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Drought sucks life from Argentina's farms Drought sucks life from Argentina's farms
(about 11 hours later)
A lone cow crosses the dry bed of the once-mighty Salado river By Candace Piette BBC News, Buenos AiresA lone cow crosses the dry bed of the once-mighty Salado river By Candace Piette BBC News, Buenos Aires
A deflated bag of bones, the carcass of a bull, lies dried out on the banks of a river, baked by the sun. Normally green, the prime pastureland around lies silent and dry.A deflated bag of bones, the carcass of a bull, lies dried out on the banks of a river, baked by the sun. Normally green, the prime pastureland around lies silent and dry.
This is San Miguel del Monte, a little over 100km (62 miles) south of Buenos Aires, in the Argentine pampas, the vast grasslands that roll out like an inner sea across thousands of kilometres. This is San Miguel del Monte, a little over 100km (60 miles) south of Buenos Aires, in the Argentine pampas, the vast grasslands that roll out like an inner sea across thousands of kilometres.
The Salado river, which supplies the local ranches, is now a small stream. Large carp leap desperately in the shallows, trying to find deeper water.The Salado river, which supplies the local ranches, is now a small stream. Large carp leap desperately in the shallows, trying to find deeper water.
A long-running drought, the worst in 50 years, has exacted a heavy toll and even a brief break in the weather in some areas was unlikely to alleviate the situation.A long-running drought, the worst in 50 years, has exacted a heavy toll and even a brief break in the weather in some areas was unlikely to alleviate the situation.
Cattle ranching has a long history in Argentina and about half the country is used for agriculture.Cattle ranching has a long history in Argentina and about half the country is used for agriculture.
After the rains dried up in March last year, 800,000 head of cattle have diedAfter the rains dried up in March last year, 800,000 head of cattle have died
The country's wealth was built on beef, and Argentines are avid meat-eaters, consuming an astounding average of 70kg (154lb) of beef per person per year.The country's wealth was built on beef, and Argentines are avid meat-eaters, consuming an astounding average of 70kg (154lb) of beef per person per year.
Cesar Gioia has been ranching in the Salado basin for 25 years. He rides a white stallion and is at ease in the saddle as he monitors his herd of 500 cows and bullocks.Cesar Gioia has been ranching in the Salado basin for 25 years. He rides a white stallion and is at ease in the saddle as he monitors his herd of 500 cows and bullocks.
"Look, these cows are emaciated. They should be capable of four or five births, but I will need to sell them because there is no pasture. They won't be able to reproduce because they are too thin," he says."Look, these cows are emaciated. They should be capable of four or five births, but I will need to sell them because there is no pasture. They won't be able to reproduce because they are too thin," he says.
"If I have to pay for food for them I won't make any profit. They will have to go for corned beef because they are in such bad condition," he adds."If I have to pay for food for them I won't make any profit. They will have to go for corned beef because they are in such bad condition," he adds.
Mr Goia's frustration is clear - he is being forced to slaughter the cows that should have generated next year's herds.Mr Goia's frustration is clear - he is being forced to slaughter the cows that should have generated next year's herds.
This pattern has been repeated all over the country for two years running.This pattern has been repeated all over the country for two years running.
In the first 10 months of last year, 280,000 more cows than the year before were sent to slaughter.In the first 10 months of last year, 280,000 more cows than the year before were sent to slaughter.
Unviable industryUnviable industry
Even before the drought, Argentine beef was in crisis.Even before the drought, Argentine beef was in crisis.
Our government has an uncontrolled resentment against everything that is farmers and agriculture in general Jonny Cahers D'AnversArgentine rancherOur government has an uncontrolled resentment against everything that is farmers and agriculture in general Jonny Cahers D'AnversArgentine rancher
The left-wing government of President Cristina Fernandez de Kirchner has put a limit on how much beef can be sold abroad, where it fetches higher prices.The left-wing government of President Cristina Fernandez de Kirchner has put a limit on how much beef can be sold abroad, where it fetches higher prices.
The intention was to keep domestic prices low for the Argentine public. But the policy damaged foreign trade.The intention was to keep domestic prices low for the Argentine public. But the policy damaged foreign trade.
From being the third-largest beef exporter in the world five years ago, Argentina has now dropped to seventh.From being the third-largest beef exporter in the world five years ago, Argentina has now dropped to seventh.
Ranchers say their industry is becoming increasingly unviable under the rules.Ranchers say their industry is becoming increasingly unviable under the rules.
Last year, the government had to back down after a series of strikes and demonstrations by producers over the export cap for beef and also high export taxes for other agricultural products.Last year, the government had to back down after a series of strikes and demonstrations by producers over the export cap for beef and also high export taxes for other agricultural products.
Jonny Cahers D'Anvers comes from seven generations of ranchers. He sold all his cattle because he was making so little money.Jonny Cahers D'Anvers comes from seven generations of ranchers. He sold all his cattle because he was making so little money.
"Our government has an uncontrolled resentment against everything that is farmers and agriculture in general," he says."Our government has an uncontrolled resentment against everything that is farmers and agriculture in general," he says.
"They are now artificially using us to provide cheap food for the Argentines. The problem with this is that it is very short term.""They are now artificially using us to provide cheap food for the Argentines. The problem with this is that it is very short term."
For her part, President Fernandez has repeated many times that she is not prepared to offer a complete moratorium on taxes for agriculture.For her part, President Fernandez has repeated many times that she is not prepared to offer a complete moratorium on taxes for agriculture.
In reference to the prosperous farming community in a recent radio interview, she said she expected the wealthiest in the land to do their bit to help redistribute income and support Argentina at a time of economic crisis.In reference to the prosperous farming community in a recent radio interview, she said she expected the wealthiest in the land to do their bit to help redistribute income and support Argentina at a time of economic crisis.
Deep recessionDeep recession
Other factors too have led to the decline in the cattle business.Other factors too have led to the decline in the cattle business.
Many ranchers turned to cereal production, particularly soya, which the government encouraged after Argentina's 2001 economic crisis, as a way to bring in more export revenues.Many ranchers turned to cereal production, particularly soya, which the government encouraged after Argentina's 2001 economic crisis, as a way to bring in more export revenues.
Economist Jose Luis Espert says the drought is a severe blow for the already suffering agriculture sector.Economist Jose Luis Espert says the drought is a severe blow for the already suffering agriculture sector.
"Because of the drought, GDP for agriculture will decline 5% this year, and in exports Argentina will lose $15bn (£10.5bn).""Because of the drought, GDP for agriculture will decline 5% this year, and in exports Argentina will lose $15bn (£10.5bn)."
Rancher Cesar Gioia says Argentina could become a meat importer by 2010 Argentina's once-fertile pampas are withering
All the industries dependent on agriculture in Argentina are forecast to suffer job losses amid factors including declining production, demand and revenues.All the industries dependent on agriculture in Argentina are forecast to suffer job losses amid factors including declining production, demand and revenues.
The global economic slowdown has already hit hard, with exports of Argentine soya down 40% this year due to falling demand.The global economic slowdown has already hit hard, with exports of Argentine soya down 40% this year due to falling demand.
By contrast, wheat has been so badly hit by the drought that Argentina's biggest client, Brazil, is planning to buy from other countries because Argentina cannot supply enough.By contrast, wheat has been so badly hit by the drought that Argentina's biggest client, Brazil, is planning to buy from other countries because Argentina cannot supply enough.
For cattle ranching, the future looks particularly bleak, says rancher Cesar Gioia.For cattle ranching, the future looks particularly bleak, says rancher Cesar Gioia.
"I think cattle ranching could recuperate in five years, if all these adverse effects are reversed. But if not...we won't be able to recover and, unfortunately, I think Argentina will have to import meat in 2010.""I think cattle ranching could recuperate in five years, if all these adverse effects are reversed. But if not...we won't be able to recover and, unfortunately, I think Argentina will have to import meat in 2010."
For Argentine proud of their beef, this is almost too shocking to contemplate.For Argentine proud of their beef, this is almost too shocking to contemplate.
More than anything, it is a huge indicator of the extent to which the combined blows of internal crisis, falling exports, and drought seem to be conspiring to bring on yet another deep recession.More than anything, it is a huge indicator of the extent to which the combined blows of internal crisis, falling exports, and drought seem to be conspiring to bring on yet another deep recession.