Argentinean table grape exports are reportedly forecast to fall by 30 per cent this season as a result of increased production and labour costs, coupled with an unfavourable exchange rate.
Some producers are planning to send around 50 per cent of their table grape crop to the processing industry for the production of raisins, according to a report by Diario de Cuyo.
Labour, harvesting and packing accounts for around 75 per cent of costs in table grape production – costs which have risen by 30 per cent on average this season, the report said.
The situation, together with a complicated external market due to the economic climate, has apparently caused a loss of competitiveness within the sector, which will translate into a decrease in exports this season.
The unfavourable outlook has also been blamed on the tariffs which Argentina is required to pay, unlike its competitors Chile and South Africa.
A larger volume of at least Superior and Flame varieties will head for the raisin industry this season, which presents fewer costs and less risk.
Northern Europe, Russia, Asia and Brazil are the main external markets for Argentinean table grapes.
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