The President of the Republic Bank (BROU), Salvador Ferrerwas present at the Expo Melilla -exhibition organized by the Rural Association of Uruguay (ARU)-, where he spoke of the moment that companies in the agricultural sector are experiencing and stressed that to think about the spillover that the sector makes to the economy, and the investments that can be made in it, do, cycles must be taken into account.
“Now we are facing a favorable cycle –due to the rise in the values of commodities–, but we cannot plan thinking everything from this current price level. At some point we are going to have adjustments and we have to prepare for that, ”she assured in the conference entitled The agro that is coming.
The activity, in which the president of the National Meat Institute, Conrado Ferber, and the president of the ARU, Gonzalo Valdés, also spoke, was organized by the union together with radio Carve and El País.
Analia Pereira
The president of INAC and ARU participated in the activity.
A moment to seize
Ferrer said that currently “food prices fly”, and that is something positive for Uruguay as an agro-exporter, although the world situation that has occurred since Russia attacked Ukraine must also be taken into account, he indicated.
Emphasizing the care that must be taken in the planning of production and investments, he stressed that this “is a moment to take advantage”given that agricultural and livestock production have shown positive results in recent times.
In this sense, he argued that this is a good time to invest and he recalled that the bank has, for example, a financing line for the purchase of land, with a term of 15 years that can be extended to 20 years in the case of small and medium producers.
Analia Pereira
The conference invited to think about the agro that is coming.
Threat: interest rates rise
Regarding the productive cycle that Uruguayan agriculture goes through, he expressed that it is important, and a challenge, to “ensure its continuity” and that producers must take into account that there may be some threats, such as rising interest ratesa value that has been affected by the pandemic. In the last month, interest rates increased 1% worldwide and Uruguay was not unaware of this, he reported.
The rise in interest rates, which is linked to an “inflationary acceleration that the world is experiencing” is part of the risk scenarios that must be taken into account for the future, he added.
“The scenario of almost zero rates with which we have lived for a long time is coming to an end. It is not the best of news, but at historical levels we are still living in a scenario of low rates, although it is a scenario that will change”, she concluded.
Analia Pereira
The BROU president participated in the exhibition organized by the ARU.
