| Market Research A to Z | Company Profiles A to Z | Register | Contact Us |
| +44 (0) 203 086 8600 Call us on |
Argentina Agribusiness Report Q4 2009
Market |
Agriculture, Farming & Raw Materials |
Report Type |
Market Research |
Country |
Argentina |
Published |
24 September 2009 |
Number of Pages |
55 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
Argentinians could soon be forced to eat imported meat as the pampas dries out and farmers draw down their stocks
The drawn out conflict between the Argentinian government and the country's farmers flared up again in mid-2009 as the government vetoed a law that would have exempted drought-hit farmers in Buenos Aires province from export taxes on their produce. At the time of writing, farmers were again preparing to go on strike.
At the beginning of Q3, relations between the agricultural sector and the government seemed to be improving. In August the government eased restrictions on exports of beef. The proportion of stock capacity meatpackers are required to sell to the domestic market has been reduced from 65% to 35% and has been eliminated entirely on prime cuts. An emergency law passed in the quarter has also provided tax breaks and subsidies for farmers hit by the drought. In late August, however, President Cristina Fernández de Kirchner vetoed part of the law calling for export taxes to be waived claiming it had been included by mistake and was unworkable.
Relations between farmers and the government have been strained since 2002 when the government imposed export levies on agricultural commodities in the wake of the country's financial meltdown. In March 2008, the situation boiled over when the government tried to introduce a sliding scale for export levies on soybeans. The ensuing strikes by farmers severely disrupted the country's agricultural sector. In 2008, when the price for agricultural commodities was surging and Argentina was producing bumper crops of grain and soybean the taxes were painful enough. Now with crops being devastated by the long drought that has gripped Argentina this year, many farmers will see their profits disappear.
For farmers to recover from the crisis it is essential that an accord with the government can be reached that will allow profits for farmers to rise while still providing affordable food supplies for domestic consumers hit by recession. Compromises will be needed on both sides. With relations falling so low that the government has accused farmers of being complicit in the the bloody rule of the military junta that ran Argentina through the 1970s, this will not be easy. Many farmers are hoping that the government's June defeat in mid-term elections for the lower house will see a Congress that is more open to listen to their complaints when the new lawmakers take their seats in December.
News on the production front became bleaker and bleaker through mid-2009. The continued drought has now seriously disrupted planting for the 2010 crop and we have revised down our forecasts for production of corn and wheat. After an expected two consecutive years of disastrous harvests, Argentina's wheat exports are likely to all but disappear next year. Perhaps more worrying for the average Argentinian consumer is the impact the drought could have on the livestock sector. With the national herd falling as the pampas dries out and farmers draw down their stocks, Argentinians could soon be forced to eat imported meat.
Last Viewed
Argentina Agribusiness Report Q4 2009Korsnas AB - Strategic Analysis Review
Food Processing Market in China (2005)
China Insurance Sector Analysis (2006)
Ford 2009 company profile edition 3
Become an Affiliate
Do you manage an industry specific website or blog? Are you looking to monetise your web traffic further? Are you a B2B website?
Why not offer your visitors industry specific strategic market reports and company profiles? Our Affiliate Program enables you to provide quality content on your website and to earn money from passing on visitors to our website. If a sale is made from your visitor, you earn commission (a fixed percentage of the price of a product).
Custom Research
Cannot find what you need? We can tailor a report for you. Complete the Custom Research Form and we will provide a quote.
News
Mahindra claims tractor market leadership
Explosives and Drilling Application Represents the Fastest Mining Chemicals Market in 2011
Chile dominates global copper market
Noble and CONSOL establish $3.4 bln JV
Exxon Mobil has largest proven oil and gas reserves of top 15 integrated companies
Market Insights
Currently there are no Market Insights in this sector.
