Because we’re in a hurry, let’s go slow.
The liberalization of trade, anticipated by the next administration, is auspicious to go back to previous areas but it is not enough to become the first major exporter of food in the world. A change of our macroeconomic structures is required to express to the maximum the potential of the agribusiness, object of the present essay.
They can and should be removed already! All price-distorting trade restrictions, term markets, predictability of shipments and are sources of corruption, in particular the discretion of ROES. The reserves should be able to be constituted by the agribusiness in the markets to term, without affecting the transparency of the markets.
All the agricultural retentions should not be eliminated without causing a collapse of prices but if they can neutralize their negative effects on the profitability of the productions. It is a pre-election promise to fulfill that can be announced as progressive (except for wheat that minimally impinges on bread).
In the case of grains the profitability of the next harvests can be achieved with the reinstatement of the retentions in their equivalent of invoices of fertilizers and transport, which are the main costs that limit the crop (the deduction of profits interests only the big producers ). Without modifying their price, a sidereal increase in yields and yields would be promoted, reconstituting the fertility lost by monoculture. Carrot and cane for all,
In the case of all meats, immediate commercial release at the juncture of the first 3 months is crucial and very disturbing. In the current context, the price increase may be more serious than a passing sensation. The best expected prices, which are worse fed by a higher purchasing power of exports, will lead to a retention of wombs for breeding (permanent) and a heavier (transient) males favored by the very low price of maize. This deferral of increased production, already started, will intensify when the new economic framework is confirmed, causing a labor void of unpredictable magnitude and very difficult to alleviate immediately.
Substitute meats that cover the price of the vaccine, will accompany the initial price increase. The increase of its offer is also deferred, a couple of months the chicken and a quarter of the pig; Depend on the maize, main input of both and of the vaccine to corral, whose cost is transferred directly to the price. It would help a lot, in deferred, the relief of a fixed so that too many unproductive cows (2 million ñokis) are fattened.
Luis de Santa Coloma, November 2015