Truffle cultivation is an innovative venture. It requires an investment of approximately $15,000 per hectare. The plant’s productive cycle lasts up to 35 or 40 years. Production begins around the fifth year, with an estimated yield of 600 grams to one kilogram of truffles per hectare annually. Returns are around 9% annually, and the average payback period is about 10 years.
What is truffle farming? What does it involve? What is required to grow truffles? Is it viable in Uruguay? What is its potential? Sergi García—an engineer, professor, and academic specializing in truffle farming—and Rafael Henríquez—a forestry engineer and partner at Agrobiotruf—were on hand to answer these and other questions.
The conference titled “Current Status and Outlook for Non-Traditional Products: Olive Growing, a Reality; Truffle Farming, a Possible Future” was held on Friday, August 12, 2016, and was organized by the Graduate School of the Faculty of Administration and Social Sciences.
In addition, at the end of the talk, participants were invited to sample olive and truffle oils, as well as other related products.
Truffles and Their Unique Characteristics
While some people may associate the word “truffle” with the traditional chocolate candy, García and Henríquez were referring to the underground, symbiotic fungus. In other words, to complete its life cycle, it needs to live in association with the roots of another plant.
According to García, it is associated with the gourmet market and a very specific type of consumer. It is generally used in haute cuisine, either on its own or to impart its aroma to other foods.
Some people ask themselves, “Why are truffles so expensive? What makes this mushroom so special?” In García’s words, their value lies in their “deep,” “penetrating,” and “distinctive yet difficult-to-imitate” aroma.
The Truffle Business
The plant has a productive life span of 35 to 40 years. At that point, García explained, production begins to decline, though this does not mean the end of the crop.
In Europe, truffle plantations begin to yield between 600 grams and one kilogram of truffles per hectare annually when they are between five and seven years old. “By the tenth year, in well-managed plantations, you’re harvesting between 10 and 53 kilograms per hectare,” Henríquez noted.
In his view, “the wide range of results is due to human factors”: “The best truffle farms in Latin America are run by biologists, agronomists, or agricultural technicians. It’s a matter of science,” which requires “precision.” He also noted that the labor intensity is very low.
Henríquez stated that the quality of the plant is essential for successful truffle cultivation: “The genetic material must be top-notch.” In addition, the combination of climate and soil is also important—the soil must have a loose texture and good drainage. Both factors contribute to “the unique characteristics of each truffle.”
Finally, Henríquez noted that the investment typically ranges from $12,000 to $15,000 per hectare. García, for his part, added that the rate of return is close to 9%—based on a 25-year economic analysis—and that the payback period is approximately 10 years.
The Potential in Uruguay
“You have great potential,” Henríquez said, referring to truffle cultivation in the country. His statement is based on agro-climatic statistics. “It may not be hundreds of thousands of hectares, but there are areas with high production potential,” he explained.
For example, he pointed to the Maldonado and San José areas as potential growing sites. According to the expert, those areas can provide the “aromatic profile” that truffles need to succeed in foreign markets. He also noted that there is a “vast market” for exporting truffles produced in South America.
“Today, truffles are a global phenomenon,” García stated. At the same time, he cited the Australian example: “They had no prior tradition with this type of product.” Although consumption was low, today only 20% of the total truffles they produce are for domestic consumption. “It’s an example of how it’s possible to launch an industry with a novel product in a country where prior experience is limited,” he said.
“We have the know-how. Now we need to put it into practice,” Henríquez concluded.