They repeat mistakes that create instability in food supply | Repiten errores que generan inestabilidad en el abastecimiento de alimentos

By El Diario:

CAO members spoke out against the export ban.

At a time when we are requesting better conditions, certainty, and legal security to increase productivity and thus ensure greater food security for the population, jobs, and foreign exchange, the government responds with more prohibitions. This measure will cause instability in the supply of products, according to a statement from the Cámara Agropecuaria del Oriente (CAO).

“The restrictions on exports, price bands, and a series of limitations on the different actors in the supply chains under the discourse of guaranteeing production for domestic consumption have so far been a failure. Far from achieving the stated goal, all these measures have, over time, led to greater shortages,” states the CAO.

For example, before 2010, the domestic market was supplied with rice and corn, and some surpluses were even exported. When the export of these products was banned, production declined, and today the population is paying the consequences of these misguided decisions, as production has been reduced due to these measures, the producers’ statement points out.

“Today, the government seeks to show the population that it is concerned about the economic crisis affecting Bolivian families by restricting beef exports. However, in reality, the poor economic situation is due to mismanagement of the economy, which is not the responsibility of producers,” they observe.

For public information, in 2024, 348,113 tons of beef were produced, and an export quota of 41,745 tons was authorized, equivalent to 12% of total production. This exposes the irresponsible handling and media spectacle of these measures, regardless of the future consequences for the population.

They demand that authorities, out of responsibility to the population, immediately lift the export restriction. They also request that the President of the State immediately replace the Vice Ministers in charge before they cause further problems in the supply of products due to their lack of competence.

Finally, they demand that the Executive Branch assist and facilitate the immediate repeal of the Additional Provision Seven of Law 1613 by the Plurinational Legislative Assembly (ALP).

Error

Meanwhile, economic analyst Gonzalo Flores, on his account @DonGonchi, asserts that suspending beef exports is a mistake for several reasons.

He explains that exported beef and beef consumed in the domestic market are not exactly the same product. The former must meet the requirements of various international standards, which involve not only texture and flavor but also breeding methods, slaughtering, cutting, animal health, traceability, and other factors.

He states that the international price of beef is usually higher than the domestic price.

“Therefore, restricting the export of beef does not increase the amount available for domestic consumption but does deprive exporters of income from exports,” he warns.

Beef prices can rise for two reasons: a) due to a meat shortage (e.g., caused by mass diseases or natural disasters), or b) because the government is printing money, leading to more cash chasing the same amount of goods, which reduces the purchasing power of money and, in turn, drives prices up, he explains.

“Thus, the issue is not to correct what cattle ranchers do with their livestock but to prevent the Central Bank from continuing to print money. That policy will push us into uncontrolled inflation,” he warns.

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