Argentina: Blueberry producers ask for a differential dollar for regional economies

"We cannot live with a dollar that is worth around 280 on the street, and we get 135. The rest is kept by the Central Bank two blocks from the Plaza de Mayo"

After the announcement by Economy Minister Sergio Massa last July, to establish a differentiated dollar for soybean producers and exporters at $200 for the liquidation of exports from this agro-export complex, blueberry producers are also asking for a differential dollar that allows them to recover lost competitiveness.

The petition comes mainly from the producers of Entre Ríos, but it represents several provinces and is based on the exchange rate gap and the impact of the splitting of the dollar in Argentina, which directly influences regional economies, taking away profitability from export products that It is produced in the provinces of the country.

Requests

Added to this is the lack of a single tax account to apply tax credits that deteriorate with inflation and are charged at 18 months, the lack of export refunds of 12% for the recovery of internal taxes, the decrease in VAT on electricity bills, which is 30%, the lack of labor legislation according to the activity and compatibility with all current social plans.

Blueberries, sweet citrus, cherries, pecans, walnuts, are some of the products that are central to the economic life of the provinces where they are produced, such as Entre Ríos, Corrientes, Tucumán, and some in the south of the country.

APAMA

The Association of Blueberry Producers of the Argentine Mesopotamia (APAMA) proposes to the national government that it also apply a dollar to regional economies, to reduce the gap between what is perceived and the real price. It is noteworthy that in the last year with an inflation of 70%, the exchange rate only rose 35%, a circumstance that has been repeated for several years, literally melting the exporters who with so much sacrifice developed markets around the world for years.

"We cannot live with a dollar that is worth around 280 on the street, and we get 135. The rest is kept by the Central Bank two blocks from the Plaza de Mayo" graphed Alejandro Pannunzio -president of the Association of Producers of Blueberries from Argentine Mesopotamia – on the problem of competitiveness.

Jobs

"This generates that the producer receives less than half of what he generates as a result of his work and that is why producers are disappearing," adding that "there are fewer and fewer jobs and more people requiring assistance from the state, when there is all the potential to create thousands and thousands of jobs.

Faced with this reality, blueberry producers propose to the national government a "regional economies dollar" that also contemplates the particularity of these sectors, which allows each region to receive all the results of their work, until exchange rates can be unified. avoiding exchange delays that never help local production.

differential dollar

Regarding the impact that a dollar differential in access to production could have, Pannunzio warned that when it is possible to improve the income of producers "the first thing that is done is to expand plantations, update technologies and generate more and better jobs."

Alejandro Panuzzio, who is also president of the Entre Ríos Blueberry Producers Association, reiterates:

“During the last year, without considering August, inflation is 70% and the dollar has changed by 38%. It had been happening for two and a half years, which increases costs much more than the currency in which we sell" and adds: "Having an exchange rate until the gap is narrowed would be an important help to maintain the plantations."

Single Tax Account

The leader pointed out that the current dollar for which they sell is approximately $135: “A dollar of $200 would surely improve it, but we cannot take it as a reference for ourselves. There should be a single dollar. Considering that regional activities generate so much labor and we would not produce a very high cost if we had a more real dollar, it would help the provincial economies”.

As for other measures, Panuzzio explained: "We pay all the inputs at their value plus VAT, but the export is without VAT. What we are asking for is a Single Tax Account, so that the tax credits we have left can be applied to national taxes, such as social charges. Also, more export refunds to offset taxes. Today it is 3%, we ask that it be 12%, ”he stressed.

Agreement with soy

Last July, the Central Bank announced a differential dollar for the field and created a special regime for producers who sell their soybean harvest, in line with the benefits received by the manufacturing, energy and knowledge industries that increase their exports.

With 30% of the pesos that producers receive for liquidating soybeans, they will be able to buy "dollar savings". The remaining 70% can be invested in an account tied to the official dollar. This special quote means a 10% improvement in the exchange rate.

With this, soybean producers will be allowed to make a demand deposit in financial entities with variable daily remuneration based on the evolution of the A3500 exchange rate, known as the Link dollar, for up to 70% of the value of the sale of grain.

In addition, for the remaining 30%, the Formation of External Assets will be allowed, at the value of the official dollar plus the PAIS tax and the withholdings on account received by the AFIP.

According to the entity headed by Miguel Ángel Pesce, "this BCRA decision seeks to balance agricultural producers with the benefits available to the different productive sectors."

Source
Martin Carrillo O. - Blueberries Consulting

Previous article

next article

ARTÍCULOS RELACIONADOS

Chilean cherries: A debatable season
Yunnan blueberries are currently in their last season...
Agrivoltaics for berries