Yerba Mate is already widely sold in South America, with a yearly revenue of more than 2 billion dollars. The product generates substantial amounts not only from the traditional infusion market but through energy drinks, cosmetics, cereal bars, ice cream, and even alcoholic beverages, which are rapidly growing value-added products.
The main producers are Argentina, Brazil, and Paraguay. Production in Argentina is led with almost one million tons per year, while Brazil and Paraguay also hold considerable shares. Uruguay, on the other hand, has a high per-capita consumption but is strongly dependent on imports as it does not have large-scale production.
First of all, it is important to highlight the possibility that the climate crisis could dramatically change the areas suitable for yerba mate production. Some areas that are currently utilized for yerba mate production in Brazil and Paraguay could become less suitable, and places such as southern Argentina, southern Brazil, and Uruguay could be more favorable habitats. Businesses that manage to have safe grounds or logistics and supply in these up-and-coming lands could be very beneficial in the long run.
On top of that, soil and water management are one of the concerns that need to be solved immediately. Soils are degrading, and it is also said that the rainfall is not very regular, and that these two factors lead to a lower yield of production and are a burden on the farmer’s pocket because he has to use more inputs. If some people do not mind spending a huge amount of money just to restore the soil, start practicing regenerative agriculture, and building infrastructure that will enable them to deal with the drought or the flooding, then I am sure that they will be the last to be knocked out of the race.
One more thing that must be mentioned as a trend is the rise in the number of small-scale and artisan producers. The emergence of these types of producers is highly positive, especially in terms of niches (market niches), such as organic, shade-grown, sustainable, or heritage yerba mate, in which producers can set higher prices and attract environmentally friendly consumers. Some folks see eco-tourism related to traditional production methods as an extra potential.
There are also risks and opportunities at the policy level. Those producers that are in the locations that are going to be worse off may be confronted with more strictly enforced regulations or the physical limitations of the place, while the governments, as well as other institutions, are pressed to support the adaptation. The program of adaptation can cover subsidies, technical and other types of support, and research aiming at producers realizing practice and moving towards the most resilient areas.
