The garlic harvest will be lower than expected; prices will remain the same or worse than in 2014, and the international market will be more aggressive with the entry of new countries into the supply. Additionally, the rising costs, taxes, and the outdated reference prices in the local market are ruining the sector: there are only 1,000 producers left of the 1,500 there used to be and 17,500 jobs are at risk.
Thus, the managers of the regional economies of Argentina's Confederation of Medium Enterprises (CAME) and the representatives of the garlic sector demanded urgent action at the AFIP and Customs yesterday afternoon.
The crisis of the regional economies continues to grow and is spreading to more products and sectors. The garlic producers from the region of Cuyo have been one of the most affected by the crisis in recent months. They have been hit by lower prices, lower international demand, the devaluation of the Brazilian currency and a loss in profitability.
The directors of CAME, Raul Robin and Paul Vernengo, and the representative of Mendoza's garlic and onions producers, packers and exporters (Asocam), Guillermo San Martin, met yesterday with the CEO of Customs, Carlos Sanchez. They requested that the reference values match the commercial reality and eliminate hidden costs and complained to the AFIP about the adequacy of the Workers Minimum Indicator (IMT). "The gap between international garlic prices and the reference prices is almost 50%, which increases the fees paid by exporters and other costs, such as insurance and freight, which are established using the reference prices," said Robin.
Source: www.cronista.com