The Secretariat of Commerce of the Nation opened the doors to competition in the country's apple and pear boxes market, after revoking an old resolution that erected obstacles to their import. This new measure would allow exporters to save about $100 million a year in costs related to fruit packaging. The fruit sector has been going through a deep economic and structural crisis for more than 10 years and the Government's decision generated some relief among businessmen.
The Secretariat repealed Resolution 453, which dates back to 2010, and that protected local box manufacturers. The old resolution established a complex certification regime to reduce the dangers that arise from the use of inks that had a high content of lead in graphic products. The boxes acquired outside, which included impressions, had to be declared in Customs. This caused a bureaucratic delay of at least four weeks that discouraged their purchase abroad.
The main producer of boxes in Argentina is Cartocor, of the Arcor Group, a position that has allowed it to negotiate with an advantage in the market, according to industry sources. Cartocor has been operating since 1980 and it is a leader in the field that also makes sales abroad. It has plants in Parana, Lujan, Arroyito, and in Chile. In 2017 the Arcor Group expanded its business with the purchase of Zucamor, a paper, industrial bags, and corrugated cardboard production company, for a value of US $230 million.
At present, the country exports around 450 thousand tons of apples and pears that require about 25 million boxes. The total number of boxes need per year, including the ones used in the domestic market, amount to about 45 million units. The boxes for export, including paper and other packaging elements, represent a business of approximately $ 750 million annually. According to data collected by Clarin, the cost of an 18-kilo box produced in Chile ranges between US $ 1.14 and 1.30, while the same box in Argentina costs US $1.50. If exporters only used the Chilean product, they would have savings of around 100 million pesos.
"We don't want to attack the national industry, this is a tax burden issue. National producers have a higher tax burden than producers in Chile. This affects their competitiveness and producers have to take their apples to other markets, "said Pablo Cervi, president of the Argentine Chamber of Integrated Fruit Growers (CAFI). "This measure will lower their costs by a few cents, but in the long run that is a lot of money. Every penny counts," Cervi said.
The complete packaging of a premium box can cost up to US $2.5 per unit, i.e. about 52 pesos. The value paid for the highest quality apple stands at US $ 0.92 per kilo. That is, a total of US $ 3.42 minimum when placed abroad.
Different sources consulted by El Clarin spoke about the scenario in which the costs of fruit production converge with those of packaging. "Overseas buyers don't accept that the cost of the fruit increases because of taxes on the national packaging, countries like South Africa or Chile do not have that kind of variable," said a source.
Source: clarin.com