Argentine Dairy Farms Tempted By Wheat and Soy

ARGENTINA - Farmers from Argentina’s dairy belt, one of the most productive in the world are considering converting into cereals and oil seeds given the low reference prices imposed by the Argentine government.
calendar icon 9 October 2007
clock icon 1 minute read
Dairy farms will have to wait until after the Elections for solutions

“Will we continue with the dairy industry or should we become wheat and soybean farmers? has become the motto of the Dairy Provincial Forum which was launched over the weekend in the province of Santa Fe from where over half Argentina’s milk production comes.

Provincial authorities have also requested Argentina’ Economy minister Miguel Peirano to raise the administrative price for powder whole milk exported thus helping to stimulate production and avoid dairy farmers from changing to other more profitable related activities.

“We need a full reconsideration of all the production line and redistribution since currently it’s more profitable to sell to the domestic market”, said Roberto Colombero president of Santa Fe dairy farmers association. But “with no exports, there’s no way to channel surpluses”, admits Colombero who insists that unless the whole industry is reviewed and made more transparent, “milk will be in shortage again”.

Currently the official Argentine government target price for ton of powder whole milk is 2.100 US dollars a ton while the international market stands at 5.000 US dollars. The Argentine government gobbles any surplus above the administrative price level.

Source: Merco Press

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