Brazil will stop milk imports from Mercosur countries

Brazil will stop milk imports from Mercosur countries

The federal government of Brazil will decree a tax measure seeking to try to stop imports of milk from the countries of the Mercosurbased on the modification of the tax benefits enjoyed by dairy importing establishments, originally created to encourage internal competitiveness.

In the coming days, the decree that changes the tax incentives granted to agroindustries, cooperatives and dairy sectors, which participate in the Mais Leite Saudável Program (PMLS), of the Ministry of Agriculture and Livestock (MAPA)as reported by O Globo.

The current rule establishes that companies that are part of the program can take advantage of up to 50% of the presumed PIS and Cofins credits, in relation to the purchase of milk to producers to reduce other federal taxes, or to receive a cash refund.

The counterpart of these credits is that at least 5% of the value is allocated to projects that benefit the competitiveness of national production, such as, for example, technical assistance actions for Brazilian livestock farmers.

Based on a demand from the Confederação da Agricultura e Pecuária do Brasil (CNA) and the Organization of Brazilian Cooperatives (OCB) Last September, the government sought to limit the benefit of using 50% of the presumed credits to establishments that only buy from national producers, while companies that buy milk Abroad they must continue with standard taxes and will be able to use only 20% of these credits.

Last Thursday, the Minister of Agrarian Development, Paulo Teixeirahad already informed the producers of the State of Rio Grande do Sul about the publication of the measure.

According to the ComexStat platform, imports of milk and other dairy products Brazil They reached 159.4 tons from January to August of this year, more than double the 64.4 acquired during the same period in 2022.

Fernando Mattos ruled out that Uruguayan dairy products harm Brazilian producers

At the beginning of the month, the minister of Livestock, Agriculture and Fishing (MGAP), Fernando MattosI travel to Brazil to hold a meeting with his Brazilian counterpart, Carlos Favaroand personally convey your concern about the delays at border crossings for the export of Uruguayan dairy products.

At that meeting, which took place in the municipality of Esteio (Rio Grande do Sul), Mattos noted that “the presence and incidence of (the products of) Uruguay in the market Brazil “should not be singled out for the situation that Brazilian (dairy) producers are experiencing.”

After the meeting, the head of the MGAP highlighted the exchange between both delegations and the openness of the Brazilian authorities to consider the Uruguayan demands, implying that an understanding was reached.

In turn, last week Conaprole reported that it resumed exports of milk powder to Brazil from its plant Villa Rodríguez (San José) After the conflict over restrictions on the import of dairy products, however, the next measure by the federal government could revive the tension between the interests of both nations in this matter.

Source: Ambito

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