The increase in costs, the drop in consumption and the tax exemption on dairy products in the neighboring country makes it more profitable to purchase raw milk in Uruguayan dairy farms.
The Argentine market is presented as an opportunity for dairy exports of Uruguay faced with a drop in consumption in the neighboring country that makes local production unprofitable compared to the tax exemption to this type of imports that the government of Javier Milei in March.
The critical economic situation that Argentina —which combines recession, loss of purchasing power and a sharp increase in consumer products basic basket- generated a drop in sales of dairy products that, in parallel with the rise in the costs of basic inputs such as raw milk, It has a strong impact on companies in the sector in the neighboring country, which is still dealing with the consequences of last year’s drought.
In this context, at least one important Argentine dairy company is evaluating starting to import milk from Uruguay, as reported by the media C5N. This is because, between the high local costs and the tax exemption that the government enabled for the import of products in the basic basket – among them, milk – it is more convenient to obtain the raw materials in the country in order to offer other dairy products such as cheeses and yogurts at a lower price in Argentine shelves and increase sales possibilities. .
This possibility was already contemplated in the Uruguayan dairy market as soon as the news regarding the import liberation in Argentina; and it was expected that the measure in the neighboring country could mean a boost in exports of Conaprole. Although the decision on the other side of the Silver river to start importing milk, it could be a good opportunity for the dairy cooperative, especially if the initiative extends to other companies.
Brazil will import rice
The president of Brazil, Lula da Silvaannounced on Thursday before the leaders of the Congress that will send a provisional measure to allow the importation of rice from Uruguay and the rest of the countries of the Mercosur (Argentina, Paraguay and Bolivia) in order to lower the price of the product in the neighboring country, affected by the colossal floods in Rio Grande do Sul.
The federal government decided to import rice in an attempt to prevent the price of grain from increasing after the rains and floods that devastated Rio Grande do Sul, a state that produces 70% of the country’s cereal.
In Uruguaythe producers, however, do not hide their concern about the blow to the rice and soybean crops that the local floodingwhich could worsen in the coming hours according to warnings from Brazil.
The floods in Rio Grande do Sul can “cause impacts” in other countries of the Plata Basinwhich in addition to UruguayArgentina, Bolivia and Paraguay, because “the volume of water passes through cross-border rivers that drain into other territories,” said the Geological Survey Brazilian.
In the case of rice, Uruguay has already managed to harvest 90% of the total area. The remaining 10% represents some 15,000 hectares of cereal whose losses have not yet been able to be quantified.
Source: Ambito
