The Argentinean private sector and the governments of five provinces within the country have decided to initiate a strategic plan for the olive oil sector over the next 10 years. Some of the objectives of this plan include extending olive oil sales to external markets, organizing and planning the development of the sector both short and long term, and ensuring the sustained increase in the olive oil value chain through a commitment to ensure the high quality of Argentinean product.
One of the proposals which had firm backing from a number of diverse experts was to adapt the existing business strategies of the booming Argentinean wine industry to the olive oil sector. Others in opposition to this plan however point to several clear, problematic differences between the two sectors, specifically with respect to the available methods of production. As it stands, Argentina is currently a world leader in the production of wine while its olive oil output still remains quite limited.
Therefore, while the principal objective of the wine industry plan was to gain external consumers for the high quantity of wine that was being produced internally, specifically through maintaining a good relation between price and quality, the new olive oil plan takes a slightly different approach. The Argentinean olive oil plan hopes to “woo the world with extremely high quality and the greatest added value possible by ensuring the harmonic and sustained growth of the industry value chain”.
Currently, the olive oil from the Argentinean province of Mendoza is one of the most valued in the country and has already reached the quality that current world markets demand. Recently the provincial government in this province approved the “Origen Mendoza” law which regulates the production of extra virgin olive oil from this region in order to ensure maximum quality and remain competitive at an international level.