Friday, December 3

Soy: challenge to produce 60% more

The objective is not whimsical, but responds to the Argentine installed capacity to industrialize the oilseed, which was developed in the 90s in response to the growth trend brought by soybeans at that time, which began to reverse a decade ago , which caused that the sector currently has around 35% of idle industrial capacity, which increases costs and reduces the competitiveness of the sector. Now, with a cultivated area of ​​around 16 million hectares, the crop is about 4 million below its local area record. According to a study by the Cordoba foundation FADA, one of the causes of the decline in this crop is that it bears a tax burden of 46%, of which 73.5% is justified by withholdings, and another 19.9% ​​corresponds to Profits.

“Thus, for every dollar that the producer earns, he must pay 5 in taxes,” according to David Miazzo, of FADA. Another data to highlight is that in the last two years, (2019 to 2021), while the international price of oilseed increased 46%, going from an average US $ 364.91 / ton to an average of $ 533.45 / ton in that period, the tax burden was 64%, currently reaching $ 246.47 / tn. In turn, the specialist Emilce Terré from the Rosario Stock Exchange, explained the current exchange gap, noting that between the soybean dollar (less withholdings), and the official dollar there is a difference of 49%, while the difference widens up to 207% with respect to the CCL dollar (“counted with liquid”).

… That, in its annual Fresh Deciduous Fruit report for Argentina, the USDA (US Department of Agriculture), projected that the production of fresh apples 2021/22 will increase only 2% compared to the previous one, and it was estimated at 570,000 tons. Meanwhile, the entity expects that the production of fresh pears will decrease 4%, and estimated at 590,000 tons.

“The weather had been favorable for the flowering of the fruit until the beginning of October when there was a frost that affected the main producing area of ​​apples and pears in Argentina,” indicated the USDA. More than a decade of rising production costs and low profits deteriorated the financial sustainability of fresh produce. Despite this, the exit of some key international fruit companies increased the consolidation of the sector.

The USDA revealed that “exporters continue to be affected by the lack of competitiveness in international markets with respect to the Southern Hemisphere, due to internal economic and financial conditions,” according to the portalfrutí consignment.

… That, while in Paraguay they await an imminent opening of the United States for the export of their bovine meats; in neighboring Uruguay, they confirm the values ​​of over US $ 5,000 per ton for their external sales, a reflection of the international firmness. Simultaneously, according to Blasina and Asoc., A group of Argentine investors is in the Eastern Republic evaluating the possibility of producing pork there, in part, for shipments to China (although Uruguay still does not have the authorization). Meanwhile, the local market had a shake with the advancement of the increases (of 15%) in the price of the fat farm, a situation that was only expected for the middle of next month.

The advance would have responded to the relative improvements in purchasing power due to the elections, which, for many, shows that the tranquility brought by consumer prices was due more to the fall in purchasing power, than to freezes and price controls, to Despite the drop in slaughter, which in the year will be around one million head. According to Ciccra, “in October 2021 the apparent consumption of beef was equivalent to 47.0 kg / year. In interannual terms, there was a drop of 5.8% (-2.91 kg / person / year).

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