MercoPress. South Atlantic News Agency

South America News.

Dollar favors Chilean farmers

Sheep farmers in Magallanes are enjoying the effects of the consistent increase of the dollar in Chilean pesos, that last week reached a record 650 pesos. Wool, mutton and hides which are mostly exported and quote in foreign currency, have meant a significant boost in farmers incomes. Representatives from Punta Arenas main meat packing plants, Simunovic and Sacor said that since "our activity is entirely linked to exports and our prices are in US dollars, we also tend to make our purchases in dollars, which obviously benefits all farmers". However, Nicolás Simunovic warned that if the dollar in Chilean pesos remains particularly strong, "livestock prices will increase for the coming season". Alberto Jara, General Manager of Sacor indicated that the "company has long term commitments and if this basically unstable regional situation persists, we will be facing real problems". Mr. Jara said that the US dollar should stabilize in 620/625 Chilean pesos to the dollar in the coming months, but "we might have additional surprises since it's not only Argentina, but the world economy that is having trouble". "So far our problems are nominal, and positive, but if they persist for a year, they could become real problems", underlined Mr. Jara. Meantime another industry that is encouraged by the crawling exchange rate and strong US dollar is tourism. "We're gradually becoming a bargain for overseas visitors and we expect a strong influx this coming season", remarked Punta Arenas operator Mr. Juan Juvosik.

Controversy over Argentine livestock

The joint decision to authorize Argentine livestock to cross Chilean territory from Tierra del Fuego to Santa Cruz province in Patagonia, has met strong resistance from Magallanes farmers and industry who fear the potential for foot and mouth disease. A few weeks ago Argentine and Chilean sanitary authorities agreed to close the border to all Argentine livestock following reports of FAM outbreaks in Tierra del Fuego. However an intensive random testing campaign including almost 1,800 blood samples in Tierra del Fuego proved negative. The decision came as a relief to Tierra del Fuego farmers who ha