Producers of pears and apples said at the Plenary of Regional Economies on Tuesday in the Argentine Confederation of Medium Enterprise (CAME), that the sector's crisis had deepened due to the devaluation and that they would take strong measures against the National Government if the Non-refundable Contributions that expire in September are not extended.
The claim dates back to 2017, when, after a protest in Plaza de Mayo, producers from Rio Negro and Neuquen asked the Executive for $2 per kilo as a non-refundable contribution to compensate them for their low profitability and obtained less than $1 per kilo as a credit. That payment is about to expire at the beginning of September.
"The Government is reluctant to extend it. If they don't do it, producers will take strong measures. If Etchevehere makes a decision against producers, all of the region's chambers will protest in the Valleys or in the City of Buenos Aires," stated the president of the Chamber of Pear and Apple Producers from Fernandez Oro, Carlos Zanardi.
According to Zanardi, it is a political decision. "They do not have to make much of an effort. Things would be much harder if they had to put up money, because the Executive is very hard on the regional economies," he said.
"The devaluation affected us strongly, because all the agricultural inputs are in dollars. When producers bought their inputs for the harvest that ended last March, the dollar was at $17; now its at more than $30. That debt must be cancelled and we must start working for the new season. If we don't pay it, agrochemical sellers won't finance us," he said.
He also said that the sector needed a special dollar, which means that for every dollar they exported they are given an amount of pesos to pay for the fruit, but without modifying the variable for inputs and labor.
Asked about export prices, Zanardi said producers were paid less than $4 per kilo for pears and almost $5 for apples. "These are the best pears and apples in the world, they're shipped to Europe and the United States. This will lead to the disappearance of small producers. In the domestic market a kilo of pears or apples leaves $50, $60 or up to $70," he said.
"Nobody wants to start working in this activity, most producers are leaving it. Even large companies and international investors, such as Expofrut, are closing their doors and reducing their investment. Moño Azul, which was bought by Italian capital, is being destroyed," the executive added.
Source: Infocampo