Sunday, February 22, 2009

Severe droughts feed economic crisis in Argentina

By Angrette

Argentine farmers and cattle ranchers have begun four days of demonstrations and stoppages ahead of the crucial meeting with the government this Tuesday. As Argentina begins to feel the full force of the global turn down and the drop on demand for its agricultural products, farmers and cattle ranchers are calling for taxes on soy and grain exportation to be postponed for six months. They also want to export more milk, meat and wheat. In addition to the drop on demand, vast swathes of Argentina's agricultural land have been affected by a severe drought this year. Argentina is the third largest soy producer in the world, exporting mainly to China. Brazil has said that it will buy it's wheat from other countries this year because Argentina is unable to provide sufficient quantities. Some estimate the impact of the drought on agricultural productivity is worth 15 billion dollars. Though the Argentine government has declared a state of emergency and put extra measures to help with the drought producers said is too little, too late. They tried to get a meeting with the government for months without any reaction or response. As the global recession begins to bite in Argentina, it seems that political conflicts between the government and agriculture will continue to get in the way of creating emergency policies to help with this essential part of Argentine economy.

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