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Harvest in Mendoza: Villarruel missed the flight, arrived late and heard complaints from producers about the drop in sales

2024-03-02T16:04:12.418Z

Highlights: Wine sales fell 42% in 10 years in Argentina. "We need predictability, clear rules and achieving competitiveness," said the representative of the mixed entity. Argentine viticulture as a regional economy has a total of 204,848 hectares cultivated with vines by 2023, distributed in 23,046 vineyards and in the hands of 17,000 producers. "As a country, we are the 7th largest producer of wine in the world; the 10th largest consumer, the 11th largest exporter in the World in volume," says the Argentine Wine Observatory.


Coviar's breakfast started almost at noon. "We need predictability, clear rules and achieving competitiveness," said the representative of the mixed entity. Wine sales fell 42% in 10 years


The political and economic Harvest started in Mendoza, with great concern about the

sustained decline of the wine business

, although in an audience of majority politicians and businessmen

related to the

national government.

The breakfast of the Wine Corporation (Coviar) began after 11:30, among other reasons

to wait for Vice President Victoria Villarruel who missed the first flight

to Mendoza, after having been in Congress on Friday night.

Javier Milei himself in his opening speech stressed that officials will not travel on private flights, as they used to.

The Minister of the Interior, Guillermo Francos, traveled on the first scheduled flight

;

the Minister of Defense,

Luis Petri from Mendoza;

the Secretary of Tourism and Sports, Daniel Scioli, and the Secretary of Industry,

Juan Pazo

.

The vice president traveled on another commercial flight, arriving around noon.

The radical governor Alfredo Cornejo, who already agreed to participate in the May Pact party, received her and waited for the presence of her vice president to start the meeting of producers and winemakers.

Coviar is a mixed organization (public and private) that manages actions to meet the objectives of the Argentina Wine Strategic Plan 2030 (PEVI), to promote its development.

It is made up of

13 business

and productive chambers from across the country, INTA and INV representing the National Government and the governments of the wine provinces.

In his speech, the president of Coviar, Mario González, celebrated that the meeting can be held in a climate of dialogue between the public and private sectors.

"Faced with every context, favorable or adverse, national or international, Argentine viticulture looks to the future with optimism because we have a plan, a common horizon, built by consensus and in a participatory manner, which we all want to reach," he highlighted.

He highlighted the

urgency of improving the economy

: "We need predictability, clear rules and

achieving competitiveness

," said the business leader.

And he stressed: "Argentine Viticulture has enormous possibilities to grow in the global wine market. To achieve growth abroad, we need to increase promotion and presence in the world, as well as achieve favorable trade agreements that increase our competitiveness."

Producers and winemakers will take advantage of the visit of national officials so

that the Milei management ratifies that withholdings will not be applied to exports

.

The initial Omnibus Law project applied 8% withholdings to wine and commissions, which were removed and returned to 0%, as was the case for yerba mate, peanuts and other regional products.

Argentine viticulture as a regional economy has a total of 204,848 hectares cultivated with vines by 2023, distributed in 23,046 vineyards and in the hands of 17,000 producers.

And as a regional economy it generates 113,070 direct jobs, according to data from the Argentine Wine Observatory.

Argentina is a central player in global viticulture.

"

As a country, we are the 7th largest producer of wine in the world;

the 10th largest consumer, the 11th largest exporter in the world in volume and the 2nd largest exporter of concentrated grape juice in the world. Wine is part of the culture and the table of the Argentines and contributes to building identity and country brand throughout the world," said the president of Coviar.

Sales drop

During the week, as a prelude to Vendimia, the economist Javier Merino presented the Wine Situation report, which he carries out every year, at the initiative of Banco Supervielle.

The 2024 edition was number 10 and allowed us to take stock of a decade.

"In 10 years, the turnover of the wine industry fell by 42%, almost half of what was sold in 2013.

Investments, jobs and participation in the global market have been lost

," according to the report data.

Merino considered that

a stage of mergers and acquisitions is coming.

"Possible joint business agreements between producers and wineries to survive, because the wineries are not going to invest in their own vineyards, but they need to ensure quality grapes," he said.

The consultant said that the outlook for the industry can improve

if inflation drops and sales in the domestic market are reactivated.

But, he stressed, "new investments and external financing are needed to grow."

The factors of success, in recent years, according to the comparative study of 50 wineries, were

having bet on higher price segments

(the lowest priced wines bill half as much as they did 20 years ago), and having focused on the United States market. Joined.

Another success for growth has been the professionalization of management (many wineries were family SMEs) and having innovated in product formats, processes, and marketing, such as placing its own importers abroad.

Regarding exports, the report highlighted the competitive disadvantage with producing countries.

“They pay twice as many tariffs as Chile.

We need free trade agreements like our neighbors,” Merino said.

Complaints and praise

As a closing of the business meetings, this Saturday at noon the Harvest Celebration will be held, organized by Bodegas de Argentina, an entity that brings together more than 250 national and international partners.

The winery meeting does not take place in a winery in production, but in the remodeled Arizu space that belonged to an old winery built in 1888, on San Martin Street at 1500 Godoy Cruz.

The winery was owned by the Arizu family for 90 years and in 1978 it passed into the hands of the Greco Group.

Later, in 1980 it was taken over by the National Government and continued operating as Bodegas y Viñedos Arizu until 1991, when it closed its doors permanently.

The president of Bodegas de Argentina, Walter Bressia, will be in charge of the speech, which will revolve around maintaining the removal of withholdings on wine exports, the request for a reduction in inflation that affects the subsistence of the sector and the need to stabilize the macroeconomy to recover exports.

At the event, which will be attended by around 650 people and national officials, around 50 labels from 20 wineries will be served.

Financing

During the Mendoza Investors Forum, organized by the Mendocino Business Council and the provincial government, regarding Vendimia, the situation of the wine industry was discussed. Debate and networking forums on tourism, franchising, energy, mining and technological businesses.

The participants listened to the Secretary of Industry and Productive Development of the Nation, Juan Alberto Pazo, who announced

lines of credit for $72 billion for the productive sector.

The official announced that

there will be five-year financing

for projects that seek to improve water efficiency, such as waterproofing of channels and canals and purchase of irrigation equipment.

Another line will aim at the purchase of tractors and equipment

in general, the

modernization

of plants and the installation of

anti-hail mesh.

Pazo said that the credit tool will be available in the coming weeks, in public and private banks, with

a Badlar rate +4% and a maximum limit of 115% for the first two years.

He explained that, of the $72 billion, about $40 billion will be allocated to working capital and the remaining $30 billion will be allocated to investments in infrastructure.

Source: clarin

All news articles on 2024-03-02

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