Economics In Argentina

Posted on November 19, 2015 in General by

After many protests, the restriction was lifted. The agricultural sector in Argentina has risen as never before in history, and after four months of strikes, roadblocks, no grain marketing, the government has sent to Congress last month Resolution 125 (which increased the taxes on certain agricultural products exported) for approval. Not only Congress did not approve, but also opened up, discussed and amended the draft, which was not in the original government plans. The aliquots for the export of agricultural products returned to pre-conflict, but other claims remain unresolved. The field calls for urgent measures for the dairy, livestock and regional economies, otherwise Argentina, a country with strong history and global presence in the livestock farming sector, will begin to import milk and meat within two years. Are being liquidated cows in the country, an aberration from every point of view. Unless one comes to cutting-edge genetic trick that allows bulls calving and milk production, we will have to import it from Australia or the U.S..

Do not lose hope in Argentina even the dead vote. The dairy industry have strongly parasitic inter-mediation costs in the country, a liter of milk the consumer pays twice what is paid to dairy farmers. The consultant Jose Quintana, Argentina Association of Regional Consortium for Agricultural Experimentation (AACREA), referring specifically to milk powder, told La Nation: “In 2006, Argentina was the second largest exporter of milk powder, but lost that place after the restrictions. When you look at the fundamentals of international values of milk, the output of Argentina as a major supplier of milk powder is one of the bullish factors. ” Today Argentina is sixth in exports of milk powder.

And the drums are still closing. The figure graphically would be something like: Brazil operates and seeks to provide food to the world as much as possible, and Argentina implodes, you find that international inflation will not be added to the already high domestic inflation, which of course was not achieved. What do you think is the output valid long-term? Flood own and others’ markets with greater choice, “or close? Is not this economic manual? Price controls operate in an economic emergency and in the short term, but end up stimulating the rise of prices in the medium, as well as scarcity. I can not say that there is a shortage in Argentina, but there are products that are no longer manufactured and days on which product lines are missing from the shops. In addition, rising costs of production must fit somewhere: price, quantity or quality. In Argentina we are in the worst of all worlds: it adjusts the price on the one hand, and the size, quantity and even in many cases the quality, but in reverse. Sizes shrink, the thicknesses are tuned, vessels enlarge, and anyone who has lived in the country over the past six years can overlook that the candy was largest in Argentina.