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Argentina: 200 million kilos of apples rot on trees

The apples and pears that were not harvested this year in the Upper Valley of Rio Negro and Neuquen have fallen on the traditional short grass strip between the fruit trees and look like a multicoloured carpet that goes from red to yellow, and then turns black. The unstoppable decomposition process is leaving in the air an aroma that is both sweet and saturated. This year, producers had no one to sell their products to, so there was no money for the harvest. The scene is repeated in the farms of the entire northern region of Patagonia.

According to the chambers that bring together the sector's companies, 200 million tons of pears and apples could not be sold in 2015 due to the closure of the borders in Brazil and the devaluation in Russia. Another 135 million kilos were ruined by hail. In total, 335 million tons of fruit is rotting in the fields.

40% of the fruit was left in the trees, in places such as Villa Regina, Chichinales, Godoy and Valle Azul, as there was no one to pick it.

Producers were unable to take care of 12,000 hectares, of a total of 48,000 productive hectares, because of economic reasons.

Fruit producers have been asking for a bailout since February, when the Minister of Agriculture, Carlos Casamiquela, signed an agreement with them for a 300 million pesos grant that never arrived in full.

The ban on imports imposed by Brazil, after finding the codling moth pest in the national fruit, made things worse. The industry has gradually declined over 10 years.

The unharvested apples are the prelude to a perfect storm for farmers. Unless immediate measures are taken, they say, pests will arrive. Some even say it's too late.

"Nearly 100% of the fruit has been damaged because of a lack of control measures," warned INTA Alto Valle. However, the process of harvesting and pruning, which prevents pests, requires cash to pay the human resource that deals with the task.

Currently, a rural worker earns a basic salary of 10,000 pesos. The fruit growers' guild warned that they would demand a 35 to 40% increase by the end of July.

As a whole, 80% or more of the operating costs are used in the farm's culture tasks.

The producers are part of a business that is anchored in the future. The wheel runs on projections. However, the decline of foreign markets, the low price of the product (1.2 to 1.5 pesos per kilo), and the lack of financial resources to address the modernization of the farms has emptied the producers' pockets.

"The activity is no longer profitable and many farmers are leaving their farms because they were unable to harvest their production, in a context in which costs are growing at 35% and dollar prices have fallen between 5 and 7%," said Marcelo Loyarte, director of Argentina's Chamber of Integrated Fruit Growers based in General Roca.

According to Jorge Figueroa, president of the Federation of Producers of Rio Negro and Neuquén, the farmers need $1,200 million pesos to normalize the production cycle. An additional $800 million would be needed to give real vitality to the activity that sustains some 70,000 people.

The sector stopped receiving between $75 and $100 million dollars because of the drop in exports to Brazil; approximately 10% of what the industry generates as a whole (about 1,000 million).

So far this year, producers received $110 million pesos, which were destined to weather the hailstorm. They still have no news on the remaining 190 million pesos they were promised.

"There were promises of help from the national government and the provincial government, but we never got anything," said Sebastian Hernandez, president of the Chamber of Allen.

Hernandez was one of the 2,000 producers that blocked the roads and bridges of Rio Negro and Neuquen for 12 days in June; a demonstration that was unable to twist the arm of the provinces or nation.


Source: ieco.clarin.com

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