Yerba Mate Sales Tumble in Domestic Market Amid Recession, but Exports Remain Strong

In the domestic market, yerba mate sales experienced a sharp decline after several months of growth, mainly due to the recession. This was indicated by a significant decrease in the amount of yerba mate shipped from the mills compared to the previous year, resulting in a drop of almost 30 percent. Last month, 18,792,347 kilograms of yerba mate were sold for consumption in Argentina, a figure not seen since February 2020.

The decline in sales is attributed to a loss of purchasing power among lower-income families who often rely on mate as a meal replacement. Large retail chains also contributed to the decrease in consumption by watering yerba mate at the end of last year in anticipation of a price increase. This situation has affected the entire production chain because reduced consumption can lead to a drop in the value of products on the market.

However, despite challenges in the domestic market, the foreign market for yerba mate remains strong, with shipments increasing in the first three months of the year compared to the previous year. Good emergence from the summer rains accelerated the pace of harvest and resulted in a significant increase in green leaves entering into drying process.

The National Institute of Yerba Mate (INIM) is facing uncertainty due to disputes over minimum prices for raw yerba mate and lack of benchmarks for leafy greens and pistachios caused by delays in regulatory action by government officials. Herbalist leaders are calling for action to resolve this uncertainty and establish necessary price structures to support herb producers who are struggling amid uncertain market conditions while government officials have promised deregulation but still face challenges with pricing unprocessed yerba mate.