Argentinian Agriculture November 30, 2015 12:00 am The election of a new Government in Argentina may seem rather remote from UK farming. However, the ripples from the installation of a new centre-right President, Mauricio Macri, may be felt at farm level in the UK. Firstly, the new President has pledged to give a boost to the Mercosur trade talks. It had been the previous Peronist administration in Argentina that had been seen as the main stumbling block to a deal. Although any agreement is still some months, if not years, away, it would have profound effects on some farm sectors; notably beef, but also dairy, poultry and grains. Secondly, the previous regime had imposed export tariffs on grains in an attempt to raise revenue and keep domestic food prices low. These were 20% on maize and wheat, and over 35% on soya. In addition, the Argentinian Peso had been kept artificially high – also hitting exports. President Macri has stated that these policies will be reversed. This could lead to greater volumes of Argentinian grain on world markets. Analysts have suggested maize and soy production could rise 60% by 2025 and wheat by 50%. Whilst lower soya prices would be good for UK livestock farmers, the increased competition in grains could be a problem for arable producers.
