Argentina: The drought caused the lowest export of yerba mate in eight years

Mate

Argentina

Published Mar 29, 2023

Tridge summary

Yerba mate exports were hit hard at the beginning of the year with a vertical drop that caused the worst first two months in eight years. Argentina is the world's leading producer and exporter of this product and accounts for 60% of the global market, Brazil follows with 30% of world trade and Paraguay with the remaining 10%. However, this beginning of 2023, in the midst of a historic drought that collapsed production in values close to 30%, caused a pronounced drop in exports. A dynamic that has been deepening in recent years due to the repeated climatic and economic crises. According to the statistics of the Inym (National Institute of Yerba Mate) and the analysis of the Rosario Stock Exchange, the year 2023 began with a low rate of exports, both in value and quantity. If only the month of January is taken into account, 0.73 million kilograms of yerba mate were exported, which is equivalent to almost US$ 2 million at FOB price, according to INDEC.

Original content

For the first two months of the year, revenues amount to US$8.77 million, the lowest level in a decade. Only in 2013 can a lower nominal value be found with US$ 6.38 million corresponding to 2.31 million kilos. During the first two months, 3.5 million kilos were exported, the lowest number since 2016, when 3.11 million kilos were exported. However, the inflow of dollars was higher in January and February of that year, with US$9.33 million. The monthly report prepared by the National Institute of Yerba Mate (INYM) indicated that during the month of February 2023 the volume of yerba mate produced for the Argentine market was 19,923,346, while exports reached 2,934,824 kilos. . In this way, between both destinations (domestic market and exports), the consumption of yerba mate in February totaled 22,858,170 kilos, a figure that added to the 22,925,463 kilos of the previous month, results in a volume of output from coffee mills. 45,783,633 kilos for the first two months of the year. ...

Source: Mdzol