The minister of Livestock, Agriculture and Fishing (MGAP), Fernando Mattos, He referred again to the purchase of three refrigerators Marfrig by Minerva, and expressed his hope that “a quick resolution can be had.” From the Rural Federation of Uruguaymeanwhile, presented to the Commission for the Promotion and Defense of Competition (Coprodec) of the Ministry of Economy and Finance (MEF) a technical work against the operation that would leave 45% of the national work in the hands of the Brazilian company.
The countdown to the end of the deadline for Coprodec to issue a ruling on the legality of the Minerva-Marfrig operationIt is already imminent and, in any case, the organization must appeal to extend the time limit to make a decision for another 60 days. In that sense, Mattos expressed that he hopes that the competition defense body can make a quick resolution.
“They are happening within normality, but everyone hopes that there can be a quick resolution because there has been a public state and level of concern and that would clear up a few decisions for those involved as well as for the sectors that are in the chain,” said the holder of the MGAP.
The leader insisted that the government is concerned that there could be a excessive degree of concentration in the refrigeration sector, despite the fact that on several occasions, the Executive Branch has made it clear that the final decision corresponds to Coprodec and that there will be no political intervention in the matter. Mattos even previously questioned whether rejecting the purchase of the three refrigerators by Minerva It could be something positive for the country.
Regarding the expressions of rejection by different sectors and rural unions – which, in a general way, have warned about the dangers of the extreme concentration that would result from the approval of the merger operation of both Brazilian companies -, the minister said that it is perfect for the actors to express themselves.
“There has been an openness on the part of the Commission (for the Defense of Competition) to receive different reports and different contributions that will be taken into consideration, the reality is that there is a large majority of demonstrations against and few in favor, this does not mean that he expert opinion arises and the corresponding decisions will be made on that basis,” Mattos stated.
The Rural Federation presented a work against the sale of Marfrig
On Monday, meanwhile, the Rural Federation of Uruguay presented to Coprodec a technical work rejecting the purchase of the refrigerators Cologne, The Caballada of Leap and Inaler of Saint Joseph, today owned by Marfrig but that, if the operation is authorized, they would be added to the four plants that Minerva Foods already owns in Uruguay: PUL, Carrasco, Canelones and BPU.
The document is the result of extensive work that included the contribution of specialists and the participation of the 42 federated members that make up the union organization. It also includes a report by the economist Luciana Macedo, former member of the Commission for the Promotion and Defense of Competition.
The work presented explains, among other things, how the livestock operation for the Uruguayan producer and why the Rural Federation understands that the sale of the refrigerators to Minerva is bad for the country.
“We see as precedent what happened in Paraguay a couple of years ago, that the group Minerva They have the majority of the work and what they do is that they can regulate the purchase price; Today the business, historically, 80% is the final purchase value of the farm, that is, of the product, that is, it is left with very great power and being able to manage the market,” he explained, along the same lines, Joaquín Martinicorena, delegate of the Rural Federation.
Furthermore, he added that “there are more than 30,000 producers who have no possibility of getting together and moving a system of perfect competition in the face of a oligopsony”.
Source: Ambito
