The decline in yerba mate sales to the domestic market is 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 loss of purchasing power among lower-income families who often rely on mate as a meal replacement has contributed to the decline in sales. Large commercial chains that stocked up on yerba mate at the end of last year in anticipation of price hikes also contributed to decreased consumption. This situation concerns the entire production chain as decreased consumption may lead to a drop in product value on the market and impacting the primary sector.
Despite challenges in the domestic market, the external market for yerba mate remains strong with an increase in shipments compared to the previous year. The good sprouting from summer rains has accelerated harvest pace and led to an increase in green leaf production entering drying process.
The National Yerba Mate Institute (INYM) is facing uncertainty due to disputes over setting minimum prices for unprocessed yerba mate and lack of appointed board president by National Government which left market without reference values for green leaf and pistachio. INYM is seeking clarification from government officials to address current situation and provide direction for sector.
Herbalist leaders are calling for action to address uncertainty and establish necessary pricing structures that support sector despite promises from government officials about sector deregulation challenges remain. The delay in regulatory measures has left herbal producers struggling with uncertain costs amidst uncertain market conditions.