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.

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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.

 

[FrankPintor]

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.

I'd say your first paragraph is more applicable to industrial and consumer goods. Argentina's agrobusiness seems to be generally very efficient (I don't know specifically about tomatoes), though

Second and third paragraphs, spot on.

I am sure Milei's first concern is tomatoes.

"Move fast and take things", surely?

 

[mikic007]

Interesting, even more because price of tomato isn't really low comparing to other countries. Not fresh not processed. I understand that strong peso is part of the problem here, but no way that it is more expensive to grow tomato in Argentina than in Chile or China...

 

[FrankPintor]

‘Industricide’: Argentine companies warn of tariff cuts, taxes, and exchange rate - Buenos Aires Herald

Faced with the triple whammy, one in four industrial companies is planning layoffs in the next 60 days

buenosairesherald.com

And tomatoes are now $1500 for 2kg out here, and 3kg for $1200 at the coop.

I reduced about 7kg of fresh tomatoes to 1.5l of tomato sauce, plus 500g of chile to 3 200g jars of Chilean style "pebre", all inhabiting the back of the fridge.

 

[Redpossum]

‘Industricide’: Argentine companies warn of tariff cuts, taxes, and exchange rate - Buenos Aires Herald

Faced with the triple whammy, one in four industrial companies is planning layoffs in the next 60 days

buenosairesherald.com

And tomatoes are now $1500 for 2kg out here, and 3kg for $1200 at the coop.

I reduced about 7kg of fresh tomatoes to 1.5l of tomato sauce, plus 500g of chile to 3 200g jars of Chilean style "pebre", all inhabiting the back of the fridge.

Well done!

So what is pebre like?

I wish I had access to a coop like that. There is a "feria" that sets up at the square here in Northern Villa Urquiza every other Saturday, but their prices are nothing to get excited about, not at all. They charge 90-95% as much as the local verdulero, and they want you to buy in large quantities, like 5kg at once or more. I have been up there twice now, and looked over all the offerings. Suffice it to say that I was deeply disappointed.

 

[elhombresinnombre]

Well done!

So what is pebre like?

I wish I had access to a coop like that. There is a "feria" that sets up at the square here in Northern Villa Urquiza every other Saturday, but their prices are nothing to get excited about, not at all. They charge 90-95% as much as the local verdulero, and they want you to buy in large quantities, like 5kg at once or more. I have been up there twice now, and looked over all the offerings. Suffice it to say that I was deeply disappointed.

If that's the Feria de la Ciudad I'm surprised about the minimum quantities. It comes to Plaza Arenales in Villa Devoto on Tuesdays and just along from Estacion Antonio Devoto on Thursdays and although the vegetable prices aren't much better than shop prices you can buy as little or as much as you like. The best price savings, in my opinion are for things like chicken, eggs, oil, honey, nuts dried fruit and seeds.and if you are not baking your own bread, you can get a nice freshly baked loaf at a reasonable price too.

 

[jewing]

There are two things that money cannot buy. One is true love, the other is homegrown tomatoes.