Chile’s farmers ask additional import duties on Argentine corn

SNA petitioned the National Commission of Distortion, to add a 15% surcharge duty on imported Argentine chicken, an additional import duty of 25% on corn with a high percentage of cracked kernals and a 30% for feed mixtures with significant cracked corn content.

Corn is Chile’s second most important crop and forms the basis for the Chilean poultry industry. Argentina’s trade policies have as a result driven down the price of Argentine corn to levels below that of the international average price: Argentine corn is US$157 a tonne whereas US$267 a tonne.

As a result, imports of cracked corn from Argentina has grown 639% from 2008 to 2011, with feed mixtures with cracked corn in the same period rising by 41% and chicken imports increasing by 29%.

Chilean corn growers stand to lose US$108 million by some estimates, if the situation is not remedied.  

About 70% of the total cost in the poultry industry is due to corn prices.  

In 2007, the Poultry Prodcuers Association (APA) put in a similar request for the raising of import duties on Argentinian grain, to the National Commission of Distortion, to no avail.