Brazilian ag industry lobby strongly opposes wheat import quota hike

The Brazilian Agriculture and Livestock Confederation (CNA) has voiced strong opposition to a proposed increase in the wheat import quota exempt from import taxes by 500,000 tons. This proposal, forwarded by the Brazilian Wheat Industry Association (Abitrigo) in June to the Executive Secretariat of Camex and the Ministry of Agriculture and Livestock (Mapa), seeks to raise the current quota of 750,000 tons. The proposal is currently under public consultation.

In a letter addressed to Vice President Geraldo Alckmin and Minister of Agriculture Carlos Fávaro, CNA President João Martins argued that the proposed increase is unjustified given Brazil’s recent wheat industry performance. The letter highlights that Brazil set a production record in 2022 and maintained a stable supply in 2023 despite adverse weather conditions.

For 2024, the National Supply Company (Conab) projects wheat production to reach 8.95 million tons, an 11% increase over the previous harvest. Additionally, Argentina, Brazil’s main wheat supplier, which accounts for 73.5% of Brazilian wheat imports, is expected to increase production (14%) and exports (35.3%) this year. Since Argentina is a Mercosur member, Brazil applies no import tariffs on its wheat.

The following chart compares wheat import volume registered at Brazilian ports in the period spanning January to June from 2021 to 2024. The data comes from Datamar’s original market intelligence service, DataLiner.

Wheat Import Volume | Jan-Jun 2021 to Jan-Jun 2024 | WTMT

Source: DataLiner (click here to request a demo)

The CNA letter concludes that “the measure would not hit consumer prices, which are already declining, and could undermine the competitiveness and economic viability of Brazilian wheat producers.”

Source: Notícias Agrícolas

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