The external market for yerba mate remains strong despite a sharp decline in sales to the domestic market. 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 several factors including loss of purchasing power among lower-income families who often rely on mate as a meal replacement and commercial chains stocking up on yerba mate at the end of last year in anticipation of price hikes. This situation has left herbal producers struggling to cover costs amidst uncertain market conditions. Despite promises from government officials about sector deregulation, challenges remain in setting prices for unprocessed yerba mate. Herbalist leaders are calling for action to address the uncertainty and establish necessary pricing structures to support the sector.
Despite these challenges, there is good news for the industry as the good sprouting from summer rains has accelerated the harvest pace and there has been a significant increase in green leaf production entering the drying process. This has led to an increase in shipments in the first three months of this year compared to the previous year. The National Yerba Mate Institute is facing uncertainty due to disputes over setting minimum prices for unprocessed yerba mate and lack of an appointed board president by the National Government. However, they are seeking clarification from government officials to address these issues and provide direction for