MercoPress. South Atlantic News Agency

Argentine wine exports set for another record year

Exports of Argentine wine are set to rise 20% this year to record levels, with a weak local currency giving the country's vineyards a competitive edge, according to a study published over the weekend.

Although Argentina still trails neighboring Chile in the global wine business, its exports have soared since the sharp devaluation of the peso currency in 2002. Chile which during the last three decades has invested heavily in the industry and new vine stocks plus aggressive marketing has become Latin America's leading wine supplier with exports close to a billion US dollars annually. The research by IES Consultants said Argentina's foreign wine sales would total 450 million US dollars this year, up 20% from 2006. That compares with the 825 million that wine exports earned Chile last year. "The wine industry's exports continue to grow due to the improved competitiveness of local wines, coupled with the appreciation of the currencies of some competitors such as Chile" the consulting firm's report said. "Considering the current export pattern, there could be a new record in 2007 and the wine exports could grow by more than 20% to bring in about 450 million," it added. Argentina is especially well known for its Malbec, grown in the Andean province of Mendoza, and its top buyers include the US, Britain, Canada and Brazil. Investors from Chile, United States, Spain, France and Italy among others have acquired wineries and land in the provinces of Mendoza, San Juan and Salta.