Thousands of kilos of apples and pears have been left hanging from the trees unharvested as a result of Brazil's decision to stop buying fruit from Argentina, due to the detection of the codling moth in 15 shipments just days ago. It is estimated that the measure will affect between 1,300 and 1,500 independent producers from across the country who do not know what to do with their product.
The situation is similar to that of Mesopotamia, where the oranges aren't being harvested due to pricing problems. The stop of imports accentuates the serious crisis that the sector has been facing for several years, a combination of a lack of technological renewal, an absence of accessible credit, and a sharp rise in the cost of labour. Brazil and Russia are currently the main buyers of Argentine fruit and when they show signs of economic recession, as they are currently doing, the producers of the Upper Black River Valley, Neuquén, and Mendoza are seriously affected. "Many producers are beset by debt, with dated checks that they can only cover with sales they had already scheduled but that have been suspended. They are left with the fruit in the trees or a truckload of fruit that isn't going anywhere," said a renowned producer from General Roca. "Brazil does what it wants with us. The codling moth is always present, but it becomes an issue when they want to pressure our country in the bi-national negotiations table," he added. In 2014, Brazilian national apple imports amounted to 46.1 million tons worth US $48.8 million, according to the Ministry of Development, Industry and Foreign Trade.
Currently, it's more expensive to harvest the fruit and take it to cold storage, as there is no marketing date in sight. It goes without saying, producers have to pay the rent for the cold storage. Additionally, the cold storage rooms are full of pears, as this fruit is less resistant over time and needs to be cooled immediately after it is harvested. 1,300 independent producers, out of the 3,000 producers in the country, sell the fruits by their own means to the mega-exporters. The Brazilian veto will affect these independent producers the most because the strongest players have stored their fruit, where it can stay for months without reducing its quality. Usually, these independent producers consist of families that have between 5 and 10 hectares and lack the resources to preserve the fruit in cold storage. "We are exporting 70% less fruit than last year and, if things continue this way, the packaging facilities won't be able to continue working the fruit for export. There is a lot of fruit that hasn't been sold yet and we can't continue working it," said Marcelo Loyarte, executive director of the Argentina Chamber of Integrated Fruit Growers.
Source: Clarin.com