The sales of the 2017/2018 crop in Argentina are strong. According to Buenos Aires brokerage Zeni, there a growth of 62.2% on sales compared to the same period of last year. The volume of forward sales already reached three million metric tons. The reason behind the increase is that soybean will have a decrease of export tax by 0.5 percentage points per month in 2018, starting in January.
Category Archives: Policy
The government of Argentina has announced this Wednesday (09.20.2017) that imports of Brazilian beef are allowed. For five years, Argentina did not import beef from Brazil after a mad-cow disease outbreak registered in Londrina, state of Paraná.
Hog and poultry producers in the Brazilian state of Santa Catarina will be able to save up to 70 percent on corn purchases. The reason is that state will no longer bring the input from the state of Mato Grosso, but would import from Paraguay (310 miles or 500 km away) through the border of Santa Catarina with Argentina, which is closer and the logistics is cheaper. Santa Catarina demands 6.5 million metric tons annually, while it just produces nearly 3.5 million metric tons of corn.
The United States has requested Argentina to set a minimum biodiesel price after the North American country had imposed duties of up to 64.17 percent for the imports of Argentinian biodiesel. The government of Argentina seeks a quick solution for the problem and avoid new restrictions. For the National Biodiesel Guard, the group behind the denounce before the U.S. Commerce Department, Argentina does dumping by having different export taxes on biodiesel (0.13 percent), soybean oil (27 percent), and the soybean grain (30 percent), benefiting its biodiesel processing. A possibility indicated by unnamed sources is to have quotas for Argentina with lower duties.
The European Union decided to anticipate a decision about the duties on the imports of biodiesel from Argentina and lowered to a rate of 24.8 percent. The bloc has also set a timeline to lower the duties to a range between 4.5 percent and 10 percent. The new duties are expected to be valid by September 29.
Argentina will be able to export again soybean oil to China. The decision was announced this Thursday (04.24) by state-run company Sinograin, which is major soybean oil buyer. Argentina used to export nearly US$ 1.4 billion of that product to China.
“One of the major goals of our government was to open up this market again, one of the top priorities of the Argentinian agenda,” declared Marisa Bircher, secretary of Agricultural Markets of Argentina`s Ministry of Agriculture.
The reason for the decision was not revealed.
This week, the United States considered that Argentina does dumping on biodiesel and canceled imports of the product.
The U.S. Commerce Deparment considered today that Argentinian and Indonesia exports of biodiesel are subsidized. This would result in tariffs ranging from 50.29 percent to 64.17 percent in the case of Argentina and 41.06 percent and 68.28 percent regarding Indonesia. In 2016, Argentina exported nearly US$ 1.2 billion of biodiesel to the United States.
The United States has delayed its decision on whether or not it will ban the imports of Argentinian biodiesel. The announcement was made by the U.S. vice-president, Mike Pence, during an official visit to the South American country. The decision was expected to be made by August 23, but now was rescheduled to October 19.
The government of Paraguay has already sent a bill to the Paraguayan Congress that would impose taxes at a rate of 15 percent for all grains exported from the country. President Horacio Cartes believes he has enough votes to approve the measure in an agreement with the leftist opposition. Paraguay, today, is the fourth largest exporter of soybeans in the world with 6.3 million metric tons shipped. The argument of the Paraguayan government is that the agricultural sector has a revenue of over US$ 3 billion, but contributes less than other sectors of the economy. This year alone, the soybean output in Paraguay overcame 10 million metric tons.
In December of 2015, Argentina eliminated export taxes on wheat and corn. The result of the elimination was the doubling of wheat production and generating a growth of two percentage points of corn production. A program of reduction of export taxes on soybeans until its elimination in 2019 was also set.
The Brazilian version of the farm bill, called locally as Plano Safra (Crop Plan), was announced today (07.06) and the total amount available was R$ 188.3 billion (almost US$ 58 billion). The amount provided is lower than what was available during the 2016/2017 season if inflation is considered. The investment in the previous crop was R$ 185 billion.
By far, the largest percentage of the plan is put on credit subsidy programs. The total amount used in that is R$ 150 billion. Of this total, R$ 116.26 billion will be used on loans with controlled interested rates and R$ 34 billion with regular interest rates.
“We are here to reaffirm our unequivocal support to Brazilian agriculture. The farm business is synonym of efficency,” said Brazilian president Michel Temer at the lauch of the program.