Suspension of grain import tariff should reduce cost to the producer

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The cost of production in the animal protein sector is expected to fall shortly after the Foreign Trade Chamber (Camex) has temporarily suspended the Common External Tariff (TEC) on soy and corn imports from outside Mercosur. The assessment is by the president of the Brazilian Association of Milk Producers (Abraleite), Geraldo Borges, in a note released on Sunday.

“Abraleite believes that the removal of the tariff can help to control the dizzying highs in the prices of these commodities, which have their prices pegged to the dollar, experiencing a moment of greater export to Asia, especially to China,” said Borges, adding that This measure can also benefit consumers, containing, perhaps, the highs of food to the population.

“This suspension of taxes may mitigate the effects of what is happening today and which is making it difficult to produce animal protein – milk, chicken, eggs, pigs and even beef cattle raised in feedlots,” continued Borges. Soybean meal and corn are the main food inputs of these production chains and also the item that weighs most in the cost of production.

According to Borges, the expressive highs of grains on the Brazilian market in recent months have brought many difficulties to the productive chains of milk, poultry and pigs, which use these grains widely in the diets of animals.

In early October, on the 5th, the Esalq / BM & FBovespa Paranaguá (PR) indicator broke a real record, reaching R $ 156.02 / bag of 60 kilos. The previous record was August 31, 2012, of R $ 153.40 / bag, according to the Center for Advanced Studies in Applied Economics (Cepea). On Friday, a new record was broken, reaching R $ 159.44 / bag, an increase of 1.55% compared to Thursday and 7.64% in the month.

Corn, on the other hand, exceeded R $ 70 / bag on Thursday, reaching R $ 70.30 per bag of 60 kilos in the region of Campinas (SP), Cepea reported on Friday (16), in a report. The indicator has been rising for more than ten days and, between October 8 and 15, rose 4.1%. In the October partial, 10.5% compared to the previous month. On Friday, the corn indicator ended the day at R $ 70.72, an increase of 0.6%.

According to a note from the Ministry of Agriculture released on Saturday, 17, the temporary suspension of the import tax for soybeans (grain, bran and soybean oil) will be valid until January 15, 2021. In relation to corn, Brazilian imports without tax payments are due until March 31, 2021. “The establishment of these dates aims to not compromise the commercialization of the next harvest, which has the harvest scheduled for the beginning of next year”, notes the ministry.

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