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07-10-2018
The rural entity explained that the devaluation provides relief in the medium term because it improves export earnings, but in the short term, the costs of production increase. "Today's price covers only 73% of the expenses," they calculated
Confederaciones Rurales Argentinas ( CRA ) warned on Tuesday that tambos were " on the precipice" since the devaluation seriously affected the costs of production of the sector
According to the entity, milk production "suffered a prolonged crisis with several fronts which push the activity towards a impbade. "
" Climatic Situations, Floods followed by Drought Mined Growth Potential of activity, increasing the need for input use, as well as the necessity of recovering pastures and rebuilding the rodeos ] because of the high rate of rejections for health problems ", warned the # ARC
In addition, in a statement, stated that this situation "is complicated with macroeconomic prospects by the increase in the exchange rate ] which middle term should facilitate the improvement in the against exporter for the industry, fact that should follow its correlation with an increase in the level of price paid to the producer. "" But in the short term the costs of production are increased jointly. A 80% of the production costs are affected by the real exchange rate : the costs of power lead the rise, since the price of the available table of cereals and oilseeds has a direct correlation with the exchange rate, "he added.
And he baderted, too, that the gap between the prices of sale and the cost of production "generates that the price of today covers only 73% of the cost of production, causing a decapitalization of the. order of 27%. "
" This deficiency pushes the producer towards productive production and quasi-subsistence production, reducing the intensity of inputs, delaying fundamental activities in the technical approach that harms sustainability of the system in the medium and long term, "said the CRA
. the entity warned that "with these distortions in other words, productivity is failing and the productive plans go back to those of 40 years ago, not to increase the competitiveness mentioned above." above but only to change a sudden death by agony a little more prolonged in time. "
" The financial exhaustion is felt throughout the productive spectrum, but mainly in small and means producers: its rate of disappearance continues to increase.In this context, many producers have a subsistence scale or, unfortunately, disappear, "concluded the ARC
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