Required Report - public distribution

**Date:** 6/14/2006

**GAIN Report Number:** AR6021

AR6021

**Argentina**

**Wine**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Robert Hoff

U.S. Embassy

**Prepared by:**

Francisco Pirovano

**Report Highlights:**

The calendar year (CY) 2006 crop is one of the best crops ever, only
comparable with the great 2002 harvest, due to the exceptional weather
enjoyed by most of the production regions. The Argentine wine industry
continues to grow domestically and internationally. Domestically, the
consumption of fine/premium wines continues to increase.
Internationally, the Argentine wine exports are expanding every year.
Imports continue to be negligible due to the high cost of imported
product, and the preference of the Argentine consumer for local wine.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Buenos Aires \[AR1\]

\[AR\]

# 

# 

# 

# Table of Contents

# 

[Section I. Situation and Outlook 3](#section-i.-situation-and-outlook)

[Production Areas 3](#production-areas)

[Planted Area 3](#planted-area)

[Production 3](#production)

[**Grape Production 3**](#grape-production)

[**Wine Production 4**](#wine-production)

[**Must Production 4**](#must-production)

[Consumption 5](#consumption)

[Trade 5](#trade)

[Factors Affecting Industry Structure
7](#factors-affecting-industry-structure)

[Section II. Statistical Tables 8](#section-ii.-statistical-tables)

#   {#section-4 .unnumbered}

# Section I. Situation and Outlook

# Production Areas

Argentina's production area for wine ranges from up in the northern
province of Salta to the southern region known as Patagonia i.e., the
provinces of Neuquen, Rio Negro, and Chubut. This 4,800 mile long strip
of irrigated desert alongside the Andes Range has proved to be highly
suitable for growing grapes of different varieties. Even though the
Malbec variety has become the signature for the Argentine wine, almost
all world varieties thrive in Argentina.

The provinces of Mendoza and San Juan cover 90 percent of the total area
planted with grapes in Argentina, and are the traditional wine producing
areas. The three northern provinces of Salta, La Rioja and Catamarca
cover six percent of the planted area, which is the main given to the
production of wine grapes. The Torrontes variety is mainly produced in
that region. Another region that is gaining importance as a wine
producing one is composed of the valleys of Neuquen and Rio Negro
located in southern Argentina (Patagonia), which cover two percent of
the planted area. The remaining two percent is shared by the provinces
of Misiones, Buenos Aires, Cordoba, Santiago del Estero, San Luis,
Chubut, Tucuman, La Pampa.

# Planted Area

Total area planted with grapes in Argentina reached 210,000 hectares in
CY 2004. In the last three years area planted to grape has increased at
an average annual rate of 2 percent. Planted area to wine grapes was
198,000 hectares, 94 percent of the total grape planted area. The rest
corresponds to table grapes and raisins. By mid CY 2004, red grapes
covered 42 percent of the total wine grape area, rose grapes followed
with 34 percent of the area, and white grapes covered 24 percent. Since
CY 2000, planted area with white and rose grapes has declined annually
around 4 percent each, while red grape planted area has increased by 20
percent. If compared with 1990, the red grape area has doubled from
42,000 hectares to 84,000 hectares, the white grape area has decreased
from 60,000 hectares to 47,000 hectares, and the rose grape area has
fallen from 100,000 hectares to 66,000 hectares.

This trend seems to be consistent with the change undergone by the whole
Argentine wine industry, where domestic consumption of table rose wine
has decreased, and domestic consumption and exports of red wine have
increased in the past fifteen years.

High quality red varieties account for most of the increase. For
example, the planted area to Malbec variety went from 10,000 hectares in
1990 to 20,000 hectares in 2004. The same happened with Cabernet
Sauvignon (2,000 to 15,000 ha), Syrah (600 to 8,000 ha), Merlot (1,000
to 7,000 ha), and Bonarda (12,000 to 16,000 ha).

# Production

## Grape Production

The CY 2006 crop is expected to reach 2.9 million metric tons (MT),
nearly seven percent higher than the CY 2005 crop as a result of the
expanded planted area and higher yields. CY 2005 resulted to be
uncommonly drier than previous seasons with only four inches of rain
(average rain has been around six inches in the last 10 years), which
resulted in very healthy vines and exceptional grape quality.

The 2005/06 growing season was characterized by good plant health due to
favorable weather conditions, which entailed an increase in grape
production. Also, good weather conditions (dry and sunny) at harvest
implied evenly matured grapes with an excellent alcoholic grade (13.33
percent), which yielded wines of superb quality. Driven by a higher
international demand for premium wines, demand for top quality grapes
increased in CY 2005 and so did their prices.

  ----------------------- --------------- --------------- --------------- --------------- ---------------
  **Grape Production to                                                                   
  Crush (MT)**                                                                            

  **Kind/Year**           **2002**        **2003**        **2004**        **2005**        **2006\***

  **Red**                 666,217         683,500         860,000         930,000         1,000,000

  **White**               627,214         600,000         643,000         700,000         820,000

  **Rose**                814,401         910,000         999,000         1,000,000       1,000,000

  **Others\*\***          49,670          28,269          55,460          70,000          80,000

  **Total**               **2,157,502**   **2,221,769**   **2,557,460**   **2,700,000**   **2,900,000**
  ----------------------- --------------- --------------- --------------- --------------- ---------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/)) adjusted by FAS Buenos Aires

\*FAS Forecast

\*\* Table grapes and raisins

## Wine Production

In CY 2006, wine production is expected to decline slightly to 15
million hectoliters (Hl) as a result of more grapes sent to crushing for
grape juice (must) this year.

  ------------------------ ------------ ------------ ------------ ------------ ------------
  **Wine Production (HL)**                                                     

  **Kind/Year**            **2002**     **2003**     **2004**     **2005**     **2006\***

  **White**                5,000,000    6,200,000    7,000,000    6,600,000    6,500,000

  **Colored**              6,704,000    6,300,000    7,500,000    8,600,000    8,500,000

  **Others**               991,000      725,000      1,000,000    0            0

  **Total**                12,695,000   13,225,000   15,500,000   15,200,000   15,000,000
  ------------------------ ------------ ------------ ------------ ------------ ------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/)) adjusted by FAS Buenos Aires

## Must Production

The National Wine Institute (INV) established that 28 percent of the
grapes harvested in CY 2006 must be destined to crushing to produce
grapes juice (must). This is a policy that the INV has adopted in order
to limit the quantity of grape going to wine in order to keep grape
prices up.

  ------------------------ ----------- ----------- ----------- ----------- -----------
  **Must Production (HL)**                                                 

  **Kind/Year**            **2002**    **2003**    **2004**    **2005**    **2006**

  **Concentrated**         4,428,335   4,300,905   4,699,549   5,800,000   6,000,000

  **Others**               1,019       76,560      142,437     200,000     300,000

  **Total**                4,429,354   4,377,465   4,841,986   6,000,000   6,300,000
  ------------------------ ----------- ----------- ----------- ----------- -----------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/)) adjusted by FAS Buenos Aires

# Consumption

Domestic consumption of wine in CY 2005 declined slightly to 10,000,000
Hl compared with the 11,112,578 Hl consumed in CY 2004. However, as in
previous years, domestic consumption of bottled wines (fine and premium
bottled wines) increased 66 percent from 925,000 Hl in CY 2004 to
1,530,000 Hl in CY 2005.

  --------------- -------------- -------------- -------------- -------------
  **Wine Domestic                                              
  Consumption in                                               
  liters per                                                   
  capita**                                                     

  **Kind/Year**   **2002**       **2003**       **2004**       **2005**

  **Wine**        23.89          22.80          N/A            N/A

  **Others**      0.45           0.70           N/A            N/A

  **Total**       32.9           33.68          29.87          29.6
  --------------- -------------- -------------- -------------- -------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/)) adjusted by FAS Buenos Aires

# Trade

Overall wine exports in CY 2005 increased 16 percent in volume with
respect to CY 2004. While total wine exports in CY 2005 were worth
US\$302 million, fine/premium wine exports reached US\$224 million with
an average FOB price of US\$3.8. Sources in the industry informed that
exports could easily reach US\$800 million by 2010.

  ----------------- ------------ ------------ ------------- --------------
  **Wine Export                                             
  Volumes (HL)**                                            

  **Kind/Year**     **2002**     **2003**     **2004**      **2005**

  **Wine**          1,219,000    1,827,000    1,529,000     2,118,455

  **Sparkling**     13,476       15,474       18,988        23,353

  **Others**        2,278        9,351        5,499         5,951

  **Total**         1,234,754    1,851,825    1,553,487     2,147,759
  ----------------- ------------ ------------ ------------- --------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/)) adjusted by FAS Buenos Aires

The United States continues to be the top importer of Argentine wines in
volume and value with purchases in 312,000 Hl valued US\$63 million
while in CY 2004 exports of wine to the United States had been 237,000
Hl for US\$45 million (in CY 2003 exports to the United States were
146,000 Hl for US\$32.5 million). The United Kingdom follows with US\$
36 million of purchases in CY 2005 while in CY 2004 exports to that
destination were US\$33 million. In volume terms, Paraguay is the second
largest importer of Argentine wine with 232,000 Hl in CY 2005 and
223,000 Hl in CY 2004. However Argentine wine shipments to Paraguay are
mostly composed by low-priced table wine, whose value in CY 2005 was
US\$12.5 million.

  ---------------- ------------- ------------- ------------- ----------------
  **Wine Export                                              
  Values (US\$ FOB                                           
  Buenos Aires)**                                            

  **Kind/Year**    **2002**      **2003**      **2004**      **2005**

  **Wine**         121,142,000   163,707,000   224,219,000   293,312,000

  **Sparkling**    7,100,000     4,969,000     6,528,000     8,000,000

  **Others**       161,000       474,000       735,000       1,100,000

  **Total**        128,403,000   169,150,000   231,482,000   302,412,000
  ---------------- ------------- ------------- ------------- ----------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/)) adjusted by FAS Buenos Aires

Grape juice (must) exports in CY 2005 totaled 1,000,000 Hl valued at
US\$100 million, converting Argentina into the top must exporter in the
world. In CY 2005, the largest market for Argentine must was the United
States with US\$60 million. Other important markets were: South Africa
(US\$7 million) Japan (US\$5.3 million), and Canada (US\$5 million)
Chile and the Russian Federation follow (US\$4 million each).

  ---------------- ------------ ------------- ------------- ----------------
  **Grape Juice                                             
  (must) Export                                             
  Volumes (HL)**                                            

  **Kind/Year**    **2002**     **2003**      **2004**      **2005**

  **Concentrate    700,000      725,178       723,819       965,180
  Must**                                                    

  **Alcoholic      N/A          68,898        51,660        49,860
  must**                                                    

  **Sulfate must** 47,000       3,890         6,523         5,620

  **Total**        747,000      797,890       782,000       1,020,660
  ---------------- ------------ ------------- ------------- ----------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/)) adjusted by FAS Buenos Aires

  ---------------- ------------ ------------ ------------ ----------------
  **Grape Juice                                           
  (must) Export                                           
  Values (US\$ FOB                                        
  Buenos Aires)**                                         

  **Kind/Year**    **2002**     **2003**     **2004**     **2005**

  **Concentrate    50,000,000   50,816,090   69,227,280   96,000,000
  must**                                                  

  **Alcoholic      N/A          4,906,100    4,215,010    4,274,160
  must**                                                  

  **Sulfate must** 858,000      51,780       183,320      162,700

  **Total**        50,850,000   55,773,970   73,625,610   100,436,860
  ---------------- ------------ ------------ ------------ ----------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/)) adjusted by FAS Buenos Aires

Imports of wine have remained insignificant after the peso devaluation
in February 2002. In CY 2004 imports were mainly of Cava sparkling wine
from Spain.

  ------------------- ----------------------------- ----------------------
  **Import Tariffs                                  **%**
  and Taxes**                                       

  **Import Tariff**   **Outside Mercosur area**     21.5

                      **Inside Mercosur area**      0

  **Statistical tax**                               0.5

  **Export tax**                                    5

  **Rebate**                                        6
  ------------------- ----------------------------- ----------------------

# Factors Affecting Industry Structure

Policy

The Argentine Government passed Law No 25849, which created the
Strategic Plan for Argentine Wine 2020 ("Plan Estratégico Vitivinícola
2002 -- PEVI"). Article 3^rd^ of this Law, establishes the creation of
an agency that will be in charge of promoting the consumption of
Argentine wine both domestically and internationally. This new agency is
called the Argentine Wine Corporation (Corporación Vitivinícola
Argentina - COVIAR). COVIAR started its operations in CY 2004. A budget
of US\$4.5 million is funded by Argentine wineries through a check off
program. This agency has four general objectives:

1.  The promotion of high quality Argentine wine in the Northern
    Hemisphere

2.  The promotion of high quality Argentine wine within the Mercosur
    countries, and the fostering of the domestic consumption.

3.  Assistance to small and medium grape producers to enhance their
    earnings.

4.  Research and development.

Prices

International price continues to be the great advantage which benefit
the Argentine wine industry. Large companies that produce 140 million
liters a year (between table and fine/premium wine) export their
Malvecs, Syrahs, Cabernet Sauvignons, and others at a FOB price of
US\$1.55 a bottle. This same bottle reaches the U.S. consumer at a
retail price of US\$7 --8 per bottle.

Overall international FOB prices of wine decreased in CY 2005 as a
result of lower prices for table wines, which fell from US\$73.00 per Hl
in CY 2004 to US\$63 per Hl in CY 2005. Fine/premium wines and sparkling
wine prices remained the same at US\$215 and US\$343 per Hl
respectivally.

Domestic price has increased a little due to higher costs, mainly in
transportation and labor.

Retail prices are in the ranges of US\$2-4; US\$6-12; and US\$12 above.

Investments

According to a survey carried out by the Entrepreneurial Council of
Mendoza ("Consejo Empresario Mendocino" - a local NGO), in the province
of Mendoza alone form 1999 to 2004 investment in the wine sector
increased US\$530 million, US\$300 million in wineries and US\$230
million in vineyards. The same indicated that foreign investment is
responsible for 62 percent of the investment in wineries that are
exclusively oriented to the export market. Also, this research forecasts
that US\$200 million will be injected into the sector in the next five
years. This survey explains that the wine boom in Argentina is due to
low land prices, good quality wine, the excellent conditions to grow the
Malvec variety, the possibility to complement operations already owned
in foreign countries, tourism, and the existence of qualified and
skilled labor.

From 1999 and 2004, the flow of foreign investment has come mainly form
Chile with US\$34 million, the United States and France with US\$32
million, Spain with US\$21 million, the rest of Europe (Austria, Italy,
Netherlands, Portugal, the UK, the Russian Federation, and Switzerland
with one winery per country) with US\$47 million and, Japan, Uruguay and
others with US\$12 million.

# Section II. Statistical Tables

+---------------+-------+-------+-------+-------+-------+-------+------+
| ###           |       |       |       |       |       |       |      |
| ### PSD Table |       |       |       |       |       |       |      |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Country       | ##    |       |       |       |       |       |      |
|               | ##### |       |       |       |       |       |      |
|               |  Arge |       |       |       |       |       |      |
|               | ntina |       |       |       |       |       |      |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Commodity     | ###   |       |       |       | (1000 |       |      |
|               | ##### |       |       |       | MT)   |       |      |
|               |  Wine |       |       |       | (1000 |       |      |
|               |       |       |       |       | HL)   |       |      |
+---------------+-------+-------+-------+-------+-------+-------+------+
|               | 2003  | Re    | 2004  | Est   | 2005  | For   | UOM  |
|               |       | vised |       | imate |       | ecast |      |
+---------------+-------+-------+-------+-------+-------+-------+------+
|               | USDA  | Post  | USDA  | Post  | USDA  | Post  |      |
|               | Off   | Est   | Off   | Est   | Off   | Est   |      |
|               | icial | imate | icial | imate | icial | imate |      |
|               | \[    | \[    | \[    | \[    | \[    | \[    |      |
|               | Old\] | New\] | Old\] | New\] | Old\] | New\] |      |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Market Year   |       | 01    |       | 01    |       | 01    | MM/  |
| Begin         |       | /2004 |       | /2005 |       | /2006 | YYYY |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL Grape   | 0     | 2557  | 0     | 2700  |       | 2900  | (    |
| Crush         |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | MT)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Begin Stock   | 0     | 0     | 0     | 0     |       | 0     | (    |
| (Ctrl App)    |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Begin Stock   | 0     | 20000 | 0     | 22863 |       | 25063 | (    |
| (Other)       |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL         | 0     | 20000 | 0     | 22863 |       | 25063 | (    |
| Beginning     |       |       |       |       |       |       | 1000 |
| Stocks        |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Prod. from    | 0     | 15500 | 0     | 15200 |       | 15000 | (    |
| Wine Grapes   |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Prod. from    | 0     | 0     | 0     | 0     |       | 0     | (    |
| Tabl Grapes   |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL         | 0     | 15500 | 0     | 15200 |       | 15000 | (    |
| PRODUCTION    |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Intra-EU      | 0     | 0     | 0     | 0     |       | 0     | (    |
| Imports       |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Other Imports | 0     | 29    | 0     | 0     |       | 0     | (    |
|               |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL Imports | 0     | 29    | 0     | 0     |       | 0     | (    |
|               |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL SUPPLY  | 0     | 35529 | 0     | 38063 |       | 40063 | (    |
|               |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Intra-EU      | 0     | 0     | 0     | 0     |       | 0     | (    |
| Exports       |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Other Exports | 0     | 1553  | 0     | 2500  |       | 0     | (    |
|               |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL Exports | 0     | 1553  | 0     | 2500  |       | 3000  | (    |
|               |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Dom.          | 0     | 0     | 0     | 0     |       | 0     | (    |
| Consump(Cntrl |       |       |       |       |       |       | 1000 |
| App)          |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Dom.C         | 0     | 11113 | 0     | 10600 |       | 10500 | (    |
| onsump(Other) |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL         | 0     | 11113 | 0     | 10500 |       | 10500 | (    |
| Do            |       |       |       |       |       |       | 1000 |
| m.Consumption |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| End Stocks    | 0     | 0     | 0     | 0     |       | 0     | (    |
| (Cntrl App)   |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| End Stocks    | 0     | 22863 | 0     | 25063 |       | 26563 | (    |
| (Other)       |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL Ending  | 0     | 22863 | 0     | 25063 |       | 26524 | (    |
| Stocks        |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL         | 0     | 35529 | 0     | 38063 |       | 40024 | (    |
| DISTRIBUTION  |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+

+---------------------+------------+----------------------+-----------+
| #########           |            |                      |           |
| Export Trade Matrix |            |                      |           |
+---------------------+------------+----------------------+-----------+
| Country             | ######     |                      |           |
|                     |  Argentina |                      |           |
+---------------------+------------+----------------------+-----------+
| Commodity           | #          |                      |           |
|                     | ##### Wine |                      |           |
+---------------------+------------+----------------------+-----------+
| Time Period         | CY         | Units:               | Hl        |
+---------------------+------------+----------------------+-----------+
| Exports for:        | 2004       |                      | 2005      |
+---------------------+------------+----------------------+-----------+
| U.S.                | 236563     | U.S.                 | 312203    |
+---------------------+------------+----------------------+-----------+
| Others              |            | Others               |           |
+---------------------+------------+----------------------+-----------+
| Paraguay            | 222452     | Paraguay             | 232448    |
+---------------------+------------+----------------------+-----------+
| United Kingdom      | 198987     | United Kingdom       | 229364    |
+---------------------+------------+----------------------+-----------+
| Canada              | 73659      | Canada               | 154021    |
+---------------------+------------+----------------------+-----------+
| Brazil              | 112036     | Brazil               | 116665    |
+---------------------+------------+----------------------+-----------+
| South Africa        | 1913       | South Africa         | 102804    |
+---------------------+------------+----------------------+-----------+
| Netherlands         | 55981      | Netherlands          | 86240     |
+---------------------+------------+----------------------+-----------+
| Germany             | 52009      | Germany              | 64154     |
+---------------------+------------+----------------------+-----------+
| Japan               | 67336      | Japan                | 51567     |
+---------------------+------------+----------------------+-----------+
| China               | 4196       | China                | 50700     |
+---------------------+------------+----------------------+-----------+
| Chile               | 0          | Chile                | 38464     |
+---------------------+------------+----------------------+-----------+
| Norway              | 15880      | Norway               | 29722     |
+---------------------+------------+----------------------+-----------+
| Total for Others    | 97637      |                      | 1032132   |
+---------------------+------------+----------------------+-----------+
| Others not Listed   | 512379     |                      | 679407    |
+---------------------+------------+----------------------+-----------+
| Grand Total         | 1553391    |                      | 2147759   |
+---------------------+------------+----------------------+-----------+

+---------------------+-----------+----------------------+-----------+
| ######              |           |                      |           |
| Import Trade Matrix |           |                      |           |
+---------------------+-----------+----------------------+-----------+
| Country             | #######   |                      |           |
|                     | Argentina |                      |           |
+---------------------+-----------+----------------------+-----------+
| Commodity           | ###       |                      |           |
|                     | #### Wine |                      |           |
+---------------------+-----------+----------------------+-----------+
| Time Period         | CY        | Units:               | Hl        |
+---------------------+-----------+----------------------+-----------+
| Imports for:        | 2004      |                      | 2005      |
+---------------------+-----------+----------------------+-----------+
| U.S.                | 0         | U.S.                 | 0         |
+---------------------+-----------+----------------------+-----------+
| Others              |           | Others               |           |
+---------------------+-----------+----------------------+-----------+
| Spain               | 1784      | Spain                | 1484      |
+---------------------+-----------+----------------------+-----------+
| Australia           | 6         | Australia            | 338       |
+---------------------+-----------+----------------------+-----------+
| Germany             | 454       | Germany              | 280       |
+---------------------+-----------+----------------------+-----------+
| France              | 240       | France               | 212       |
+---------------------+-----------+----------------------+-----------+
| Israel              | 0         | Israel               | 90        |
+---------------------+-----------+----------------------+-----------+
| Chile               | 307       | Chile                | 49        |
+---------------------+-----------+----------------------+-----------+
| Total for Others    | 2551      |                      | 2451      |
+---------------------+-----------+----------------------+-----------+
| Others not Listed   | 381       |                      | 94        |
+---------------------+-----------+----------------------+-----------+
| Grand Total         | 2932      |                      | 2545      |
+---------------------+-----------+----------------------+-----------+

+------------------------+----------------+---------------+-----------+
| ###### Prices Table    |                |               |           |
+------------------------+----------------+---------------+-----------+
| Country                | ###            |               |           |
|                        | #### Argentina |               |           |
+------------------------+----------------+---------------+-----------+
| Commodity              | ####### Wine   |               |           |
+------------------------+----------------+---------------+-----------+
| Prices in              | US\$           | per uom       | Hl        |
+------------------------+----------------+---------------+-----------+
|                        |                |               |           |
+------------------------+----------------+---------------+-----------+
| Year                   | 2004           | 2005          | \% Change |
+------------------------+----------------+---------------+-----------+
| Jan                    | 139            | 183           | 24.0%     |
+------------------------+----------------+---------------+-----------+
| Feb                    | 154            | 143           | -7.7%     |
+------------------------+----------------+---------------+-----------+
| Mar                    | 142            | 163           | 12.9%     |
+------------------------+----------------+---------------+-----------+
| Apr                    | 155            | 151           | -2.6%     |
+------------------------+----------------+---------------+-----------+
| May                    | 150            | 154           | 2.6%      |
+------------------------+----------------+---------------+-----------+
| Jun                    | 140            | 154           | 9.1%      |
+------------------------+----------------+---------------+-----------+
| Jul                    | 143            | 144           | 0.7%      |
+------------------------+----------------+---------------+-----------+
| Aug                    | 147            | 137           | -7.3%     |
+------------------------+----------------+---------------+-----------+
| Sep                    | 150            | 140           | -7.1%     |
+------------------------+----------------+---------------+-----------+
| Oct                    | 178            | 123           | -44.7%    |
+------------------------+----------------+---------------+-----------+
| Nov                    | 140            | 127           | -10.2%    |
+------------------------+----------------+---------------+-----------+
| Dec                    | 154            | 123           | -25.2%    |
+------------------------+----------------+---------------+-----------+
|                        |                |               |           |
+------------------------+----------------+---------------+-----------+
| Exchange Rate          | 3.08           | Local         |           |
|                        |                | currency/US   |           |
|                        |                | \$            |           |
+------------------------+----------------+---------------+-----------+
| Date of Quote          | 6/12/2006      | MM/DD/YYYY    |           |
+------------------------+----------------+---------------+-----------+