Rabobank’s Food and Agribusiness Research advisory division recently released its latest report on the global wine industry with particular focus on the challenges faced by Argentina. Argentine wine exports increased significantly in the early 2000’s but began to contract in 2012. Production costs have increased by as much as 100% as the inflation rate and exchange rates are both troublesome. In 2012 Argentine wine accounted for more than 3% of total world exports with a heavy leaning toward the U.S. The report suggests Argentina maneuver to gain market share within the growingly affluent Hispanic U.S. population as well as the growing middle class in Mexico. AS costs increase, Argentina cannot compete at the lower-end market segment and must shift toward the higher-end wine market to regain competitiveness.
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