At first glance it seems that everything was clear between the countryside and the government, but that is not exactly. Therefore, seeking certainty and clarity, the Secretary of Agriculture, Livestock and Fisheries of the Ministry of Economy of the Nation, Sergio Iraeta, together with the Executive Director of the Customs Collection and Control Agency (ARCA), Juan Pazo, and the Secretary Of production coordination, Pablo Lavigne, received at the link table and tried to explain the doubts that the representatives of primary production have.
The meeting was planned in advance, as prior to the meeting that rural leaders will hold with the Minister of Economy, Luis Caputoon February 6, however this technical meeting was used not only to advance the issues that concern agriculture but also to analyze the projection of the decline in retentions.
On the part of the entities, the presidents of Argentine Rural Confederations (CRA), Carlos Castagnani, together with Matías Velasco participated; of Argentine Agrarian Federation (FAA), Andrea Sarnari, and Coninagro, Lucas Magnano, and the second vice president of the Argentine Rural Society (MRS), Eloisa Frederking with Nicolás Ginatta.
As communicated from the secretariat that Sergio Iraeta, “the entities expressed their agreement with the official measure that reaffirms the commitment to lower taxes and provide tools to producers when making their commercial decisions.” While this is true, the ruralists raised a series of doubts because for now the sale was not expedited and the prices of the grains on the blackboards do not reflect the expected improvement.
In fact, the grains of the grains today in the international market – which have an impact on the premises – would be linked to concerns about adverse climatic conditions in Argentina and the delay of the soy harvest in Brazil.
The word of the ruralists
When leaving the meeting, Carlos Castagnani (CRA) He explained that “It was a preparatory and positive meeting for the next meeting” and explained that “One of the concerns we have is that the price is transferred to the producer, that it is not on the road. Apparently it is moving because they showed us that during the match. ”
Meanwhile, Andrea Sarnari (FAA) He stressed that “It was a working meeting where they explained the scope of the measure on retentions”. The federated representative added that worries “the expiration period” although he hoped that the producer has that benefit transferred at a price.
Specifically, the concern that everyone has in the primary sector focuses on what will happen to 15 days of presented the affidavit of sale abroad (DJVE), that is, when currencies must be entered. A priori, as the Blend dollar governs, 80% of that 95% must be settled to the official exchange rate and the rest will have as reference the counted with liquidationN (CCL).
Advancing these currencies has a financial cost and that is exactly what is being discussed since the very moment in which the decree was published in the BO, although it is still expected by the regulations. This is where the buyers of the grains are involved, that is, the cereal companies that are the exporters that make up the Chamber of the Oil Industry and the Cereal Exporters Center (Ciara-CEC).
Exporters in the center of the scene
As he could know Scope, From the chamber that groups the oils -which are the ones that must run with the financial cost and that also have the commitment to improve the payment capacity they have for the producers and at the same time bring the currencies that swell the reserves of the Central Bank , there is the conviction that there will be a price improvement for producers, although everything will depend on the decisions of sale of the producers to establish the offer of grains in the market.
That “Financial Cost” It is based on the fact that exporters can ask for money from their central homes or take credit prefinancing credits in the local market, but always entails an item that discounts profitability in the business and therefore, it limits the industry’s payment capacity for The grains.
Within the Link table They ensure that these issues must be resolved by the exporter, but the truth is that if there are financial costs due to the advancement of currencies, some pocket will have to leave. The most unbeliented producers believe that it will be the reference price of the grains, so that value is the one that looks in the most detail at this time. It is a discussion that seems insignificant but it is not: for each soy tolerate there can be a difference of at least $ 10,000 and we must not forget that only the last campaign remains for being marketed about 10 million tons, which is equivalent to a difference of $ 100 billion. A nothing negligible number that only contemplates the 2023/23 campaign. The current one (2024/25) will be built from March and for now a production is slightly below 50 million tons.
The agricultural business has its complexities and is not suitable for anxious, but in Argentina there are internal and external issues that must be analyzed in detail. Therefore, from now to February 6, there will be time to determine how the regulation of the reference decree will be to establish how this measure will impact on the market, what the industry could offer to give the government the answers you expect about the Income from currencies to the state coffers and what will effectively be the price improvement that producers can receive.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
