According to Mariano Capraruolo, executive director of the CECNEA (Chamber of Citrus Exporters), "the situation is very bad. Two years ago, there was a very heavy frost in el Litoral, Entre Rios and south of Corrientes, which greatly affected the production. It was the biggest frost in 70 years and we almost lost the entire production. Honestly, it was a disaster. Then we received some national assistance, as the Agricultural Emergency was declared, but it was too little, almost non-existing, for exports."
"That, coupled with all the other competitive problems we have, (that we are out of the market because our competitors have other advantages, the rise in costs and the international crisis) has placed our companies in a very complicated situation. We're trying to keep the markets with a few dollars of pre-financing, with high input costs and a large tax burden. The situation is very, very difficult," he said.
"We exported a lot less, we've been completely out of the orange market for some time. It's been years since we've been able to place it in England and other markets. We've tried to tried to keep some markets with our Tangerines, such as the European Union, Russia and Southeast Asia but we're worried because that requires a lot of money and effort and we do not know if we can continue to take care of the farms because it's been a while since production costs exceeded profits," said Capraruolo.
Asked about the present productive campaign, Capraruolo stressed that "the main producing and exporting area is the NEA and we are facing a difficult, very lean campaign, because we've had various problems like ten years ago. We are trying to maintain open markets, but the internal and external situations are hard."
He added: "If the exchange rate improves next year and we have a reduction in tariffs, or we find another way to get inputs... The problem is that we don't have the quality to overcome our competitors in the market. It's a very unsettling situation."
Regarding crop prospects, Capraruolo, said: "We only have a little more than last year, but not much more. Last year, the exports from our area didn't exceed the 100,000 tons and I'm not sure if were going to be able to export this year because we are behind in tangerines by 10% and we're not doing anything with our oranges. If we manage to export the same amount as in 2013, it would be a triumph. Honestly, what would change our business' scale is opening Brazil, where costs are very important, and where we could export by land. However, there is a political issue there because, despite being a member of Mercosur, we have been unable to enter Brazil."
"Bottom-line, the problem we are facing is that the high priced inputs, tax contributions, exchange rate, global crisis and the difference with our competitors in the foreign markets has left us with very few businesses available. When that happens we are unable to sell at the same price as our competitors because we would be loosing money," he concluded.
Source: infocampo.com.ar