Government bets on growth in production and exports

Government bets on growth in production and exports

As for its implementation, it will be carried out “through the reduction of rates on lines of credit and/or economic contributions through specific agreements with provinces and other public or private entities linked to the sector.”

For the time being, the plan offers a special line from Banco Nación for SMEs and agricultural cooperatives, both livestock farmers and dairy farmers and refrigerators, which consists of a maximum amount of up to $50 million with a term of five years and a grace period of one year to a nominal interest rate of 37% per year during the first three years and Badlar + 5 points during the rest of the period.

In the case of large companies, the nominal rate for the first three years is 40% with Badlar + 7 points for the rest of the period and a maximum amount of up to $250 million.

In the medium term, other instruments linked to promoting meat production and accompanying the growth of the livestock stock would be added to these lines of credit.

The idea of ​​the ruling party is that by the year 2030, meat production in Argentina will increase by 600,000 tons, to a total of 3.6 million tons. In this way there will be greater availability of the product to end the tensions between the internal and external markets. To achieve this objective, a broad plan of actions is proposed that ranges from increasing the stock of animals, through increasing the weight of slaughter, to ordering, through financing and training of the entire chain that includes livestock producers but also to refrigerators.

“For each percentage point that we manage to increase in the weaning rate, the number of calves produced per year will increase by 230,000 heads, which at the end of the production cycle will represent an additional 58,000 tons of meat. The 5% increase in this indicator by 2030 means an additional production of approximately 1.1 million calves, which will represent an increase in meat production of some 300,000 tons,” states the working document prepared by the Ministry of Agriculture. together with the various players in the sector and technical teams.

In relation to the average weight of the beef to the hook, for every 5 kilograms of increase, meat production will be increased by 70,000 tons. The goal set for 2030 of increasing the average weight of the carcass to the hook by 20 kilograms will represent an increase in production equivalent to about 300,000 tons per year. Therefore, the fulfillment of the objectives established in the GanAr Plan will allow to increase the production of Argentine meat by 20%, generating an additional volume of approximately 600 thousand tons.

Another key goal by 2030 will be to incorporate 100% beef chopping in slaughter plants and thus achieve adequate traceability of the product and put an end to forms of marketing, such as hooked half beef, which today are below international standards. On this last point, the ministry’s plan highlights: “it is necessary to modernize the slaughter processes of the industries that supply the domestic market in pursuit of greater efficiency in the meat distribution and marketing system. It is also important to break down beliefs regarding the superior quality of light animals for internal consumption that are limiting for productive growth.”

Source: Ambito

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