The early appearance of Chilean cherries in Argentina's market in November has raised concerns among local producers, who are struggling with high costs and decreasing competitiveness. Aníbal Caminiti, head of the Argentine Chamber of Integrated Cherry Producers (CAPCI), stated that the Chilean fruit "is entering in bulk," which is driving prices down even before domestic production is available on the shelves.
Chile, with an annual production of 625,000 tons and lower costs, is establishing itself as a leading player, surpassing Argentina's 14,000 tons. Traditionally, trans-Andean fruit entered the market in December, when Argentine supply was already available, but this year it arrived earlier, creating a significant impact. Caminiti noted that in January and February, imports tripled compared to the past five years' average, causing prices to collapse and complicating the sale of local fruit.
Faced with this situation, the growers analyzed their cost structure and identified factors they believe can be improved. A key issue is energy costs in provinces like Neuquén, where CAPCI reports that industrial tariffs rose by over 300% from April 2024 to April 2025. Caminiti noted, "We have hydroelectric plants here and still pay the highest industrial rates in the country." The sector has requested the national government to cut VAT on electricity bills by 50%, but there has been no response so far.
CAPCI is also urging measures to lower the tax burden and expedite export VAT refunds. Caminiti noted that bureaucratic delays can extend for more than a year, impacting companies' liquidity. While the sector primarily exports, the union chooses not to focus on exchange rates. Instead, it emphasizes internal cost adjustments to restore competitiveness.
The situation reflects a broader decline in Argentina's fruit-growing industry. According to data from the Argentine Fruit Committee, fresh fruit exports fell from $960 million in 2008 to $560 million in 2024, a drop of $400 million over 17 years. Although the fruit sector provides 150,000 jobs, similar to the automotive sector, its share of GDP has fallen to 1%, which, according to Caminiti, makes it "almost invisible" to the authorities.
He also mentioned that cherry planting has not increased over the past 15 years, indicating stagnation. He believes that policies aimed at the sector could significantly impact regional economies. Meanwhile, low prices and rising production costs continue to threaten the competitiveness of Argentine cherries against a more efficient and larger regional competitor.
Source: masp.lmneuquen.com
