Argentina’s Small and Medium Enterprises (SMEs) have achieved a remarkable 21.7% increase in exports, according to a recent report by the country’s Chamber of Small and Medium Enterprises (CAME). This surge in exports, totaling over US$ 9 billion in revenue from January to November, marks a significant milestone for these businesses, with a particularly strong performance noted in shipments to Brazil and Chile. The report also highlights a growing concern among SMEs about potential layoffs as imported products flood the domestic market due to the current strength of the local peso against the US dollar.
Key Points from the Report:
- Exports Growth:
- Exports increased by 21.7% in revenue and 27.5% in tonnage, with South America accounting for 33.1% of total sales.
- SMEs represented 12.4% of Argentina’s total exports, generating US$ 9.234 billion in revenue and shipping 7.9 million tons of cargo.
- Despite the growth in exported volume, there was a 6.3% decrease in price per ton, averaging at US$1,174. This decline underscores the need to export larger quantities to maintain revenue levels.
- Sector Performance:
- Tobacco and byproducts experienced the steepest decline in both revenue (-30.8%) and volume (-30.6%), while Miscellaneous manufactures saw a significant increase of 1,266% in dollar value.
- Unprocessed food constituted 50.1% of sales, reflecting a lack of added value due to the absence of local industrialization. Enhancing local processing capabilities could lead to higher income generation and job creation.
- Export Highlights:
- Among SMEs’ export products, salts with formic acid emerged as the leading item, comprising 2.6% of total exports, followed by unprocessed goods like squid, peanuts, shrimps, and prawns.
- European markets, particularly The Netherlands, Spain, and Italy, accounted for 24.3% of SMEs’ overseas sales, demonstrating diversification in export destinations.
Looking Ahead and Conclusion:
While Argentine SMEs celebrate their export success, concerns loom over potential layoffs anticipated to reach 300,000 next year amid heightened competition from imported products. The strength of the local peso against the US dollar poses further challenges for these businesses. In navigating these turbulent waters, SMEs must focus on enhancing value-added production and exploring new markets to sustain their growth trajectory. By prioritizing innovation and adaptability, SMEs can not only weather the storm but also emerge stronger and more resilient in the global marketplace.
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