2012: Difficult year for Argentine citrus

As a result of rising domestic costs and production, both exporting citrus cooperatives operating in the Monte Caseros department foresee serious problems for the overseas fruit market this year, beyond having won some international clients in a business meeting that was held this month in Germany. As detailed, last year, due to this problem only 30% of oranges were exported, and this year the volume could be lower.

San Francisco, Monte Caseros, and Coopecicor Cooperatives of Mocoretá, are the only packaging plants that export citrus from Corrientes to scattered markets throughout the world. In this context, these industries are experiencing serious problems of competitiveness due to the constant increases that production, packaging, labor, transportation, delays, customs, tariffs and permits costs have, which they must have to be able to export.

"This will be a difficult year, if the necessary steps are not taken, we will not be able to export fruit," he told The Litoral Nicolás Carlino, concerning the San Francisco Cooperative. The cooperative´s counselor said that the increase in costs are given year by year, and percentages that leave less and less profit margins.

"There are markets, and the international price is very good, but we virtually do not have a margin, if we have to face, for example, a 25% increase in labor for this campaign," said the official, who recalled that from this problem, in 2011 only 30% of oranges were exported and the rest turned to the domestic market. "It saturates the market and thus lowers prices, hurting the producer," he said.

In this sense, from Corrientes Cooperatives´ Federation (FEDECOOP) it was reported that last year, between the two industries they exported more than 1 million cases, including tangerines, oranges and lemons, to Russia, Asia, Europe and Canada.

During the first week of February, both institutions participated in Fruit Logistica 2012, a traders fair for fruit, that is held every year in Berlin, Germany; where they made contact with importers from around the world. According to Carlino, during his stay in Europe they managed to close business deals with clients from Romania, Kazakhstan, the Middle East and Europe.

"The markets still continue to emerge, but we can not shift the costs of production to sales and that takes away profitability, to the point of not benefiting the business," said the businessman, who felt that measures should be taken at national level to allow the industrial activity to be profitable.

Source: El litoral