According to estimates, the south will harvest about 90 million kilos of plums and the price for fresh plums will be around $ 2.5 per kilo. Producers have been advised to dry their production so they can wait to see what will happen in June with the crops of the northern hemisphere.
The forecast of a good crop seems excellent news for producers; however, prices remain low in a market that begins to awaken and is waiting for the trust fund promised by the provincial government.
The head of the Rural Society of San Rafael, Cristian Delpozzi, estimated that " the kilo of fresh plum will cost about $2.5 when it used to cost $7 last year because of the low production."
According to the president of the Specific Agricultural Chamber of Commerce, Claudio Manrique, this year's price is low.
Both leaders agreed that these prices would leave a very small profit margin. In that sense, Manrique said, "producers spend $ 0.70 in harvesting and transportation, the remaining $1.8 will be for the producer, who shall, with that money, pay taxes and rural work."
The producers of a medium-sized farm that produces 250,000 kilos of plum will make $625,000 if they don't dry their production, $175,000 of which will be used to pay the harvesting and transportation. The remaining will be used to pay taxes and other issues required for the maintenance of the plants.
Delpozzi stated that, "the real business will be to dry the fruit and wait to see what happens in June when the northern hemisphere has its harvest." Everybody is expecting that harvest to be small and increase the value of the local product, as a result of the plant eradication there was in that part of the world.
"The harvest forecasts are very beneficial for Argentina and Chile," said the rural leader. "This harvest will depress the market and lower the value of dried plums, so it is important to stock the product and wait a bit."
Manrique said that there was currently "too much speculation, not only because of the existing supply, but also because of the future elections and the economic decisions that the next or current government can take."
In this framework, Manrique backed up Delpozzi's idea of being cautious, drying as much product as possible, and waiting a bit to save dollars in the future.
Healthy plants
In previous years, apart from being concerned about prices, producer were worried about the red spot which accelerated the fall of the fruit.
In this regard, Manrique noted that the farms that had done their work conscientiously hadn't had this problem and that they hadn't received any reports of the red spot so far.
According to the leader, "we have a great product to offer; too bad the market conditions are less than ideal for the producers."
Good harvest
The south of the province will harvest 90 million kilos. This year there will be good harvests in the east, which has had an excellent production. Estimates are that Mendoza, discounting the losses because of the hail, will obtain 150 million kilos.
Producers expect the trust fund will help organize prices
Local cooperatives are eagerly awaiting the creation of the trust fund for the plum. According to the president of the Chamber of Commerce of San Rafael, Daniel Giordano, the province will provide eight million dollars to create this tool that will help support prices, as 80% of these funds will be for San Rafael and the rest for General Alvear.
"This measure is essential to regulate the market so it doesn't become chaotic, as was the case with peaches and apricots," said Cristian Delpozzi, who added that, "they have realized the producers are unable to work without these instruments, which we requested some time ago."
He also said that, "many buyers, economic actors, who ceased to intervene in the local market years ago are back on the scene."
In this context, Claudio Manrique celebrated the likely announcement of the governor, although he made it clear that, "to avoid speculation, this should have been resolved a couple of weeks ago." He then stated that, "we are focused on the harvest that will intensify in the next seven days."
The truth is, the business leader said, "that the situation will be difficult, trust or no trust."
Source: unosanrafael.com.ar
