The Argentine citrus sector is facing tough times at the moment, and weather is not the only factor for growers who have witnessed significant drops in export volumes for oranges and mandarins. In an interview with www.freshfruitportal.com, Northeast Argentine Citrus Exporters' Chamber (CECNEA) executive director Mariano Caprarulo discussed the situation in greater depth.

Caprarulo said the country's mandarin sector was looking at a fall in exports of 18% this season, while for oranges the drop was close to 100%.

The executive cited a range of causes behind the drop, including exchange rate issues, high tax pressures, and increased labor and input costs.

He said this had left growers with minimal profitability levels for many varieties, along with difficult competitive conditions in terms of tariff rates in destination markets. As an example, he mentioned Argentina had to pay a tariff of 16% to export its mandarins to Europe.

"The relation between cost and price is very bad," he said.

He said the expected export volume this year was worse still when considering it was compared to 2013, which was not a very good year either after suffering from the effects of frost.

When asked about measures taken to face the situation and prevent similar reductions in the future, Caprarulo highlighted a strategic plan that included intentions to open new key markets.

"We have made a strategic plan and we need the support of the state so that our regional economy so that tax rebates are provided, along with incentive policies for formal intensive labor activities, such as for citrus exports.

"Within what is needed to overcome the crisis it is imperative to have lines of credit at international rates and periods.

"We need Brazil and the U.S. urgently. It would change the situation for us a lot. Uruguay, with the same phytosanitary status, exports to both markets that demand mandarins, which is our strength. Exporting to Brazil is convenient via land freight and good prices, and the U.S. for its high mandarin prices," he added.

He said the current main markets for oranges and mandarins from the region were the European Union, Russia and Southeast Asia, but these markets were not so convenient due to exchange rate issues and high associated costs.

"The markets with a lot of strength have been maintained, and if the exchange rate improved and tax pressures ceased, we would grow in another way.

"Today the business situation and the situation for companies is very bad, also considering the great loss to the sector from the frost two seasons' ago."

Speaking with the program 'Wake up with Us" on Oíd Mortales Radio, Caprarulo said Argentina had managed to open the Japanese market to export sweet citrus fruits. However, this was dependent on a visit from a Japanese inspector.

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