New export control measures | They’re going up …

The General Directorate of Customs (DGA) has increased the reference prices for the export of meat in order to put an end to under-invoicing when selling abroad. After several years without these indicators, it restored these values ​​in January to have greater control over the entry of currencies into the foreign exchange market. Now, following the suggestion of the main exporters in the sector, it has raised the reference prices, bringing them closer to “market values”, which will make more obvious the maneuvers of under-invoicing and circumvention of exchange regulations on the market. official exchange. . For some observers, this is the first step in the agreement expected to be signed this week between the industry and the government to lift the suspension of meat exports.

General Resolution 4998 defined an update of the reference values ​​set in January by the DGA for cuts such as loin, roast, hindquarters and forequarters, among others. The government found that several companies had made unfair maneuvers to maintain the spread between the official exchange rate and the cash exchange rate with regulation, generating pressure on prices in the domestic market.

The pressure was exerted indirectly: the surtax on profits obtained by the liquidation of part of the dollars obtained on the parallel foreign exchange markets encouraged the purchase of poor quality cattle (waste cows or “manufacture”), which are those that are fished for export to China and other destinations on the Asian continent. By raising the floor price in auctioneer markets, the prices of the higher categories (steers and heifers), which are mainly intended for the domestic market, have also increased by reflex.

After the resolution of the temporary shutdown of meat exports to Asian markets and other places without formal agreements (suspensions of sales to Europe, the United States and Colombia have been ruled out, for example), a cycle intense negotiations began between the government. National (Ministry of Productive Development) and the production and industry chain represented by the Agro-Industrial Council and the ABC Meat Exporters Consortium.

Mario Ravettino, head of the ABC Consortium, admitted in an interview by AM 530 (Still is today’s program) that his sector said that “informality and fraud in meat exports, through under-invoicing “And the liquidation of the price difference (invoiced and not declared by exporters) in marginal foreign exchange markets” is a very important problem which must be resolved “. He recognized the need for “greater control” of these operations and suggested that one of these mechanisms would be “to set the benchmark prices closer to market prices: if you are exporting at $ 6,000 (per ton ) and have benchmark prices of 5700, hardly anyone is tempted to undercharge, now if the benchmark price is $ 3,000, you are incentivizing those types of handles yourself ”, a- he declared.

Ravettino admitted that his demand for tighter controls went against what the Mesa de Enlace maintains, but stressed that “we have spoken with them because they must understand that we cannot continue to allow the participation of these irregular operators in the market, although with their demise they would lose claimants for their property “.

Without the participation of Mesa de Enlace, CAA and the ABC Consortium could strike a deal with the government this week, if at the same time they guaranteed a greater supply of major cuts of beef in the domestic market – the list would be reduced to no more than five cuts, but that would include those with the highest consumption – at affordable and stable prices, which would be maintained throughout the year. In exchange, exports would be rehabilitated but limiting the operation to meat processing plants that meet more stringent standards in terms of economic capacity and history in activity.

It should be noted that the destinations of meat exports for which the recent benchmark price regulations apply to beef are China, Japan, Hong Kong, Thailand, South Korea, the Philippines and Taiwan.