Argentina’s new President Mauricio Macri (Wikipidia page) has implemented major structural changes to the economy and farming polices to try and reposition Argentina back at the top of the most competitive nations for grains and foodstuffs.
The farmers have suffered years of neglect, and at times, downright hostility by the previous regime so this is good news for Argentine farmers and the country. The most immediate moves include the removal of nearly all export taxes (apart from soya which he only deduced) (more info) and the floating of the currency (the Argentine Peso). This had an immediate effect of a 46% increase for the farmers in their local currency. He is also aiming to make the country more transparent and efficient, and improving infrastructure. While the later are intangible gains at this point it will bring in long term competitiveness.
Not all these gains will flow through to the purchasing and procurement agents overseas. After years of high inflation and bad policies, the farmers will not be able to reduce their prices by this extent, however, one thing is certain, that Argentina’s produce is now much more competitive under the new government and is set to remain so. Something we can all cheer about.
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