While in the first 10 months of the year, fruits reached a cumulative increase of 44.5% in the Greater Buenos Aires area, a study carried out by the Regional Economics sector of the CAME revealed that 38.3% of the average price of a kilo of orange corresponds to taxes. Within this percentage, 83.7% of the tax burden is national, while 16.3% is provincial and / or municipal.
During this year, both oranges and other sweet citrus fruits have had a price readjustment due to the significant delay in original prices; situation that entailed a negative profitability for the citrus grower in previous years.
In that sense, in the last 3 months of 2020 the average price of a kilo of orange in the Autonomous City of Buenos Aires (CABA) was $ 64.3. Of the final value, the producer explains 22% ($ 14.1), the packer 8.9% ($ 5.6), the position in the Central Market 14.1% ($ 9.1) and the greengrocer y / or the supermarket 16.7% ($ 10.8). For its part, the tax pressure of the State, in its three levels, amounts to 38.3% ($ 24.7).
The suffocating tax burden not only puts citrus growers in check, but is also generating a considerable loss of profitability in all production complexes in the interior of our country. “The tax pressure on the Argentine agribusiness producer is one of the highest in the world. We need to implement a comprehensive tax reform in order to be profitable and competitive,” said Eduardo Rodrguez, president of Regional Economics at CAME.
Methodology
CAME analyzed the fresh orange value chain from the producer, located in the case study in the area of Chajar, Entre Ros; until the commercialization of the sweet citrus in greengrocers and / or supermarkets of CABA.
The stages of the chain identified were:
– Production and packing: involves the tasks of planting, fertilizing, curing, pruning, thinning and de-budding; as well as harvesting and moving, cleaning, waxing and sorting.
– Intermediation (Central Market of Buenos Aires): involves transfer tasks from the packaging warehouse, unloading and transfer within the different warehouses of the Market, and commercialization to external parties.
– Marketing (greengrocers and / or supermarkets in CABA): involves purchasing and moving tasks from the Central Market to the sales establishment, maintenance of the place and general costs.
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