The head of the Livestock, Agriculture and Fisheries portfolio (MGAP), Fernando Mattos, expressed his opinion on the government’s actions against the exchange delaya problem that, according to him, dates back many years in the Uruguay; also commented on the purchase of Minerva to Marfrig and the possible concentration of work in the country by a Brazilian company.
The delay of dollar and the lack of competitiveness that this generates resurfaced after the demand from the Rural Federation for an exchange rate of $58. Regarding this, the leader of the Ministry of Livestock, Agriculture and Fisheries (MGAP) He assured that not enough measures have been taken to increase the value of the dollar.
“The measures that have been taken so far have not been enough, and I wish there could be some movement now that inflation has subsided a little,” the leader responded to Valor Added media when he was consulted about the possibility of a dollar at $40.
In that sense, he recalled that the exchange delay It is a long-standing problem in the country. “The exchange rate delay is a constant of the Uruguay and there are fewer years where there is no such conversation. It is a huge problem in the country, we spent 18 years outside the target range, with announcements of reduction systems or bands that allow inflation to be controlled,” he explained.
Meanwhile, he also explained that there are other factors that affect the exchange rate. “The problem of inflation in dollars was present in all governments, but the relationship with the values of neighbors also has an impact,” he remarked.
Minerva – Marfrig: waiting for the commission
Regarding the purchase of 16 refrigeration plants by the Brazilian company from Marfrig – a transaction that generated controversy within the Uruguay since, if consolidated, it would put more than 50% of the country’s work in Brazilian hands – the minister assured that we must wait for the response from the Commission for the Promotion and Defense of Competition, which is estimated for mid-May.
“I cannot set a position, because beyond each person’s ideas, we have to respect the rules of the investment game, and for that there is a specialized commission,” said the leader and added that one of the keys is “to see if “It is a distortion factor in price formation or not.”
In relation to the possible concentration that could be generated by the acquisition of Minerva, Mattos admitted that it is a reality that does not convince him. “No one likes to hear that a company has 50% of the demand in a certain market, although the concentrating process is a reality in the world. When the operation was approved with BPU, It was stipulated that regardless of whether 50% of the work remained in the hands of two companies, there was a balance of forces, something that would be broken in these circumstances,” he explained.
Meanwhile, he was encouraged to present another possibility. “In the hypothetical case that Marfrig be alone with Tacuarembó and expand your plant to 2,000 cattle per day, it would be about 500,000 cattle per year, and you do not need to go through the Competition Defense Commission, and that would make it more efficient,” he commented.
Source: Ambito
