"Our sector needs concrete improvements to gain competitiveness, focusing on labor, production and logistics costs"
The numbers that affect the Argentine blueberry industry:
The Argentinean Blueberry Committee, ABC, has asked the representatives of the Legislative Power to "declare a state of emergency" in the sector, in the perspective of advancing in the taking of structural measures that help to repower the Argentine blueberry industry in the medium and long term.
The ABC is a civil association that represents more than 80% of the producers, exporters and regional blueberry chambers of Argentina, and brings together the regional ones of the sector, which are the Association of Producers of Mesopotamia, APAMA; the Argentine Chamber of Blueberry Producers and other Berries, CAPAB; and the Association of Cranberry Producers of Tucumán, APRATUC.
The organization calls for government efforts that aim to resume the competitiveness of the cranberry sector that, paradoxically, in the 2016 season had a record of exports, growing by 15%, but with the most important economic losses in its history.
Since the beginning of the blueberry export activity, Argentina exported directly by air to be in the North American gondolas between 2 and 10 days later, instead of the four weeks it takes to transport by ship, but last season this played to him On the contrary, because the productive sector is gradually losing competitiveness and because exports by air can no longer be sustained, it is a luxury that represents no less than 95% of the total exported fruit. Only 3% of exports are moved by sea, although this percentage is expected to rise exponentially in the short term, due to the urgent need to reconvert the sector.
Carlos Stabile, president of ABC, acknowledges, however, that there are problems in local maritime logistics, "where cargo ships can take about 30 days to reach the port of Miami, when Peru and Chile, still coming from the Pacific, can do so in 15 days", Explain.
"Transferring the fruit by plane costs more than triple what it is required to do via ship, but if we do it by boat, we arrive later than our competitors. Here you have to do a job with the shipping companies“, says the representative of the producers.
Another factor against is the big price swing, "because a price of USD12 or USD15 can be agreed with the client, and since the merchandise cannot be returned if the product arrives at its destination in deteriorated conditions, the price is reduced by USD $ 5" Also, due to the irruption of Peruvian production, they were forced to lower prices in order to be in the United States market, which ended up being satisfied with lower prices than in previous seasons.
Peru in 2014 produced approximately 2.000 tons of blueberries annually, currently reaches the 28.000 tons and competes strongly against Argentina with this offer that was achieved in a short time, pushing the price down. On the other hand their costs are much lower, especially labor, and also its supply is situated in the same seasonality.
"We are cornered, Peruvians today produce at a cost of 40 cents and we at more than two dollars", denounces Carlos Stabile and adds, "last year the producer lost money and put it out of pocket, when in 2015 he had achieved an income of 2,16 dollars per kilo".
The other numbers that attempt against the competitiveness of the Argentine industry are those of the labor cost, since in Peru a wage costs USD13 and in Chile USD25 dollars, in Argentina this value reaches the USD40. According to the organization, the direct labor employed is 700.000 wages. "We are aware that the salary of Argentine workers is the highest in the region and that is positive, since it puts us in a social standard higher than in other competing countries. That is why the objective is to find other ways that do not harm the worker or the producer"They point out.
In the ABC they described that the activity of production of blueberries, which is carried out in the North (Salta and Tucumán), in Northeast, NEA (Corrientes and Entre Ríos), some areas of the north of the province of Buenos Aires and the Argentine northwest , NOA, has an investment of USD137.5 million, with 2.750 of hectares planted and an annual production of 21.000 tons, of which 17.000 is exported.
According to ABC, net exports - in FOB price - are approximately USD110 million, and the main destinations are the US (65%), United Kingdom (15%), Continental Europe (15%), Canada (4%), Singapore (1 %), Brazil (1%), among others. Reaching 26 international markets to which it is currently exported.
"We work to position Argentina as the world's supermarket", Highlights Stabile, and finally adds:
"Our sector needs concrete improvements to gain competitiveness, focusing on labor, production and logistics costs"
The nearly 130 producers in the country, covering almost 2.400 hectares of production, are aware that future challenges will necessarily have to be reconverted and focus on efficiency and productivity, in addition to the search for new markets.
In this perspective of conversion, the June 28, at the Sheraton Sheraton Hotel in Tucumán, will be held the 8 ° International Blueberry Seminar, organized by Blueberries Consulting, in conjunction with AGQ Labs International, with the support of Apama and Apratuc.
Source: Martín Carrillo O. - Blueberries Consulting
next article
IV International Seminar "Agriculture in Harmony"ARTÍCULOS RELACIONADOS
