The crisis affecting Argentina’s pome fruit sector has proved too much for one of the country’s biggest grower-exporters, as Via Frutta files for structural reorganization with millions of dollars’ worth of debt.
Website rionegro.com.ar reported the Rio Negro-based organization still needed to meet certain legal criteria before proceedings could begin.
Serious problems have been facing the pome fruit sector over recent months, such as poor exchange rates, falling fruit prices in international markets, increasing production costs and losses incurred due to weather events.
The story said Via Frutta was one of the 10 biggest apple and pear exporters in Argentina, with an annual turnover close to US$10 million dollars.
The company’s growers produce a range of varieties and cover some 1,400 hectares. Annual production is reported to be around 40,000 metric tons (MT).
The publication reported that, according to information on the Central Bank of the Argentine Republic (BCRA), the company currently owes the financial system 47 million pesos (US$5.4 million).
Amongst the biggest creditors is the Banco de la Nación, which is said to be owed 27 million pesos (US$3 million).
A Central Bank report detailed that most of the entity’s credit was already showing payment problems and numerous checks from the company had already been rejected by banks for lack of funds, rionegro.com.ar reported.
In March, one of Argentina’s biggest pome fruit markets, Brazil, suspended imports citing several detections of detections of the codling moth in shipments from the country.