REGULATIONS

• Cocoa products and delicacies including cocoa in their manufacturing are described in CHAPTER XV-STIMULATING OR ENJOYABLE PRODUCTS- Cocoa and Chocolate, of the Argentine Food Code, in articles 1137 to 1162.

IMPORTS

• Argentina lacks the agro-ecologic conditions for cocoa production, therefore, the country imports the ingredients necessary for making chocolate.
• As our country does not have statistics on the production of chocolate delicacies, the imported volumes of basic cocoa products are a good estimation of the activity level of the sector. However, this relationship is only approximate as the proportion of cocoa used varies in the different products made, therefore the production volume cannot be inferred with precision. The following table shows the volumes of basic cocoa products imported in the past years.

Imports of cocoa derivatives (Ton. and US$ thousand)

• As from 1998, the imports of chocolate confections had a growing pace of 25% per year until 2001. Due to the exchange rate modification in our country, imports fell 75% in 2002 as regards the previous year. There was a slight increase in the following years and in the first quarter of 2005 the imported volume was 11.21% higher as compared to the same months in 2004.
• Brazil is the main supplier of these products, with 90% of total imports, which apart from its geographic proximity, it has the advantage that as it is a Mercosur member country, its goods do not pay import fees.
• The imports of chocolate confections in the past six years are detailed as follows. 2005 values correspond to the first quarter of that year. We include white chocolate but not cocoa basic products.

Imports of chocolate confections (Tons. and US$ thousand)

FOREIGN TRADE

• During the last years the Argentine exports of chocolate confections were between 20 and 30 thousand tons, with an average value over 75 million dollars.
• As from 2002, the tendency of export volumes has had a slight positive tendency, with increasing values as well. Notice that the products sold are high value added food.
• The following chart shows the evolution of exports in the last years. The data of 2005 corresponds to the period January-March.

• Exports are very much concentrated; the first three companies concentrate 98% of traded volumes.
• As regards the provincial origin, Cordoba, San Luis and Buenos Aires concentrate around 95% of sales.
• With reference to destinations, shipments reach more than 100 countries. The main buyers are detailed in the following charts.

Main exports destinations (Tons. and US$ thousand)

• In the first quarter of 2005 the volumes increased 3.61% as compared to the same period in 2004, while they increased 9.57% in value.
• Presently, the exports of products included in chapter 18 of the Mercosur Common Nomenclator (cocoa and preparations) are subject to an import fee of 5%. On the other hand, export reimbursements vary between 1 and 6%, by virtue of the manufacturing degree of products.

CONSUMPTION

• The consumption per capita of chocolate confections in Argentina, is calculated in 1.6 k/inh./year. In Western Europe the consumption is between 8 and 11 k per capita per year, and Brazil has an apparent consumption close to ours with 1.77 k per capita per year. Sales are seasonal, and there is a dramatic fall in the summer months.
• In general, delicacies show an elastic demand over income. In the past years it was obvious that the periods of less consumption coincide with times of economic crisis.
• As they are products which can be replaced by more economic alternatives or directly eliminated from consumption habits, chocolate confections are among the mostly affected categories.
• As from the data obtained from the National Commission of Values, a highly aggregated presentation of the cost structure of the industry shows that raw materials and supplies are 61% of expenses; while labor remunerations represent just over 8%. Other important items are taxes (6.93%), miscellaneous services (5.48%), amortizations (4.7%), machinery maintenance (2.12%), freights (1.73%), advertising and publicity (1.40%), banking interest and expenses (1.13%), electric power, gas and communications (0.95%).

COMPANIES

• There are around 125 companies in Argentina devoted to the elaboration of delicacies. The market is moderately concentrated. The firm Arcor is the leader of a sector competing with international trademarks such as Kraft Suchard, Nestle, Ferrero and Cadbury Stani. According to the figures from the Superintendency of Labor Risks, cocoa manufacturing employs around 2200 people. The investments made in the installation, modernization and enlargement of plants in the past years, provided the sector with a highly competitive profile.
• The main companies are concentrated in Cordoba (Arcor, Georgalos), San Luis (Estirenos S.A., of Arcor group) and Buenos Aires (Ferrero, Kraft Suchard, Terrabusi). However, there are plants of these and other firms in other provinces. There are also many chocolate factories and of regional products in the Patagonia and in the Argentine North-West, in some cases associated with tourism.

INVESTMENTS AND IMPLEMENTATION OF QUALITY SYSTEMS

• By reassuring the close link existing between the investments in the sector and the exports increase, the incorporation of modern machinery and equipment for the elaboration of chocolate confections, the sales to the external market were notoriously increased.
• For 2005 it is registered an accumulated investment of about 90 million dollars. This information only refers to investments made in specific technology for the manufacturing of delicacies. Other general equipment such as packaging machines or storing or material handling devices are not included. The investment in technology of national origin is not included either. Then, we can infer that in absolute terms the investment in the sector has been greater than the estimated.
• The main origins of technology imports in the period of reference were Italy, Germany, the United Kingdom, Spain, Switzerland and Austria.
• The following chart details some of the important firms of the sector which have implemented quality assurance systems.

Investments and implementation of quality systems

BIBLIOGRAPHY

ICCO – FAO - INDEC (Lic. Miguel Ángel Forte) - INTI - Comisión Nacional de Valores - AFIP- Código Alimentario Argentino - Diarios y revistas nacionales.

CHAMBERS

CIPA (Cámara de Industriales de Productos Alimenticios). Av. Córdoba 1345. 9º P. CP 1055AAD. Tel. 4814-1230 / 1233/4020. http://www.cipa.org.ar COPAL (Coordinadora de las Industrias de Productos Alimenticios). Florida 537. Piso 2º. Of. 613. CP 1005AAK. Tel. 4325-8643. http://www.copal.com.ar ADGyA (Asociación de Distribuidores de Golosinas y Afines). Perú 913. CP 1068. Tel. 4361-8741/45/47. http://www.adgya.org.ar