However, the wine sector is preparing to face a year with good prospects for exports threatened by the Government’s intention to apply a withholding tax of 8%. For producers and wineries, with a weak domestic market, the application of withholding taxes proposed in the omnibus law currently under discussion in Congress It threatens the recovery of the sector, which saw its exports collapse by 30% in 2023.
From the COVIAR group (Corporación Vitivinícola Argentina) they underline that paying export duties of 8% for viticulture “it implies a loss of competitiveness and marketsdecline in sales abroad, especially in SMEs that will stop exporting”.
“The application of export duties to the sector would directly affect the entire wine supply chain, mainly the primary sector, threatening job creation, external competitiveness and the attraction of investments by an industry present today in 18 provinces“said Mario González, president of COVIAR.
From Bodegas de Argentina they declared that the withholdings will be added “only 60 million dollars in the state coffers, equal to just 0.005% of public spending”. And they propose that this be done “at the cost of further damaging the competitiveness of Argentine exports compared to countries without export taxes.”
The two institutions cater to governors and legislators to reverse this measurementin the style of what Patagonia leaders have already accomplished with the fisheries law, also included in the Omnibus Law.
The cellars are also on guard, even if they are excited about the good vintage. Manuel Lanús, CEO of the Colomé Group, underlines that “it will be very complicated and The focus will be on attention and care of our cost structure, always maintaining our standards of quality and service. Our proposal is differentiating as we represent a wine region like Salta which needs to grow a lot to make itself known.”
“Recent times have not been favorable to Argentine wine exports, with declines in the main markets. The time has come to conclude free trade agreements with key markets that allow us to reach shelves around the world under the same conditions as other international competitors, such as Chile,” says Lanús.
“For us It will be a better harvest than last year both in terms of quantity and quality“, says Maricel Valdez, winemaker of Familia Millán Wines Series. It is a company from Mendoza that is among the top 10 exporters in Argentina and was chosen as winery of the year by the Descorchados guide.
“We will be very attentive to what happens regarding wine retentions., since it is a strong condition for being able to export. We have been working for several years in the external market to consolidate the brands of our projects”, reinforces Valdez.
Of the Kaiken winery, its oenologist, Juan Pablo Solis, claims that “the Argentine wine sector faces a 2024 with good prospects. The big question is whether with this more competitive exchange rate we will have the opportunity to conquer new markets. and dramatically increase exports.”
In this context, Solis underlines that “the strategy is to remain competitive. To consolidate ourselves on the market we must continue to work, travel a lot to visit the markets, be in contact with importers, outline all those marketing actions and try to compete. “It’s not easy to sell wine abroad.”
“I believe that in the medium and long term, with this more competitive exchange rate and the exportable balances which are recomposing Export sectors are expected to benefit“.
70% of Argentine wine sales occur in the domestic market. “For wineries that focus 100% on the domestic market, the outlook will not be so favorable because domestic demand will remain limited, there is little dynamism for real wages”, Solis ruling.
Alberto Moreno, winemaker at Finca Bandini, underlines that 2024 will be a difficult year, although he underlines that “quality and sustainability are the way. Beyond that, we work to strengthen marketing, both in internal and external markets. “We are also very strong as a point of reference for wine tourism in the area.”
“In exports, we are opening new markets such as Peru and Colombia, focusing on Panama and having already entered the European Union, the United States and Brazil.”
“In the domestic market I think it will be a difficult first 6 months, as it will be for all of Argentina from then on In crises, high-end wines become a luxury. But with great enthusiasm and optimism we believe that the situation can change”, says Bandini.
Matilde Pereda and Agustín Casabal are founding partners of Monte Quieto, a family-run winery that recently launched its Enlace restaurant in Agrelo, Luján de Cuyo. “For this year we are optimistic, without knowing much what the new government will bring us. Naturally with a bit of anguish since Withholding taxes are a big burden for us.”
“The positive thing is this The year has started well because there is greater interest from customers in exports. We have a new gastronomic project that we are very excited about, we are opening a restaurant in our cellar. “It is a great opportunity for us, since in a special moment domestic consumption is closely linked to tourism.”
Source: Clarin
