The role of public–private coordination: the case of sweet cherries in Argentina 2000–2020

Abstract

Purpose – The purpose of this paper is to understand the sustained growth of sweet cherry exports in recent years in Argentina and to what extent the coordination mechanisms between public and private institutions can explain the growth. Design/methodology/approach – The research method used in the paper is descriptive and based on in depth interviews with producers, agencies and institutions from the cherry industry. Qualitative results are complemented with analysis of key market data. Findings – The sweet cherry industry in Argentina underwent a shake up with entry of new vertically integrated players and the technological upgrade of traditional producers that resulted in an export boom. The transformation of the industry was induced by the global market conditions and, more importantly, the promotion and complementarities achieved through a strong public–private partnership. Despite the constant increase in global demand for counter-season cherries, exports from Argentina are currently struggling to sustain growth. Among various bottlenecks, the authors find the instability of government policies (e.g. labor law, tax system, economic and trade policies) as the main cause for the slowdown in investment and expansion of the planted area. Research limitations/implications – The paper highlights the importance of understanding the growth process of an industry and the different ways in which public and private sectors can enhance export performance. The relationship between the success of private–public partnerships and the particular configuration and characteristics of the industry deserve further study. The usual limitations from single-case studies apply. Originality/value – The study has two contributions. First, the study uncovers the economics underlying the development and configuration of the sweet cherry industry in Argentina. Second, the study documents a successful case of private–public partnership to boost exports and reach new markets.