Coninagro warns of deterioration in regional economies: 9 sectors are in the red and only 3 are in the green.
The latest Coninagro traffic light system showed that nine regional economies are in the red. Most are suffering from price lags due to inflation, rising costs, and low consumption. Only three activities showed positive signs: beef, sheep, and honey.
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The Argentine countryside is facing critical signs of profitability in several regional productions.
According to Coninagro, the deterioration of regional economies is worsening: nine sectors are in the red, including wine, yerba mate, potatoes, and sweet citrus fruits.
In April 2025, the Regional Economy Traffic Light published by Coninagro indicated a further deterioration in the productive situation in the country's interior. According to the report, nine activities are in the red zone, seven are in the yellow zone, and only three are in the green zone.
Compared to the previous month, the outlook worsened. Two activities that had been in better shape—forestry and potatoes—fell into the red, primarily due to a weakening business component. In contrast, honey production showed an improvement, reaching the green for the first time, thanks to a price increase that outpaced inflation and costs that remained under control.
Coninagro's analysis is based on three components:
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Business , which evaluates the evolution of prices and costs.
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Productive , which measures planted area, stock and volumes.
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Market , which observes exports, imports and domestic consumption.
The activities currently in the red are: cotton, rice, sweet citrus, forestry, cassava, potatoes, pears and apples, wine and grape must, and yerba mate. Most of these sectors are experiencing sustained decline, particularly due to the loss of profitability: prices are not keeping up with inflation, and costs continue to rise.
Some of these products, such as wine and must, or yerba mate, have been in this critical situation for over a year. Added to this is a complex external context: export prices have failed to improve, partly due to an uncompetitive exchange rate, and domestic consumption remains depressed.
On the other hand, the three activities that managed to move into the green were beef, sheep, and honey. In these cases, prices outperformed inflation, costs grew below inflation, and the rest of the indicators showed favorable signs.
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Beekeeping production showed an improvement in April compared to inflation, while costs were lower, according to the CONINAGRO ( Uruguay Al Dia ) report.
Seven production sectors appear in the yellow band: poultry, grains, peanuts, vegetables, milk, pork, and tobacco. While they haven't shown a marked decline, they haven't managed to take off either. These are sectors where price, cost, and demand trends remain unstable or insufficient to guarantee sustained profitability.
Coninagro warns that many regional economies have yet to recover. The situation remains conditioned by a lack of real incentives, increasingly narrow margins, and unresponsive markets.
The report points to the need for concrete measures to prevent more activities from falling into the red. The agricultural sector continues to show signs of wear and tear, and in many areas of the country, the situation is beginning to become unsustainable.
