MercoPress. South Atlantic News Agency

More Magallanes lamb for the EU

Chilean Patagonia farmers hailed the European Union decision to increase the Magallanes Region ovine meat quota from 3,000 to 5,600 tons in a four years period.

During the last few years the two Punta Arenas main abattoirs have shown ample capacity to increase production and had demanded an extension of the current European Community quota.

"Simunovic and Sacor together can manage the new quota, and this is the best news we've had for some time", said Raúl Oliva, Sacor's CEO.

Mr. Oliva added that together with the new plant in Porvenir which has been certified to export to Israel, "we are talking of probably 6,000 to 6,500 tons a year that is a great boost for the local sheep farming industry".

Farmers expect that with the new quota volume, live lamb prices will remain at 1,60 US dollars a kilo.

"In Magallanes we've developed a good ovine product, high quality, organic, but we needed a strong market and I think finally we've managed it with the European Union", stated Mr. Oliva.

Local farmers estimate that steady prices of over a dollar fifty cents a kilo for live lambs will encourage organic fertilization of pastures and with rotation production could jump from one lamb per hectare to two and even three.

Magallanes Region also exports lamb and mutton to Mexico, Brazil and Argentina.