One could say that it was a matured decision. The truth is that José Chediak started conceptually with the idea of expanding the olive oil plant in San Juan in the midst of the pandemic and it will be ready next March. Sure, after raising $14 million. These days Chediak takes care of every detail directly. And supervise. It’s not for less.
Asked to make projections on sales, exports and expenses of all kinds, the owner of Oliovita confesses that it has never been so difficult for him. “How much inflation will be, how much will the interest rate hit, what dollar will they liquidate my exports with and what is the dollar with which I will have to pay the entrances. The level of uncertainty is great, but I haven’t stopped investing,” he says clarion.
-I go day by day and on the edge of the knife.
Europe, an opportunity
50% of its income comes from its flagship brand Oliovita and the other half from the production of almost all supermarkets’ own brands. Chediak is not one to suffer from import barriers, although he admits he has problems with the spare parts for harvesters and bottling machines.
Exports to Brazil and the United States. But she feels an opportunity is lost. With climate change and drought destroying olive trees in Spain, which supplies 70% of that oil to Europe, Argentina could be a great supplier. Unlike Spain, these crops are irrigated here. “In Argentina, 200 grams of olives are consumed per year, there is an exportable balance” he claims.
From Mendoza, José Zuccardi managed to surprise the fans who went to the World Cup. their wines accompany them on Qatar Airlines. A nice achievement for the cellar. But the export lately leaves a bad taste in the mouth.
part of the solution
This sector has been able to establish itself on international markets. Zuccardi says he cannot compete with the current exchange rate where a withholding tax of 4.5% must be withheld. “The officer doesn’t follow inflation. We are below 2021. We need another dollar at costs that have adapted to the blue. There is a decline in our exports compared to the record shipments of bottled wine in 2021”.
Therefore, he argues that exporting is a process that includes a solid relationship with a distributor and building a brand. “You don’t go in and you don’t go out. Finally, the main competitors such as France and Italy they are throwing us off balance, they have an advantage after the devaluation of the euro. The government must understand this we are part of the solution“, dissolved.
Domestic consumption remains in a category that allocates 70% to that market. But judging by the New Year’s sales, there are signs of weakness. “The loss of purchasing power is starting to make itself felt”, warns the grocer.
In Coninagro they take the pulse of regional economies. Elbio Laucirica, agronomist by profession and new president of the institution, assures that there is tiredness among producers who feel the variable of adjustment.
In the traffic lights that the technicians prepare, with the exception of poultry, potatoes, vegetables and the forestry industry, the rest of the activities are in red. Mainly due to the weather, depressed producer prices and rising costs. In some crops, such as cassava, health problems are added. In sweet citrus fruits, they observe that the production decreases from year to year. In tobacco the numbers do not close directly. And they note a slight improvement in pears, apples and yerba mate.
regional economies together they ship $10 billion. Another fact: there is a wage for every dollar exported. It is to take it into account.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.