Hundreds of Farms to Fail Because of Money Meltdown10 March 2014
ARGENTINA – Hundreds of dairy farms could disappear because of an economic downturn that is causing huge currency inflation and limiting export sector confidence.
The bleak outlook is the main message of a recent World Food and Agriculture Organisation update after producer association efforts have failed to address an escalating problem of low farmgate prices and ever shrinking prospects for producers.
This is according to an industry spokesperson, who said: “The only certainty is the loss of prospects for producers.”
Furthermore, the spokesperson said lowering exports is a government move: “The situation is worse if we consider the decision of the national government to curb exports from the sector."
The industry is warning that farms will disappear in droves unless a price floor is inserted to sustain the sector.
The spokesperson said current prices of $3.60 per litre are not sustainable.
TheCattleSite News Desk