Within this framework, there are coincidences and disagreements between the representatives of the cattle and meat chain, including meat processing plants, the Liaison Committee and the Government. For now, Domínguez’s plan for next year anticipates that international quotas such as the Hilton are insured and, according to official sources, it could be advanced with greater flexibility of the rest of the exports, but always with a “managed” system.In other words, everything will depend on how the supply behaves in the domestic market and of course the prices.
As it emerged, exports of cuts that do not impact the domestic market, such as garrón and brazuelo, demanded by China, would be released and fiscal incentives would be announced that allow adding heads of cattle and increasing meat production.
The truth is that beyond everything, the rural entities have insisted for a long time with the total liberation of exports, something that the Government today discards outright. That is why the expectation today is for Minister Domínguez to achieve an agreement with the sector that not only calms the spirits of producers and refrigerators but also the uncontrolled rise in prices in the domestic market.
In this context, the Government will request a greater effort from exporting refrigerators and domestic consumption entities to add cuts to popular prices and the litmus test will arrive in a few weeks. It is that the objective of the ruling party is that there is meat at cheap prices for the end of the year festivities and that part of that agreement also extends throughout 2022. In exchange, the promise of the ruling party will be not to advance with a rise in withholdings of meat that today are in 9% and could increase, without going through Congress, up to 15%.
More meat plan
Beyond the export scheme proposed by the Government for next year, as explained by the agricultural portfolio, the focus in 2022 will be to grow in production. The intention of the ruling party, with a long-term perspective, is to end the tensions between the internal and external market and for that greater productivity is needed.
Through subsidized rate credits, intended exclusively for cattle ranchers and the implementation of the Agroindustrial Law that provides fiscal and tax benefits for the sector, the aim will be to increase the beef stock and productivity per animal.
In the meantime, the Government will continue to manage shipments but always with the focus on the fact that prices cannot show an escalation again as they did in 2021 and there the role of the refrigerators will be decisive because they will not only have to dump a greater tonnage of cuts at economic prices in the local gondolas but also collaborate with the monitoring so that there are no distortions in the chain.
The letters are already drawn and the concrete announcements would arrive in the next few hours.