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Livestock plan: there is a draft but the signs remain unclear

2021-08-15T17:13:49.284Z


Minister Matías Kulfas presented it to the Agroindustrial Council, which has not yet given an endorsement and will analyze the proposal at the Meat Table.


Mauricio Bártoli

08/15/2021 10:52

  • Clarín.com

  • Rural

Updated 08/15/2021 12:13 PM

A detailed 53-page document seeks to unblock the problem of beef in Argentina, but

does not provide details on central aspects such as exports

, while maintaining the cap on external sales of the product: 50% with respect to the commercial rate achieved. last year.

Thus, the Livestock Plan that the Minister of Productive Development, Matías Kulfas, presented to the Argentine Agroindustrial Council (CAA), exposes a

detailed list of intentions, in many interesting cases

, but the underlying incentives are still confusing, especially regarding the parameters specific marketing both in the foreign and domestic markets.

Although the plan also bears the signature of the Ministry of Agriculture, Kulfas handed it over to José Martins and Gustavo Idígoras (two of the representatives of the nucleation of 64 agro-industrial entities), this Thursday, accompanied by the Chief of Staff of the Ministry of Productive Development, Alejandro Sehtman.

At the CAA they received the proposal and acknowledged that it contains various aspects raised in meetings on the subject, but said that

they will evaluate it in depth within the framework of the Mesa de las Carnes.

It is worth bearing in mind that Argentine Rural Confederations (CRA), one of the entities of the Mesa de Enlace,

decided to withdraw from the meetings promoted by the Government on the Livestock Plan until exports are reopened

.

And Carlos Achetoni, president of the Agrarian Federation, declared this Saturday before TN.com.ar that "the release of the quota to export to Israel does not clear the

dissatisfaction of the producers

, because the 3,500 tons per month of authorized kosher meat are still very few tons in relation to the Argentine export capacity of the product ".

The official draft itself (See Main Guidelines below) delivered by Kulfas states that

China

is the first market for Argentine beef exports, but does not state that, despite promises to make the stocks more flexible to that destination, to the eastern power only 50% of the volume recorded last year is still allowed to ship.

The central concern, then, is that the livestock and meat production chain had managed to quadruple its exports in the last 5 years, without shorting out the domestic market, but it was

surrounded by uncertainty since restrictions on marketing were established in May.

However, the document

recognizes the influence of the macroeconomic context on production

, which modifies the perception regarding the accusations to the cattle and meat chain with which the interventions in this sector were justified in recent months. Specifically, at the point where local production is described, it is stated that “

successive economic crises

, the shifting of the agricultural frontier, changes in consumer preferences and inefficiencies in the commercialization of production are some of the factors that have led to the fall in bovine stocks and a low productivity of the breeding herd in Argentina ”.

Thus it is evaluated that "due to these circumstances", livestock production "has been modified over time, favoring the

slaughter of increasingly lighter animals

, the reduction of fattening times and a greater rotation of livestock cycles in detriment to the production of heavy animals that are usually used to supply external markets ”.

That paragraph exposes the

axis of the situation: livestock, like other economic activities, develops according to the context

. And in that sense,

the export restriction acts as a great conditioner.

Even more eloquent is when it is described that

“after the closing of exports in 2006, the ratio of exports to production went from 24% to 7%. Production contracted significantly in 2010, thus implying a sharp rise in prices that depressed local consumption ”

. That is what producers, technical advisers and agricultural leaders have warned since the stocks were established. Until now, the official measures act in the same direction, and

would lead to the same situation

.

Also noteworthy is the

weighting of beef consumption in our country

, as the highest in the world per inhabitant.

Because although the United States adds more among all meats, 120 kilos against 113 of Argentina, in terms of bovine cuts, an American eats, on average, 37.2 kilos per year and each Argentine 50.2.

In Uruguay 85 kilos of meat are consumed per inhabitant and 53% of beef origin, giving an average of 45 kilos in this area.

Australia and Brazil complete the main positions in the ranking of main consumers of beef.

The main country in Oceania reached 105 kilos (24% was cattle) and the South American leader consumes 95 kilos per capita per year (33% corresponds to cattle).

Main guidelines

The Livestock Plan has as its starting point "the construction of a

federal and inclusive vision

of the sector with the objective of ordering the relationship between the internal and external market, taking into account the particularities of each region."

In this regard,

the private sector sees state regulation as a distortion of what worked well

.

It was not presented within 30 days, as established in Decree 408/2021 of last June 22, nor are there any certainties about the consensus with the protagonists of the activity.

Within two months, the Government drew up a draft with the subtitle "A federal proposal for the development of cattle ranching."

The document is organized in

three parts

.

The first includes the "international and national context, considering primary production and its general difficulties at the local level, foreign trade, the characteristics of consumption and marketing."

In the second chapter, the main production problems are described in detail

and suggested means and actions

are assigned to them

to specify the proposed guidelines.

Finally, the third chapter describes the general characteristics of the plan, the stages of its construction process and its organizational scheme.

The annexes include the surveyed provincial livestock plans that made it possible to articulate and complement the guidelines proposed and debated among the different regions of the country.

The proposed Strategic Guidelines “foresee generating an

increase in production and

sustainable

productivity

over time, by improving the conditions of access to working capital and property investment,

adequate incentives

to mobilize the sector and facilitating

access to investments in sustainable technologies and innovations

. To do this, a set of

financial instruments, tax incentives, technological assistance, changes in marketing

, among others

, are proposed

, aimed at promoting increased efficiency of the livestock stock ”.

The increase in meat production and exports worldwide in the last 20 years was even contemplated, and

an opportunity is

particularly

predicted

by the "increase in bovine demand" in Latin American and Asian countries with growing middle classes.

Look also

The Government increased the quota of meat exports to Israel

The week closes with sustained values ​​in Liniers

Source: clarin

All news articles on 2021-08-15

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