2024-04-06 04:35:50
During this week, the Wheat Fund and the reference sales price for yerba mate were eliminated via DNU. So that we take note of this and understand the dynamics that these points can bring to the pocket of each family, we must take as a mirror in the case of wheat, the Oil Fund that allowed the 1.5 l bottle of mixed oil to be kept at $710 and then when the “Fair Prices” program was eliminated through DNU 70/2023 and the price of the same bottle was released, today they are between 2,800 and $3,500 each. The Fund established a dissociation of the local price from the international price.
In the case of the Wheat Stabilizing Fund, it made it possible to obtain a 25 kg bag of triple 0 flour, for a value close to $17, which generated a total cost of $1,252 and brought the value of a kilo of bread to $ 2,500; While those who did not buy those bags got the bag for $40,000, its total cost is $2,900 and its price today is $4,000 in some bakeries; Knowing all this, by eliminating the Wheat Stabilizing Fund, it is not illogical that in a rather oligopolistic market – like ours and seeing the reaction that there was with repellents and spirals – that the final price of a kilogram of bread rises sooner rather than later to regarding $5,500 or 6 thousand, which would generate a brief, but strong, higher level of recession in the bakery and confectionery sector.
Regarding the issue of yerba mate, the internal reference price was removed and the final price was left up to the producers. This would be due to a payment of favors, because the son of the largest yerba mate exporter in Misiones made public his transfer to the LLA block this last week. This yerba mate company buys yerba mate production from Bolivia, Paraguay, Brazil and Uruguay to mix it with the product of its own task, and once mixed, export it to markets such as Cyprus and Asia Minor, for example Syria and its entire area of influence; Therefore, opening imports would not be the solution either because it is an importer and exporter simultaneously today. To take into account half a kilo of yerba mate in Europe is available at values close to €4.30 euros; the kilo special selection at 8.30-9.10 while the Premium is almost €11 euros. Taking these values as a reference we can say that if they internationalize the prices of yerba mate we might be almost sure of an increase that enables them to be 100% qualified. That is, the same results that are occurring with the importation of food, because the importers are going to be the same most important producers of yerba mate at the national level.
The only thing that is almost certain that will not happen is the issue of price cartelization in the sector, because between the largest exporter and the main yerba grower in Corrientes there are very deep family ties and problems that take them to irreconcilable levels, including the business part. The only part they share, and not exactly because they coordinate among themselves, is the issue that is included in child labor and the campaign carried out by the NGO A Dream for Misiones of “I like mate without child labor.” Which today has a bill in the National Congress in order to eliminate it and even enjoys the support of the United Nations through Unicef.
*Economic and Tax Analyst.
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#Lets #grass #bread #leaving
