Import restrictions are having a major impact on food production and several areas are warning that soon final consumer products may be missing, in particular some emblematic ones such as the chorizos and sausages, but also baked goods, among others. This happens in an industry that exports and generates foreign currency $30 billion a year.
The problem is latent and would worsen if the SIRA (Sistema de Importaciones de la República Argentina) documents were not released shortly, which allow the necessary inputs to be imported. In what term? They estimate that “within 10 days”, just before the end of year holidays.
When asked what does “such an Argentinian product” as chorizo have to do with imports? Those who produce it industrially explain that the casings containing the meat are obtained naturally from the slaughter of pigs, in quantities less than a third of what is used. The rest are from synthetic material and are brought from Europe, the USA and even Chile, because they are not produced in Argentina.
The Argentine Chamber of Industry of Cured Meats and Related Products (CAICHA) has warned the government that “be careful of stocks on imports that concern basic and irreplaceable inputs to make cooked, dried and fresh sausages, will be forced to stop production.
In a statement also addressed to the general public, they highlighted the shortage of synthetic and natural casings, and warned that “the possible stoppage of the production lines”, foreseen “over the course of a week to ten days” if the situation arises; “for some companies it will mean total closure”.
“It is very stupid to cut imports, a domestic industry needs imported components or inputs, did you know, for example, that the sausages are made from an imported plastic?. Input doesn’t exist in Argentina, so if they go down to zero and stocks run out, there won’t be any sausage either,” food entrepreneur Pablo Ricatti warned on Twitter on July 7, 5 months ago.
In the same sense, from the Argentine Chamber of Animal Nutrition Companies (CAENA) have expressed this week that they are going through an unforeseen situation of “shortage of raw materials” to produce and supply all the food they eat all the animals from Argentina, both production of meat (beef, poultry, pork) or dairy products, or eggs, as well as pets.
And they highlighted the economic paradox of the situation: the animal nutrition sector it imports raw materials worth $300 million a year and export cthen 15 times more: a total of 4,477 million dollars.
Another difficulty is the suppliers of the food industry are not included in the Fair Prices programme, which is a window to obtain foreign currency. For this reason, those who supply packaging and other materials, secondary but essential for the manufacture or distribution of the product, are unable to provide key inputs from abroad. For example, the provision of polypropylene for plastic containerspresents serious difficulties these days, and something similar happens with inks, some papers, wrapping films, among others.
also missing gluten and other ingredients for cooking. In some cases, attempts are being made to replace imported inputs with domestic products, but quantitative and qualitative problems often arise in the components.
The Argentine Chamber of Fertilizer and Agrochemical Industry (CIAFA) warned of these difficulties after the Central Bank of the Argentine Republic (BCRA) changed the import regime through communication A7622 and anticipated that this is how the volume of the harvest is conditioned.
In the last phase of the year, these supplies for summer crops are crucial. If fertilizers are not available, for every dollar not invested in it, many more will be lost in foreign exchange. And the lack of timely availability of plant protection products for pest, pest and disease control will also lead to significant production losses, impacting the entire economy.
“Conversations” with the Secretary of Commerce
Although there are no concrete solutions or clear prospects for a solution, several sector chambers maintain the “hope” that the government, especially the secretary of commerce in charge of Matías Tombolini, will provide the next answers to dispel the problem.
Several managers of the sectors affected by this situation have spoken in the past few hours with the officials, who “have taken steps to verify the lack of supplies on a case-by-case basis and have promised to approve the related SIRAS”. For this I am in a sort of tense vigil awaiting the results of the promised efforts.
In particular, from CIAFA (Fertilizers and Agrochemicals) they affirmed that they maintain “spaces for dialogue with various government agencies, with the Secretary of Agriculture of the Nation, in order to present the current situation of the sector in the face of import restrictions and look together for alternatives to guarantee the availability of inputs and raw materials necessary for the production of the next agricultural season”.
Source: Clarin
