This expansion of the Export Increase Program will be in effect for the next 30 days and will include all exporters of goods. Perhaps among the most favored are mining, oil and, fundamentally, automotive companies, which in their role as importers will be able to bring products to the country with a dollar of $350 and export with another that would be around $530.
David Miazzo, economist of the Agricultural Foundation for the Development of Argentina assured in dialogue with Ambit that “This is a soy dollar expanded to the entire economy. For agriculture that already had the soybean dollar, we do not see a significant change in terms of the pace of marketing, even less so with the extremely low stocks of all grains.”
The issue of stocks is clearly one of the points to take into account. Enrique Erize, holder of the Novitas Consultant, He assured in dialogue with Ambit that “It is unlikely that grain holders will decide to sell. In the case of soybeans, there is very little left, about 4 million tons that are committed to paying rent. The owners of the fields are not going to sell soybeans until there is a definitive winner.”
The reality is that within agriculture there is no panorama of great contributions. In this sense, Miazzo He stressed that “at most there may be some positive effect among those who consider that after Massa’s victory an exchange rate unification is less likely, so they could hurry up the sale decision if they planned to wait until December. With the results of the weekend, a possible scenario of exchange rate split more than a unification gains in probabilities, therefore those who were planning to market and did not do so waiting for the devaluation, could now sell their production.”
According to the latest report of the Argentine Agroindustrial Council, the most important export complexes within the sector are soybeans, cereals and meat. Of those mentioned, the first already had a differential exchange rate, therefore the greatest expectations will focus on meat, dairy and regional products.
One of the sectors that will surely benefit from this temporary scheme will be beef slaughterhouses, which so far this year (January-September) have exported a total of 2,396 million dollars, but are suffering from a drop in international prices. This new exchange rate will substantially improve the equation, since until now they exported at a rate of $350 for each dollar from which a 9% withholding is then deducted.
Poultry farmers, dairy farmers and legume exporters are experiencing a similar panorama. As far as he could know Ambit The measure would benefit the dairy industries at a key time due to high stocks and falling prices due to market supply.
While, Diego Yabespresident of the Argentine Peanut Chamber, assured Ambit that celebrate the incorporation of regional economies and all exportable products into the Export Increase Program. “It allows us to be more competitive since costs have increased since the exchange rate was fixed. This measure was necessary and will help strengthen foreign exchange income,” he said.
Massa will seek to finish 2023 without any problems and as revealed in a meeting with the international press, for next year it expects economic growth, a primary surplus of 1% and that exports will increase by more than US$ 30,000 million, after the sharp fall suffered because of the drought.
Source: Ambito
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