In the midst of the sales boom, agricultural machinery production could be paralyzed due to a lack of inputs

In a context of booming sales, from the rooms that group agricultural machinery companies, production could be paralyzed due to a lack of key inputs. Occurs after A 7532 communication which was ordered on June 27 for lack of dollars.

“He was stating it at some point there may be a risk of collision because a half-year has passed since the Central Bank placed limits on our growth “, said the president of the Argentine Chamber of Agricultural Machinery Manufacturers (Cafma), Eduardo Borri.

In this sense, he took into account the measures ordered by the government which is blocking production. As he said, at the beginning companies could bring in from abroad 5% of what they brought in the previous year and that figure already meant the same amount or less because there are increases in dollars in the world.

“What we proposed was cHow could it be possible to achieve 20 to 30% growth, as we did, if we were limited to 5%. Furthermore, imported products or inputs that make up agricultural machinery cannot be replaced. So at some point that limitation would be exhausted and we will have to stop, “he fired.

To which he added the current problems: “What happened recently is that the borders were mixed. We first brought capital goods indiscriminately. Now, they mix that whole share of capital goods and inputs. So this is making a decision and we have decided to continue producing. “

In addition to this we have, he added, the reference prices have been lost. “The agricultural machinery industry had dollarized its price list 3 or 4 years ago. In general, we all work with the official dollar, but now there are suppliers who ask for the MEP dollar, the official dollar plus 50%, and this type can not be validated of things.

What is produced now was sold 6 months ago. The question is what will happen in the future and I am reluctant to think that the solution is to stop production. Argentina must increase production in all sectors.

As Borri explained, the BCRA measures extend until September, but he doubted the industry could continue producing under these conditions. “Due to the lack of currency, everyone is stocked with something, but not complete machines. But nothing indicates that we can reach September without stopping production. The companies have already gone out (for Agrale) to say that they had to stop production. It’s one of the troubles that you have requested that we have to stop, “she said.

This comes amid a strong boom in unit sales. They were sold at a rate of 337 cars a week in the first quarter of the year, being the best record of the last 13 years for that period, since we have to go back to 2008 to find a higher value. Over the past 10 years, the first quarter average was 270 units sold, so this year’s record is 25% higher, according to a recent report from the Mediterranean Foundation.

According to the latest report by the Agricultural Foundation for Development of Argentina (FADA), 3.7 million jobs are generated by the agri-food supply chains, of which agricultural machinery represents 1.3% of the total, or about 50,000 jobs.

Afat’s position

“Committed to domestic manufacturing, AFAT members seek the best alternatives to increase local integration and employment by incorporating the best technology for the sector. All measures concerning the supply of components, domestic or imported, have a direct and immediate impact on the production of agricultural machinerya capital asset essential for the country’s growth “, explained to the Clarín Rural question.

To which they were blunt: “if the current Central Bank regulation extends beyond September, and depending on the production plant, some production lines of AFAT member companies could be affected “.

“At AFAT we are always attentive to current events, but we remain focused on working to strengthen the agricultural machinery industry, and in this way offer the agricultural sector tools that allow it to increase its productivity. We recognize the agricultural and agri-food sector among the the country’s main engines, job and exchange generators, we know its potential and we work for its growth and modernization “, they concluded.