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Devaluation effect

Argentina: Less fruit for the domestic market and more for Brazil

The regional fruit growing sector increases exports after a new jump of the dollar. As the overseas season comes to an end, the regional companies began to restructure their commercial operations for the second half of the year.

Much of the fruit stored in the refrigeration chambers of the region, which months ago was destined to the internal market is now being reoriented towards the Brazilian market. The cause: the improvement in competitiveness generated by the exchange rate parity. The devaluation there has been since last year makes it much more interesting to place a box of apples or pears in the Brazilian market now.

In the last twelve months the local currency lost more than 70% of its value against the real, which only lost 20%. A very important difference when calculating the returns in pesos that the activity achieves.

According to statistics from the private sector, in the first five months of this year, regional exports of apples to the Brazilian market amounted to 5,889 tons, i.e. 60% more than in the same period last year.

Meanwhile, regional export of pears up to May 30 of this year amounted to 46.271 tons, nearly 7% less than in the same period last year.

"Some companies may plan to direct their sales to Brazil in the second semester, taking into account the exchange rate competitiveness," said Pablo Cervi, head of CAFI, when asked about the issue. The entrepreneur said fruit said fruit exports to the neighboring country would probably increase this year, especially if the demand in the domestic market does not react.

In this sense, the economic crisis in Argentina does not help consolidate the consumption of fruits. Everything indicates that there won't be major changes in this trend in the second semester.

"Brazil continues to be an important market for the Valley. The challenge now is to negotiate a new sanitary protocol because we believe that the sanctions are excessive. Mercosur is a strategic alliance and we must work on that," said Cervi.


Source: rionegro.com.ar
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