Lack Of Wheat?

[Bajo_cero2]

Right! In theory only with my respect. The price of wheat is double here than abroad. Free market doesn t work out here.

And i clarify, they export at "half the price" because there is a real market abroad and they cannot do the same than local.

 

[dennisr]

Right! In theory only with my respect. The price of wheat is double here than abroad. Free market doesn t work out here.

And i clarify, they export at "half the price" because there is a real market abroad and they cannot do the same than local.

What kind of market does work In Argentina? Seems like no one knows what they want or what they are doing. Make it up as you go along?

http://www.iprofesional.com/notas/165657-Efecto-Moreno-crnica-de-cmo-el-pas-se-baj-de-los-ranking-del-mundo-como-proveedor-de-alimentos

http://translate.google.com/translate?u=http%3A//www.iprofesional.com/notas/165657-Efecto-Moreno-crnica-de-cmo-el-pas-se-baj-de-los-ranking-del-mundo-como-proveedor-de-alimentos&hl=en&langpair=auto|en&tbb=1&ie=UTF-8

 

[internationalguy]

For whatever it is worth, I have an Argentina friend whom I respect very much. His work for many years has been importing and exporting. Before I saw this conversation I had talked to him about exports, etc., and he told me that the wheat shortage is directly due to government policy. Without going into detail here (I don't want to get into trouble with you guys) any time the government sets prices or limits a producer, he will stop producing. It is a fact of life! Economics is one of my avocations and I always watch with interest when there is some kind of price control. There is ALWAYS a resulting shortage and then incredible rising prices on those products. It is such a fact of economics it is amazing that people don't get it. Some cheer the government for limiting the "greedy merchants" when the real problem is government-caused inflation which raises prices. The problem is inadequate education in economics. It is rampant in the U.S. I don't know about South America but I am watching and trying to learn the markets and the mindset here.

The fact that people desperately seek dollars as a "safe" investment only shows you how little they know about economics, at least these days. And I totally agree on price control. And most people back home don't know the first thing either. Especially the one living at 1600 Pennsylvania Ave.

 

[scotttswan]

What kind of market does work In Argentina? Seems like no one knows what they want or what they are doing. Make it up as you go along?

http://www.iprofesio...or-de-alimentos

http://translate.goo...&tbb=1&ie=UTF-8

But don't you see, its the farmers fault for trying to make money and not helping out the fellow comrades at a loss.



Some of those numbers are shocking, i wonder what part Argentina has taken in the global rise of food prices!

 

[Jaredberryman]

The free market doesn't work here because it is so freaking hard to run a business and very very difficult to get credit to start up a business. So there are just a few businesses and they have a monopoly. They can charge whatever they want. If this silly government would just make things much easier, I can guarantee we would see more wheat producers, and as a result, lower prices. But of course the odds of that happening are rather low, so it means the problem will just get a band-aid put on it.

 

[dennisr]

Well , a monopoly- monopsony worked in Canada for over 75 yrs: Canadian Wheat Board. Seems it is more of a management problem than a monopoly problem. Farmers all over the world are something of a monopoly. Take one of them on and you take them all on. Really dumb to bite the hand that feeds you.

 

[Somewhereinba]

The fact that people desperately seek dollars as a "safe" investment only shows you how little they know about economics, at least these days.

I wouldn't go that far, those that invested in dollars would have done pretty well in recent years considering the other investment options generally available to them (property if they can afford it?). Saving pesos under your bed is not going to give you a good return. This doesn't mean the US dollar is a shining light of strength, far from it - I think it's more a reflection of the Argentinian economy.

 

[Bajo_cero2]

If you analisys the price of food, it was cheap until the farmers rebeled against the government. They tool they have to make a coup is to rise prices and they did. That´s how you explain how wheat cost double here than abroad. This is how you explain that they have no issues to sell the weat 50% cheaper when they export it.

Farmers want a drastic devaluation (that the official dollar goes to 10 pesos) like it happend in 1975:
http://es.wikipedia.org/wiki/Rodrigazo
Because then they make a lot more money reducing local costs.

They article posted about the lost of foreign markets is not accurate in my opinion. First, the production of meat and wheat decreased because the soy is more profitable. Second, they have to supply first the local market, it is obvious.

But this is only a politicial fight, very dirty, as usual in this country.

 

[trennod]

The govt it just trying to plug holes in the leaky boat. Its not working. This "model" has never worked anywhere. The boat will sink.

 

[Bajo_cero2]

The govt it just trying to plug holes in the leaky boat. Its not working. This "model" has never worked anywhere. The boat will sink.

It is probably true, any model sinks in this country, even neo-liberals "models", but this one (the K model) last more than any other until now.

The problem is in my opinion, the following: this country was growing non stop until Peron was coup by a minor group: farmers, the church and some nazis. Keynes predicted that this country was going to be the 5th economy of the world by the 60´s. But the farmers coup one government after the other and they broke the country with their policies, the same they claim nowadays . When Peron was coup, the central bank wasn t full of dollars, it was full of gold. By the time Peron was President again in 1973, the country was in bankrupsy with a debt of 4 billion us dollars.

Regards