Food Processing Equipment

An Expert's View about Food, Beverage and Tobacco Processing Machinery in Argentina

Posted on: 24 May 2012

The US continues to hold its position as the largest supplier of food processing equipment to
Argentina. While local production figures are almost non-existent, imports are estimated to
account for 70 to 85 percent of the total market. Imports experienced a peak surge in 2011
and are expected to return to more moderate growth levels, due to a weakened demand both
locally and internationally.
2011 import market share: United States: 18.4%; Italy: 16.5%; Brazil: 12.5%; Germany: 7.6%

Sub- Sector Best Prospects
U.S. exports may continue to find opportunities in the following specialized areas: equipment
for fat and vegetable oil extraction and processing, a subsector which had a 37.5 percent
market share for U.S. products in 2011; poultry equipment, which represented a 26 percent
market share; and machines for cleaning, sorting or grading seed, grain or dried leguminous
vegetables, where imports from the U.S. had a 23 percent market share in 2011. Parts for
food processing equipment are also a good prospect for U.S. exports, given the trend to repair
existing machines due to the rising cost in peso terms of imports, and the virtual lack of local
credit for capital goods.

The food processing equipment market in Argentina relies heavily on imports by large
domestic food processing companies and food exporters. Market growth is largely tied to
investment in technology and the expansion strategies of these companies. U.S. products are
often sought out, particularly in the higher-end technology segment.
Scarce financing available to the local market is an issue. However, two U.S. banks operate in
Argentina to offer loans to importers of U.S. equipment using U.S. EXIM Bank guarantees,
which increases opportunities for sales of U.S. technology

Read the full market research report

Posted: 24 May 2012

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