Brazil whey protein industry protests recent import exemption

The tax exemption applied to whey protein imports displeased the national dairy industry, which believes the decision by the Foreign Trade Chamber (Camex) of Brazil could pose economic threats and cause a loss of competitiveness.

Three companies produce whey protein in Brazil, which is extracted during the production process of mozzarella and other popular cheeses in a tech-rich procedure. Each of these industries invested around R$ 500 million in equipment to start domestic production around eight years ago.

“Obtaining the equipment and the required technology entailed very high investments. This industry is in full development and was not consulted about this abrupt tax exemption on imports,” said a source from the industry. “This decision will kill the national industry.”

Congressman Jerônimo Goergen (PP-RS) asked the Minister of Agriculture, Marcos Montes, and President Jair Bolsonaro that the government adopt a compensatory measure, such as the exemption of federal taxes PIS and Cofins. The deputy sent a letter to the ministry and the presidency with the suggestion.

According to the deputy, the exemption on whey protein imports may influence other sector agents and even milk farmers. “Removing the competitiveness of whey industrialization will influence the price of cheese and, as a result, the prices paid to rural producers,” Goergen explained.

The decision could affect the production costs of mozzarella cheese, as the whey will no longer be used in these plants, which producers fear may facilitate the entry into the country of other imported cheeses.

The problem might potentially become environmental, according to the business sector. “The previously discarded whey became a value-added product thanks to this process. With no ability to compete in the market, the whey loses value and potentially can be tossed into nature,” commented the source.

Hydrolyzed whey protein is not just used as a nutritional supplement by gym-goers. The product is also an important ingredient of dairy compounds consumed in early childhood, as well as medical and nutrition products for the elderly.

“The producing industries are shocked by what happened. For them, it represents the devaluation of national production without bringing immediate relief on inflation,” added the source.

Source: Valor Econômico

To read the full original article, please go to: https://valor.globo.com/agronegocios/noticia/2022/08/19/desoneracao-de-importacoes-ameaca-whey-protein-nacional-diz-industria.ghtml

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