After 6 years, Conab resumes public food stocks policy

The government understands that the strategy guarantees the minimum price of the product and the farmer’s income, in addition to regulating domestic supply, which reduces price variations.

The acquisition was authorized by the Ministry of Agriculture and Livestock (Mapa) and is provided for in the Minimum Price Guarantee Policy. The federal government’s objective is to support rural producers, family farmers and agricultural cooperatives, precisely when the product’s market price is lower than the minimum price established for the current harvest.

It is estimated that Conab will buy approximately 8.3 million bags of cereal, at a cost of R$ 350 million. The company’s president, Edegar Pretto, justifies that the measure was adopted due to the super harvest of corn, which would have caused a drop in the value of corn on the market, below the minimum price. For him, rural producers need guarantees. Each bag contains 60 kilos.

“We start with this crop (corn) because we need to build up stocks. We also make a very positive signal and help producers in these states and give extra peace of mind to the sectors that need to have a guarantee that there will be no shortage of corn, regardless of where our country is”.

Producers from six states will be able to sell corn to the federal government – Claudio Neves/Ports of Paraná

Present at the announcement, the Minister of Agriculture, Carlos Fávaro, defended the strengthening of Conab to support the Brazilian agricultural policy. “This is not about intervening in the sovereignty of the market. None of that! But it is a strategy to guarantee national security and food stability. Because there is no agriculture without a public company”.

“Conab guarantees public policy, as it buys (the food) at the minimum price, keeps a small stock of the product and leaves the active producer guaranteed. That way, he doesn’t take any damage. The measure marks the market. Conab fulfills its role: it does not let the farms run out of corn and, above all, citizens will not pay too much for a kilo of chicken, a dozen eggs, a kilo of pork”.

For the Minister of Agrarian Development and Family Agriculture, Paulo Teixeira, the formation of public regulatory stocks will contribute to combating food inflation, guaranteeing Brazilian food sovereignty and, thus, removing the country from the United Nations Hunger Map. (UN).

The minister also mentioned the 33.1 million people who they had nothing to eat in 2022according to the Brazilian Research Network on Sovereignty and Food and Nutritional Security (PENSSAN Network).

“The people will benefit from the stocks, because what we cannot have is the problem of variations in the price of food that keep people from accessing food. What is dear to society is having people who didn’t develop because they didn’t eat; who have no structure because they have nothing to eat. This is the most expensive”.

“Our biggest weapon is the people with their bellies full, as President Lula said yesterday”, defended Paulo Teixeira.

corn sale

Conab authorized the sale of corn to the federal government by producers in Goiás, Bahia, Mato Grosso do Sul, Mato Grosso, Paraná and Tocantins.

Conab’s Operation Manual provides that the sales limit, by producer, varies according to the state. In Mato Grosso, for example, each farmer can sell up to 30,000 bags to the state-owned company. In Mato Grosso do Sul and Goiás, the limit is 10,000 bags, while in the other states of the federation, acquisition is limited to around 3,300 bags.

Those interested in selling corn to the Company must be registered with the National Registry of Rural Producers (Sican) and contact Conab’s regional office in the state for guidance on filling out the required forms and submitting the necessary documents.

The purchase will only be finalized by Conab if the product meets the required quality standards. The cereal purchased may be stored in one of the Company’s 24 storage units or in a warehouse accredited by the state-owned company.

On the 15th, Conab already readjusted the tariffs for storage, paid to outsourced warehouses. (https://www.in.gov.br/web/dou/-/comunicado-489895857). According to the state-owned company, the average increase is 34%. These tariffs have not been corrected since 2017.