The Williams pear campaign in the Rio Negro Valley has started slow and with great uncertainty regarding prices.
The abundance of small calibres runs counter to the requirements from importers, who often come across difficulties when trying to sell small pears in major markets, like the United States.
In terms of volume, the season should be positive. As reported by the Department of Fruit Growing, around 790,000 tonnes of pears will be harvested in the 2015 season, which would be 5% more than in 2014.
Agreement with Government
On Thursday, the Government resumed its negotiations with apple and pear producers seeking measures to help address "the most serious crisis in the history of Argentinian pome fruit."
"It's an almost perfect storm," said Economy Minister Axel Kicillof; a year when Russia, one of the country's main customers, has suffered a devaluation of the Rouble of close to 50%, with the Euro also devaluating to record levels. Meanwhile, competitors in production, like Chile, New Zealand and South Africa, have strongly devalued their currencies looking to stay competitive.
Not long ago, a report by the Argentinian Chamber of Integrated Fruit Growers said that, unless steps are taken, the estimated losses for the sector next season will be of about 200 million dollars, as only a small percentage of the 1 7 million tonnes of pome fruit expected to be harvested in 2015 could be sold at satisfactory prices.
The agreement, which seeks to reactivate the production chain of pears and apples for the 2015 season and protect the over 74,000 direct jobs in the region, consists, according to Telam, of eight points:
- New loans at a subsidised rate of approximately 12% (6% supplied by the Ministry of Agriculture and the remaining 6% by the provincial governments) up to a total amount of 300 million. These loans will be granted through Banco Nación, Banco Patagonia and Banco Neuquén.
- Automatic return of refunds to exports.
- Negotiations through the Chancellery to achieve a reduction of tariffs with Russia, since it is of great interest to keep this market.
- Promotion of consumption in the domestic market, with a programme based on the model proposed by the regional sector, to which direct sales through institutional markets, offered by MINAGRI and the Ministry of Commerce, will be added.
- The Price Observatory will be activated in the coming weeks; this has now been regulated through the Official Bulletin (BO).
- New non-refundable contribution to primary production in the amount of up to 300 million pesos for the fruit harvest, payable fortnightly (50 million pesos at a time). This contribution will be monitored by a special commission with control from the Government, the provinces and members of the fruit sector.
- A further 5% refund to fresh fruit and concentrated juice exports, with direct payment to the producer after identification at the UMI and the post-shipment of both products, which would amount to a total of 10%.
- Postponement of 180 days for overseas retentions for the export of fresh fruit and juice concentrate.
Industry data revealed that pome fruit growing generates 74,000 direct jobs in both provinces, and up to 60% of annual spending by producers goes to paying wages.
At the meeting it was determined that producers will collaborate with the Ministry of Labour to obtain some extra time for the payment of employer contributions.
For its part, the productive sector pledged to carry out a restructuring and modernisation process, for as long as profitability is obtained.