Argentina Reduces Export Taxes
IMF spokesperson Julie Kozack said the institution is negotiating a new financial agreement with Argentina. The initiative took place after Javier Milei’s government formally expressed interest. (IMF)
Minister of Economy announced a reduction of the “retenciones” (export taxes) on some of the main agricultural products. For soybeans, tax should decrease from 33% to 26%. For soybean bran and oil, the percentage will drop from 31% to 24.5%. The export taxes for wheat are expected to fall from 12% to 9.5%. The same reduction will be applied to corn export taxes. This measure came into force on 01/27, valid until June 30. (Ministry of Economy)
Economic Development State Secretariat of the State of Minas Gerais published the report called “Conjunctural Analysis of the Partnership Agreement between Mercosur and the European Union: Perspectives for Minas Gerais”. According to Fernando Passalio, Secretary of State for Economic Development, “from the moment the productive sectors of Minas Gerais are aware about the requirements of this agreement, they will be able to prepare themselves to be active participants in a new step of commercial relations with the European continent”. Minas Gerais was the 3rd Brazilian State that most exported to the EU in 2024, with 20% of its exports going to the region. The main exported products are iron alloys and ores, cellulose, coffee. (SEDE-MG)
Soybean and corn farmers in the State of Mato Grosso continue to face challenges due to climate instability in 2024/25. During the planting period, many regions of the State suffered from delayed rain, also delaying soybean planting. Now, during harvest, soybean farmers face problems placing harvesters in the fields due to heavy rainfall in some cities, mainly in the east and mid-north regions. As of January 28th, 29 municipalities declared an emergency situation due to the high rainfall, reaching more than 400 millimeters in recent weeks, which are directly interfering in soybean harvest. The harvest is 17% late compared to the same period of last year. (Aprosoja-MT; IMEA)
Central Bank has increased the Selic rate again. Unanimously, the Monetary Policy Committee increased the Selic rate (the reference interest rate for the Brazilian economy) by 1 percentage point, to 13.25% per year. This was the fourth consecutive increase. The rate is at its highest level since September 2023, when it also reached 13.25%. (Copom)
For the 2024/25 Harvest Plan (Plano Safra, the Brazilian Government’s Financing Program), medium and large-sized farmers who prove the adoption of sustainable practices, through valid and active certifications, will be able to obtain a 0.5 percentage point reduction in the funding interest rates. This is guaranteed by Resolution of the National Monetary Council No. 5152, published on July 2nd, 2024. The benefit applies to valid certifications in official programs, through compliance certification issued by institutions accredited by the Ministry of Agriculture or the National Institute of Metrology, Quality and Technology, depending on the program. (MAPA)
2024 was the year with the largest ethanol offer in history, reaching 36.83 billion L, 4.4% over what was recorded in 2023. Of the total, 7.7 billion liters were produced from corn, which represents an increase of 32.8%. The indicators consolidate Brazil as the second largest producer in the world, behind the USA. (Unica)
For the first time, Brazil exported breeding pigs with premium genetics to Colombia by airplane. This operation was carried out by Granja Elite Gênesis, from Paranavaí, State of Paraná. (MAPA)
Agricultural sector had a loss of almost 30 thousand jobs in November of 2024, according to data published on January 21st by the National Confederation of Municipalities. The agricultural sector ended November with 179,525 admissions and 209,521 dismissals. This was mainly driven by the decrease in agricultural activities in the Southeast and Central-West regions. (CNM)
During a panel at the Latin America Investment Conference, Aurélio Pavinato, CEO at SLC Agrícola, stated that international demand will be a decisive factor for Brazilian production and exports in the coming years. According to him, Brazil is prepared to meet the growing demand, as the country plants 85 million hectares of annual crops, including the second harvest. “International demand has grown by 2% per year over the past 50 years… We have the capacity to expand our planted area by 50 million hectares,” said Pavinato. (SLC Agrícola)
JBS enters the egg segment with the acquisition of 50% of Mantiqueira Alimentos in a R$ 1.9 billion deal. Mantiqueira Alimentos has a static capacity of 17.5 million hens in laying and rearing, producing 4 billion eggs per year, with a focus on cage-free egg production since 2020. (JBS)
Central Bank Council agreed to maintain the monetary policy interest rate at 5% at a meeting held on January 28th. For the Chilean Central Bank, the economic scenario is of high uncertainty, with global financial markets showing high volatility in recent weeks, in a context of a change of government in the USA. (Central Bank)
Palm oil production in the Catatumbo region faces challenges due to lack of security and poor socioeconomic conditions. The region is affected by crime and armed conflicts, causing difficulties in accessing supplies, logistics problems and lack of labor work. (Fedepalma)
Free Trade Agreement between Colombia and the U.S. protects sectors such as agriculture and textiles. In 2024, Colombian exports to the U.S. totaled US$ 13.1 billion, with key products including coffee (US$ 1.2 billion), flowers (US$ 1.7 billion), and fruits (US$ 398 million). The threat of tariffs of up to 50% raises concerns for sectors highly dependent on the U.S. market’s, such as flowers (79% exported to the U.S.) and coffee (40%). (AmCham Colombia)
Colombian coffee prices’ hit a record at London Stock Exchange, surpassing US$ 3.69 per pound. Colombia produced around 14 million bags in 2024, up from 11.3 million previously. The amount paid to producers reached 2,905,000 pesos per 125 kg, the highest in history. (National Federation of Coffee Growers of Colombia)
Climate conditions are better at the beginning of 2025, when compared to the drought of the previous year, but 11.7% of the cities still have some degree of drought. In January of 2024, large areas of the Central and Northwest regions of the country were experiencing extreme drought levels. In January of 2025, 32 municipalities are classified under “level 4” drought conditions, the highest according to the classification of the National Water Commission, compared to 51 municipalities in January of 2024. (Conagua)
Government sent to the Congress a constitutional reform proposal to prohibit the planting of genetically modified corn in the country and protect the 59 native varieties. The reform amends Articles 4 and 27 of the Constitution, establishing corn as a national symbol and ensuring its cultivation free from genetically modified organisms. (Government of Mexico)
“The Panama Canal belongs to Panama and will continue to belong to Panama”, said President José Raúl Mulino, during his opening speech at the International Economic Forum Latin America and the Caribbean, organized in Panama City by the Development Bank of Latin America, on January 29th. The speech happened a week after the new US president, Donald Trump, reaffirmed that he intends to take back the Canal. (Government of Panama)
Wheat exports reached an increase of 99% by the end of December 2024, with a surplus of 94 thousand tonnes. Revenues reached US$ 127 million, compared to US$ 56 million in 2023. (Capeco)
Due to drought, the Central Bank of Paraguay – BCP has published temporary measures to support agriculture, which seek to mitigate economic problems caused by climate change and adverse conditions related to the “La Niña” phenomenon. According to BCP, “with Resolution No. 13, Minutes No. 04, of January 24th, 2025, the renewal, refinancing or restructuring of debts, including interest on accrued debt, will be allowed. This should not harm farmers’ credit ratings and, thus, it facilitates access to better financial conditions to overcome this adverse cycle”. (BCP)
Pasto Grande Regional Special Project, of the Moquegua regional government, plans to build a US$ 51.3 million irrigation infrastructure project in the south of the country. The objective is to build an irrigation dam in the Lomas de Ilo area, with a collection and pumping system. An electrical system will also be included to transport water from the Chilota-Pasto Grande river with a flow of 450 l/s. (PERPG)
2024 had record exports, totaling US$ 67.5 billion between January and November of 2024. Mining and Agriculture were the sectors that contributed most to growth, with 87%. The most important products were gold, copper and blueberries. The main destination was China (34% of total exports), followed by the USA (12%), and the EU (11%). (Blueberries Consulting)
After approval of the International Health Certificate, Uruguay is now authorized to export frozen beef to the Philippines. The current administration of the Ministry of Agriculture prioritizes access to Southeast Asian markets. According to the Ministry, the Philippines is among the world’s 20 largest importers of beef. (MGAP)
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