The minister of Livestock, Agriculture and Fisheries (MGAP), Fernando Mattos, met with his Brazilian counterpart, Carlos Favaro, to try to unblock the conflicts regarding trade with that country, which is greatly affected by the union claims of the neighboring country’s dairy sector and which have caused delays in Uruguayan exports to Brazil.
Exports to Brazil they had a new drop of 17% year-on-year in the month of August, reaching a cumulative rate of 19%. However, it should be noted that last year Uruguay had a record year of exports, to which is added the fact that it had to go through the worst drought in 100 years.
Being Brazil the main destination of Uruguayan imports, especially in the dairy sector, the Minister of Livestock, Agriculture and Fisheries had a meeting with his Brazilian counterpart, Carlos Fávaro, with the aim of reviewing foreign trade relations and trying to improve the situation of the Uruguay. According to ministry sources, there seems to be progress in the negotiations regarding the obstacles imposed by the neighboring country regarding Uruguayan dairy exports., although further confirmation would still be needed.
What did Mattos say in the meeting?
The words of the head of the MGAP took place in a meeting that he held today within the framework of the Expointer in the municipality of thisio (Porto Alegre, Brazil). There, Mattos assured that the union problem with the sector has nothing to do with Uruguayan products that are exported to the neighboring country.
“The presence and incidence of Uruguay in the market of Brazil should not be pointed out about the situation that Brazilian producers are experiencing,” Mattos emphasized at the meeting.
In turn, he conveyed to the Brazilian delegation his concern about the delays that have been generated at border crossings for the export of dairy products of Uruguayan origin, something that is having an impact on costs and affecting commercial dynamics.
However, he acknowledged that the dairy is going through great challenges globally, since demand has decreased and prices have devalued in the international market. “We need all the players to be able to market,” he said.
On the other hand, Mattos recalled that “during the first semester, (Brazil) was the most attractive market for Uruguay and that helped Uruguayan producers to face a complex situation”, so “Uruguay understands the situation that Brazilian producers are going through”.
A claim that does not stop
Two weeks ago, Minister Mattos also had a meeting with the Secretary of Commerce and International Relations of the Ministry of Agriculture and Livestock (MAP) of Brazil, Roberto Serroni Perosa – within of the Southern Agricultural Council held in Argentina – where an agenda of proposals related to trade between the two countries.
The MGAP informed through its X account (Twitter) that the Brazilian delegation “took note” of the proposal, and the meeting that Mattos had within the framework of the Expointer was agreed, with favarowhere progress on the subject continued.
They also agreed that joint technical meetings at the border will be promoted in order to provide transparency and generate lower waiting costs at border crossings for dairy and meat products.