Argentina sees sharp rise in apple and pear production costs

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Argentina sees sharp rise in apple and pear production costs

Prices have not kept up with rising production costs for Argentina's apples and pears, Corrientes Hoy reported. The dollar cost of producing the fruit has doubled over the last six years, according to the country's Integrated Chamber of Fruit Growers (CAFI).apples and pears ffp

"The average dollar costs increased 100% while international prices for the fruit grew between 35% and 50% depending on the variety," chamber executive director Marcelo Loyarte said in Corrientes Hoy.

According to a CAFI report, half of the production cost for the fruit is created by labor, most of which goes to packing. The other half is accounted for by energy, fertilizer, transportation, packing, customs and certifications.

In 2007, wages rose from US$17 to US$43 a day. That year, 40 18-kilo boxes needed to be exported to cover costs. Now the number has risen to 53.

Packing labor costs for a ton of fruit have also risen from US$600 in 2007 to US$1,400 today.

Input costs were also cited a reason for decreased competitiveness. During the same period, the cost of a carton box rose from US$0.90 to US$1.25.

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