According to the Fedemol Chamber, which watches over the interests of the milling industry of the wheat in Colombiastates that, for the “almost nonexistent national production of wheat that represents 0.3%”more than 90% must be imported by sea from Canada and the United States, which makes the production of various products suffer an increase due to import costs and the price of the dollarin addition to the situation you live Ukraine con Russia.
One of those products that could suffer a possible increase is bread, which could reach $1,000 per unit; for example, Henry Vanegas, general manager of the National Federation of Cereal, Legume and Soybean Growers, told Bloomberg Lines that “By the end of the year we won’t have $700 bread. We reached a thousand pesos″.
In addition to the above, the rise in inputs for wheat production, such as fertilizers, has affected the price for cereal producers, according to the analysis of the union, who also affirms thate the country consumes around 25 loaves a year per person of bread.
“Normally the cost of fertilization in the case of corn, which is one of the most widely planted (cereals), is 1 million pesos, today it is $3,000,000,” Vanegas stated for Líneas.
Wheat production in Colombia was the best in the nineties, at that time the country produced about 760,000 hectares, but today there is talk of 400,000.
In the words of Vanegas, after the economic opening of the ninth, at the hands of the government of César Gaviria, there were no policies that stimulated the national production of raw materials or food, as well as the almost null export of products, for which the Colombian ports were found full of imported merchandise, but rarely for export.
“The industry substituted sorghum in the feed industry and they began to use corn from the opening. The sorghum raw material was abandoned, which the same industry had brought in the 1960s, and we were left depending only on corn, which means that today 80% of the corn consumed in the country is imported,” said Vanegas. for Bloomberg.
“We were self-sufficient in corn until 1991, but imports began to be stimulated. We are benefiting producers from other latitudes and not the local producer,” said the union leader.
For Vanegas, it is imperative to review free trade agreements with other countries (FTAs), such as the United States, and look at policies that encourage national production.
“Without the need to close down, we must have competitive production options, much cheaper credit, more affordable and with greater coverage. And that there is a drying and storage infrastructure on the part of the Government to achieve basic agri-food, because all that has disappeared”, Vanegas highlighted for Bloomberg.
For the union leader, the mistake of the governments has been that the high prices of inputs and raw materials were going to fall, just as they are rising:
“You have to have the post-harvest infrastructure again, to dry and store, and then the mills, which today are in disuse and obsolescence. So the problem is that the government and the industry believed that this was temporary, ‘everything that goes up comes down,’ say many of those who know the market, but it turns out that we’ve been here for two years and it doesn’t go down,” he said.