MercoPress. South Atlantic News Agency

“Excellent year for Magallanes farmers”.

Magallanes region exported five million kilos of wool during 2003, almost three million and a half clean and just over 1,5 million greasy wool, according to the latest report from the Chilean Agriculture and Livestock Service.

Juan Jose Romero, the Agriculture Ministry representative in Magallanes said this represents a 32,4% increase over 2002 wool exports when the total volume reached 3,8 million kilos.

Italy purchased 67% of clean wool exports, followed by the United Kingdom 10%; Iran 5%; Japan and India 3% each and Spain and China 2% each.

Uruguay was the main client for greasy oil, 38%, followed by Argentina 37%, Germany 15% and China 10%. Other buyers included New Zealand, Britain, Russia and India.

Mr. Romero believes demand for wool will remain strong this year which could turn out to be another "excellent year for Magallanes farmers".

Mario Vega president of Magallanes Farmers Association described the international wool market as "positive", as well as international demand for lamb and mutton, but cautioned about wool prices "which are lower compared to other seasons".

Mr. Vega warned about over optimism since increasing sheep production in Magallanes "is not an easy task"

"The only way is increasing productivity because we have the same number of acres, and this means bettering pastures, which is not cheap and Magallanes soil is easily susceptible to erosion", warned Mr. Vega.

Regarding the increase in lamb sales in 2003, Mr. Vega said climatic conditions in 2003 helped to better feed lambs that remained longer in the fields.

"But here also growth is conditioned, with 1,2 million ewes and 80% lambing, a good season means 900,000 lambs, and our pastures and grazing land is fragile. We have to be very careful in their management if we expose them to more lambs and heavier animals ?as demanded by markets--", indicated Mr. Vega.