The egg dilemma: Careless prices and careless producers already cause the closure of poultry farms in Argentina

Published 2021년 2월 2일

Tridge summary

The Argentine government's "decoupling" policy, part of the Caring Prices program, aims to shield local farmers from international price fluctuations by setting production ceilings. However, this has led to challenges, especially in the egg production sector, where rising costs have been met with only minor price increases by authorities, resulting in financial losses for many farms and mass closures. Poultry farmers like Javier Prida, president of Capia, are calling for changes to the program and controls on powdered egg imports from Brazil, which are harming local producers. The situation is further complicated by a negative exchange rate for foreign sales, high production costs, and a significant drop in industrialized egg exports in 2020.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The “decoupling”, in the language of the government, is to separate international prices from local food prices. Something similar to separating the production costs from the selling prices. This is what the Caring Prices program does, which imposes ceilings on the producer regardless of their costs. Egg production is another of the sectors affected by the Care Prices policy implemented by the Ministry of Internal Trade. According to industry leaders, the costs of the activity increased significantly last year while officials authorized minor increases in the sale price of eggs. Therefore, several farms had to lower the curtains. “Between November and January, farms in Marcos Paz, La Plata, Entre Ríos, Córdoba and Mendoza closed, to name a few”, listed Javier Prida, president of the Argentine Chamber of Poultry Producers (Capia), who explained: “You cannot lose silver in shape forever. " Poultry farmers, therefore, demand that the authorities modify the Care Prices program and ...

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