The third meeting of the Intersectorial Corn Table with the Government was focused on the proposal of a price hedging system, presented by Diego Fernández, from MatBA-Rofex. It aims for agroindustries that use corn as an input to gain access to better price conditions, and avoid supply surges in the months prior to the new harvest.
Tatno the Ministry of Agriculture as the representatives of the private sector They seek to ensure the supply of cereal throughout the year, so that companies that require it can go building stocks at average prices.
In this frame, the idea of creating a trust has not advanced so far because while it works for oils, the corn chain is more complex and It is not clear who will contribute, how much, who will administer it and the distribution.
The Government will seek compensation mechanisms and decouple the impact of high grain prices on agribusiness and consumers, but in this sense, so far it has not given impetus to the Agrarian Federation’s proposal to eliminate VAT on food.
The meeting held last Thursday is part of the public-private commitment that allowed unlocking the corn stocks and raised 10 hours earlier than expected to marketing stoppage promoted by producers last week.
He Department of agriculture reported that “both parties undertook to continue working in the search for instruments to continue guaranteeing access to cereal in the domestic market to affordable and decoupled prices of the international market ”.
Voices of the protagonists
While, Jose Martins, president of the Buenos Aires Cereal Exchange (BCBA) and spokesperson for the Argentine Agroindustrial Council (CAA), explained, after this third meeting, that it aims to “ensure the supply of corn to companies that process for the domestic market for that they should not reach the end of the campaign with these surprises where perhaps, at the last minute, there is not a sufficient supply or the price is out of order ”.
About, pondered the Matba-Rofex presentation. “We are convinced that with these instruments The purchasing power that exports or any of the processors that work for domestic consumption will have in the corn market will be equalized“said Martins. Although he warned that it will require” some support from some areas of the national government in terms of lines of credit at reasonable rates or guarantees so that the different companies can operate in this market ”.
The proposal made by the Government to work with a escrow, was not addressed in the last meeting. “We are asking for time to study it within the Intersectoral Table. We continue to work within the private sector to see if it is viable or not, but it must be emphasized that what led the Government to make a proposal of this type can be solved with these tools that are being worked on in the Matba-Rofex that they are going to strongly lower that price disparity because they allow grain to be marketed throughout the year ”.
“The trust is still far away and requires an agreement between the parties”added Gabriel of Raedemaeker, Vice President of the Argentine Rural Confederations (CRA), who also participated in the virtual meeting with the officials of Agriculture and also of the ministries of Economy and Productive Development.
The president of the Argentine Agrarian Federation, Carlos Achetoni, He was more forceful: He said that “the possibility of a trust has been ruled out, because it requires a very complex set-up, in addition to distribution. It would take a long time to try to calibrate the system and there have been very bad experiences in the past. “
However, the Secretary of Agriculture, Livestock and Fisheries of the Nation, Julian Echazarreta, highlighted the continuity of the dialogue, which will continue next week, and highlighted as an important advance that the objectives of corn supply are guaranteed as an internal input for the producers and the connection with the next harvest.