Brazil launches plan to cut red tape in agribusiness

The Brazilian federal government unveiled a series of measures designed to reduce paperwork in agribusiness through an initiative dubbed Plano Agro, devised by the Ministry of Agriculture. The announcement was made on August 24.
 

Among the efforts is the simplification of inspections at ports as well as the rules for labeling products of animal origin and for phytosanitary certification.

 

According to interim President Michel Temer, other ministries are to follow the example set by the Ministry of Agriculture, in a bid to cut red tape in the productive sector. Temer said he has long considered creating a government agency dedicated to debureaucratization. He said, nonetheless, he had another idea: to have each minister assess the area controlled by its ministry and bring forward paperwork-reducing actions. "This would avoid the costs necessary in the creation of a new agency," Temer said.

 

"Ever since I took office as acting president, I have said that the current administration would remove funds from inefficiency and invest in efficiency. We want to stimulate, not further hinder development," Brazil's interim head of state declared.

 

 

Outlined in the Plano Agro, the abolition of the second inspection of ports and cargoes previously scrutinized by the Federal Inspection Service (SIF) is expected to boost efficiency and spare a yearly $310 million-0.2% of the $154.4 billion raised in revenues every year by the national agribusiness.

 

After deliberating on 315 requests made by the productive sector, officials from the ministry drafted 69 measures to be carried out as part of the first stage of Agro. The move is an attempt to heed the demands of 88 Brazilian agribusiness associations.

 

"In all environments I've been to I have examples that show how the State takes long to take its measures. We have the potential of becoming market leaders. Our bureaucracy, however, is massive," said Agriculture, Livestock and Supplies Minister Blairo Maggi. "We're engaged. I want to be the world's biggest grain producer-I, Brazil," added the minister, who is one of the country's largest soybean producer.

 

In the view of Jose Mario Schreiner, vice-president of the National Agriculture Confederation (CNA), the actions will have an immediate impact on production chains, since, under the current norms, the State tends to "transform the act of registering a product into a veritable steeplechase."