Argentina: In Santiago del Estero, what they pay an onion producer per kilo is not even enough to buy a candy

Published 2021년 9월 23일

Tridge summary

Argentina's onion producers are facing a significant challenge due to overwhelming overproduction and low demand, which have resulted in rock-bottom prices. The situation has become so severe that in some areas, onions are being sold at wholesale markets for less than the cost of four candies, making it unprofitable for farmers to harvest. The main culprits behind this crisis are a 50% decrease in Brazil's onion imports and increased cultivation due to predicted adverse weather conditions, leading to an oversupply in the domestic market and plummeting prices. As a result, onions are rotting in the fields, and farmers are facing significant financial losses.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The effects of the explosive combo "overproduction-low prices-low demand" continue to be felt in the onion producing sector throughout the country, which is going through an unusual panorama of very low prices. Perhaps the saddest thing is that, in some areas of the country, a kilo of this vegetable is worth less in the wholesale markets than it costs to buy four candies. And to the producer who harvested that onion, what they pay is equal to the value of just one piece of candy. In Argentina, around 19,000 hectares are planted with onions, the main producing provinces being Buenos Aires, with 9,000 hectares, and Río Negro, with 4,000. Behind them are Santiago del Estero, Salta and Córdoba. Most of what is produced is destined for the domestic market, and the rest is exported to countries such as Brazil, the main importer, Paraguay and Uruguay. But this year several factors conspired to deal a major blow to the business. In the first place, Brazil imported 50% less than in 2020: ...

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