Expofrut is (or was) the largest fruit exporter in Argentina, with a turnover exceeding 150 million dollars, more than 500 producers across the country and 3500 hectares of fruit trees.
Expofrut, which is the main processor and exporter of fresh fruit in the Province of San Juan, has decided to cut production by half compared to last year, that is about 6 million kg. A simple deduction leads to more negative predictions for the future, the structure is for 30 million and no one keeps a 30-room hotel with its fixed costs for only 6 to occupy the hotel (the last two seasons moved from 9 to 10 million).
In San Juan the company has two pre-cooled refrigerators and storage chambers. It has a package with a processing capacity of 4 million kilos of grapes and used to employ over 1,200 people in peak season.
In the fruit industry, which includes other smaller companies, 5,000 employees are directly related and indirectly 2,500. Since the problem is dollar inflation, reversing the loss of competitiveness is impossible with local remedies. In other words, the only solution is a devaluation that doesn't seem to be in the universe of possible decisions of the national government. About 20 to 25 companies will meet next Monday in the Chamber of Exporters of Argentina (CERA) with Federcitrus
North of CATSI, representing pears and apples. The dialogue will not be easy because, the outside world, more and more reduced to a small business universe, gives no signs of recovery.
Source: Tiempodesanjuan.com