BUENOS AIRES – Argentine President Mauricio Macri has announced a 60 million peso ($4.3 million) plan to assist the country’s winemakers in the face of falling prices.
The program is aimed at helping small producers in the provinces of Mendoza and San Juan, which together account for 90 percent of Argentina’s vineyards.
The $4.3 million will be used to cover the costs of withdrawing surplus inventory of generic wine, the Agro-Industry Ministry said in a statement.
“I hope this assistance we bring in today will be a bridge, so we no longer need it, because it will generate new markets,” Macri said in Mendoza, 1,050 kilometers (655 miles) west of Buenos Aires.
Argentina “is the world’s fifth-largest wine producer and 10th in exports,” meaning the industry has plenty of room to grow, the president said.
The surplus of generic wine on the domestic market is dragging down prices for all types of wine, which has had a major impact on small producers.
The government expects that taking the surplus out of the market will “boost prices of all wine products,” the statement said.