Invest in Mendoza

Location

Mendoza is located in the central-western area of South America’s most southern country. It is part of the Cuyo Region and borders on San Juan to the north, on the Province of San Luis to the east, on La Pampa and Neuquen to the south, and on the Republic of Chile to the west. This location allows it to be an important trade route between the Atlantic and the Pacific Oceans.

It is a province with a surface of 148,827 km², and its exact location is between latitude 31.59 and 37.33 degrees south, and longitude 63.30 and 70.35 degrees west.

Population

Nowadays, its population reaches 1,675,309 inhabitants. The population structure, by large age groups, shows that 62.22% of the population corresponds to people aged 15 to 65; 29.91% corresponds to people under 15 years old, and 7.87% corresponds to groups over 65 years old.

Education

About 80% of the population is urban. Education is guaranteed in its three levels, and 97% of the population is literate.

Apart from elementary and high school, the province offers eight colleges and seven university technological institutes, with various agreements made with foreign universities. There is also an offer of around 400 post-secondary, college, and  post-graduate programs.

During the last years, the province has notably increased the exchanges with graduate and postgraduate students and teachers from Spain, France, Sweden, and Germany. Additionally, an interesting research activity in the CONICET research center is developed, to which all colleges have access.

Relief

In the eastern part of the province, the Andes mountain range -over 4,500 m - is located, ending in the maximum height of the American continent, the Mount Aconcagua - 6,959 m. The Andes and Aconcagua are an important attraction for the many foreign tourists who visit our province. And towards the south, a formation of modern and volcanic relief prevails in a clear transition to the Patagonian landscape.

The plains area is located in the Eastern sector and on the basin of the Desaguadero River. The levels of water provided by the five important rivers bringing water from the mountains to the plains - Mendoza, Tunuyan, Diamante, Atuel, and Rio Grande - have made possible the formation of the Mendoza’s oases.

Climate

Mendoza has a dry and continental climate. There is a significant annual fluctuation in its temperatures and scarce rain. The summer is hot and humid, and it is the most rainy season, with average temperatures over 25ºC (77º F). The winter is cold and dry, with average temperatures under 8ºC (46.40º F); there are occassional night frost and scarce rain. The snow and sleet are infrequent, even though some light snow may occur in the highest zones of the city once a year.

The area where the province is founded presents a semi desert climate; and its water supplies are only possible in the oases where the rivers coming down from the Andes’ tops spill their turbulent torrents. In the main cities, ditches have been built to irrigate the trees on both sides of the streets.

Main Activities

The industrial sector together with the manufature of coke and oil refining products, and the food industry, as a whole, are the two sectors that contribute more than 85% of the production value, and generate almost the three-fourths of the industry jobs.

Within the food sector, the vitivinicultural industry and the preparation of fruits and vegetables constitute its two main branches.

Oil, Distillates, and Petrochemistry

The oil in Mendoza represents the 15.5% of the national extraction approximately. The exports of crude oil are in the second place among the most exported products of the province, with 124.6 million dollars.

The petrochemical sector is connected to the branch of distillates since it requires the gas produced by distillation. The production company is one of the two polypropylene  manufacturers of the country, supplying the domestic market as well as the exports. It is a plant with an output of around 200,000 t, whose raw material supply - propane gas - is a bottleneck for the production increase.

Vitiviniculture

Mendoza is the largest wine producing province in Argentina with a 143,764 ha surface.  Between 70% and 75% of the Argentinean wine is produced in Mendoza, followed by the province of San Juan, with a 48,869 ha surface, outcoming a yield between 17 % and 21 %.

Among the varieties acknowledged as having high enologic qualities within the market, as a consequence, having a differential price, we should mention Cabernet Sauvignon, Malbec, Bonarda, Merlot, Pinot Noir, and Syrah, when red wines; and Chardonnay, Chenin, Riesling, Sauvignon, Tecol, Semillon, and Ugní Blanc for white wines.

The market opening-up in consuming countries means a new challenge for the wine making firms, for they should accordingly adjust their production to those expanding market requirements.

Argentinean wineries are increasingly introducing their wine to the foreign consumer’s opinion, being not only highly valued but awarded in prestigious international wine contests as well. In this process, most of the wineries changed their owners through the incorporation of the new foreign and domestic investors.

One of the arising phenomenon is the so called ‘boutique winery’; a traditional method winery producing a limited artisanal wine quantity, generally aimed at the highest niche of the market.  Nowadays, there are about 100 wineries of this type, representing almost 25 % of the fine wine export and 15 % of the domestic market.

More than 90% of the fine wine export belongs to the Mendoza province, with 93 million dollars. The main purchasers are the United States of America, Great Britain, Brazil, Canada, The Netherlands, Denmark, Germany, and Switzerland.

Vegetables

In accordance with the outcome value, this activity is placed immediately after the viticulture. Its main products are garlic, potato, onion, pepper, carrot, and pumpkin in this order.

Fruit growing

The main production consists of peach, apple, pear, and plum.  Traditionally, the peach takes the first place with a participation higher than 50 % in the subsector production value.  Nevertheless, these figures are unstable due to the seasonal yield and price variations. The apple and pear increased their participation since the end of the 90’s, while the plum did not change in number.

Olive growing

In Mendoza, this activity grew historically along with the vitivinicultural industry, and more than 95 % of its plants are older than 35 years old. The 59 % of the olives are assigned for canning, 21 % for olive oil, and 20 % corresponds to other varieties.

The plantation surface is supposed to grow until reaching 60,000 ha of new olives, keeping the same percentage of industrial use.

Taking into consideration the traditional surface and the one developing in the year 2010, Argentina will owe a total of 110,720 ha of olives; 60,000 out of them would correspond to high density plantations with state-of-the-art cultivation techniques.

Tourism

This province offers different touristic products: alternative/adventure tourism; snow tourism; grape harvest tourism; congress, conference, and event tourism; and urban tourism. The chief touristic centers are located in Mendoza city and its surroundings, San Rafael, Las Leñas, Potrerillos, among others.  Tourism has had a positive behavior in the decade, with an increase, either in the hotel business, visitor’s quantity, and availability.

Mendoza owns excellent geographic and climate qualities with a wide range of regions where the vineyards and wineries stand out. That is why touristic developments like the construction of five stars hotels, touristic villages, resorts, and different services and touristic circuits related to the wine and wineries are attractive sources of investment.

Cattle raising; sheep and goats

The Local sheep raising has acquired a meaningful economic importance, mainly in General Alvear, San Rafael, Malargüe and La Paz. There are about 550,000 heads, and 290,000 out of them are mothers giving birth to 150,000 calves a year.  The cattle sector contributes 12 % of the agricultural and livestock gross product, placing itself after the vitiviniculture and fruit growing activity, and over the horticulture figure.

Nowadays, the domestic market beef demand is restored and its tendency is clearly catching up with the international one, representing an opportunity for the producing countries.  Brazil and Uruguay, in this order, are making use of it.  After the overcoming of the last foot-and-mouth disease episodes, many countries have reopened up their markets to the Argentinean beef.