São Paulo Milk Producers Call for Urgent Fiscal Measures Amid Import Crisis
Source: The DairyNews
In a bid to rescue the competitiveness of São Paulo's milk producers, the Federation of Agriculture and Livestock of the State of São Paulo (FAESP) dispatched a letter to Governor Tarcísio De Freitas, urgently requesting the implementation of fiscal measures to safeguard the state's milk production chain, milkpoint.com.br writes.
The missive, sent on Thursday (04), underscored the pressing need for intervention to counteract the adverse impacts of soaring powdered milk imports from Mercosur countries, particularly Argentina and Uruguay, which have precipitated a crisis in the dairy cattle farming sector, posing a grave risk of collapse.
With the federal government's inaction on curbing powdered milk imports, several states have taken proactive measures. FAESP highlighted that states like Minas Gerais, Goiás, and Alagoas have already suspended tax benefits for companies importing powdered milk, making imports more costly to deter their influx. Similarly, Mato Grosso has passed a bill withdrawing importers of powdered milk from a package of state benefits.
The letter from FAESP emphasized the urgency for São Paulo to adopt immediate measures to stem the tide of milk imports, lest an imbalance exacerbates the flow of imported products into the state. FAESP urged the São Paulo government to review its tax policies to identify and rectify distortions favoring dairy importers.
Tirso Meirelles, President of FAESP, underscored the severity of the crisis gripping the sector, fueled by a sharp decline in producer prices over the past 12 years, which now plummet below production costs. The relentless influx of powdered milk imports further exacerbates the strain on domestic production, necessitating urgent action to protect producers, especially small and medium-sized operations.
FAESP's communication also stressed that maintaining facilitative measures for imports undermines national production, drives producers out of the industry, and jeopardizes the state's economy. São Paulo alone accounts for 27% of the country's powdered milk imports.
In addition to calling for fiscal interventions, FAESP emphasized the importance of implementing the standardized subsidy of R$ 0.10 per liter of milk for producers delivering up to 300 liters/day, a measure announced in February. The prompt implementation of this subsidy is deemed essential to alleviate the pressures of depressed milk prices in the market.
Amidst these challenges, FAESP's letter signals a rallying cry for decisive action to shore up São Paulo's dairy industry and safeguard the livelihoods of its producers.
With the federal government's inaction on curbing powdered milk imports, several states have taken proactive measures. FAESP highlighted that states like Minas Gerais, Goiás, and Alagoas have already suspended tax benefits for companies importing powdered milk, making imports more costly to deter their influx. Similarly, Mato Grosso has passed a bill withdrawing importers of powdered milk from a package of state benefits.
The letter from FAESP emphasized the urgency for São Paulo to adopt immediate measures to stem the tide of milk imports, lest an imbalance exacerbates the flow of imported products into the state. FAESP urged the São Paulo government to review its tax policies to identify and rectify distortions favoring dairy importers.
Tirso Meirelles, President of FAESP, underscored the severity of the crisis gripping the sector, fueled by a sharp decline in producer prices over the past 12 years, which now plummet below production costs. The relentless influx of powdered milk imports further exacerbates the strain on domestic production, necessitating urgent action to protect producers, especially small and medium-sized operations.
FAESP's communication also stressed that maintaining facilitative measures for imports undermines national production, drives producers out of the industry, and jeopardizes the state's economy. São Paulo alone accounts for 27% of the country's powdered milk imports.
In addition to calling for fiscal interventions, FAESP emphasized the importance of implementing the standardized subsidy of R$ 0.10 per liter of milk for producers delivering up to 300 liters/day, a measure announced in February. The prompt implementation of this subsidy is deemed essential to alleviate the pressures of depressed milk prices in the market.
Amidst these challenges, FAESP's letter signals a rallying cry for decisive action to shore up São Paulo's dairy industry and safeguard the livelihoods of its producers.
