Argentinian lemons have lost competitiveness and production is expected to drop in future campaigns

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Rising costs are affecting the lemon industry
Rising costs are affecting the lemon industry

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Cordoba – Chief of Staff, John Manzur, Proves that Argentina can “Leads” the world lemon market and its derivatives. Born in the cradle of manufacturing, he claims this is the way to create more employment. Manufacturers and industry have a different face. persistence what are you doing four years that the sector is in crisis and the current campaign is defined as “very severe”. Difficulties arise from aimportantcost increase and lagged exchange rate.

Argentina is still the same The world’s leading manufacturer and exporter from Industrial lemon derivatives: Controls about 65% of the market because it has the most important factory cluster in the world. in Export of fresh fruit, South Africa He replaced and even took the first place, which was traditionally held by Spain.

South Africa is the only exporter that is growing strongly in fresh fruit Joseph Carbonell, President of the Argentine Citrus Federation (Federcitrus). “It is free to export new pesticides in large volumes, which gives it a longer shelf life and better presentation. Europe has been very firm this year and there have been tons of oranges that haven’t been able to leave the ports,” he said.

The expectation is that production in the US, Spain and Turkey will decrease next season due to the effects of drought and heat in the Northern Hemisphere.

Argentina has this year 260,000 tons were exported (down 1.3% year-on-year). As a destination, the United States fell, but demand from Russia increased sharply. The harvest will be around 1.8 million tons. In the same period, South Africa exported 462,480 tons.

President of the Northwest Citrus Association of Argentina (ACNOA), Paul Padillanotes that Lack of funding and Exchange delaykills“in the sector. “We cannot continue to compete in this backward course – he describes -. From March 2021 to the same month of this year, the devaluation of the official dollar amounted to almost 27% and, for example, we faced a parity of 70%. Besides, The increase in spending in dollars is very strong.”

Given the international context, Fertilizers are 2.5 times more expensive per year; The Freight rates multiplied by three or four. internally, Cardboard boxes increased by 50% And agrochemicals are sold in the domestic market for official dollars, but twice more than a year ago.

200,000 tons of lemons will not be harvested this year in the country due to various factors.
200,000 tons of lemons will not be harvested this year in the country due to various factors.

Padilla also notes that in producing provinces such as Salta and Jujuy, a hectare of irrigation requires Electricity And the tax increased in one year 120% Between July and July. The same applies to the stock of juices, which should be stored at minus 20 degrees. “If we add all these factors, the crisis is deep,” he summarizes.

Carbonelli confirms that the current crop, “a huge increase in all costs in the production chain” poses very significant problems. “No immediate relief is in sight.“.

The “soy dollar” seems to me very good for a sector that has arrests, he adds, but there are common data that have a cross-cutting effect on all sectors, and they work. Disarmament of cost schemes“, it is said.

An additional factor is that world markets are oversupplied with fresh lemons. International prices are described by sources as “stable” as there have been ups and downs. Instead, those In three years, juice and oil have fallen by almost 60%. These requirements are angered, while the shell remains.

In 2000, 3.7 million tons of fresh fruit were produced worldwide; Last year it was 8.5 million tons. ” Demand is inelastic – specifies Carboneli-, did not increase at the rate of production growth”.

Padilla emphasizes that due to rising costs and lack of competitiveness, “Abandoning many hectares, lemon trees are uprooted and extensive crops are replaced by less labor. According to his estimation, it will be this year untyped a nail 200,000 tons.

Carbonelli agrees, suggesting that in the future there will be a production decline Because the crops will be processed due to the increase in costs. “We are in a particularly critical situation. We hit rock bottom Pursuing You have to invest money and there are many who do not look back after 4 years of losses,” he says.

Source: La Nacion

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