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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 Aires | A 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 (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 died | After 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 industry | Unviable 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 rancher | Our 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 recession | Deep 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)." |
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. |
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