Yerba producers in Argentina have seen their share of the final price of yerba tea packages fall to just 11%, the lowest in seven years, raising concerns over their profitability.
The article highlights the worsening economic conditions for yerba tea producers in Argentina, who currently receive only 11% of the retail price of their product. This figure, reported by the Centro de Economía Política Argentina (CEPA), marks a significant decrease from the 16.4% recorded just a month prior. The decline is attributed primarily to the rising costs and the squeeze the producers are feeling from the industrial sector, which has recently been offering them much lower prices for the raw leaves compared to previous years.
The report emphasizes that the situation has been steadily deteriorating over the years. In 2022, yerba producers managed to secure an average of 23.9% of the retail value, which is substantially higher than the current figure but still raises questions regarding their livelihood and sustainability. Despite the increasing prices that consumers pay in stores, producers are receiving less of the profits due to market dynamics and rising input costs, pushing them further into a precarious economic situation.
Looking forward, the implications of this continuing trend could be significant for both the local agriculture sector and consumers alike. If producers cannot achieve a more equitable share of the profits from their products, the quality and quantity of yerba tea available might decline, affecting not only their livelihoods but also a crucial part of Argentine culture. This situation requires urgent attention and potentially more supportive policies to ensure that local producers can thrive amidst challenging market conditions.
