ARGENTINA.
HELP FOR CORN NOT FOR SOY.
President Christina Fernandez de Kirchner, made a televised speech on Monday night after her meeting with farm leaders, to announce the new aid package for farmers in Argentina.
The president announced the halving of the export tax on fruits and vegetables, cutting the tax on corn but no reduction on the tax on soy, despite the market price falling 50% in the last 3 months.
The president announced, the construction of five feed-lots each capable of holding 40,000 head of cattle for the production of beef from dairy cattle bull calves, which has proved successful in the last year, killing the cattle at 12 months at around 280 to 300 kilos for the domestic market..
The export duty on wheat is reduced to 23%, while the duty on maize is down to 20%, however soy remains at 35%.Farm leaders are far from satisfied at the announcement and have made their discontent loud and clear.
Eduardo Buzzi, one on the main farm leaders, said " The measure on calves is ridiculous and we need help on the beef sector". The beef industry however believes the feed lots for the dairy industry are an enormous step in helping to obtain more good beef from feed lot cattle, to service the domestic market, this will leave more grass fed cattle available for export.
It would appear from the new report, that soy farmers are in fact being penalized and experts are calling this payback, for the farmers dispute earlier in the year. All soy is for export and unlike beef and wheat, has nothing to do with inflation in Argentina, therefore politically of no consequence.
The basic wage has been increased to 1200 pesos per month US$400, everyone earning the minimum is getting a $200 bonus for Xmas. However this entails waiting for maybe 5-6 hours at the National bank.
Editorials in the most respected newspapers, concede, that with the new car finance plan and tax breaks as well as the Xmas bonus, the government of Argentina is reaching out to the poor of the nation. Whereas in the United Stated, the government bailed out the bankers who were responsible for the mess in the first place.
