MercoPress. South Atlantic News Agency

Sheep are coming back in Patagonia

Following the devaluation of the Argentine currency and the strong world market for wool and lamb, Patagonia sheep farmers are again enthusiastic and timidly beginning to invest.

Those most optimistic are even thinking that with the consolidation of the current process, Argentina's flock could in a few years increase from 13 to 15 million head.

"Before we were working at a complete loss, but now with the bullish market and the weaker peso, we can begin to make basic investments again", said Enrique Ibáñez, Río Gallegos Rural Society president.

"In spite of growing costs and export taxes, devaluation has made Argentine sheep farmers competitive again, and overseas sales of wool and lamb are very promising", indicated Mr. Pablo Borelli Deputy Co-ordinator of the Sheep Farming Promotion Office that manages an annual budget of seven million US dollars to help finance the acquisition of ewes and technical assistance. "Farmers' moods have changed, they are optimistic again, but the financial burden still has to be taken into account", said Mr. Borelli.

In Santa Cruz province, virtually 45% of sheep farms were abandoned forced by a regressive decade that included falling world prices, blizzards, the Hudson volcano and the gradual desertification of the top soil. Price of land however has remained quiet stable because of overseas purchases and tourist farms.

Patagonian wool, 25/26 microns is now selling for 2 US dollars a kilo, compared to 1,35 US dollars a year ago, and Argentina has been unable to complete its 23,000 lamb quota to the European Union.

"Farmers in Santa Cruz and Chubut want to rebuild flocks, but the fact it that there are not enough ewes around", said Federico Pichi, president of Comodoro Rivadavia's Rural Society.

"Twenty years of government neglect can't be recovered immediately, and the first symptoms will be more palpable when farmers begin to benefit from the current clip and lamb exports", warned Carlos Milicevic from Estancias de Patagonia, a company that dominates 30% of the Santa Cruz province flock.