The sale of yerba mate to the domestic market has experienced a sharp decline after several months of growth, mainly due to the recession. In March, there was a significant decrease in the amount of yerba mate shipped from mills compared to the previous year, indicating a contraction of almost 30 percent. Last month, 18,792,347 kilos of yerba mate were sold for consumption in Argentina, a figure not seen since February 2020 according to data from the National Yerba Mate Institute (INYM).
The decline in sales is attributed to the loss of purchasing power among lower-income families who often rely on mate as a meal replacement. Large commercial chains stocking up on yerba mate at the end of last year in anticipation of price hikes also contributed to the decrease in consumption. This situation concerns the entire production chain as decreased consumption may lead to a drop in product value on the market, impacting the primary sector.
Despite these challenges in the domestic market, the external market for yerba mate remains strong. There has been an increase in shipments in the first three months of the year compared to the previous year. The good sprouting from summer rains has accelerated harvest pace and there has been a significant increase in green leaf production entering drying process.
The National Yerba Mate Institute is facing uncertainty due to lack of appointed board president by National Government and disputes over setting minimum prices for unprocessed yerba mate. This situation has left market without reference values for green leaf and pistachio. The INYM is seeking clarification from government officials to address current situation and provide direction for sector.
Despite promises from government officials about sector deregulation, challenges remain in setting prices for unprocessed yerba mate