South American countries plan to take the lead in food production over the next few years and policies they have in place are beginning to bear fruit. Thanks to its largely untouched land and favourable climate, the region has an agricultural growth potential like no other, the pure potential of which Brazil and Argentina have placed high on their agendas.
Brazil has seen an explosion of farm exports in the last decade, fuelled by market-friendly policies and advances in agronomy that transferred tropical lands into production areas. Brazil now hopes to surpass the USA as the world’s largest food producer. Agriculture is a $150 billion a year business in Brazil that takes up 40% of the country’s exports. With 175 million cattle, it was the largest beef exporter last year. In the first nine months of 2004, sales of Brazilian beef abroad rose 77% over the same period last year and the government predicts $2.5 billion in export earnings this year.
Argentina aims to boost exports of its beef products to 1.3 million metric tons by 2014, according to Miguel Campos, Agriculture Secretary. “Over the next 10 year we’re going to double beef production in our country, moving from 2.65 million tons in 2003 to almost 4 million tons.” If these production levels can be sustained beef exports could reach 1.3 million tons by 2014. In 2003, Argentina’s beef exports totalled 379,366 tons and $694 million. The USDA (US Department of Agriculture) expects it to export over 600,000 tons of beef in 2005 and 540,000 tons this year.
The trend is far broader and can also be seen in parts of Bolivia, Paraguay and Uruguay, with a deep impact on the region’s economy and environment.
