Lack Of Wheat?

[rrptownley]

I would love to see a political cartoon of a short-sighted Christina, having bit the hand of the Campo that feeds her her dollar revenue, be-crying the evil from yet another of the county's institutions that don't kowtow to her.

 

[Iznogud]

Let me get this straight: The "farmers" are using their own casas de cambio so they can buy dollars at >$7 in order to produce raw materials.
Give >30% worth of their stock to the governmet (taxes, etc) and the remains they may later sell to be exported and get $5 on the dollar from said government at an ulterior unspecified date, if all goes well.

All this while enduring crazy unrealistic eco/pol restrictions and pretty much gambling on weather conditions all year long

Sounds like a sound economic plan.

Remind me again, when we say farmers does it mean thousands of small producers or just a group that might not be larger than a hundred?

In this day and age, with satellite pics that will discover swimming pools in enclosed neighborhoods, I'm not so sure that "farmers" are letting their crops rot in sacs by the side of their fields. Most can't afford silo storage for too long and I guess that even silo infrastructure/capacity is not suited for middle/long term storage. Most of the fat rich farmers I know must sell their crops ASAP in order to keep producing.

We must be living in different realities.

Bruschettas, anyone? (Moreno's $10kg bread and verboten tomatoes)

 

[trennod]

Remind me again, when we say farmers does it mean thousands of small producers or just a group that might not be larger than a hundred?

It means just one, because remember we are talking about monopolies

 

[trennod]

There were voices regarding to blame CFK for bad policies that produced a low harvest of wheat. It was a lie.

Farmers has a long history of boycots against democracy in this country.

Its not a lie. A client of mine is one of the largest agri-business companies in the country. I am more involved in the soy side of things but my colleagues who work on the flour side assure me the harvest was poor. Part of it was due to a fungus in the crop. Part of it is due to poor government policies.

What ever happened to the apparent "missing" trigo? It hasnt turned up has it. I wonder why.

Ill give you an example (I am pretty sure I have already mentioned this before here) of one instance at this client I mention above. Its flour business was historically subsidised by the government in order to secure supply and prices for domestic consumption. Then, one day they decided to stop honouring the flour subsidies owed to the company (retrospectively applied), before "coming to an agreement with the company" (ie take it or leave it) to pay them the subsidies owed @ about a 40% hair cut, in Argentine peso denominated bonds. The company has since sold the bonds
at about 60% of their value. Its a pleasure doing business in this country.

 

[Jaredberryman]

I think the number 2 problem in this country besides dishonesty is that the government and other factors make is so incredibly hard to do business here. From the small contractor to the big business, it is pulling teeth. And yet there are millions of opportunities in this country. If someone would come along and make things more realistic, and create policies that support rather than hinder businesses while still combating tax evasion in a realistic manner, things here could change. A problem is that many here see businesses as evil, when in fact everyone NEEDS business to exist. You either work for a business or have one yourself. I guess you can work for the government, but even that is a business in its own way. Businesses are made of people, so if businesses are evil, what does that tell you about the people?

 

[trennod]

I do not personally have a business here (nor do I want to!). But in my 2 years here I cant believe some of the things I see my clients up against. The amount of time and effort they put in to trying to deal with this crazy governments bouncing policies is amazing. Its such a productivity drain. Red tape, high tax burdens, unflexible work place laws, changing laws/regulations, aggressive government & its departments which put pressure on the business, no imports, bribes etc etc.

I have a Chinese client in the Telco industry that in the first half of the year had a heap of stock in Aduana, that had been there for months. They couldnt get anything through (note they werent the only ones). Then, the Chinese PM comes down in the middle of the year and bam, you should have seen that how quickly it was released! They were able to win couple of decent contracts (with the competitive advantage) and then chartered planes to bring a heap more equipment in to meet the new contracts.

 

[Iznogud]

Crops demand a bunch of imported agro-chemicals to succeed. In order to procure those products, foreign currency is required. Should I explain further?

If we could put some of the manure on this thread to good use, most of the agro producers problems would be magically solved.

 

[Bajo_cero2]

I actually agree with our learned lawyer (a little bit) in this instance. The farmer's are playing politics with the price of bread, and making hay while the sun shines.

Somebody commented that the subsidies were cancel. That explains the black mailing with the price of wheat.

I cannot believe we are hearing about tomato shortages as well. I do think this is part tax evasion, part political protest and part making hay while the sun shines.

It happend before. take a look:
http://www.perfil.com/economia/-20071005-0031.html
There is no free market in this country as soon as the farmers have their own union and they work as a monopoly.
They don t compete on the market, they agree each other, for example, to rise the price of tomate about 10 pesos just like that (like on 2007) just to make more profits or just to boycott a government that doesn t allow them to make more profits without working.
And I explain the last assert, the farmers made many coups in this country. As soon as they get power they devaluate the peso, they make an expensive official dollar and then the costs fall down about 300 per cent. The situation is not different now adays, they are putting presure on the blue market to get an expensive dollar to force a devaluation and a rise of the official exchange rate.

Let me get this straight: The "farmers" are using their own casas de cambio so they can buy dollars at >$7 in order to produce raw materials.
That said, the government are giving them this opportunity by implementing inefficient policies and trying (just like the airlines and petrol industries) to manage via dogma rather than pragmatically. Which never ever works. Once your ideology becomes a hindrance to real life it has failed.

No, no, no, I m sorry if I didn t explained properly my idea. They own the casas de cambio and cuevas, they get the dollars from harvest (until today there were legal ways to get dollars), and they sell them slowly to pay the bills.
This is a side busisness of the farmers that this administration is destroying and this is one of the reason they hate her. However, the only way to get stability is doing like that as soon as they do the same like with wheat with the economy because under crisis there are better profits.

And I think that it is important for undestanding this country that it is a facist country, the whole idea about a market and offerents competing each other is an alien here.

Regards

 

[Bajo_cero2]

Crops demand a bunch of imported agro-chemicals to succeed. In order to procure those products, foreign currency is required. Should I explain further?

And those items are imported at the official dollar rate.
Farmers, however, normally don t use money to pay, it is a common practize to pay with grain.

 

[scotttswan]

There is no free market in this country as soon as the farmers have their own union and they work as a monopoly.
They don t compete on the market, they agree each other, for example, to rise the price of tomate about 10 pesos just like that (like on 2007) just to make more profits or just to boycott a government that doesn t allow them to make more profits without working.
And I explain the last assert, the farmers made many coups in this country. As soon as they get power they devaluate the peso, they make an expensive official dollar and then the costs fall down about 300 per cent. The situation is not different now adays, they are putting presure on the blue market to get an expensive dollar to force a devaluation and a rise of the official exchange rate.

Then open up the markets so they have to compete and can't control the price within the country. Where are all the Uruguayan tomatoes, Brazilian tomatoes etc etc... I thought mercosur was supposed to "promote free trade and the fluid movement of goods, people, and currency"

And I think that it is important for undestanding this country that it is a facist country, the whole idea about a market and offerents competing each other is an alien here.

So Facism is something you support? Why would facsim work here when it has never worked anywhere else in the world?