MercoPress. South Atlantic News Agency

Palermo Show reflects farmers' optimism.

The 2003 edition of the Palermo Agriculture Show in Buenos Aires closed its doors last Tuesday after giving ample and positive evidence of Argentine farmers' optimism about the future. Argentina's main agriculture show and where the best livestock of the rich pampas country is exhibited was visited by over a million people in twelve days and ended with several promising sales.

The best Aberdeen Angus bull, Argentina's main beef breed of its 55 million cattle herd, was sold at the equivalent of £ 21,500, while the average price for Angus reached £ 2,500. Last year, the highest sale was £ 6,190 and the average price £ 1,900. In Aberdeen heifers the best price reached £ 6,190 and the average £ 1,980.

In Polled Hereford, the second beef breed in Argentina, the top price went for 50% of the third best bull with the equivalent of £ 11,400, and an average price of £ 2,300. However the highest sale of the show was for a Brangus bull that reached £ 26,700. In 2002 the top sale was a Polled Herford bull at £ 17,200. The previous highest was in 1997 when another Brangus bull was sold for £ 20,000.

In the milk breeds, the best price for an Argentine Holstein went for a bull, £ 1,950. "Livestock sales, cattle, sheep, horses, pigs overall were bullish which is very positive and makes us organizers very satisfied, as well as the million people who visited the grounds", remarked Luciano Miguens president of the Argentine Rural Society that has been organizing the show for over a century.

But this year's Palermo show was encouraging not only in the livestock contests but in the display of stands for agriculture. Over a hundred different companies, equipment and raw material suppliers for extensive and intensive farming were present at Palermo after having been absent for several years.

Argentina's grains crop this 2002/03 season totalled 71 million tons with commodities sales expected to reach 10 billion US dollars, of which 7,5 billion soybeans. With a free floating exchange rate since 2002, agro-business overseas sales in 2003 are estimated in 15 billion US dollars, and with the potential to keep expanding. Argentina has also become the world's main exporter of soybean meal and oil. The 2001/02 season crop was 69,6 million tons.

In the opening speech of the Palermo Show Mr. Migues proposed reforms to the current fiscal system requesting an end to levies on exports of commodities; adjustment of balance sheets for inflation and a more flexible VAT deductible system.

Agriculture Minister Miguel Campos said the government will look into the tax related demands, but recalled that with the strong 2002 devaluation after the collapse of the Argentine economy, exporters were virtually the only taxable sector left in the country.

Anyhow Mr. Campos praised farmers for their thrust in helping Argentina's economy to recover and promised taxes will be reduced as revenue increases. "The government is determined to end with tax evasion and elusion. Once we have this under control, we will continue to help the camp and farmers to keep producing and expanding", stressed Mr. Campos.