A resolution of the Ministry of Agriculture intervenes exports of corn and wheat: what are the “equilibrium volumes”

More government intervention in corn exports. The measure of the Minister of Agriculture also covers wheat.

The Minister of Agriculture, Julián Domínguez, signed resolution 276/2021, which was published today in the Official Gazette, by which it is determined that the Undersecretariat of Agricultural Markets, which depends on the agricultural portfolio and is in charge of Javier Preciado Patiño , will report the “equilibrium volumes to meet the Argentine market demand” for corn and wheat. In this regard, it was determined that the affidavits of sales abroad of these products may not exceed the defined tons. An intervention to the quantities exported.

“We seek to provide predictability,” said the minister in the considerations of the measure.

The aforementioned Undersecretariat’s mission is to coordinate the conduct of studies and programs for permanent monitoring and evaluation of internal and external markets, in coordination with other competent areas of the Jurisdiction, and to advise on the opening of external markets.

In addition, an Advisory Council will be created. The objective will be that the Undersecretariat will convene the sectoral tables of the wheat and corn chains, so that they can make their different contributions and also monitor the situation of both markets. The aforementioned crops, in this agricultural season, will contribute record volumes of production: the first harvest that will end immediately will be wheat, with private estimates that present a total production scenario of 20 million tons.

Julián Domínguez, Minister of Agriculture.
Julián Domínguez, Minister of Agriculture.

The official regulations indicate that when the volume of affidavits of foreign sales of corn or wheat reaches 90% of the export quota defined for each product, then it will only be feasible to register a foreign trade operation for both cereals with a deadline trade of up to 30 days (DJVE-30), which is generally used by companies with a retail price to carry out low-volume operations destined for neighboring countries, given that large exporters, due to a logistical issue, usually register operations with a term of one year shipment (DJVE-360).

In another of the articles of the resolution it is reported that in the event of changes in production and / or consumption that impact the equilibrium volumes, the Undersecretariat of Agricultural Markets will proceed to its new publication. The aforementioned area is also empowered to dictate the complementary and clarifying regulations that are necessary for the implementation of this measure within the scope of its competence, and to update the products of agricultural origin detailed in the Annex to this resolution.

“Cultural assets”

It should be remembered that last September and during the presentation at the Government House of the agro-industrial development project, the Minister of Agriculture, Julián Domínguez, said that meat, wheat and corn “They are considered Argentine cultural assets and are at the center of our traditions. Our obligation is to take care of the general interest and food security of Argentines, as indicated by the Constitution. That is why our duty is to manage exportable balances responsibly and intelligently ”.

The phrase ignited the alerts in the agricultural and agroindustrial sector, since the intervention model promoted by the Government has been implemented for a large part of this year in the cattle and meat chain, with restrictions and quotas for the export of beef, generating enormous damage to different links of the same, such as production, the export meat industry and consumers.

Since last May, the Government has stopped beef exports, with the aim of protecting the price to the consumer and that it does not rise. Months later, the effect of the measure is negative. And the most striking thing in the last month was that the highest price increase was registered in those beef cuts whose exports are prohibited until the end of the year and will continue like this during 2022, as announced last week by the Minister of Agriculture. Said cuts are the following: roast, square, shoulder, roast top, vacuum, matambre and skirt.


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