The pear and apple harvest has practically ended in Río Negro and Neuquén, and the balance is slightly positive. The first official data show an increase in the volume exported and sold in the domestic market during the first quarter of 2024.
Fruit growing in the region was conceived as an activity that generates foreign currency, and it continues to be so. The good news is that, in 2024, Shipments abroad of pears and apples from Río Negro and Neuquén had the best first quarter in 3 years.
This was possible thanks to a good campaign, which was developed without major problems and that showed an improvement in terms of volumes and quality compared to the previous year. This translated into greater volumes for export.
Fruit growing: sales in numbers
RÍO NEGRO Diary had exclusive access to the first official data of the year, provided from the Communication and Institutional Relations area of the Patagonia Norte Regional Center of Senasa (National Agri-Food Health and Quality Service). From them it follows that, Between January and March of this year, the export of pears from Río Negro and Neuquén reached 115,790 tons.
This value represents an increase of 0.4% compared to the same period last year, and This is the highest record for a first quarter since 2021. Sales of pears to the domestic market also show an increase (+15.7% year-on-year).
However, the total volume of pears sold in the first quarter decreased by 17.9% year-on-year. This responds to a collapse in industrial processing, both inside and outside Patagonia.
Exports of Rio Negro and Neuquén apples increased by 13.5% year-on-year in the first quarter. They totaled 13,865 tons and constitute the highest level for the period since 2021.
In this way, of every 10 apples in the region sold between January and March 2024, 1 was destined for foreign markets. This proportion is five times lower than in the case of pears, since the apple is the most consumed fruit in Argentina..
The global volume of apples sold grew by 1.2% year-on-year in the first quarter, thanks to good export performance and a 77.5% increase in sales to the domestic market. As happened with pears, the processing of regional apples in industries plummeted and moderated the global improvement.
15.7% This is the year-on-year increase in sales of regional pears to the domestic market in the first quarter of the year.
In sum, Official data show a greater volume of fruits exported and marketed in the domestic marketalthough a reduction in that destined for processing in industries.
Good harvest
Behind the increased shipments of fruit to the domestic and foreign markets, there is a good campaign. The 2023-2024 fruit season developed without significant problemswhich resulted in an improvement in the harvest, both in terms of volume and quality.
Nicolás Sánchez, president of the Argentine Chamber of Integrated Fruit Growers (CAFI), He maintained that compared to last year there is “a little more volume,” and that “the cold ones are all full.”. Likewise, he noted that there has been a higher quality in production and a reduction in the level of discards in relation to the previous campaign.
The campaign was good especially because there were good weather conditions, this year they were more benign.
Jorge Cervi, fruit businessman from the region.
Jorge Cervi, a fruit businessman from the region, also highlighted the good quality of the fruits obtained this year. “The campaign was good especially because there were good weather conditions, this year they were more benign“, said Cervi, and recalled that “last year was one of extreme conditions, with frost in November and very hot from November to March.”
The 2023-2024 season has not been significantly affected by hail or frost, perhaps two of the inclement weather most feared by producers in the region. Sánchez pointed out that the cold spring and the extreme heat of January took a toll on the caliber and condition of some varieties, but that, despite this, “It was a harvest that developed without major problems and was within the projected volumes”.
Margins and devaluation
Real exchange rate fluctuations constitute a key variable for the sustainability and profitability of regional fruit growing, as it is an export-oriented sector. The abrupt devaluation jump last December was intended to shore up sales abroad and begin a process of accumulating international reserves..
However, the nominal exchange rate is not the only variable that determines the competitiveness of national products abroad: inflation is also fundamental. In this sense, the multilateral real exchange rate index, prepared by the Central Bank of the Argentine Republic (BCRA), shows that Today the exchange delay is the same as it existed before the devaluation of August 14, 2023. The greater volumes of fruits exported from Río Negro and Neuquén respond to a greater surplus and not to an exchange incentive.
Today the exchange rate delay is the same as it existed before the devaluation of August 14, 2023.
“The harvest and much of the packaging work was in February, March and April, and The truth is that the devaluation was not noticed”Sanchez noted, adding that “inflation meant that there was no large gap between devaluation and internal costs.”
Cervi pointed out in the same direction, pointing out that “today we already have an exchange rate equal to that of last year because inflation was very strong,” although he said that “The December devaluation was beneficial for January and February loads”.
«Between internal inflation and devaluation, without a doubt what predominated was the first. “The devaluation quickly liquefied with the growth of internal costs.”
Nicolás Sánchez, president of CAFI.
Sánchez considered that the rise in the dollar did not substantially modify the costs of the activity in the 2023-2024 season. “We have a large part of the costs from May when we started pruning until December when all the pre-pruning work, thinning, and application of agrochemicals are done,” he explained. So, A large part of the productive costs of the sector were calculated and disbursed prior to the December megadevaluation.
“I think that this year the profitability will be lower than last year“Because the agricultural dollar, the ’50-50′ scheme and other things had made us have a better position than now,” said the leader and businessman, although he clarified that it is still early to know how profitable the campaign was.
The future
The fruit leader emphatically pointed out the exchange rate delay as one of the sector’s concerns for the future. Regarding the recession, on the other hand, he noted that they see “nothing alarming” in domestic sales. In the same direction, Cervi said that The domestic market is “quite calm,” and he attributed this to the fact that the price increases in their products were below inflation.. As we have pointed out, official Senasa data show an improvement in this regard.
When asked what expectations there are in the sector with respect to the national government, Río Negro and Neuquén, Sánchez noted that fruit growers do not depend much on a specific public policy. “We go and compete in the world without much help,” he noted. “We hope to have the peace of mind of being able to carry out our activity without many rule changes.”he added.
“The important thing is that the economy adjusts, that there is stability to invest and that credit emerges again.”
Nicolás Sánchez, president of CAFI.
He also emphasized the need for the economy to stabilize and for asymmetries to be corrected, to reactivate credit, both internal and external, and carry out investments. “That is what allows an economy to develop in the long term,” he said.