Beyond the Government’s promises of a prompt solution, the scarcity and higher cost of diesel, together with the rise in other costs, has an impact on agricultural activity in almost the entire country, and 11 of the 19 regional economies are in a “crisis” situation.
This is reflected in a survey carried out by Coninagro, In the entity’s report, it was indicated that there are 3 “green” activities, in growth, 5 “yellow” (warning), and 11 “red” (crisis or signs of being so ).
This situation occurs in a context where the average year-on-year variations were 57% in terms of prices paid to producers, while costs increased by 86%according to the agricultural entity.
The entity publishes monthly the so-called “Traffic Light of Regional Economies”, which seeks to “simplify the complexity and heterogeneity of production in the field towards a visual analysis tool”.
When analyzing the reasons that led most of the regional economies to be in the red, Coninagro determined that “the rise in costs through inputs and the instability of the markets, especially exports”.
“Also, the uncertainty due to access to fuel and its price is transversal to all productions,” the report described.
Likewise, from the entity they pointed out that the war between Russia and Ukraine “has again affected international logistics, both to export products from our regional economies such as apples and pears, and to import necessary supplies, such as bottles.”
THE FREIGHT HAS A HIGHER VALUE THAN THE FRUIT THAT IS TRANSPORTED
Regarding the issue of merchandise transportation, Coincagro claimed that “from the area of the apple production valleys to Buenos Aires, there are more than a thousand kilometers and that requires freight. Now that the production of the valleys is ending, the people of Buenos Aires and the central market depend on the production that comes from the north, such as Salta, La Rioja, Catamarca, and the greenhouses of Corrientes. The freight to bring that fruit from Salta, in relation, ends up being more expensive than a box of pure merchandise “.