The industry proposes a price band for corn, producers, on the other hand, see it as impossible to set a floor or ceiling for the grass

Next week the minimum support price of hard corn will be reviewed, whose current price is $15.57. It will be done through technical tables made up of producers and industrialists from the corn sector, announced the Ministry of Agriculture and Livestock (MAG).

According to the General Coordination of National Agricultural Information of the MAG, a production of 1,678,255 metric tons of hard corn is estimated for this 2022. Corn is produced by more than 80,000 farmers, who supply the grain to the balanced feed industry, as well as well as poultry and pig companies.

The main producing provinces are: Los Ríos (44%), Manabí (32%), Loja (12%), Guayas (11%), El Oro and Santa Elena (1%).

However, the industry handles different figures than the official ones.

According to the guilds that make up the animal protein chain: the Association of Producers of Balanced Feed (Aprobal), the Ecuadorian Association of Manufacturers of Balanced Feed for Animal Species (Afaba), the National Corporation of Poultry Farmers of Ecuador (Conave) and the Association of Pig Farmers of Ecuador (ASPE); This year’s corn harvest could be only 880,000 mt, 470,000 mt less (-35%) than last year’s, which was around 1,350,000 mt of corn.

They disagree on figures, but industrialists and producers agree that this year there will be less corn and more imports to meet demand

According to Jorge Josse, executive director of Aprobal, the corn inventories of the balanced feed industries are at critical levels, which puts at risk the elaboration of the feed for the production of chickens, eggs and pigs, for which he assured that imports are necessary to cover the deficit, which will also be discussed at the technical tables next week. The industry seeks to allow the importation of 470,000 mt.

Regarding the current price, Josse assured that the industry absorbs the national harvest, which will take place at the current international price of $20 to $21 per quintal, well above the $15.57 that is the support price set by the National Government, although he assured that speculators intend to negotiate the quintal at $ 25.

Regarding the revision in the technical tables, he assured that the position of the industry is that there must be a maximum price.

“It cannot be that only the corn producer is protected and the industry and the final consumer are not protected by allowing the price to rise without control due to speculation. There must be a ceiling price as well. In other words, a range of prices”, explained Josse.

Meanwhile, from the producing sector, Henry Peña, president of the Productive Ecuador Corn Producers Corporationbelieves that with the current world problem generated by the escalation in the cost of fertilizers, especially those that come from Russia and Ukraine, it is impossible to set a minimum support price.

The leader recalled that the producing sector proposed last year that the price per quintal be placed at $16.80, but in the end it was $15.57, a price that is currently exceeded in the market where it is paid at $20 the quintal.

“I don’t know how long the prices that are going to be set now are going to be without a floor. Right now it is not worth setting a price, or floor, or ceiling. What has to be done is a rescheduling, the authorities, the Technical Committee, the Consultative Council and the Competitive Improvement Plan have to meet, then the mechanism will be seen there”, explained Peña.

Meanwhile, the MAG carries out operations to verify the existing inventories of hard yellow corn. Last Thursday in Ventanas, in the province of Los Ríos, controls were carried out in search of identifying grain traders who speculate on the value of the quintal.

In Manabí, a reduction in corn production is estimated due to high fertilizer costs and irregular winter

During the operation, the hard corn sales centers were visited: Comercial Castillo, Comercial Jiménez and the Nueva Esperanza Collection Center.

Between the three they store 8,000 tons, which they are committed to deliver to Pronaca, Avícola Fernández and Cargill, said the MAG.

In Ventanas there are 40 centers of this type, and 125 in the entire province, according to the director of Agricultural Trade Management, of the Undersecretary of Marketing of the MAG, Rubén Avendaño, who affirmed that through these operations the price of corn will be prevented from increasing. .

“We cannot allow the consumer to suffer from the increase in the prices of products,” said Avendaño, referring to the direct relationship that exists between the price of grain with that of chicken and pork, in addition to eggs.

For his part, Marcelo Jiménez, from Comercial Jiménez, pointed out that every week they acquire around 2,000 tons that they sell to the industry, after drying the grain. (YO)