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December 27, 2021
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The good, the bad and a dream

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The good, the bad and a dream

The good, the bad and a dream

The good, the bad and a dream
Juan Samuelle

Agro > Balance sheets and perspectives

Gonzalo Valdés, Carlos Faroppa, Erick Rolando, Ignacio Buffa and Leandro Galarraga analyzed what made them agree in 2021, the bad things about the year that is ending and they indicated their wishes for 2022

A new year is coming for the national agriculture industry.

Reading time:

Dec 26, 2021, 5:10 a.m.

A set of five actors of the national productive sector, near the turn of the year, he was invited by The Observer to reflect on the positive and the negative of the annual exercise that is ending and what they most wish for the new year.

The good, the bad and a dream

Gonzalo Valdes.

Gonzalo valdes

President, Rural Association of Uruguay

  1. Positive. A record work was highlighted, accompanied by good prices and strong demand, a combination that prompted agriculture to contribute to the recovery of the national economy. The producers demonstrated their ability to produce more, strongly accelerating the livestock cycles, achieving a steer slaughter that averaged in 30 months with higher carcass weights. Another of the announcements that has generated a lot of enthusiasm was the rapprochement with China and the beginning of a feasibility process prior to the negotiations of an FTA.
  2. Negative. On the one hand, the logistics problems caused by the international shortage in ships and containers that caused a very important increase in costs and that were boosted by different union measures that affected the operation of the port, the refrigeration plants and the refining of fuels. On the other, the exponential increase in the prices of inputs, mainly those necessary to implant pastures next fall. In addition, the drought, we started the year with a climatic emergency and this summer appears to be of similar characteristics.
  3. Dream. First, to finalize the FTA with China without neglecting negotiations with other countries, for which we understand that it should be a very challenging year for the Foreign Ministry and the Ministry of Economy and Finance. Continue with the increase in the productivity of the agricultural sector, and that it is valued within a favorable environmental framework that allows capturing niches in the most demanding markets. And not to forget the work in the management of the pandemic in the country, until now successful, it is very important not to neglect the threats of the new variants of covid that today continue to hit several countries.

The good, the bad and a dream

Carlos Faroppa.

Carlos Faroppa

Director General, General Forestry Directorate of the Ministry of Livestock, Agriculture and Fisheries

  1. Positive. The consolidation of markets and the increase in loans, in volumes and prices, especially for sawn wood, but also for other components: cellulose, rolls, chips, etc. We have formed a good team and we are catching up with the total digitization of the Forest Directorate, which is the maximum goal, we are going to implement it in the coming months, we have invested in software, technology, charts and the web, where there is a lot of information for anyone who wants to enter. The Red Project was completed, an agreement of the Forestry and Climate Change directorates of the Ministries of Livestock and Environment, providing information on the reduction of emissions and the care and degradation of the native forest and also highlighted the presentation of the updated forest cartography to 2021.
  2. Negative. Everything related to the forest law; It required a lot of effort from the government, with the Ministries of Livestock and Environment agreeing, with many hours of work, to generate a regulatory decree that technically orders the use of soils, taking into account the other complements that Environment manages: hydrography, biodiversity, natural field, etc.
  3. Dream. We are going to work on new regulations on native forest, on implementing with more presence of the Forestry Directorate the extension of the silvopastoral issue in native forest and plantations, a silvopastoral society was created and there are very good works from the Faculty of Agronomy, INIA and the Forestry Department, because the animal welfare issue is one of the most important, also our meat production with a carbon footprint, an important differential with our neighbors, as is the forestry and native forest reality: Uruguay is the only one country where the native forest has grown throughout the region. We are going to intensify the extension to producers, the Rural Police and the Police in general on the cutting or not and the transfer of the native forest, and the fight against exotic and invasive species within that native forest.

The good, the bad and a dream

Erick Rolando.

Erick rolando

President, Farmer Confederation of Uruguay

  1. Positive. The positive thing was the weather, because this year it was normal, it was produced well in practically all areas, there were very good volumes and good qualities were also produced. The cold hours that occurred during the winter were the ones that are needed, the water issue was also another positive aspect. For all that, we are now prepared to continue producing in a good way.
  2. Negative. Related to the above, it is not good that we have a higher production level than what the domestic market demands, in various areas there are many producers who have been selling at very meager prices, without being able to cover the costs. Some cases are onion and apple. The fruit that went to export has had good results, with the support of the ministry, but the domestic market not because of that oversupply.
  3. Dream. The great wish of everyone on the farm is that once and for all we have the National Farm Institute working. This is essential for the sector, as we have been requesting it for a long time. A prudent time has passed, we understood the pandemic as a backward factor, but it is time for this to advance in the Legislative Power and then for it to take office with the available resources and then there will be time to adjust everything.

The good, the bad and a dream

Ignacio Buffa.

Ignacio Buffa

Undersecretary, Ministry of Livestock, Agriculture and Fisheries

  1. Positive. The vocation of this government to open up to the world, for example now with the genuine possibility of advancing in an FTA with China, one of our main markets. That will be a revolutionary change for the agricultural sector.
  2. Negative. Things were done, but there is a lack of work to reach something fundamental, that the whole of society understands the dimension of the agricultural sector. This year, with all the agricultural engines on, its relevance for the country’s economy and all its people was put on the table. We must understand that in order to grow, nothing that is done in the agricultural sector should be indifferent to the people of the city and nothing that the city generates should be indifferent to the agricultural sector. It is necessary to continue advancing in this fusion.
  3. Dream. There are many dreams, to advance in the access in the markets for beef, for poultry that a very high economic and especially social impact, in each area there are dreams that I can encompass in one: to generate the conditions for us to be a competitive country , in a country where the producers have clearly shown that they are the best in the world; what is lacking is that as a government we continue to create conditions for them to develop and that is what we were, are and will continue to be.

The good, the bad and a dream

Leandro Galarraga.

Leandro galarraga

President, National Association of Milk Producers

  1. Positive. Climatically we have had a very good year for milk production, although now the water deficit is affecting us. There was a production record, exceeding five million liters per day in the spring. On the subject of prices, after six years with a very deep crisis, there was a break with a rebound in international prices in autumn that the industry has been able to capitalize and transfer in price to the producer, in this spring we have had a price as long ago, above 35 cents, which is a sign of optimism for the producer.
  2. Negative. Even though prices have been reversed, we continue to lose producers, it is our greatest concern. After a very tough election year, where many things were said, we have to work together to achieve a better quality of life for producers, that is the reason for being of those of us who are at the head of unions and institutions.
  3. Dream. That we can continue on the path of recovery with favorable international prices, that the weather be good and that this year find the entire sector united, we must work together to give better living conditions to the families of the producers, we will work in tools to have them and if the prices fall that this finds us better prepared and producers are not lost.

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