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06-2022

“Prevention and technology mark differences with Brazil”

“In general, agriculture has climate and price risks, and producers are trained to live with and manage these risks. In Argentina, in addition, there are withholding policies that are involved from moment to moment. and vary at discretion as to the means of collection.

A morning paper in Buenos Aires this weekend was given a definition of the situation by businessman Gustavo Grobocoptel, warning about the difficulties the region is facing for production and development in the country.

And in that line, he compares Argentina to Brazil, a country which, he affirms, “increased its productivity by 60 percent, while ours remained stable.”

The founder of Los Grobo pointed out that Argentina’s agricultural output has increased by barely 10 percent over the past 10 years. And that this growth is “significantly lower than in Brazil at the same time”, because “the technology has been incorporated, while in Argentina the incorporation has been lower due to the pause”. And he commented: “Prevention is a means in front of technology.”

While giving an opinion on the discouragement of investment in agriculture due to policies implemented at the national level. The businessman pointed to withholding, but also a ban on export or import, making the market appear or disappear. “When exports are cut, uncertainty arises, the customer looks for other options and the manufacturer is left with an unsold product. And now appears the issue of restrictions on imports, which affects the purchase of inputs, is another risk factor,” he explained.

And in this context he said agricultural production in the neighboring country increased by “60 or 70 percent”. And he elaborated that “productivity is measured in kilos, hectares. And this calculation puts Argentina below Brazil, which was always 10 percent below us.”

The explanation that Grobokopetl developed about this phenomenon is due to the fact that the stop is “anti-technology”. i.e., “the relationship between the input and the product deteriorates, so the manufacturer applies less because the kilo doesn’t have that much value.”

In the businessman’s conclusion, the Brazilian policy applied to agriculture is “more pragmatic”, because “ideological discussions and doubts about capitalism and development cannot stop the economy. And here all those doubts lead us backwards”. And he stressed that today Argentina produces about 32 million hectares, and although it cannot expand beyond 40, it can grow in productivity.

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