Optimism grows in Argentine agriculture

01 July 1997

Optimism grows in Argentine agriculture

Agricultural output in Argentina rose 3% in 1996. It is forecast to grow by the
same amount this year. The sector has brought renewed prosperity to some rural
communities.

Prospects for the beef industry have brightened. Argentine herds were declared
free of foot-and-mouth disease in May, with vaccination. Now the US Congress is
weighing an Administration decision to open American markets to a limited amount
of Argentine beef for the first time in more than 60 years.

Arable land prices have been rising strongly but they are still less than half
US levels and a fraction of those in Europe. Only Patagonia, the traditional home of sheep farming is missing out on the new optimism, with the area still suffering from
the continued slump in world wool prices.