Argentina wine sector faces production crisis and new wage deals

The Argentine viticulture sector is facing a severe production crisis, with officials warning that over 1,000 hectares of vineyards have already been abandoned and another 650 hectares are at risk. César Taquía of SOEVA reported that high production costs, difficulties in marketing wine and raw materials, and the rising cost of electricity for irrigation are driving the instability. The situation has already affected more than 120 workers, and neglected maintenance such as pruning is expected to reduce future harvest yields. SOEVA has requested a formal declaration of productive or viticultural emergency from the government in La Rioja and the Chilecito Deliberative Council.

In a separate development regarding labor, SOEVA has reached a new wage recomposition agreement for wine workers. Following negotiations with business chambers, the union accepted a salary structure tied to official inflation averages. The agreement, structured in bimonthly increments through February, provides a 3.6% bimonthly increase for wineries and 3.4% for vineyards. Union leader Miguel Rubio noted that while the union initially sought 2.5% monthly increases, the economic vulnerability of workers and the risk of strikes making workers worse off led them to accept the state-aligned caps.