January 22, 2015
Los Grobos, one of Argentina’s leading soybean farming companies, and a leader in Argentina’s expansion in soybean cultivation over the past two decades, has cut its soybean acreage from 120,000 hectares to 50,000 hectares in just three years because of double digit inflation, strict trade restrictions, and a 35% tax on soybean exports. Lost Grobos company president, Gustavo Grobocopatel states that farming in Argentina has become unprofitable, and so has become a smaller part of the business, in favor of biotechnology and services, which Grobocopatel sees as the future. The country will be conducting presidential elections this coming October, and it is unclear whether agricultural policy reforms will be implemented. However, Grobocopatel states that even simple trade policy and tax reforms could see the country increase annual grain production from 100 million tons to 160 million tons within four years, and the farmers that stay in the industry will need advice in logistics, risk management, and help with the transfer and adoption of new technologies.
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