The President of the Argentine Milling Industry Association (FAIM), Diego Cifarelliassured that 2025 “It wasn’t a good year” for the industrydue to a decline in production due to declines in consumption and the “Lack of competitiveness” for export.
However, they hope that the Tax and labor reform One is funded by the government “Springboard for what’s to come”.
“I think the milling industry is closing out a year like the country: A year that wasn’t good, but with expectations” Cifarelli stated in a dialogue with Clarín Rural.
Although Cifarelli considers it positive that after the government’s setback in the elections in Buenos Aires “Doubts cleared up” Given the victory in the national parliamentary elections and open “expectations” for the future, he stressed that in this sector “they are waiting for the implementation of what President Javier Milei had promised and that he wanted to try.” Remove the counterbalance to the famous Argentine costs from production“.
“We’re waiting for that to come.Because up to this point, the effort had been enormous to be able to maintain production volumes and basically moderate prices, which had a direct negative impact on the profitability margin. We are waiting for the equation to changebecause, on the contrary, costs have not decreased and the domestic market has not grown,” he explained.
Finally, Cifarelli noted that the sector’s figures were “good” and that “it was a mediocre year, a result of For the first time in two months we had a decline in flour production. “There has been no decline in production for many years.”
For Cifarelli, one way to eliminate this “counterweight” of the milling industry is Structural reforms such as labor and tax reforms which are being promoted by the ruling party and which could be dealt with before the end of the year.
“We are waiting I look forward to the parliamentary debate on these two transcendent reforms which are fundamental to any future business plan. If these two things happen and are beneficial to the country, I’m not talking about business, It will undoubtedly be the stepping stone for what is to come“, complete.
Argentina is on the way to achieving one Record wheat harvest of 25.5 million tonsOf this, between 6 and 7 million tons are destined for the production of flour for the domestic market and only about 300,000 to 500,000 tons are for export, an average amount that is usually shipped.
But despite the greater availability of raw materials, Cifarelli believes an increase in exports of flour and pasta is unlikely. the current structural conditions of the economy of the country.
This is because “They do not offer competitive conditionsAs Argentina advances in its productive connections, the first industrialization is difficult, the second is somewhat more difficult, and the third is even more difficult because a Amount of tax costs one at a time until it becomes an impossible snowball.”
“You only multiply all items of the respective industrialization by the gross income. That is our focus.” a smart or disruptive tax reformwhere you imagine that it is a commodity that has the possibility of internationalization,” he argued.
In this sense, he explained that in Argentina “there are 170 flour mills with a flour production capacity of 15 million tons and 7 million tons are being produced. Today there are 25 million tons of wheat.” BrazilHe has a production capacity of 13 million, he buys 6 million wheat from us and It is the world’s leading exporter of baked goods“.
“I understand that the global numbers are the most important, but the chain could represent instead of $4,000 million for the country.” $6 billion. And this is where we need to focus the discussion,” he concluded.
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