Yerba mate producers in Misiones, Argentina, are facing financial struggles as the price they receive for their product is significantly lower than production costs, leading to a potential strike and abandonment of plantations.
In Misiones, Argentina, yerba mate producers are sounding the alarm as they receive less than 200 pesos per kilogram, which is far below the production costs that exceed 400 pesos. The overabundance of green leaves has kept prices stagnant since April 2024, creating increasing tension within the primary sector. Misiones is the country's main yerba mate-producing province, and producers are facing mounting challenges, indicated by their inability to sustain operations at current prices.
Reports from independent producers suggest they sell their yerba mate for between 180 and 220 pesos per kilo, while the Instituto Nacional de la Yerba Mate (INYM) has projected production costs at 411 pesos. This significant gap between the cost of production and the selling price has pushed many producers below the breakeven point, threatening the viability of their operations. As the harvest season approaches, these financial difficulties are compounded by challenges in hiring labor and maintaining yerba fields, which risks a substantial downturn for a key agricultural sector.
The situation has raised concerns about potential protests in the coming weeks, with many producers considering abandoning their plantations due to the unsustainable economic conditions. The desregulation of the yerba mate market is seen as a contributing factor to these challenges, as it has led to a supply excess that has undermined the financial stability of the producers. The fate of yerba mate production in Misiones hangs in the balance as these producers express their anger and disillusionment over their current predicament, indicating that decisive action might soon be needed to address these pressing issues.
