Saturday, November 12, 2011
Government policies matter - the case of livestock
Argentina is a laboratory of what will happen if you do not get the right policies for Agriculture. Over the last five years we have seen, export bans and regulatory restrictions on livestock production. The results are simple. Argentina has moved from 4th to 7th with respect to beef exports. Per capita beef consumption within the country has moved from 72 kilos in 2009 to 53.2 kilos in 2011. Argentina no longer has the highest per capita beef consumption. 8,000 cattle ranchers have moved to soybean production.
The cost of beef has skyrocketed. Some of this rise and adjustment is associated with drought, but the methods of allowing for markets to work are also critical.