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Agricultural machinery companies paralyze production lines and suspend staff due to import barriers

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Agricultural machinery manufacturers have paralyzed production lines and suspended staff due to barriers to importing key inputs. This was announced by the Association of Argentine factories of tractors and other agricultural and industrial equipment (Afat).

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As commented Leandro Brito PeretExecutive Director of the organization that brings together foreign companies that produce in the country, there were already problems in importing supplies, but the problems worsened after the implementation of the Import System of the Argentine Republic (SIRA).

“The change in import authorization processes and procedures implemented weeks ago has had a direct impact, both in the production of agricultural machinery and in the supply of essential spare parts for the maintenance and repair services of machinery in operation throughout the national territory. the country, “he said.

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On this last point he added that “today the wheat harvest is about to begin and we do not know if we will be able to meet the maintenance and service needs of the harvester”.

For Brito Peret, the most difficult thing about this situation is that there is no foreseeable horizon. “It would be one thing for them to explain how long to wait for the supply and another would be for them to confirm the importation of the piece from one day to the next”, he resigned.

Given this situation, she warned him companies had to suspend some of their staff. “The most important thing is that interrupting or stopping a production line means having to suspend workers, with all that that means. They went for two days, for a week, and in other cases we gave them other functions so as not to have to adjust their income, ”she warned.

The manager warned that this problem does not only concern the plants, but also affects the 700 sales and service points of the companies distributed throughout the territory. In total, the 8 companies generate around 9,000 direct and indirect jobs.

Brito Peret pointed this out held a meeting with government officials in mid-September, but after the worsening of the import problem, they asked for hearings from various ministries and to date have not received any answers.

we have concern. We know in the country we live in and what the problems are. We know that we are not the only ones to have this problem, with which we understand and we are committed to dialogue, our idea is to sit down at a table to talk and solve problems ”, she commented.

Referring to the agricultural machinery market, he reported that both the manufacturer and the contractor had bought “not what they wanted, but what was available”. But, in the middle of the year – with the increase in rates that made credits more expensive, coupled with the restriction on imports that reduced production capacity – the market began to decline.

“We don’t think the November-December market will gain momentum. We believe that we will end up with volumes sold similar to those of 2021 ”, she concluded.

Source: Clarin

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