This last year has not been easy for the agricultural sector. Although the pinternational grain prices were attractivethe gap between the official dollar and the parallels led to everyone who might, kept the grain unsold while waiting for better prices.
Precisely as a result of the situation, during 2022 the Government enabled two export incentive programs which became known as the soybean dollar, in which he defined a differential exchange rate for farmers to liquidate grains with the aim of increasing reserves. However, this tool that he helped on the one hand, made life difficult for other producers, among them, those who need grains as inputs for their own productions that is to say, poultry, pig and feedlot producers.
The Government will not be able to get foreign currency if it does not create a new dollar to liquidate exports
In support of this situation, the Minister of Economy, Sergio Massa, announced some benefits for the agricultural sector within the framework of the Argentine Productive Strengthening Program.
What is the aid to producers regarding?
For this program the government admitted to make an investment of $3,500 million.
The producers Program beneficiaries will receive compensation of $30,000 per ton of food for the animals purchased between November 28 and December 30 of last yearwhen a differential exchange rate was implemented for the soybean complex that brought the price of the bean to between $90,000 and $100,000 a ton.
As Massa assured when announcing this incentive program, the objective is to “compensate, balance, which sometimes happens when relative prices are disordered”, and indicated that with this decision “The State appears as a bridge, as a vehicle to try to build a balance and to try to strengthen”.
“The Argentina that we have to build is the one that supplies its internal market with good prices, but the Argentina that sells the talent, the work and the added value of its land transformed into protein to the world, because it is definitely one of the great challenges we have as a country,” said the head of the Palacio de Hacienda.
Due to the drought, they estimate losses of up to US$ 14 billion in exports
How compensation will be calculated
The compensation -as stated by Telam-, It will be calculated taking into account the monthly average of pork produced between the months of October 2021 and September 2022 of each producer, and the tons necessary to produce that average volume of meat resulting from its past performance will be compensated in a single payment.
The component for pig producers establishes a maximum amount to be received by producer of $5,000,000, reaching 98% of the producers, with a national government investment of $1,000 million.
After the field request, Sergio Massa picked up the glove and announces incentives for the tamberos
The same procedure will be used for producers of poultry meat and eggs, although in the first case the monthly average number of chickens sent to slaughter will be taken and in the second case, it will be taken the monthly average number of eggs traded.
In both cases, the compensation reaches 100% of the producers, for which the government will allocate $2,000 million for those dedicated to the production of poultry meat and $500 million for egg production.
It is worth remembering that in recent days Minister Massa also presented incentives for dairy farmers. “Last week we reached out to milk because the drought and prices were hitting them, today we reach out to the poultry sector and the pork sector because we know there is a relative price problem and because we know they are also hit by the lack of food due to the drought”, he completed.
LR
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