The Confederation of Rural Associations of Buenos Aires and La Pampa (Carbap) had already denounced the exporters National Commission for the Defense of Competition due to a series of “irregularities in the cereal market”. It was after the identification of possible “anti-competitive behavior and alleged abusive behavior” that affected the manufacturers.
“There is no transparency in the market therefore it is not clear that there is a free operation between supply and demand”, summed up the president of the organisation, Orazio Salaverriin a press conference that took place at the headquarters of the City of Buenos Aires.
“In the Argentine market there does not exist what exists in all markets, that is, the offer of prices. Unified prices are always displayed, especially in the sunflower market. We understand that we have to study and this is what we ask the National Commission for Consumer Defense”, added the ruralist.
For Salaverri, The objective of the complaint is to make the market transparent. “We don’t want to look to the past, but to the future”, underlined the ruralist.
Carbap’s complaint was filed on August 15, during the presidency of Alberto Fernández, but only last week the Chamber of the Petroleum Industry of the Argentine Republic (Ciara) and the Cereal Export Center (CEC) were informed of the complaint. chamber that brings together exporters. The complaint covers the period 2020, 2021, 2022 and 2023 for both the purchase of cereals (soybeans, corn, wheat and sunflower) and by-products.
Beyond the complaint to investigate alleged anti-competitive conduct that affected the producers, The entity proposed regulatory recommendations to promote competition and transparency in the market.
The complaint against the exporters focused on the behavior of the relevant international markets, examining the evolution of FOB and FAS prices; analysis of the behavior of the Argentine market by comparing local prices with international ones; and the evolution of different exchange rates (soy dollar), among other elements.
Lawyer Gabriele Bouzatof Estudio Brya, which is filing the complaint, reported that exporters could be fined if it was proven that there had been a cartel, which could amount to 30% of the amount invoiced by the companies in the period under review.
According to Salaverri, in recent times What most affected producers was the fact that exporters did not honor forward contracts for the new export blend, which is settled 80% in official dollars and 20% in cash with settlement (CLL).
In this regard, last week the Collectors Federation sent a letter to the Secretary of Agriculture, Fernando Villallacheck for distortions.
In the letter, the Federation of Collectors points out that, despite having committed to incorporating a weighing clause in wheat futures contracts at the export exchange rate published by the Buenos Aires Grain Exchange, “exporters continue to weigh and pay to sellers buy the currency at the Banco Nación exchange rate, while they sell their currencies at the export exchange rate (80 and 20% mix).”
“It is surprising that, despite the actions developed and commitments made for a more competitive and efficient market, exporters insist on imposing the old condition of weighing the Banco Nación purchasing exchange rate, consequently generating a they further benefit from the difference between the exchange rate at which they sell their dollars and what they pay their suppliers. Due to this incomprehensible attitude, the futures market remains paralyzed, which, without a doubt, will affect the orderly marketing of our crops both in physical and financial terms,” the collectors said in the letter sent to the authorities of the Ministry of Agriculture.
The response of exporters
Ciara-Cec’s response was immediate. “We received, from the National Commission for the Defense of Competition, a presentation of CARBAP which, in August 2023, had questioned the previous government’s measures on the agricultural dollar, as well as the purchasing operations of exporters of wheat, soybeans, corn and sunflower, and their by-products, during the years 2020 to 2022. We agree, as we said all last year, that these measures have been harmful, that they have generated distortions in the market and that the path is and it was the unification change and the elimination of every form of state interventionism in the market. We insist that we still have an exported dollar that should be eliminated“, they pointed from the camera.
Ciara-Cec, however, clarified that he does not agree with CARBAP’s proposal”consisting in increasing – even further – state intervention in the cereal marketin particular on prices and export operations.
“Speculations about the existence of some type of cartelization in the export sector are also unfounded. All issues which, it should be underlined, have already been questioned before the Commission,” they added.
Finally, they insisted that it is not good to ask for more interventions from the State. “The cereal market is transparent, with multiple operators and types of markets. In this framework, agro-exporters will continue to work to promote a free market, where supply and demand are the normal conditions for operating”, they concluded.
Source: Clarin
