the industry asks for the total end of the retentions and the producers, a better price

In Cuyo, the grape harvest of the 2021/22 campaignwith claims from the various sectors that make up the wine chain.

Last Saturday, a meeting was held in Mendoza new edition of the annual breakfast of the Argentine Wine Corporation (Coviar)in which its president, José Alberto Zuccardi, highlighted the results obtained during the first year of implementation of the 2030 Strategic Wine Plan.

LOOK They estimate a 13% drop in the harvest

Furthermore, he underlined the export record of bottled winewith more than US$ 880 million sold, and that Argentina remains among the top 10 wine markets in the world.

In this framework, and in the presence of the National Minister of Agriculture, Livestock and Fisheries, Julián Domínguez, Zuccardi emphasized: “It is urgent to complete the elimination of export duties for the entire wine chain. In addition, we need an exchange rate in line to sustain and improve the growing trend of our exports and there is an urgent need to implement a water infrastructure works plan to improve irrigation efficiency and take advantage of the investments made from the private sector”.

More information about Coviar breakfast, HERE

official word

In his turn, Domínguez affirmed that the objective of the national government is “protect producers, that they grow and industrializeand defended wine production as “a model in which all chains should refer to ourselves.”

Viticulture is the activity that generates more employment per hectarethat is why all financing tools are intended for production. There are two country models: one that promotes production and another that benefits financial speculation,” the official said.

Regarding the retentions, he defended the measures taken until today: the elimination for those who export up to US$500,000 per year, and the reduction for those who reach one million. “This segment represents 80% of the producers,” she argued.

More information on the participation of the Minister, HERE.

Complaints from the field

In parallel, the Rural Society of the Uco Valley issued a hard statement in which he claimed for the absence of warehouses to the meeting that was held of the Sectoral Table for the price of the grape.

In addition to being disrespectful, they are disloyalgiven that when they needed our help in the instances that had to defend the sale of the wines, the producers were always there, this absence clearly configures a provocation, a sample of the abuse to the producers”, said the entity.

From this Rural they calculate that the operating cost of producing a hectare of Malbec is around $64.74 per kiloand that to reach a level that is profitable to continue, they should charge no less than $96.60.

The price that was repeated in the last 25 years is 0.82 cents, today it cannot be less than 0.92 cents.. It must be remembered that not counting the previous season, an average of 0.16 cents of a dollar was paid in the last seven years”, emphasized the Rural Mendoza.

And he continued: “The profitability of the small and medium producer, which in turn is within the range of eight hectares, it would be $252,800 per hectare and would give $2,022,400, this if they paid in cash; With this sum, the producer has to support a family and renew fixed costs in the hectare and would have an income of $168,500 per month”.

In this framework, he concluded, “to reach this sum, had to invest 60,000 dollars per hectare and wait at least three years to have a harvest in which you can begin to recover the investment; Any analysis shows us that investment in this sector is unfeasible. With the confiscatory attitude of our industrialists, farms of many years continue to be sold off and some others are abandoned”.

To read the full statement from the Rural Society of the Uco Valley, HERE.