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Ten years to recover Argentina’s cattle herd, if current policies are changed

Wednesday, September 8th 2010 - 00:38 UTC
Full article 20 comments
Cattle farmers have to compete with soy, endure droughts and suffer erred policies Cattle farmers have to compete with soy, endure droughts and suffer erred policies

Recovering Argentina’s herd to 2007 levels will require at least ten years even if current policies, which have caused its downfall, are drastically changed, according to a report from the Catholic University of Argentina released last month.

Professor Federio Santangelo said that the problem is not only the adverse climate conditions but also the “interventionist” policies, which have jointly helped to “a drastic fall in the national herd estimated in the loss of 8.6 million head of cattle”.

To make things worse, of that number “five million are cows and heifers which will have an impact for the future of the national rodeo”.

The report also wars that if current policies are not reviewed, “in the mid-term beef production in Argentina will only be enough for 50 kilos per capita and exports down to 300.000 tons annually”

The research financed by the Liniers Cattle market and the Association of Farm Products Consigners established different possible scenarios, until 2020, for Argentina’s livestock through dynamic simulation models in which considerations such as weaning percentages, calves retention rates and carcass weight are involved.

Historically Argentina has had a cattle herd above 55 million.

Three graduate students were involved in the research.

“Argentina can satisfy the demand for food both from the domestic and overseas markets but currently is submerged in a crisis because of the prolonged drought of the last five years and the expansion of agriculture: 13 million hectares have turned into farmland”, said Virigina Passanitti.

Alain Bissaur compared the livestock sectors of Brazil, Uruguay and Paraguay.
“Brazil is the world’s main beef export because of a strong support policy from the government which has enabled the country to supply the domestic market and multiply its exports”, with several Brazilian corporations dominating the world meats’ market.

In Uruguay “a policy of minimum government intervention led to a boom in public and private investments which allowed the country to have access to the most demanding markets of the world, such as the United States and Canada, but they have also managed to increase the national herd by another three million head in the last the years”.

Regarding landlocked Paraguay, the number of cattle jumped by a million which enabled the country to boost its exports during the last decade without limiting domestic market consumption.

Fernando Gil, Professor of the Agriculture School from the Catholic University anticipates that unless there’s a dramatic review of current government policies, Argentines will have to get used to a per capita consumption of 50 kilos of beef, while annual exports could drop below 300.000 tons.

Categories: Economy, Argentina.

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  • avargas2001

    I think Argentina should put a higher tax on export or scrap it all together since we are loosing the bulk of our heards to export, if the bulk is getting smaller it must mean we are exporting more then we produse.

    Sep 08th, 2010 - 03:45 pm 0
  • Sergio Vega

    Yeap !! All must be arranged with more tax...!!
    Tax is the best tool for the usefull lefty guys .... not more effieciense, more productivity, more technology....Just more TAXES...!!!

    Too easy, really..

    R.I.P. Argentina with that kind of brains...

    Sep 08th, 2010 - 04:21 pm 0
  • harrier61

    No, gassy, it's because you are EATING your herds. Because there is no profit to be made in export. Because your president(s) and government are corrupt. Because you are stupid.

    Sep 08th, 2010 - 04:55 pm 0
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