July 2, 2009
Argentina wheat and beef industries brace for the worst
Wheat and beef farmers in Argentina are about to experience their biggest loss they have seen in almost a century.
Just 20 years ago Argentina, was a major producer of wheat, corn and beef for export - and a major competitor for Australia on international markets.
Now Argentine beef exports have sunk to its lowest.
Wheat crop planting have also severely shrunk this year and exports, if any, will be tiny.
Partly because of a long-lasting drought, but also because of government policies which tried to keep local prices low through export controls - discouraging farmers.
Ironically, the country which was once the world's largest exporter of beef will have to import beef next year, perhaps several million tonnes.
Just to keep up with domestic demand.
And this scenario is ironically coincidental during Argentina's bi-centennial of independence.
