Live cattle: impetus for a new operation
The first thing Minister Fratti pointed out was that his presence implied institutional support for inland activities as well as interest in strengthening port development outside the metropolitan area. In that sense, he maintained that there is the intention to promote the export of live cattle from Nueva Palmira. “This port seems much more suitable to us than Montevideo for this operation,” he stated, alluding to logistical advantages and the possibility of decongesting the capital’s port.
Although he clarified that “the final decision corresponds to private operators,” the Ministry will seek to “generate the conditions” for shipments to take place from Palmira.
Drought
The minister confirmed that the Government expanded the support measures and the departments reached by the declaration of serious water deficit. Among them, Colonia, which had not been included in the first stage.
The tools contemplate “special lines from Banco República and Microfinanzas with significant discounts on interest, in addition to revolving funds in different departments and microcredits for small producers. For those who have less than 100 hectares and certain productive records, the possibility of accessing subsidies for the construction of semi-emergent wells was also enabled.”
Regarding the productive impact, Fratti avoided providing definitive figures. He pointed out that there are crops already completely affected and others with compromised yields, although he considered it necessary to wait for the harvest to close to accurately evaluate the final result.
Soybeans, one of the main export items, generates special concern. “If it doesn’t rain in the next few days, we will surely have problems,” he warned, despite recognizing that the international price is favorable. However, he stressed that a good price does not compensate for a drop in yields.
In this framework, he announced that in March he will participate in a meeting of Mercosur and Caribbean ministers in Brazil, where “the possibility of moving towards regional agricultural insurance that allows greater coverage and more accessible costs will be analyzed” in the face of extreme climate events.
China: greater potential demand
Regarding the recent presidential trip to China, the minister stated that the authorities of the Asian country expressed their willingness to buy all the soybeans that Uruguay produces, and even encouraged an eventual expansion of the planted area.
“They made it clear to us that, if Uruguayan producers decide to plant more soybeans, they are in a position to buy all the production,” he said. Furthermore, Chinese interest “extends to other areas such as meat, cellulose and dairy.”
In this last sector, he recognized difficulties derived from the free trade agreement that China maintains with New Zealand, which grants tariff advantages to that country. “Alternatives are being studied such as obtaining specific quotas that allow improving access to Uruguayan dairy products.”
Dairy sector and employment
Fratti also referred to the situation of the dairy industry and highlighted the importance of keeping companies in operation to preserve employment. He mentioned the case of Calcar, which resumed activity, and stressed that the Ministry’s objective is “not to lose jobs and promote quality jobs.”
The sector faces both international market conditions and internal difficulties, which requires “permanent monitoring” by the authorities.
“Learning and taking action”
Finally, the minister reflected on his management and recognized that, although he has experience in several areas of the agricultural sector, the port area was not one of the most familiar when he took office. “We have been learning and trying to put in all the effort, fundamentally relying on people who understand the subject,” he said.
