Home Agribusiness Legal Uncertainty With Freight Table Unknowns Brings Impact to the Consumer

Legal Uncertainty With Freight Table Unknowns Brings Impact to the Consumer

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Legal uncertainty in the face of uncertainties around the new freight table generates direct consequences to the final consumer, warns the Brazilian Association of Animal Protein (ABPA).

The theme of minimum freight impacts various sectors of the economy, especially poultry and swine, which have their own categories of dedicated and exclusive shipping. With the new table proposed, logistics costs had an average increase of 35% – reaching close to 80% in some embodiments, as the transport of feed.

In this context, invariably it creates a situation of legal uncertainty for those who work in front of a blurring of the cost of facilities. With the scale in force, the issue is even more serious for the consumer, because it directly affects the price of food.

To add to this context the fluctuations of price of corn and soybeans, the main inputs of food industries, which in August reached an average increase of respectively 53% and 43% over the same month last year.

With the sum of these factors – freight tabulation and rising production costs – the impact on meat and other products of poultry and pork for consumers tend to exceed 15%.

Last week, the industry announced a downward revision of expectations for production and export of poultry and pork meats. If at the beginning of 2018 the expectation was growth, today’s 10% decline estimate to 12% in swine protein shipments, and 2% to 3% in chicken exports.

It is noteworthy that, with increasingly higher costs, puts at risk many agro-industries and cooperatives, which employ hundreds of thousands of Brazilians and drive the national economy and international trade of the country.

Given these factors, the ABPA considers mistaken maintaining a table, requiring the subject of renewed discussion, so that the impacts are considered and clarified.