Last week, the Argentinian Government and representatives of the pome fruit sector, including representatives of CAFI, signed an agreement with a series of measures to help palliate the effects of the severe crisis currently affecting the sector and protect over 74,000 direct jobs.
Some of the most noteworthy points of the agreement include a subsidy of 300 million pesos (approx. US$ 35 million) for producers; another 300 million pesos in loans with a "special rate" and the deferral until the end of the year of the payment of taxes on exports.
"The deferral in the payment of taxes is a very important, concrete and immediate measure, which will help boost fruit production. Normally the exporters must prepay these deductions and the situation they are currently going through makes this difficult," says Óscar Martín, president of the Argentinian Chamber of Integrated Fruit Growers (CAFI).
"I believe that, once the high degree of uncertainty is overcome, these measures will help improve the situation, transforming a bad season into a more regular one," stated Martín, adding: "Some degree of uncertainty, however, will remain."
Wage negotiations
Local media said that CAFI is expected to close a deal for a 30% increase in wages for those employed in harvesting, but for those involved in packing there is yet no agreement on sight.
"Negotiations are very tough and there is little progress; we are offering increases of close to 30% and they request 40%. It is a big gap, but we are optimistic about reaching an agreement in the coming days," says Óscar Martín. "We're already in injury time, and the situation has already partially affected the Williams pear campaign," he added.
That is how the country's Minister of Economy, Axel Kicillof, described the difficult situation currently affecting the pome fruit sector, which exporters consider one of the most severe crises in the Valley's history.
In short: Russia, one of the largest customers of Argentinian fruit, registered an annual devaluation of its currency of around 50%; the Euro has also been devalued to record levels, and competitors in production (Chile, New Zealand and South Africa) have strongly devalued their currencies looking to stay competitive.
This situation has left much of Argentina's pome fruit production out of the market, and the Argentinian Chamber of Integrated Fruit Growers stated that unless significant measures were taken, losses for the sector would amount to about 200 million dollars.