November 9, 2021
News

This year, we have doubled our Argentine lemon shipments to the United States and expanded our programs with strategic customers. We have also exported avocado to Algeria and Morocco for the first time.

Committed to sharing the daily lives of families through a portfolio of high quality fruits from our four points of origin in the Southern Hemisphere, we have finished our 2021 crop seasons on a positive note with milestones that motivate us to continue growing.

Argentine lemons had a great year. Shipments of this product to the United States have grown 100 percent compared to the previous year, a trend that has been sustained since the two countries resumed trade relations. It has also increased its presence in Canada (Argentine lemon exports rose 25 percent against 2020) and in China, where our shipments increased 10-fold: from 500 tons exported last year to 5,000 tons in 2021.

From Uruguay -where San Miguel is the second largest lemon exporter in the country- 80 percent of our production was sent to the European Union; while from South Africa, our lemon shipments grew 5 percent year-on-year.

For export mandarins this has been a challenging season, particularly in the United States, given the demand level and the extended supply of fruit from California. However, this trend has been reversing towards the end of the crop season and we have been able to sustain volumes similar to 2020, with 37,000 tons mainly with premium programs from Peru and Uruguay. Additionally, we have expanded the mandarin program for Walmart Mexico, growing in volume, but also strengthening the “Clemy” brand promotion campaign in the shelves of this leading supermarket. As regards oranges, shipments both from Argentina and South Africa remained at the usual pre-pandemic levels.

It is also important to note one of the biggest challenges we had to face during the season: the unprecedented scenario in global logistics that affected the entire world. Primarily, our business was impacted by delays in deliveries due to extraordinary transit times and an increase of up to 50 percent in fares for certain routes. To solve this, at San Miguel, we have redoubled our efforts to anticipate, seek alternatives and thus try to meet our customers' needs in the best possible way.

“Having consolidated our relationship with customers and strengthened our sustainability journey with projects such as the consolidation of our global greenhouse gas inventory, we have finished a new season proud of everything we have accomplished and auspicious in planning for a promising 2022 season,” said Juan Martín Hilbert, Fresh Fruit Commercial Director at San Miguel.

 

Fruits of the avocado season

Total volume of avocado production in 2021 season was more than 12,500 tons, of which more than 90 percent was allocated to export to destinations such as the European Union, the United States and Japan. With the aim of continuing to conquer new markets, we have exported this fruit for the first time to Algeria and Morocco.

In Peru, we had yields of 30 tons per hectare, 80 percent more than the average in the rest of the country. Pablo Zócalo, Operations Manager in Peru, explained that “this significant improvement responds to a number of improvement initiatives in tree pruning and fertilization management that allowed increasing the volume and minimizing mechanical damage in harvest. But it has also been possible thanks to the outstanding work of the operations and commercial teams, which year after year learn, build knowledge and gain experience in this crop.”