News

Argentina: They warn that increases in soybean and corn prices impact agricultural costs

Soybean
Maize (Corn)
Argentina
Published Oct 8, 2021

Tridge summary

The rise in the international price of corn and soybeans -to a lesser extent- impacted on the production costs of value chains such as oviculture and feedlot, according to a survey carried out by BAE Negocios. They also warned about the tax impact of taxes such as VAT, which is 10.5% on meats and 21% on eggs. The incidence of these grains in production costs varies according to the activity.

Original content

In the case of egg production, the Argentine Chamber of Poultry Producers (Capia) calculated that in the last year, the price of grains increased 96%. In 2020, 9.3 crates of eggs were needed to buy a ton of corn and today 11 crates are required to acquire the same volume of grains. In cattle corral fattening, the value of this input represents 60% of the production cost, and protein sources linked to soy must also be taken into account. The president of Capia, Javier Prida, warned that in addition to these increases, the lag in the VAT charged within the same chain generates asymmetry and at this point, they demand that the national government be equated. The entity projected that this year, 60% of the companies in the sector work at a loss and the production of chickens will fall by almost three million copies in relation to 2020. In the case of feedlots, two variables are added that generate upward pressure on costs. Given the rise in corn, which increased by $ .7000 per ton in ...
Source: Baenegocios
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