Tax incidence on the cost of production and marketing of milk in Minas Gerais

The agro-industrial chain of milk represents an activity of well-known economic and social participation in Brazil, mainly for Minas Gerais. However, factors such as the cost structure of inputs and capital goods and the tax burden on her, that along the production chain generates a cumulative effect, result in implications that go from the producer to the consumer. The objective of this study was to identify and highlight the tax burden in the formation of production costs for the segment producer of milk and its marketing to different strata of the daily production. To this end, we adopted the construction of an analytical model aimed at quantifying the effect the tax burden. The combined impact of the ICMS, PIS / COFINS and charges levied on the production cost of 3.19%, 4.17%, 4.88%, 5.50% and 5.35%, considering, respectively, the strata costs for the following range of production: less than 50 liters of milk, 51 to 200 liters, 201 to 500 liters, 501 to 1000 liters to 1000 liters and above. At the time of marketing aggregates was also 2.3% more by way of pension contributions that the individual farmer collects on the gross revenue generated by raising the final cost. Production costs, as well as their components and the taxes imposed on them, are important factors that reflect the competitiveness of the entire production chain, and taxation as an aggravating factor in the relationship between the different segments of agribusiness chains.