Indicators: a measurement showed that eight regional economies remain in crisis

Argentina's regional economies are facing significant challenges, with a recent Coninagro report revealing that eight out of 19 analyzed sectors remain in a critical "red" state. Seven sectors are in the "yellow" category, indicating difficulties, while only four have achieved a stable "green" status.

The primary issue plaguing these economies is a persistent lack of profitability. The "business" component of Coninagro's "Semáforo de Economías Regionales" (Regional Economies Traffic Light) report highlights that producer prices have largely stagnated or increased at a slower rate than inflation and operational costs. This disparity erodes profitability and hinders recovery efforts.

Sectors like yerba mate, rice, wine and must, vegetables, cotton, peanuts, milk, and cassava are consistently in the red. The report notes that the wine industry, in particular, has shown red indicators for over 72% of the analyzed months, followed by dairy, rice, and citrus production. These industries grapple with prices that fail to keep pace with rising costs and stagnant domestic demand.

In contrast, beef, sheep, grains, and honey are in the green, benefiting from strong business components where prices have outpaced inflation. However, even these sectors face potential headwinds, such as the sharp increase in fertilizer and diesel prices impacting grain producers. Sectors in the yellow category, including forestry, tobacco, citrus, apples, poultry, and pork, show mixed signals with prices lagging behind inflation and high costs creating prolonged recovery periods.

“

The prices that receive the producers have remained practically stagnant or have grown below inflation and the increase in operating costs. This ends up deteriorating profitability and hinders the recovery of these activities.