The new Brazilian regulation worries local producers and the authorities, who are already following the issue closely.
The head of the Ministry of Livestock, Agriculture and Fishing, Fernando Mattos, announced a trip to Brazil to deal with the issue of import restrictions on Uruguayan dairy products by the neighboring country, a fact that worries the Executive power.
On August 30, as confirmed by sources from the Ministry of Livestock, Agriculture and Fisheries (MGAP) in the middle of Conexión Agropecuaria, Mattos will travel to Brazil where the restrictions announced by the Brazilian government in relation to imports of dairy products by Uruguay.
In this regard, they also confirmed the preparation of a report by the National Milk Institute (Inale) – which is still of a reserved nature – which has already been handed over to the hierarch. In conjunction with this, the possibility of Brazil can coordinate an instance in which the inhale and dairy farmers.
What did Brazil say?
last week the Minister of Agriculture and Livestock of Brazil, Carlos Favaroannounced the Brazilian government’s commitment to reduce rampant imports. “Mercosur It is a very important trading block for Brazil. We sell manufactured products to these countries that give us a lot of competitiveness, profits and opportunities, but that cannot happen to the detriment of such an important chain, which generates jobs, such as the milk chain”, said the minister.
In addition, Minister Fávaro, together with the president of the state company Conab, Edegar PrettoFávaro, announced that emergency measures will be adopted for the dairy sector, including the purchase of milk powder by the federal government in order to sustain the internal value of the product.
The importance of Brazil in Uruguayan exports
The Uruguayan milk exports to Brazil so far this year they have been a strong income compensator for agriculture in the face of the reduction of the Chinese market.
Milk exports grew by 7% year-on-year in the first half of the year and placed the neighbor to the north as the main destination for milk placements. Uruguay from February to July, the date of the last official foreign trade report.
Uruguay is the second supplier of dairy products to Brazil with 44%, being Argentina the first with 56%. During the first months of this year, Brazil imported the equivalent of 350.5 million dollars, reflecting an increase of 292.8% compared to the same period last year.
Source: Ambito
