MercoPress. South Atlantic News Agency

Sheep farming lost 300 million US dollars

Sheep farming that is gradually beginning to recover in Uruguay lost during the last decade approximately 300 million US dollars.

Eduardo Pietra, president of a strong sheep farmers association, Central Lanera Uruguaya, CLU, said that as "world economic conditions begin to adapt to new circumstances, the controversial and sometimes doomed sheep is back again to give farmers a positive future and hope". "When wool was a strong commodity, the Camp was buoyant, let's hope those times are back to stay", insisted Mr. Pietra. However Mr. Pietra indicated that the upturn surprises local farmers with Uruguay's lowest flock in 130 years, 11 million sheep, "15 million less than a decade ago, which means sheep farming lost 300 million US dollars".

But Mr. Pietra also pointed out an encouraging sign, "live lambs are selling at 1,40 US dollars a kilo in the farm, that represents more than 30% above current live prime cattle prices".

Uruguay's wool exports during the first eight months of 2002 reached 37,000 tons equivalent to 114 million US dollars, a considerable 20% drop from a year ago. The constant reduction of Uruguay's flock is blamed for the decrease. A decade ago Uruguay's wool clip was 100,000 tons.

China continues as Uruguay's main client purchasing 29 million US dollars, followed by Italy 21 million US dollars, Germany 13 million US dollars, Mexico 6 million and Brazil 5 million. A newcomer to Uruguayan wool is Turkey that so far has acquired 3,5 million US dollars.