The decline in yerba mate sales to the domestic market has been attributed to several factors, including the recession and a decrease in purchasing power among lower-income families. Last month, 18,792,347 kilos of yerba mate were sold for consumption in Argentina, which is the lowest figure since February 2020. This decline has raised concerns among stakeholders in the production chain as decreased consumption may lead to a drop in product value on the market.
However, despite the challenges faced by the domestic market, the external market for yerba mate remains strong. In fact, there was an increase in shipments to foreign markets in the first three months of this year compared to last year. The good sprouting from summer rains has accelerated the harvest pace and led to a significant increase in green leaf production entering the drying process.
The National Yerba Mate Institute (INYM) is facing uncertainty due to issues with government regulation. Specifically, there is no appointed board president and disputes over setting minimum prices for unprocessed yerba mate have left producers without reference values for green leaf and pistachio. As a result, INYM is seeking clarification from government officials to address these challenges and provide direction for the sector.
Despite promises from government officials about sector deregulation, there are still challenges when it comes to setting prices for unprocessed yerba mate. Herbalist leaders are calling for action to address this uncertainty and establish necessary pricing structures that will support the industry as it navigates uncertain market conditions.
Overall, while there are challenges facing both domestic and external markets for yerba mate, there is still potential for growth if stakeholders can come together to address regulatory issues and ensure that producers receive fair compensation for their products while consumers have access to quality products at reasonable prices.
