Mendoza is selling less, but at a better price in Argentina

Mendoza's exports experienced a 10% increase in the first semester of 2021 in FOB value but a 9% decrease in volume compared to the same period in 2020. This contradiction is explained by price increases in several products, such as Primary Products (PP) and Manufactures of Agricultural Origin (MOA), despite the decrease in volume. The recovery in the value of exports is attributed to international price increases and the depreciation of the currency in the first half of 2020. However, challenges such as competition, high tax rates, and potential complications from the exchange rate lag and US sanctions on Europe threaten the sustainability of this growth. The wine industry, particularly bulk wine, has shown resilience and growth, with fractionated wine experiencing an 18% increase in value and 9% in volume. However, the garlic industry faces challenges like strong competition and macroeconomic issues, with Brazil and Spain emerging as significant competitors. The future outlook for Mendoza's exports is complex, requiring the government to take measures to enhance competitiveness in the face of economic and market uncertainties.