2023-06-28 22:06:10
It is common to hear that we are the granary of the worldthat we produce food for more than 400 million people, and although in recent years the country’s agri-food production has become more technical and has incorporated biotechnological advances, I believe that there are still many things to be done.
I usually disagree when I hear it said that we are primary food producers because none of them is totally, since we always find behind industrial and technological work that revalues it. There are many examples, from a tractor to the biotechnology of a seed. But it is true that our food production -both meat and grain- needs to go one step further so that all this potential translates into a positive trade balance that allows us to earn more foreign currency.
I’m talking about incorporate more added value.
We can refer to the string of wheat. The wheat industry constitutes a very important source of employment for the country, with a particularly relevant contribution to regional economies. According to data from the Rosario Stock Exchange, Argentine wheat closed the campaign 2021/22 con exports for more than US$ 4,850 million – something historic – contributing more than US$ 600 million in export rights and generating private employment at the federal level, with more than 414,000 jobs.
In the same way we could talk about corn. Due to its components, the industrialization of corn allows obtaining different products for various purposes. For every 100 kg of processed corn, the following are obtained: 67 kg of starch -, which can be marketed as native starch or subjected to subsequent processes to obtain nutritive sweeteners-; 9 kg of germ; and 16 kg of gluten feed, 8 kg of gluten meal and gluten feed, all for the production of balanced feed and animal feed.
Now, the current and main destination of corn production is export as a commodity, hence and for what was detailed before, it would be very important for our economy to generate a range of products with high added value to be sold abroad, something that is we do internally, where the main demanding sectors are poultry, dairy and cattle and pig farming.
Argentine producers, engine of recovery
We can also refer to the meat industry. We must not forget that the manufacture of meat is a source of work throughout the country. It has a primary sector, with its different types of cuts destined for domestic consumption and also for export, but at the same time it has a added value than power such as the tanning industry – from there the hides– and that of footwear and its manufactures.
What am I trying to prove with these data? With a covered internal consumption, the focus should be on exportbut not only grains and cuts of meat, but also industrialized products, with added value, such as flour, pasta, cookies, baked goods, shoes, clothing, among many other possibilities.
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Let’s agree that it is not just about saying it, but about doing it. To achieve this, I believe that a deep political definition related to financial support will be needed, mainly
taxes and infrastructure.
For that, we should increase the financing for projects of investmentapplied to the purchase of new or used capital goods, the construction of facilities necessary for the production of goods and services and their commercialization.
In addition, granting soft loans to be used for the purchase of machinery -national or imported- that will be used in irrigation systems by companies or concessionaires. I believe that, in the same way that public banks have already been implementing it, private banks should follow the same path.
Agriculture contributes 67% of Argentina’s exports
In addition, tax benefits should be established for -among many others- expenses in fertilizers and seedsand thus in this way the objective of expanding the productive capacity throughout our country can be achieved.
Everything must be done with a federal concept –the greater the distance, the greater the tax reductiono- We are referring to the three levels of the State: Nation, provinces and municipalities. I am proposing a strategy together.
logistics in production
On the other hand, and no less important, within the components that make up the infrastructure of agricultural production, logistics marks a turning point. For an agricultural producer, 500 kilometers away from consumer centers or ports can affect whether their cargo is competitive or not. It sounds crazy, but that’s how it is.
According to data from the sector, the incidence of logistics costs on products from regional economies destined for exports can have an impact of up to 24 percent on the FOB value; and if we refer to the domestic market, we are talking about up to 17.5% on the wholesale value, having items where they can reach 25.5% with the product already to the public.
Argentina, known for its vast territorial extension and its rich agricultural and livestock production, was consolidating -decade after decade- as a powerhouse in food manufacturing. The world knows it and demands it.
Now it is up to us to become more competitive through the implementation of financial, tax and infrastructure support for the agricultural sector, something that will result in a greater aggregate.
*Director of Bice and the Argentine Productive Movement
1687990244
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