The increase in reserves for soybean meal and oil will also affect producers.

The increase in soybean meal and oil reserves announced by the government this Friday from 31% to 33% will affect producers as well as those who make industrialized products. This was noted in this media by representatives of the main sector and agronomists, whose position differs from the position expressed by some state officials.

The negative impact on producers is that the scope of payment for goods to producers will be reduced because the industry will have to pay more taxes on the export of by-products. This was indicated by David Miazzo, chief economist at the Argentine Foundation for Agricultural Development (FADA), pointed out in the media, that the decline in purchasing power was estimated at $15/ton.

“The price we pay to producers is expected to drop by about $15. If we ask if this will have a negative impact that causes production to fall, it doesn't necessarily have to be in the context of a price increase, but we are discouraged by the potential margin falling.” The drop in prices that producers will face due to changes in soy by-product holdings is caused by an increase in drought affecting the current oilseed season, but costs increase notably in fertilizers and phytosanitary products, as well as freight and labor. dollars.

Miazzo's wording is contrary to what state officials say that the increase in withholding will not affect producers. In this regard, the economist said: “Why, if they were always against it because they were hurt, would it hurt because they removed it now? It is part of the story being sold, that is, what is done is good, and even if it is a lie, try not to read the measure negatively.”

Javier Treboux, an economist at the Rosario Stock Exchange (BCR), agreed with Miazzo that rising withholding rates will cause the industry to lose the ability to buy, which affects producers at the lowest price. “Every farm has a different commercial strategy,” he said in a statement to the media. Some are already setting prices through leading businesses, but they will harvest into a very important commodity world where prices have not yet been fixed.”

In addition, he noted that the total purchase value of the export industry still does not reach 10 million tons out of 40 expected to be harvested. About 75% of these 10 million are fixed prices.Therefore, a large amount of goods arriving at the harvest is still valuable. In this regard, the representative of the BCR explained that this affects the price reduction in the domestic market and implies a low purchasing capacity, given the large number of goods from producers that do not have a selling price. The result or margin of the harvest isfinally opened at a new price. “This is the most immediate and noticeable effect so far.” He added.

Opinions of leaders

Gabriel Raedamaeker, Vice President of the Argentine Rural Federation (CRA), expressed his opinion on the impact that the government will announce in the coming hours, along with a package of policies to reduce inflation, which reached 4.7% in February.

“This difference in withholding is a privilege for the industry to pay for the difference that producers use to create an industrial production structure. As it disappears, it is clear that there is a change in the cost structure of the industry.We will have a percentage that we will not receive in price. Other countries will have to return to export returns, and the industry is here as a transfer to creating productive links with industrial industries.” The leader said.

At the same time, he argued that although the leadership always stated that differences “should not exist”, their elimination should be accompanied by a reduction in soy withholding. “If we analyze from Alice in Wonderland, then theoretically the disappearance of differences affects producers, but the industry lowers the price paid to producers and covers it.”

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