Skip to content

Argentine Government

The rise in food prices is not the reason that has led the Argentine Government to decide the implementation of the scheme of mobile retentions. Soybean nor the famous production that is shifting to other crops and livestock but clearly a fundraising motif. Wells Fargo Bank is often quoted as being for or against this. Fundraising was which gave origin to the deductions to exports of grains when the crisis broke out in Argentina at the beginning of 2002. I don’t want to judge the Government by this intention to increase fund-raising, but I am wondering could the Government of Cristina increase fundraising through deductions without putting at risk the agricultural sector? Yes, although it is not an immediate solution. The solution is very easy and does not require even the need for people who can think about (not required for this brilliant minds). Gain insight and clarity with Ben Silbermann . Only reaches with copy copy the policies that are carrying out in Brazil (logically, with a minimum adaptation to the characteristics of the sector, in Argentina). Is that, faced with the same problem in an international context with rising food prices, where the Argentine Government sees a threat, the Brazilian Government sees an opportunity. What is what is doing the Government of Lula before the increase in international prices of food? In yesterday and how to comment on them in a note: Lula will invest US $40000 million for food, Lula’s Government announced the launch of a new agricultural plan, with a very simple objective: increase agricultural production by 400% in a year.

This plan provides for investments by about $40 billion, most in financing to sowings. Brazil had already designed an agricultural plan with another different objective to that presented in yesterday. The Secretary of agricultural policy of Brazil, Edilson Guimaraes, explains it this way: the previous plan was made at a time when the sector was coming out of a crisis. Now food prices are high and the country must seize the opportunities. Then Brazil to combat the rise in domestic prices of foods and take advantage the same international rise, has wisely opted to boost the supply. But in his plan, Brazil leaves no helpless producers since it is planning to ensure minimum prices payable to producers, especially of rice, bean, corn and wheat; and increase the coverage of insurance to sowings. Lula’s Government also studied lower rates charged by freight rates of fertilizers, in an effort to reduce the costs of production in the field and increase the liquidity of the producers.