Argentina (Mendoza): Potato and other vegetable producers complain that current prices do not cover costs.
Omar Carrasco, president of the Argentine Fruit and Vegetable Union (UFHA), noted that the impact was mitigated by a drastic drop in sales, which is keeping prices at bay despite the reduced supply.
Carrasco stated that, while seasonal increases were recorded as local production ended and merchandise from northern Argentina began to arrive, the magnitude of these increases has been contained. He cited tomatoes as an example: last year, at the same time, a box of them reached $80,000, while this year they did not exceed $25,000 or $30,000. "This difference is due to the fact that sales are very negative, which prevents prices from skyrocketing as they would with normal demand," Carrasco stated.
Among the products that had the greatest impact on price movements in the last few days of the month, Carrasco mentioned tomatoes, peppers, eggplant, corn, and green beans. He also highlighted the start of an increase in potato prices, although he clarified that they were still very cheap.
Producers on the edge: between loans and land sales
The situation is critical for Mendoza producers. Current prices don’t cover production costs, leading many to evaluate whether they will plant again. In this regard, Carrasco revealed that some have resorted to loans or even sold part of their land to continue their business. "This situation is worse for those who are unable to change their production model, dedicated to a specific crop for life. The situation is very complex for the entire production and marketing system," he stated.
In response to the recurring accusations about intermediaries in the value chain, the UFHA plans to publish a detailed report this month that will show how much each kilo of tomato receives, how much is spent on harvesting, bagging, shipping, and market entry costs. "The goal is for consumers to have a rough understanding of how much a kilo of tomatoes costs to produce and how much it ultimately ends up in the producer’s pocket," Carrasco emphasized.
Climate impact and contained prices
The frosts of the last two weeks have severely curtailed local production. While these weather conditions typically raise prices due to reduced supply, Carrasco insisted that no significant increases have been noted due to the aforementioned drop in sales. "The frosts were widespread, affecting not only Mendoza but also areas of Córdoba, Villa Dolores, Salta, and Jujuy, where a significant portion of the potato production was lost ," he reported.
Toward the end of the interview, Carrasco emphasized the importance of understanding that phenomena such as weather conditions and the resulting drop in supply are direct factors that impact the prices consumers find at the grocery store, although in this case, low demand has prevented a larger jump.
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