Uruguay

"The bankruptcy of Citricola Salteña would be a severe blow to the entire region"

According to the president of Salto's Commercial and Industrial Center, Atilio Minervine, the bankruptcy of Citricola Salteña, a major company in Salto that generates more than 1,500 jobs, would be a serious blow to the region, as it would affect large to small businesses and even the State. "What is happening to Citricola Salteña affects everyone due to the economic spill that this company has at the departmental and national levels," he said when asked what the people of Salta thought about the possible liquidation of the company.

Minervine said that a high percentage of citrus workers were personnel who had a very good qualification and experience with citrus and the harvest, but that they were not qualified to be absorbed in other jobs. All those people losing their job source wouldn't only affect them, but also the local businesses, buses, and grocery stores were they usually spend their income.

Financial problems in the citrus sector
According to Pierre Darricarrere, a former citrus producer and exporter at Sandupay SA, "the problem that the citrus sector faces is similar to the problem that other companies that are engaged in exports have." These companies must invest in technology and meet the world market's demands. "The cost of doing so in Uruguay is extremely high due to the exchange rate delay, the internal costs that grow out of proportion to the dollar, and the high price of energy. As a result of these factors, companies are not profitable. The financial cost of creating jobs and moving machinery is terribly high,” he said.

He also stated that there must be 10 to 15 citrus exporting companies in Uruguay and that they all have financial problems and heavy indebtedness. "All of them have financial difficulties, except the ones that come from abroad with capital from Peru or Argentina, but what would be the profitability of these companies if they did not have someone to fund them from abroad?"

 

Source: lamañana.uy 


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