Argentina: Mendoza cherry outlook 'unprofitable' this season

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Argentina: Mendoza cherry outlook 'unprofitable' this season

Cherry growers in the Argentine province of Mendoza are facing negative cash flows this year due to rising costs and a flat European market, website reported.

Mendoza Cherry Commission president Alberto Carleti, told the website the industry's outlook was 'not good', underscored by higher input costs that were not translated into better prices in destination markets.

"The underlying problem, as with most agricultural activities in Mendoza, is that the increased costs and the exchange rate that has been broadly stable in recent times, have made us lose competitiveness," he was quoted as saying.

"The sector is not going to be profitable this year, and worse still, it's very possible that it could bear a negative difference of between 25% and 30%.

"The average European customer has felt the impact of the crisis and prefers to let pass on the first fruits until a higher product supply normalizes prices."

The story reported there had also been problems of cherry cracking this year, above average rainfall and a one-week delay in ripening.

Carleti has called for a series of assistance measures for the industry, including the elimination of export taxes, higher foreign sales reimbursements, freight compensation, and solving the delays in value added tax (VAT) refunds.

Related stories: Volcano ash affects cherries in Argentine province

Photo: Agrovalle

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