MercoPress. South Atlantic News Agency

Argentine wheat crop forecasted to drop steeply

Drought and political uncertainty hinders farmers prospects

Wheat production in Argentina will suffer a steep decline because of the government' inefficient agriculture policies claimed the leader of one of the country's main farmers' organizations.

"We are facing a steep decline in production. And it's going to get far worse, we expect a smaller crop and we (Argentina) are loosing foreign markets", warned Mario Llambias president of the Argentine Rural Confederations, CRA. Llambias was one of the four leaders of the recent four months protest against the Argentine government's intention of hiking export taxes for grains and oilseeds. Althought the initiative from the administration of President Cristina Fernandez de Kirchner finally foundered in the Senate where the Kirchners believed they had a comfortable majority farmers are still mobilized claiming other measures for cattle breeders, dairy farmers and small and medium sized farms that are facing the advance of huge investment funds. Although Mr. Llambías did not provide numbers, according to the Argentine Ministry of Agriculture for the coming summer wheat harvest so far 4.5 million hectares have been sowed compared to the 5.8 million hectares of 2007/08. The ministry argues this is the result of a serious drought which is punishing the southeast of Buenos Aires province, Cordoba and the heart of Santa Fe, which are areas traditionally dedicated to wheat. Nevertheless Mr. Llambias pointed out that with or with no drought, Brazil which is Argentina's main wheat client, "is promoting and giving incentives to domestic production since Argentina is no longer a reliable supplier". During the four long month Argentine camp conflict when farmers ceased to provide grains for export, Brazilian president Lula da Silva on several occasions expressed concern to his Argentine counterpart Mrs. Kirchner about the non compliment of grain shipments and opened the market to other sources of supply. Argentine farmers are demanding the government urgently and permanently opens export registries for wheat, which continue to be limited. They are also complaining about soaring costs particularly fertilizers which have more than trebled in price over the last twelve months. The Kirchners administration argues that a mix of taxes on windfall earnings and temporary export bans help to keep food prices affordable to the Argentine average consumer. "Farmers and the people overall are concerned, this is common to the whole country, we've visited most provinces. Solutions are not coming, government positions don't admit changes", emphasised Llambias.