Argentina-George Soros comments on the furure of soy farming.

ARGENTINA.

SOY MAY NOT BE VIABLE.

Argentine "Soy King" Gustavo Grobocopatel, the largest arable farmer in Argentina after George Soros, said over the weekend in Buenos Aires "If soy export taxes remain at 35% and commodities don’t recover the prices of the early part of 2008,next year many people will be going bankrupt because with current costs oilseed production is not viable".

He went on to say "as the income costs equation is currently structured, all farm production in Argentina becomes non viable".

Grobocopatel said that farmers are in a strait-jacket of sliding export taxes, but there is no real system established and warned that current levels make it impossible to farm at a profit.He added that "the farm production machine should be used when we have an international crisis like the economic one we have known until we have a demand for commodities again".

He said that we are in a privileged position in Argentina while the global meltdown is taking place.George Soros, was interviewed by CNN, over the weekend and boasted quite correctly, that he had predicted this economic downturn, he also said that the policies of Reagan and Thatcher from the eighties, were now history and have to be re-drawn.

In Paris lat week, Soros said of the new cooperation between the nations of Europe "the steps taken by the European governments in the last 72 hours are very positive, they realized that have a very serious problem and are now trying top deal with it".Both Soros and Grobocopatel, are very big players in the Brazilian farming sector as well as in Argentina.