Brazil cuts red tape in importing Argentine wheat

According to the Deputy Secretary of the Secretariat of Agricultural Defense of the Ministry of Agriculture (Mapa), Allan Rogério de Alvarenga, who was present at the event, this change meets a demand from the sector and aims to simplify the process of importing grain of Argentine origin, without leaving aside food safety.

“We will grant early approval for the import of Argentine wheat. This decision will greatly contribute to simplifying the import process, as we will continue with routine actions and the collection of samples of the amount purchased,” he explained.

In practice, inspection of products entering Brazil, previously applied to 100% of cargo, will be reduced to 10%, with control carried out by a system integrated into a single portal. This change will allow monitoring of all entries, enabling the selection of cargo that will undergo physical inspection and sample collection, while the rest will be released directly for processing or destination.

The initiative, which gave rise to the project, was developed in collaboration between the Federal Revenue Service, Mapa, Abitrigo and the Wheat Industry Union of São Paulo (Sindustrigo). In September 2023, the pilot project at the Port of Santos was evaluated by both the general coordination of Vigiagro and the Department of Plant Health (DSV) and the results were extremely positive.

The announcement was very well received by the milling sector. According to Abitrigo CEO Rubens Barbosa, this is an essential step for the Brazilian market.

“The project we proposed could be spread throughout Brazil, cutting red tape, simplifying and reducing costs for industries that import wheat to process this important raw material and transform it into products for Brazilian society. It is, undeniably, a very important measure taken by MAPA,” he analyzed.

Evolution of wheat in Brazil

In celebration of Embrapa Trigo's 50th anniversary, the unit's supervisor, Osvaldo Vasconcellos Vieira, who was present at the opening of the Wheat Congress, recalled how the sector has developed continuously in recent decades, with collaborative work between producers, organizations, the state and consumers.

“Our society lives off wheat and Embrapa is prepared to develop, over the next 50 years, new technologies that will expand the production of an increasingly safe and efficient food. To this end, continuing to have the support of Abitrigo is essential,” he said.

Federal Deputy Luiz Carlos Hauly analyzed the Brazilian tax system and stressed the importance of tax reform for the coming years. “The cost burden in Brazil is above the national capacity. In addition to the taxes collected, high relative prices interfere with the performance of producers. Tax reform, which will change the way taxes are collected or administered, will overcome this scenario, unlocking and reducing bureaucracy in the economy.”

Geopolitical and economic scenario opened debates

At the start of the lecture program on the theme “Economy and Geopolitics in Brazil and the World”, MB Associados economist Sérgio Vale analyzed the current macroeconomic scenario, highlighting both political and economic concerns. He mentioned the risks associated with the American elections, instability in the Middle East and tensions between the US and China, which could lead Brazil to align itself more closely with China. In the Brazilian context, Vale considered the economic scenario to be mediocre, predicting growth of around 2% in the coming years, with the Selic rate close to 10% by 2026. He also warned about inflation, which should remain close to the target ceiling of 4,5% and about the difficulty of appreciation of the Real due to fiscal and geopolitical risks.

Political scientist and journalist Gustavo Segré highlighted the main challenges facing the national political scene and their implications, especially with regard to international relations. For Segré, the political decisions taken domestically in the next two years and in the following presidential election could complicate the country's global relevance, even making important agreements for the productive sector more difficult.

Wheat market

Recognized for the selection of lectures aligned with the reality of the mills, the program for the second day of the Congress began with the panel “The wheat market”, moderated by consultant Edson Csipai.

During the panel, Ipsoy SA – Uruguay trader Eduardo Vazquez spoke about the global scenario, highlighting Argentina's leading role, which will continue in 2025, and the climate changes that affected the 2023/24 harvest in countries such as Russia, the United States and Brazil.

The representative of the Agricultural Cooperative, Roberto Sandoli Jr., stated that Brazil could become the country of wheat in the future. “For this to happen, it is essential that the chain is united and understands what changes need to be made and who is responsible for each of them, whether the producers or the government,” he stressed.

The Wheat Congress will continue until Friday, October 25, with a program focused on debates on topics of relevance to the national milling sector. “In the coming days, we will continue to listen to experts and consume relevant content for the development of the entire chain. Our Congress is an important space for updating, networking and improvement that aims to increasingly strengthen the sector”, concluded the president of the Abitrigo Deliberative Council, Rogério Tondo.