Argentine yerba mate producers are struggling despite a global surge in demand and record export figures. In May 2026, producers received only 13% of the final retail price of yerba mate, a significant drop from their historical share of around 25%. This disparity means that for every 100 pesos a package costs in stores, only 13 pesos reach the producer, with the rest distributed among industrial processes, packaging, logistics, commercialization, taxes, and commercial margins. This situation has led Coninagro's "Semáforo de Economías Regionales" to classify yerba mate as a "red light" activity.
The crisis is not due to a decline in consumption or exports. Internal consumption remains stable at approximately six kilograms per inhabitant annually, and export sales grew 11% over the past twelve months, reaching $127 million. In 2025, Argentina reclaimed the top spot in global yerba mate exports by volume and value, with 57.98 million kilograms shipped and revenues exceeding $116 million. The first four months of 2026 saw 14.82 million kilograms exported. The "Messi effect" and global trends towards natural products are partly responsible for this increased international demand, particularly in markets like Syria, Chile, and Spain, with new channels opening to China.
However, this export success has not translated into benefits for primary producers. The price of a ton of green leaf in May was around 240,000 pesos, representing a 20% real decrease compared to the previous year, adjusted for inflation. Producers estimate the cost to produce one kilogram of green leaf in June to be $473, but some are being paid as little as $170 per kilogram at the drying facility, often with delayed payment terms. This drastic reduction in producer income is largely attributed to the deregulation introduced by Presidential Decree (DNU) 70/2023, which eliminated the National Yerba Mate Institute's (INYM) authority to set minimum reference prices for green leaf and semi-processed yerba. This has left prices to a concentrated market, severely impacting small producers, particularly in Misiones, which accounts for over 85% of Argentina's green leaf production.
In contrast to yerba mate, other agricultural sectors show higher producer participation in the final price: 58% for bovine meat, 40% for poultry, and 37% for pork. Even struggling sectors like rice and wine exhibit a greater share for producers than yerba. Faced with this dire situation, producers, harvesters, and cooperatives in Misiones plan to request an "Emergency Yerba Mate Law" from Governor Hugo Passalacqua on July 30th to establish provincial tools that can mitigate the crisis and stabilize the sector, given the perceived exhaustion of negotiations with the national government.
The ongoing legal challenges to reverse the decree that removed INYM's regulatory powers have not yielded concrete results, leaving commercial operations under a free-market scheme. This has created a situation where the export business is more profitable than the domestic market due to depreciated prices. Cooperatives like Flor de Jardín are actively participating in trade missions to explore new markets in Chile and Spain to cope with the unfavorable domestic pricing environment.
