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Argentinean food chains, "worried" about the nationalization of agricultural companies

Associations of producers and trading of the different majority crops of Argentina consider the measure "unnecessary" in view of the "risk of distorting balance prices" and the "uncertainty" generated.

6/12/2020

Argentinean food chains logos.

State intervention taking the entrepreneurial role generates uncertainty and concern because, in addition to being unnecessary, it involves the risk of distorting balance prices. Public companies have different priorities than private companies, they are not subject to the need for income. In the past, the bad experience of the National Grain Board is a painful proof of this. In the world, the States have stopped intervening in the grain trade since it is of high commercial and financial risk, so companies must assume these risks without generating costs for the States.

The arguments of the need for greater food sovereignty and security seem incompatible with the chosen measure. The productive data of our country speak for themselves. Argentina has efficient agro-industrial chains that have been operating for many years in competition and adapting to the demands of consumers. We provide quality food to our population and generate significant exportable balances. With strong institutions and a production that has gone from less than 35 years from 30 to 145 million tons, we are one of the most dynamic and efficient economic sectors in the country. This has been achieved thanks to a process of private investment, even withstanding increasing fiscal pressure and in some cases, with excessive controls by different levels of the State.

In the midst of a very serious national economic crisis, from the Argentinean Blueberry Committee, the Argentine Soybean Chain Association, Argentine Rice, the Argentine Wheat Association (Argentrigo), the Argentine Sunflower Association (Asagir), the Argentine Chamber de la Alfalfa, the Argentine Chamber of Peanuts, the Argentine Cotton Chamber, the Chamber of Legumes of the Argentine Republic (CLERA) and the Maize and Sorghum Association of Argentina (Maizar), we consider that the State should use its scarce resources in another direction and focus on generating public policies promoting private investments in this sector, to the benefit of the growth of our chains, which will undoubtedly have a huge and positive impact on the entire economy of the country.

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