President Mauricio Macri presided today a new meeting of the Milky Competitiveness Committee, within the framework of which Daniel Pelegrina, head of the Sociedad Rural Argentina (SRA), presented an economic report that advocates the encouragement of exports, such as ” only alternative for the producer to leave the area of negative profitability, increasing the purchasing power of the chain from external sales, in a scenario of rising costs and low international prices that could worsen with the passing of the months “
To increase the capacity to pay for exports, the study carried out by the economist Ezequiel De Freijo emphasizes the need to eliminate withholdings and reinstate refunds. The numbers presented indicate that with these two modifications, which would take the situation back to mid-year, the new payment capacity “would allow the producer to receive $ 9.19 per liter of whole milk, a difference of $ 1.25 from the $ 7.94 that he currently gets. “
In the new public-private meeting of the sector, the president was receptive, took note, asked questions and was concerned when considering that the State is a large buyer of milk and pays 150 days and it was agreed to analyze the situation for look for superior answers.
In the framework of Good Commercial Practices, the government confirmed that the payment period for trade to the dairy industry will be reduced by 7 days. In this sense, the Secretary of Agribusiness, Luis Miguel Etchevehere, said that “this measure will improve the terms and marketing conditions for all the actors in the chain, which will give them greater predictability.”
In addition to Macri and Etchevehere, the head of the Agribusiness Cabinet, Santiago del Solar, participated in the public sector; the Secretary of Agriculture, Livestock and Fisheries, Guillermo Bernaudo; the National Director of the Dairy Chain, Alejandro Sammartino and the Strategic Planning Coordinator, Gustavo Lopetegui, the heads of SENASA, Ricardo Negri and INTA, Juan Balbín, as well as the ministers Leonardo Sarquis (Buenos Aires) and Sergio Busso (Córdoba) , among others.
From the official, they pondered that from the Table of Milk Competitiveness has advanced in greater tools to encourage the activity through different instruments such as the Future Milk Market that allows to project a price of milk for the producer and the industry will be covered by future variations; and the Integrated System of Management of the Argentine Dairy (SIGLeA), which allows to have an average milk price. And they also highlighted other efforts on credit enhancements with respect to the traditional financial market.
However, the ruralists argued that “milk production was reduced by 15% in 2016. In 2017 it continued to fall by 2% and in 2018, 4.9% recovered in 2017. With respect to 2015, today we are 12% down, 1500 million liters less “.
It was assessed that “exports increased 38% this year, reaching 310 thousand tons”, but considered that “we can not stay with this fact only because the year of comparison was the lowest in the last 20 years, and despite that There is still a long way to go to export levels of more than 450 thousand tons (30% below the 2011-13 average) measured in terms of dollars we are currently exporting US $ 900 million when between 2011 and 2013 the U $ S1900 million, in addition, this increase was mainly from June 2018, at the cost of the price of the milk in tambo fell to US $ 0.20 per liter, well below the US $ 0 , 33 per liter, which marks the average of the last eight years (January 2010 – November 2018) As a result, more was exported, at the cost of a sharp fall in real terms of the price paid to the producer “.