Thursday, July 30, 2009

Argentina feels chill as exports tumble

THE weather has been particularly foul in Argentina, with cold winds sweeping across the great plains of the Pampas, but that is as nothing compared with the mood of beef producers, who fear their formerly vast and vibrant industry will struggle to recover from its depressed state. In 2006, Argentina exported one million tonnes of beef to a range of destinations. This year exports will struggle to reach 100,000 tonnes. Malcolm Rodman, a rancher and industry expert, told The Scotsman: "Due to the fall in production, we will have only limited exports in 2010 and in 2011 there will be no chance of exporting beef. "We also have two million fewer calves on the ground than last year, which will result in a fall in volume equivalent to our normal exports. Farmers are used to climatic vagaries and while Argentina has been experiencing one of the worst droughts for many years, it is political interference that really upsets them. The per capita consumption of beef at an astonishing 70 kilos is the highest in the world and the government in Buenos Aires has been determined to keep domestic prices low by imposing export taxes to avoid the possibility of political unrest...Scotsman

Most of our producers will not be saddened by the lack of exports from Argentina.

The thing to note though is this: Produce a quality beef product that is popular with consumers and your product may become "politicized", a political pawn to be kicked around by elected officials. What kind of perverse incentive is that? And we thought our system was screwed up.

You NFU folks and similar types who keep lobbying for more programs, more subsidies, bigger and more powerful agencies, etc. take note: the government is not your friend.

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