The country’s economic problems notwithstanding, Argentina’s sheep and wool industry would appear to be faring better than most in the international marketplace.

The ongoing slump in Australia's and New Zealand's sheepskin production has seen average prices rise by between $1.5 and $2.00 in the international marketplace in recent months. Combined with the massive devaluation of the peso at the beginning of the year and steadily rising meat prices, this has led to rising demand and returns for the Argentine product. One area that stands to gain the most is the traditional sheep rearing region of Patagonia where, after a prolonged period of stagnation, farmers have begun investing in new stock and facilities.

Observers say that if other regions follow suit, the national flock could be increased by 2 million head to 15 million animals. If it does, as well as increasing export revenues, it will bring much-needed relief to the country’s sheepskin tanners who have been hard hit in recent years by spiralling debts, drastic climate changes and the country’s failing fortunes.