The Mintec price for Argentinian pears increased by 12% from the 1st May to 26th June 2020 to ARS 45,610/MT due to lower pear production estimated for the 2020 calendar year (CY) and rising costs for labour and energy.
Argentina's 2020 pear output is expected to decline y-o-y, by 50,000 tonnes to 550,000 tonnes due to adverse weather conditions in January 2020 affecting production. In addition, the rising cost of labour and energy continue to impact producer’s profitability. Labour accounts for 60% of the production cost of pears, and as a result higher labour costs are directly reflected in pear prices.
Argentinian pear prices are expected to rise further in the next few months, with the weakening Argentinian Peso and rising demand from Russia. Russian demand for Argentinian pears is projected to be higher, with Russia’s Federal Service for Veterinary and Phytosanitary Surveillance temporarily banning the imports of pears from China earlier in the year (Jan ‘20) due to safety standards.