Citrus producers from the coast say they are facing the perfect storm because of the sharp drop in profitability and they have denounced the national government's indifference in helping a sector that is the livelihood of 2,000 families and about 40,000 workers. "The lack of action of the national government, which hasn't reacted to the sector's agony, is accomplishing what the hard frosts and the serious crisis of 2001 couldn't accomplish," assured the producers and exporters of citrus in a tough statement.
The industry benchmark said that the profitability had vanished, as they were selling their fruits for 0.50 pesos while growing and harvesting it costs them 1.50 pesos. They also said they were being harmed by the extremely high export tariffs (between 16% and 23%), the suffocating tax burden, the devaluation in key markets such as Russia (the main buyer of Argentine tangerines) and the difficulties to access profitable markets, such as Brazil and the United States.
The producers also questioned the price distortions in the trade chain. "On the shelves, the fruit is sold to consumers at 10 Argentine pesos per kilo. In other words, the producer is paid 0.50 pesos for the same product for which a consumer pays 10 pesos," they stated.
Representatives of the Coastal citrus camera of producers and of the exporters gathered together to warn about the sector's critical situation.
The citrus sector recalled that, until 2008, Argentina was the leading exporter of tangerines in the southern hemisphere. "Today, we don't exist. Tangerines have fallen by 70% and oranges by 90%. It's not the international crisis' fault. The Uruguayans, who have a similar fruit quality, managed to enter the strong markets of Brazil and the United States, and Peru hasn't stopped growing," say the producers.
To overcome this situation, the citrus cameras demand soft rate loans, government efforts to open new markets, a differential dollar for fruit, and tax reform adapting the tax burden to the specific characteristics of the activity.
They have also asked for state support to promote domestic consumption of citrus, in areas such as Football for All, and inserting fresh fruit and citrus juice, with its renowned health qualities, in school diets, as well as other measures.
Source: clarin.com