The domestic market for yerba mate experienced a significant decline in sales following a period of growth due to the recession. In March, there was a 30 percent contraction in the number of kilos shipped from the mills compared to the same month the previous year, with 7.7 million fewer kilos sold. Last month, sales of yerba mate for consumption in Argentina reached 18,792,347 kilos, which is not seen since February 2020 according to data from the National Yerba Mate Institute (INYM).
Industry leaders attribute this decline to the reduced purchasing power of low-income families, who often substitute yerba mate for meals. Others believe it may also be linked to stocking up by major retail chains at the end of last year, anticipating price increases. This situation is causing distress among all sectors involved as it could lead to lower product values on store shelves and impact primary producers.
The INYM is closely monitoring the situation and will receive sworn statements from mills at the end of April to determine if this trend continues or if sales begin to recover. Meanwhile, despite challenges in determining pricing for unindustrialized yerba mate due to government appointments and disagreements among industry representatives, production remains strong with over 135 million kilos already processed in dryers. This marks one of the best starts to the season in recent years. However resolving pricing issues is essential for ensuring sustainability and stability for producers.
On a positive note, exports show promising numbers with 10.3 million kilos shipped in the first three months of this year alone, an increase of almost two million kilos compared to the same period last year. Despite these challenges and ambiguities surrounding pricing regulations, producers remain optimistic about their future and continue working hard towards ensuring sustainability for their industry.
