Increased labor costs and a stagnant European market could lead Argentina’s pear and apple sector to lose up to US $120 million, local paper El Cronista reported.

Quoting Marcelo Loyarte, general manager of the Argentine chamber of integrated fruit growers (CAFI), the report said that labor costs have risen on average by 22% since last season, and have grown more than 113% since 2002. This increase, along with a European market still feeling the effects of the financial crisis, could mean returns won't cover  production costs, the report said.

CAFI’s president, Oscar Martín, has asked the government to take measures to help fruit growers such as lifting export tariffs that cost the industry some US $ 22 million. Moreover Martín stressed that action is needed before the end of the year.

“Before the end of the year it is important to have some measures taken that prevent an impact on employment and production,” Martín is quoted as saying.

According to the report, the apple and pear crop is exported to Europe, Russia, Brazil and consumed internally, with Brazil as the most attractive market.

Source: www.freshfruitportal.com