The union organization assures that in a meeting with the Ministry of Agriculture they agreed on a price band for a ton of corn between $360 and $380 and that the industry is not complying with the measure, so they urged the government to “draw attention”
The Confederation of Associations of Agricultural Producers of Venezuela (Fedeagro) issued a statement stating that the industry ignores the agreement reached by farmers in a meeting with the Ministry of Agriculture.
“In the meeting with the farmers it was agreed to establish a price band at the level of the corn producer, between 360 and 380 per ton. This agreement has been ignored by the industry. The receipt of corn has already begun at prices well below those agreed upon and with payment in bolivars, resulting in a singular anarchy,” reads part of the text.
The union organization urged the government to “draw the industry’s attention to the sacrifice the country is making if it does not accept the agreement reached with the producers.” Fedeagro indicates that if you do not take this call into account, implement the actions at your disposal: tariffs, international trade quotas, support prices, exemptions, quotas, among others.
In a job published by SuchWhich Industries consulted indicated that there was fear that these agreements would generate price distortions and that the increase in the price of raw materials would have an impact on consumers. Likewise, they indicated that members of the industrial sector were not summoned to the meeting where the agreement was reached.
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Because corn prices have fallen in the international market, one of the reasons that agribusiness argues for not raising the cost of a ton of corn, Fedegaro makes some proposals.
Among the measures that Fedeagro proposes to solve the situation are: adopting the alternative import cost as a reference price for the domestic market, applying an import price stabilization system that implies additional variable duties if the international price is below a floor price and tariff discounts if the international price is above the ceiling price of a strip constructed with periodic measurements of the international market.
They also propose the creation of a fund for the development of corn that could compensate for falls in international prices, contract agriculture, prior to planting, and competitiveness agreements between the actors in the agri-food chain of this cereal, the document reads. released on September 27.
“The producer price of corn in the last three years has been falling systematically; In fact, the industry that paid the best for corn (Polar companies) received $0.40/kg in its plants in 2021, $0.36/kg in 2022 and $0.34/kg in 2023, the rest of the companies They paid below these amounts. For this harvest, Polar announced to pay $0.315/kg,” says Fedeagro.
The organization points out that the price that Polar offers them to pay does not cover the investment of the agricultural producer, in that sense, they point out that for this price only “elite farmers” with high yields would survive because the producer, other than the industrial one, cannot transfer the growth of your costs to the price of your product.
The confederation says that corn producers have expressed their dissatisfaction with this situation and that for this reason they have alerted public authorities about the problem.
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