Producers in Argentina grapple with inflation ahead of 2023 harvest

Published 2023년 2월 9일

Tridge summary

Argentina's olive oil producers are gearing up for the 2023 harvest amidst the highest inflation rate in three decades, with an estimated 98% inflation for 2023 due to a severe economic crisis. The high inflation, excessive deficit spending, and currency devaluation have led to significant increases in the cost of labor, fertilizers, and energy, necessitating higher prices for domestically sold olive oil and a shift towards exports. However, the country remains optimistic about a promising harvest, with expectations of a robust yield and plans to improve efficiency and productivity. Despite the challenges, there is guarded optimism for a successful olive oil season.

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Original content

With the start of the 2023 harvest less than two months away, producers across Argentina have been facing the highest rate of inflation in the past three decades. According to data from INDEC, Argentina’s national statistics agency, annual inflation in 2022 reached nearly 95 percent. Analysts consulted by the country’s national bank predicted that this figure would rise to almost 98 percent in 2023. A prolonged economic crisis has plagued South America’s largest olive oil producer due to a massive debt burden, excessive deficit spending and rampant devaluation of the local currency, the Argentine peso. The ongoing crisis has impacted every economic sector, including olive oil production. However, producers have learned to live with rampant annual inflation, which has exceeded 50 percent in three of the past four years. “Living in a country with such a large inflationary impact, such as Argentina, makes people entrepreneurs and their companies completely change their savings and ...

Source: Olive Oil Times