Imports of dairy of Brazil They fell 23% in the month of May and hit their lowest in twelve months, news that could harm the Uruguay because it is the main destination of the dairy sector.
According to Comex Stat data published by Milkpoint, a total of 146.3 million equivalent liters of milk were imported, the lowest volume in the last twelve months. Among the products that saw a greater drop is whole milk powder with 31% of the decrease and the skimmed milk powder with a drop of 38%.
Meanwhile, other products also showed a decline, although smaller. Among them are yogurts and mayonnaise. However, dulce de leche saw an increase of 12% during the month of May.
What will happen in the future?
This panorama corresponds to the fact that the prices of dairy products within the South American giant have strengthened, so the purchase of imported products has become more competitive. This result corresponds to Brazil’s intentions to strengthen the internal market, which corresponds to the request of that country’s dairy sector.
Beyond the fact that the data for the month of May is not good news for the Uruguay, Milkpoint assures that in the next 2 to 3 months, imports could see an advance. One of the reasons is the expectations that the amount of supply by Argentina and Uruguay.
A more restrictive government
At the request of the dairy farmers, the Brazilian government, specifically that of the department of Paraná, decided to eliminate the exemption from a tax on imported dairy products in April due to a demand from the dairy industry of that country, which is at a disadvantage.
The decision of the Brazilian department directly affects the milk powder and to mozzarella cheese imported through the revocation of the exemption of Tax on the Circulation of Goods and Services (ICMS). The decision was announced by the News Agency of the State of Paraná.
The measures respond to the high level of imports of these products that directly affects the national industry of that country. In this way, imported milk powder and mozzarella will now be taxed at 7% of the ICMS, the lowest rate allowed because they are classified as basic food products, which are prohibited from being taxed at the full 19.5% rate.
On the other hand, the benefit of the alleged credit was taken away from them. ICMS of 4%, a kind of tax incentive, with the objective of preventing the amount from being deducted from other credits of the ICMS. In addition, the government announced that it intends to regulate imports from member countries of the Mercosur.
Uruguay’s dependence on Brazil
According to data published at the end of March by the National Milk Institute (Inale), Uruguay climbed a step and positioned itself as the main supplier of whole milk powder in Brazil, surpassing Argentina.
Whole milk powder accounted for 54% of total imports from the neighboring country, achieving a total income of 27,133 tons during January and February, an increase of almost seven tons since in the same period last year the total was 20,812 tons. .
With 51% of the total imported, Uruguay became the main supplier of this product to the neighboring country, while Argentina came in second place with 44% and Paraguay in third place with 5%.
Source: Ambito
