conditions
to achieve a fair and balanced free trade agreement with access to markets that are free of subsidies,
commercial distortion and which takes into account the needs of all participating business partners and
their different levels of development and the breadth of their economies.” As a result, the constitution
of UNASUR (USAN-the Union of South American Nations) has created a Council of Defense in South
America, whose foundation is the Declaration of Santiago Chile (March 2009), and the creation of the
Bank of the South, which was signed in Parlamar, Isla Margarita, September 26, 2009 in Venezuela by
Argentina, Bolivia, Brazil, Ecuador, Paraguay, Uruguay and Venezuela and which was ratified by both
houses of the Argentine Congress on September 7, 2011.
The Presidents considered the following: “that the financial and economic structures of South America
appear to have limitations in terms of the expansion of financial markets; what make national savings
flow towards economies that are more developed instead of being invested into regional projects,
orienting these resources internally in order to raise the availability of liquidity, re-energizing investment,
correcting asymmetry; developing an integrated infrastructure, promoting employment and initiating
an efficient cycle, which is fundamental for the transformation of the economy, society and regional
economics”.9
9-
Venezuela, Ecuador, and Bolivia needed Congress ratification. The approval from Uruguay Congress is clear. Upon the creation of UNASUR, Chile and
Peru rejected their membership and Colombia remained as observer. To start operating, it needs the simple majority of state members and two-thirds
of the $10 billion dollars capital. Brazil needs to grant $6 billion, Argentina and Venezuela $2 billion each, Ecuador and Uruguay $400,000 each, Bolivia
and Paraguay $100,000 each. The agreement was signed on December 9, 2007, by the presidents of all member countries plus Colombia who wants
to participate in the Bank of the South.
The Arab World

42. The interaction between South America and other regions is an on-going process in the way in which the
possibility of interregional cooperation creates individual opportunities out of each block and member
country. In this way, we emphasize the organization of the Africa-South America Summit which later
dealt with difficult negotiations, achieved over the course of various years that finally exceeded limited
visions.10
This same decision created dialogue and cooperation South to South. The firm conduct in favor
of interregional integration also capacitated the creation of the Summit of Arab-South America Countries
(ASPA) attended by Chiefs of State.11
As a result of these long-disputed discussions, the signing of the free trade agreement between Mercosur
was confirmed in July 2010 in the city of Tucumán, under the direction of the President pro tempore of
Argentina and the Republic of Egypt. This accord is the first step towards the successful creation of a free
trade area between South America and the Arabic countries of the southern Mediterranean coast.
Mercosur (Common Southern Market) and Palestine signed a Free Trade Treaty on December 20, 2011
according to the 42nd Summit of Presidents of the block which took place in Montevideo. They also
worked on the realization of two agreements very similar to those of Morocco – which will, undoubtedly
extend to the Maghreb area – with Jordan and member countries of the Gulf Cooperation Council.
Having said this, South America and the Arab countries have begun to consolidate their links through
concrete actions of interregional cooperation. Lastly, the cooperation between regions with identical needs
for sustainable, integrated development is the keystone to finally removing the international bipolarity that
exists – with the eventual individual inclusion of other players – in favor of equalitarian multilateralism
between nations and regional groups.
10-
The first Summit was held at Abuya, Nigeria, on November 26-30, 2006. Heads of state from 61 countries, 49 from Africa and 12 from South America, participated in the Second Summit, with
the theme of “Closing gaps, opening up opportunities” at Margarita Island, Venezuela, on September 27, 2009.
11-
ASPA First Summit was held in Sao Pablo, Brazil on May 10-11, 2005. South American countries participated as South American Community of Nations established on December 5, 2004 at
Cuzco, Peru. ASPA Second Summit was held in Doha, Qatar, on March 31, 2009. Chiefs of State from South American countries participated as members of the UNASUR (created on April 17, 2007
at Margarita Island, Venezuela). ASPA Third Summit was planned to be held on February 2011 at Lima, Peru; however it had to be cancelled due to political and social problems in the Arab World.
40 News

43. 41News
This is the ideal course to raise productivity as a whole and to gain
access to higher levels of industrial complexity; at the same time, it
will permit the development of centers for scientific investigation as
well as an increase in technological innovation, both of which are
essential for future growth.
Into this framework is inserted the proposal for a greater, more
intense and higher opinion among Arab countries, in which the
large part of the benefits of cooperation between nations with
complementary economies has yet to be realized. In this way, the
strategic concept addresses the conduct of the state and entertains
favorable expectations thanks to the joining of the majority of the
leaders and people of South America in similar positions.
This posture contributes to the stout defense of our individuality
in the context of a new world order in which each nation will hold
the best position that will only be defended, and secured, by that
country’s hard work and persistence.
To this end one must assume that regional integration is essential.
It is essential the dialogue between regional groups with similar
characteristics and goals in order to face the unavoidable challenge
of integral development.
12-
In November 1989, the British economist John Williamson prepared a document for the meeting between the International Institute of Washington and economic authorities of Latin American
countries. He said that he “wrote this reference document describing a set of ten relatively specific economic policy prescriptions that people in Washington thought necessary to implement in
Latin America at that moment”. This understanding was reached among Washington, DC based institutions such as the International Monetary Fund (IMF), World Bank, the USA Congress, the
Federal Reserve, and the US Treasury Department. Williamson guidelines were a Decalogue of neoliberal polices aimed to deregulate, privatize, and open the economies of crisis-wracked developing
countries in the Americas. Fourteen year later and jointly with Pedro-Pablo Kuczinsky, he wrote a book entitled “After the Washington Consensus: Restarting Growth and Reform in Latin America”
(Institute for International Economics, 2003). In this book, he explains further these ten policies; he apologizes and corrects some misunderstandings, acknowledging in part his failure of his previous
recommendations and the severe crisis caused to Latin American countries by them.
Argentina’s Recovery since 2003
Many years of political missteps, that only consolidated the
financial sector and activities that were included in the dependent
agricultural exporter and anti-industrialist outline, brought about
a point of inflection during the beginning of the new millennium;
the consequence of which was the inevitable collapse and
impoverishment of the lower and middle classes.
Argentina had followed the recommendations of the Washington
Consensus to the letter for many years.12
However, in order to
break this vicious cycle of tightening up and recession, since May
2003 it has had to face the reconstruction process by which to
reorganize its production infrastructure and decimated industrial
sector as the only means of securing jobs, housing, health, and
education for all of its citizens.
In order to ensure the results of this sustainable development
model with equality and social inclusion – supported fundamentally
by the strengthening of the internal market – the growth of the
external sector is of primary importance. Therefore, Argentina’s
wealth will be derived from the increased incorporation of high
quality raw materials, requiring the participation of emerging
markets in order to invest in manufacturing technology that does
not require middle class. In order to do this, it is necessary to look
to the developing world and, especially, to those countries who
economies complement our own.
The Arab World

44. 42 News
A qualitative change in the relationship
We have enumerated the advantages that could be derived from changing the focus of the relationship
between Argentina and Arab countries by transforming it into a true association in favor of joint
development. This analysis finds its primary support in the complimentary elements that exists between
the economies of Arabic countries and Argentina, which could be enhanced by innumerable similarities
and coincidences, as much political as social and cultural.
Similarly, our country has successfully passed technology – horizontally – in the form of nuclear energy.
The exploitation of agriculture and livestock, and cooperating in other scientific and technological fields
has been essential. Also, Argentina has studied and researched the implementation of joint efforts in
Argentina and Arab countries through direct reciprocal investments. These actions are accompanied,
and as an additional benefit, by a sensible increase in commercial exchange that, inevitably, will produce a
change in the quality of the relationship.
A situation where the restrictions are raised on external commerce, derived from the reduction of activity
in the first world and the consistent drop in its purchasing power has special relevance to the behavior
of Arab countries. These countries significantly increase their purchases without restrictions and prefer to
invest in sectors of our economy which contribute to the capital that could be derived from an immediate
increase in our ability to export.
A stout determination exists in the governments of Argentina and Arab nations to strengthen the existing
links between them according to this new dimension. The work consists of establishing an associative
relationship that does not only imply an exchange of goods, but also reciprocal investments and the
sharing of technology and knowledge, realized through joint enterprises.
In this way, as well as through other initiatives, it is worth pointing out that the global food supply, with the
inclusion of high value added, will be confronted by our country in cooperation with the Arab countries
and their surplus of capital from the exploitation of gas and oil.
During the first two weeks of October 2010, the Saudi Arabian Minister of Agriculture, Dr. Fahad A. S.
Balghunaim,visitedourcountryaccompaniedbyanimpressivedelegationofpublicservants,entrepreneurs
and investors. The delegation was received in a special audience with the President Cristina Fernández de
Kirchner and the Minister of Agriculture, Livestock and Fisheries, Dr. Julián Domínguez.
Dr. Balghunaim explained that his government had decided to change the strategy that was adopted in
1978 to achieve alimentary independence with the slogan, “food safety and self-sufficiency at any cost”.
The Saudi Arabian explained that they depend totally on fossil water and irreplaceable and unsustainable
aquifers for crop cultivation, especially for the production of wheat. As a result, the decision was made to
obtain self-sufficiency through production outside of the country in association with a host country and
its investments. Bearing this in mind, and later thanks to a study of global conditions with regards to raw
materials in food cultivation, they selected five countries that had outstanding comparative advantages.
Argentina was at the top of this list, taking into consideration that not all of the aspects were based solely
in the context of production, but also with relation to social, political and cultural conditions.