(Photo: Diego Cifarelli celebrated the achievements)

Buenos Aires, September 19th. Wheat milling is increasing since April, year versus year. According to the official statistics July milling jumped to 551K tons from 465K tons a year ago, or 19% increase. Something similar occurred during  June when industry processed 531K tons versus 435K in 2018.

“Clearly, the fight against illegal commerce is bringing positive results”, chairman of milling industry (FAIM), Diego Cifarelli, told to eFarmNewsAr.com.  On April 15th, the use of electronic controllers in the mills started to be mandatory. The Ministry of Agriculture, through its Agricultural Commercial Control branch, began a strict control activity in the mills, closing some of them or recalling wheat and flour which not was declared.

Since April to July, official wheat milling increased 250K tons, a volume valued at AR$2,800 million or US$50 million. “We always said that informal or illegal commerce represented an important part of the flour commerce in the country”, Cifarelli stated. “We estimate that in the next months around 500 to 600 thousand tons will be added to the formal market. This represents around 12% of the wheat milling destinated to the domestic market. We celebrate the work run by officials from the Ministry of Agriculture”, he added.

The milling industry faces a weak domestic market, severely hit by the economic recession. But, on the other hand, the lack of financial access and the high logistic costs, limits the exports, that only are focusing in Brazil and Bolivia, two neighborhood countries where flour is sending by trucks.