Agricultural producers highlight benefits of an expensive dollar • Business • Forbes Mexico

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An exchange rate of 20 pesos per dollar left behind the damage and falls in income caused by the super peso in the government of Andrés Manuel López Obrador, and which ended due to uncertainty after Morena’s broad victory in the last elections, agreement with Andrés Canales Leaño, president of the Agricultural and Agroindustrial Development Council of Jalisco.

“High-value products are supported by the fact that the dollar had a rebound in its parity against the peso,” he stated.

“Contrary to what could happen with producers, having an expensive dollar benefits and helps. Today the exchange rate is 19.90 pesos per dollar, when in past years it reached 16.6 pesos,” he said.

“We are talking about 25% of the producers’ profits being lost due to the super weight,” he said.

“The issue of milk is something delicate, the crisis has already passed and in the Altos de Jalisco due to massive imports of powdered milk because the commodity was cheap at that time and the exchange rate was at 17 pesos per dollar,” he declared. Homero García de la Llata, president of the National Confederation of Livestock Organizations (CNOG).

Canales Leaño said that the super peso greatly encouraged imports of milk and pork, which brought many producers in Aguascalientes, the Altos de Jalisco, as well as several dairy regions of Guanajuato and Querétaro, to their knees.

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“The last two years we were greatly affected in our income, due to the famous superweight,” said Marte Nicolás Vega Román, president of the Confederation of Agricultural Associations of Sinaloa.

He added that the exchange rate was greatly affecting the livestock, agricultural and fruit and vegetable sector.

According to the Sinaloan producer, they are currently preparing for the sowing of the autumn-winter cycle, mainly in Sinaloa.

He said that today the lack of water is limiting vegetable and grain producers: “For the second consecutive year, Sinaloa will not enter with its corn production, which is necessary for human consumption and the dough and tortilla industry.”

“For us, as farmers, a high exchange rate benefits us, because the international price of milk is more expensive and national purchases from our producers become more attractive,” said Octavio Hernández Álvarez, general director of the Mexican Association of Producers. milk.

“What has happened with the exchange rate and the availability of milk in the world, next year imports will not increase,” he said.

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“We are talking about an exchange rate of 19.90 pesos per dollar, which we believe will be maintained into the following year,” he added.

“We produce 75% of the milk we consume, but the market is complemented by imports and we do see a small impact on the national supply and we see it as a complement,” he expressed.

“Unfortunately we have to import to complete milk consumption in Mexico, mainly from the United States,” he said.

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