March 23, 2022

Brazil grain exporters unable to be paid due to port tax collectors protest

Brazil's National Association of Grain Exporters (ANEC) said agricultural exporters face trouble getting paid for their shipments because of protest by tax collectors at the Santos port in Sao Paulo, the busiest port in Latin America, Reuters reported.

Sergio Mendes, ANEC director said the protest has delayed the issuance of phytosanitary certificates, which is required for exporters to receive payments. The phytosanitary certificates are an inspection document used for plant products. Inspections can only happen once tax collectors have cleared the shipments.

The protest comes as the country reaches its seasonal peak for soybean exports. The Santos port accounts for about 30% of Brazil's soybean shipments and half of its corn and soymeal exports.

Mendes said a 65,000-tonne soybean shipment is worth US$42 million, but exporters will not be paid if they do not receive the phytosanitary certificate.

ANEC's associates include major global grain traders such as Archer Daniels Midland Co, Cargill Inc and Louis Dreyfus Company.

The tax collectors are protesting for higher wages. They have initiated a work-to-rule effort last year, which legally allows workers to meet only the minimum job requirements.

-      Reuters