Tomato industry staggers under an avalanche of cheaper imports

[Redpossum]

La industria tomatera en alerta | Empresarios piden medidas de control sobre las importaciones

Las cámaras patronales advierten que la producción nacional está en peligro a causa de la suba del costo de los insumos y la avalancha de importaciones.

www-pagina12-com-ar.translate.goog

The usual Google Translate deal, banner is in Castellano and story will initially appear in that tongue, but wait a few seconds and it will change to English.

Employers' associations warn that domestic production is at risk due to rising input costs and the avalanche of imports.​

The tomato industry in Cuyo is facing a severe crisis due to large-scale imports of tomato paste from China and Chile, and fresh tomatoes from Paraguay. Purchases are made under conditions detrimental to local producers: at prices significantly lower than domestic costs, which is jeopardizing the industry, which is primarily important in La Rioja, Mendoza, and San Juan.

Business chambers presented a petition to provincial governments, warning of a drop in production and the resulting loss of direct and indirect jobs. Página/12 had previously reported that food imports are growing rapidly due to the exchange rate lag and trade deregulation .

Unusually high tomato paste imports could "cause a 65 percent drop in local production for the 2025 season ," according to estimates presented by industry chambers to the Sitio Andino website .

The volume of processed tomato imports in the first month of 2025 already exceeds the total purchased in 2023, according to calculations by the Argentine Institute for Agroindustrial Development (IDAA): in January, 5,330 tons of processed tomatoes were purchased from China and 3,885 tons from Chile. Furthermore, 60,000 kilos of fresh tomatoes entered Mendoza from Paraguay in the final months of last year.

 

[FrankPintor]

Interesting. Tomatoes were 3000 Pesos for 2kg at La Curva at the weekend, and I can probably get them cheaper at the local coop. Planning to make and bottle tomato sauce this weekend. I just assumed it was a seasonal price reduction but maybe there’s more to it. Planning to make more chile pebre as well.

 

[LuckyLuke]

It's a double edge sword as I see it. Some of these sectors have enjoyed protected status from competing neighbors thanks to a previous administration using import tariffs, quotas and flat out prohibitions. Milei is trying to reduce domestic price gouging by allowing some of that competition to enter the country.

That being said, it's very difficult to see the above working properly under the immense disadvantage the BCRA has put the peso under. Exterior competitors are surely to dominate domestic producers who are dealing with both increased domestic costs and falling sales (both domestically and internationally). It's hard to see how local producers don't get crushed.

IMO, Milei should have chosen one method or the other. Either currency appreciation with domestic protections in place, or currency devaluation while opening the import sector for competition.

 

[Caribbean Cool]

I am sure Milei's first concern is tomatoes.