Thursday, September 7, 2017

08/09/2017: For true progress it is important to level the playing field!

by Antonio Garza de Yta, PhD, Universidad Tecnológica del Mar de Tamaulipas Bicentenario

Today I want to concentrate on a very important subject, the subsidies

In past days I talked with a good friend who gave me the subject of this column. His request was simple, yet difficult: ¨Please, somehow make the federal and state government understand that subsidies, instead of boosting aquaculture, are plunging it. Do not give more support to the bottom, better help us to get credits to good cups! "

Obviously we had a long talk after that, impossible to summarise in 600 words, but his points were clear. He, like many other producers in the country have never asked for support, however, many times they have been affected because the moment a subsidy is given to a producer in the region; Whether for infrastructure, food or livestock, it can go out to market at lower prices and this encourages unfair competition.

It is obvious that someone who does not have an input or who does not have to pay the initial investment in infrastructure can handle a different structure of prices, and this is not fair for someone who somehow invested in an aquaculture company.

In addition, these producers generally go on the market for a few years and leave the aquaculture activity, since it did not cost them anything the project and often they do not have vocation of 
aquaculture, only generating instability in the local markets and negatively impacting the established producers.

It is better to offer many billions of pesos in credits to good mugs to those who are willing to invest in aquaculture, to give away some hundreds in projects that may work for a few years but that do not really impact in the long run.

Another clear example that I could observe is a fishmonger that opened with drums and saucers less than a year ago and offered only top quality Mexican products. Within the same area a fishery financed by the state government opened offering aquaculture products at farm prices, obviously causing the first to lose market and profitability, therefore forced to close its doors.

In this case we are not against supporting producers, but they are not supported at all if they are not taught to be entrepreneurs. The state fishmonger had to have increased the sale price of its products by at least 30 percent, because otherwise, instead of promoting the opening of points of sale, it is inhibiting them!

Read the full article, HERE.

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