Overview

• Copal reports that factory-gate prices tracked by the IPIM are running below the exchange rate and under retail food inflation by roughly four points in recent months.
• The association urges a comprehensive tax reform, saying the sector faces an effective burden of 40% to 50% across a maze of about 155 levies.
• It highlights ARS 32,000 million in Ingresos Brutos credits for a sample of 28 companies that are slow or impossible to recover, with some provincial delays exceeding 100 months.
• Activity shows a tentative rebound with a 6% cumulative variation in the first half of the year, led by cereals milling, meats and poultry, with dairy, beverages and wine lagging.
• Copal also points to labor rigidities, noting around 25 collective agreements and high litigation and indemnification costs that raise operating risks.