A report from the Institute for Economic Studies of Rural Society establishes that in the 2022/23 campaign, 5.1 million hectares were planted with wheat
By iProfessional
15/05/2023 – 10,04hs
In the report, the IIEE explains that the planted area fell by one million hectares, because of the drought but also because in some areas they opted for barley and other crops due to the lack of signals in the wheat marketat the time of planting decision.
“Last season, export limits were set at 10 million tons. Exporters made foreign sales declarations that were later extended. Measures that are still in force to this day, preventing the producer from capturing the full price of the product,” the report states.
The work maintains that producers need to “maintain comparative advantages and be able to count on a competitive product in the market (Brazil is already exporting wheat)”, in order to generate a better economic market”
About, The president of the SRA, Nicolás Pino, expressed that “the market is paralyzed without positive signs for the development of the chain and a clear example is that the milling capacity has not grown in the last two decades despite the protection it has had from public policies.” Pino said the milling industry had “export rights, price agreements, equilibrium volumes and permit restrictions, among others.”
In the Rural Society they affirm that the wheat market “is paralyzed”
The expectations
For his part, the entity’s vice president, Marcos Pereda, said that “producers are going to harvest wheat with a new government and they still don’t know what those who are going to take office are going to do.”
“We need clear signals, which we do not have today, that are oriented towards the normal functioning of the markets, a unified exchange rate, without rights and export quotas,” Pereda said.
According to the report, for the market to function normally throughout the year “it is necessary to guarantee competition between the different actors” and “in addition, continuing to diversify export destinations that allows reducing market risk.”
