💰 Argentine Agriculture will boost farm production up to 50%
Argentine Agriculture will boost farm production dramatically
Gustavo Grobocopatel, head of the South American agro-business Grobo group anticipated that with the measures announced by the team of president elect Mauricio Macri to be implemented from the 10 December, Argentine Agriculture is going to increase by 40% to 50%”, meaning more dollars for industry, jobs and services.
The head of the group or King-Soy as he is known in Argentina said that the ”drop in export levies is important and symbolic, but still is not the total panacea, we will have to wait and see how the removable of levies (35%) on soybeans will be implemented“
The agro-business Grobo Group is an Argentina multinational which trades agriculture commodities and grows mainly soybeans not only in Argentina, but also in Brazil, Paraguay, Colombia and until recently in Uruguay.
Grobocopatel added that in effect Argentine farmers are hoarding soybeans, not for speculation but as a cash reserves. Since we still have two to three months before the next crop it’s only natural farmers still have 20% to 30% of the last crop, to keep living, and selling as needed“.
”No matter the value of the dollar or levies, farmers will sell their soybeans they are holding on to, because otherwise they won’t have money to live“, underlined Grobocopatel.
He added that the sale of the remnants of the last soy crop ”won’t increase significantly the central bank international reserves, it will only help to reach the next crop or until there is a fresh influx of dollars from another source“.
The agro-business leader pointed out that with the Kirchner couples administrations, ”the farmers and the rest of the middle classes had a terrible time. Argentina had lost a spectacular chance which would have meant an extra 15 billion dollars per year, with more international reserves for the central bank and less import’ restrictions for industry had a rational management of the commodity booms windfall taken place. Instead incompetent management and corruption lost this opportunity.
”We should have been the great winners these last five, six years, but we choose instead to self inflict harm on society that was both unnecessary and in many cases criminal” concluded Grobocopatel.
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