Chilean cherries began flooding the Argentine market this November, as never before. Simultaneously, Chilean producers made early shipments of their harvest to markets like the United States and Europe, where this fruit maintains its core demand.
In the case of cherries entering Argentina, “they are coming in bulk,” which is driving prices down. Adding to this is the fact that production costs are lower than in Argentina. “With these conditions, and with prices falling, it’s making us uncompetitive,” said Aníbal Caminiti, manager of the Argentine Chamber of Integrated Cherry Producers (CAPCI).
To try to close the gap with competitors, Argentine producers began reviewing their cost structures and identified some variables that could be modified. Some depend on provincial governments and others on the national government.
“We submitted a letter to the Minister of Economy, Production, and Industry of the Province of Neuquén, Koenig, demonstrating that, from April 2024 to April 2025, the cost of energy in Neuquén increased by more than 300%,” the executive emphasized.
“We have hydroelectric plants here, the company (EPEN) is state-owned, and we have repeatedly told the provincial government that we have the most expensive rates in the country for industrial users, which is the level used in meatpacking plants,” Caminiti asserted.
On this same point, they requested a 50% reduction in the VAT applied to electricity rates for industries from the national government: “These are matters within the Executive branch’s purview, and we have submitted them in writing. We met with officials last year, but we haven’t received a response.”
Despite being exporters, CAPCI believes that they don’t even need to discuss the exchange rate, because “what we really need to adjust today is our internal cost, which is putting us out of the market.” At this point, Caminiti pointed to the national government, because “so far, they’ve only issued some deregulation measures, which are related to bureaucracy,” and instead, they are still waiting for measures “that get to the heart of the matter so we can export from Argentina and maintain competitiveness.”
He believes that several of the issues to be resolved “don’t need to go through Congress,” and mentioned some of the points raised with the national government by the Argentine Fruit Committee, including the VAT refund on exports. “It can’t be that it’s a bureaucratic issue and takes a year or more to receive the VAT refund,” Caminiti lamented.
The truth is that, while the government’s agenda doesn’t seem to be focused on fresh fruit production, the local cherry market has seen an unprecedented surge in Chilean fruit arriving as early as November, which will have a significant impact going forward. Because when Argentine cherries finally reach supermarket shelves in January or February, Chilean cherries will already be available, arriving in bulk and further reducing prices.
Chilean cherries typically arrived in December, when retailers already had a large supply of domestic produce. However, in January and February of this year, cherry imports tripled compared to the average of the last five years, which meant that not only did prices plummet, but it became difficult to sell the fruit. Of the 14,000 tons of cherries that Argentina produces annually, 50% are destined for the domestic market, but it faces a true global player with its 625,000 tons of annual production.
For now, the domestic market is seeing a lot of chilean cherries entering in bulk, which lowers prices, but also because Chileans have more competitive production costs.
“If we look at it from the consumer’s perspective,” Caminiti added, “more consumers will surely be added, because cherries are usually expensive for the Argentine consumer. From that point of view, one could say it’s beneficial. But, from the producer’s perspective, the influx of Chilean cherries means we can’t compete on Argentine costs.”
Thus, “as prices fall, it gradually makes us uncompetitive to the extent that we can’t manage our internal costs,” among which he mentioned the impact of labor: “I’m not saying that workers should earn less; I’m saying that the cost of the current labor system is high, taxes are high, the cost of energy… Neuquén has the most expensive energy in the country; Río Negro also has expensive energy, and that puts us at a disadvantage.”
Fewer exports
In 17 years, instead of growing, fresh fruit exports fell from $960 million annually to $560 million. These figures come from a study by the Argentine Fruit Committee, an association called Frutas de Argentina, which is an alliance that brings together the main exporters’ associations, such as the Argentine Blueberry Committee (ABC), the Argentine Chamber of Integrated Fruit Growers (CAFI, pears and apples), the Argentine Cherry Chamber (CAPCI), and the Argentine Citrus Federation (FEDERCITRUS).
In 2008, the entire sector exported $1.6 billion, with 80% being fresh fruit ($960 million), and the rest juices (mainly lemon) and wines. By 2024, the sector’s exports had reached $2.3 billion, but the share of fresh fruit had fallen to 24%, representing $560 million. The drop was 400 million in this category.
Thus, the fruit industry has come to represent only 1% of the Gross Domestic Product (GDP), leading Caminiti to acknowledge that “we are practically invisible” when we make our demands to the authorities. For example, the automotive industry exports around $11 billion.
The nearly 55% reduction in fruit exports over 17 years translates into “business closures and fewer jobs.” But, despite this reality, “the fruit sector currently represents 150,000 jobs, the same as the automotive sector.” The difference is that the fruit sector generates employment “distributed throughout regional economies, in some very small towns, with more precarious jobs, because most of that employment is temporary.”
The cherry growers’ association manager concludes that “from my point of view, and with all due respect, there is no adequate approach to the fruit industry.” Proof of this stagnation is that, in the cherry sector, “the planted area has not increased for fifteen years.” He concluded by stating that, “if we had policies to support the sector, the impact would be overwhelmingly positive.”
Source: Más Producción
