On May 18, cattle farmers started a 9 day halt on cow sales to slaughterhouses to protest against the governmental decision to suspend beef exports for at least 30 days in order to moderate skyrocketing domestic meat prices.

To justify this decision, President Fernández said in an interview that “The meat issue got out of hand. The prices rise month by month without justification. We have to put it in order”. The price rises contributed to Argentine inflation, already among the highest in the world, reaching 17.6% in the 1^st quarter of 2021. The cost of living soared 46.3% in the last 12 months, and beef prices roses 65.3% over the same period.

For the Argentine Rural Society President, “The damage caused by the measure will decrease the supply of meat, making prices rise as has happened in the past.” The beef industry employs around 100,000 people and Argentina exported 819 billion tons of beef and cow leather worth $3.4 billion in 2020-primarily to China and Russia. Neighbouring countries Such as Uruguay, Brazil and Paraguay will take advantage of this situation and benefit from new market opportunities for their beef.

Back in 2006 when Néstor Kirchner had risen to 40 % export taxes on beef, the dollars from the commodity price boom perhaps gave Argentina the luxury of being able to sacrifice one of its main export markets but that luxury does not exist today …even with a new commodity boom placing grain prices at near-record levels. During that period, 12.5 million head of cattle and 19,000 jobs were lost that have not yet been recovered.

With respect to our operations (over 8,600 heads in Argentina), we have decided to defer our forecasted cattle sales (mostly male calves coming from Curupi Pora farm) while waiting to have more readability. We have dense pasture at the farm currently and sale them with a higher weight.

Land clearing: We have initiated a clearing operation on 500 ha in order to control the natural vegetation which is typical for the region of Salta (a formerly forest area with a subtropical highland climate). This operation will help us in the re-growth of pastures in those plots and will also facilitate the management of the cattle.

To this aim, we are only using specifically machinery and no phytosanitary products as their prices have significantly increased in the latest months. Furthermore, the results are longer to wait and in any cases, clearing machines must be used.

You can see the chopper blades in action. This machine was specifically designed to help control invasive brush, shrubs and weeds, while making cleaning or dismantling pastures much easier and faster than ever. His action is also helping to penetrate the soil enough to fracture the deeper, “dry pan” soil. This helps to prevent water run off and maintain high levels of water retention, while not hurting the existing grass or exposing the roots.

Once the dry pan soil is fractured, it enables water, air, and organic matter to penetrate deeper into the soil. This process allows grass or hay to establish deeper root beds, giving you a much more stable and hearty foliage. We hope to achieve our target of 500 ha before the rainy season will started in November, and increase our chances of pasture re-growth.

Cattle operation: We have currently around 3,000 heads at the farm. After the intense drought we faced since March 2020, the cattle need time to return to normal condition. In the meantime we continue to supplement with pellets and corn for the most sensitive categories.

Cattle service is underway and inseminations should be completed by mid-May (1,240 cows). Fertility tests should then be available by mid-end of June. For this service, we don t have big expectations given the drought experienced earlier. We will evaluate the opportunity to give the cows a 2^nd chance or to sale the weakest as beef to slaughterhouses in order to stabilize the herd and reduce death ratio as well as supplementation costs.

After the forest fire registered on 25/08/20, we have started to evacuate the slash on cutting, twigs and dead wood. It’s key to perform this operation after a fire otherwise you significantly increase the fire danger for the following year’s by leaving the dismantled crowns on the ground forming a thin layer of fine dry fuel.

Furthermore, trees weakened by fire may also be subject to bark beetle attacks causing additional mortality. These attacks can even be extended to neighboring trees that were not affected by the fire and cause further mortalities.

We estimate that over 50% of our tree plantations, compound of eucalyptus and pines trees, were affected in various stages. Trees planted after 2008 have been totally affected and the oldest one have only be partially affected.

Pine trees plantations, which account for 77% of the affected area, were the most resilient to flame as their thick bark does not catch fire or burn easily. It also protects the inside of the trunk, the living tissues that transport water and nutrients, from heat damage. Pine trees drop lower branches as they age, preventing fire from spreading to tree tops. Fire can destroy the cambium (tissue between wood and bark that actually grows to form wood in trees) on part of the trunk surface without necessarily killing the tree. The consequences for the tree are then proportional to the height of the charred trunk.

The good news is that our forest advisor has identified some signs of natural regrowth: Eucalyptus and pine trees have both a strong regeneration capacity. You can see some cuts of pine trees partially affected which have been sold to a wood products manufacturer.

River cleaning: Maintenance and adjustments work performed in the river El Dorado are now fully completed, and have been certified by local authorities. End of February, we registered some dense rains for the season (80 mm) raising significantly the level of the river as you can see.

The good news is that no water entered into our far; meaning that the river flow normally and that all the work performed in the river seems to pay off. We can now again focus our efforts on our cattle operation.

Cattle operation and pastures: We have avove 3,200 heads at the farm. Dryness has affected the whole region for the last 8 months and has affected the shape of our herd at various levels (well-being, production, diet, fertility, etc) as well as pastures available. The situation displaced standing water and some flooded area in the farm caused by illegal protection walls build by some farmers’ upper the river which changed water course.

We are in a recovery stage: Grassing areas have reduced given the lack of water and the flood situation we faced earlier did allow us to sow pasture on cleaned fields; only wild vegetation has grow as you can see. In any case, the farm needs permanent control of the natural vegetation which is typical for the region of Salta (a formerly forest area with a subtropical highland climate). The cattle need also to recover so that productivity can back on track. However, we do not believe we can achieve our annual beef production objective of 276 tons.

We will start again to clean and control trees so as to enhance our grassing area. Meanwhile, the most sensitive categories will for now continue to be supplemented with corn and pellets as pastures are not dense enough to address their needs especially in terms of protein.

This year, we have also 1,460 heads (cows & heifers) in service (ppregnancy ratio will be determined after performing the test in April), and animals feeds have an effect on reproduction at each stage of reproduction in females (puberty, cyclicity and oestrus, service or insemination, gestation, end of lactation, post-partum, lactation) and in males (puberty, libido, sperm and semen analysis). So there is an effect on the numerical productivity of the herd. There are two feeding periods particularly critical for the reproduction of the cow: before calving (steaming) and above all around fertilisation (flushing). Therefore, it is key for us currently to provide them appropriate food and supplementation because the unborn calves are our future.

Situation/weather: Even if we are in the peak of the summer, we are back to more decent conditions as we registered dense rainfalls which have immediately boosted pastures and and recharged the water reserves. Dryness faced earlier this cycle has heavily affected all farming activities in the entire the southern cone of South America (north-central and northern of Argentina, Uruguay, South of Brazil and Paraguay).

You can see our big natural lagoon with plenty of water where our cattle can again go refresh themselves. Our Australian tanks have also been fulfilled by rains. Here, you can see our latest one with a 400,000 liters capacity, powered by a solar pump which is delivering 30,000 liters of water in 8 hours.

Cattle operation: We have currently above 5,750 heads at the farm. They maintain well during the heat stress thanks to a close monitoring from the manager and his team.

Grassing areas are recovering, allowing lower food supply. The drought will however leave marks and we doubt that we can reach our annual beef production plan of 546 tons.

However, our herd is in good shape. You can see on the following pictures calves and cows – some of them are actually in service.

You will also see some very early weaning calves. Due to the drought situation, we performed it while the animals had only on average 60kg versus 100kg normally.

The good news is that all categories of cattle prices are at their historical highest. For example, you can see below the 10-years Argentina’s average live cattle price chart of steer (16 to 36 Months – in ARS denominated)

Sales abroad of Argentina’s famed red meat are at a record, fuelled by China, while domestic consumption is slumping. However, President Alberto Fernández is threatening farmers with a tax hike or quota for exports as he seeks relief for families grappling with inflation that’s forecast to reach 47% percent this year. Surging global prices for crops and a steady depreciation of the peso mean farmers are receiving good export prices, but Mr Fernández said he won’t tolerate the same dynamic locally. Several weeks ago, he banned for example shipments of corn, used as feed by livestock producers, but he backtracked later because of farmer backlash.

Finally, we have subleased this year 200 ha to a contractor to plant corn. Sowing took place in early January and the crop is developing well. We will be paid in kind (kg of corn) and this corn will then be used to supplement the cattle.

Situation/weather: Dryness continues to affect farming activities in the entire the southern cone of South America (north-central and northern of Argentina, Uruguay, South of Brazil and Paraguay).  Dry conditions and the lack of soil humidity are delaying the planting of corn and soybean as well as shorting pastures for cattle activities. So far, cumulative rainfall since July was 183 mm, -65% compared with the historical average for the same period. You can see the lo w level of the river Santa Lucia which borders the farm, and where the cattle use to go down, drink water, and come back to the plots.

Cattle operation: We have currently above 5,600 heads at the farm. Heat stress can strongly impact the animals at various levels (well-being, production, diet, fertility, etc.). To management this stress, we are adjusting food supply (silage, completed with corn and pellets).

Grassing area has reducing given the lack of water and OAT, sowed earlier this year, is hardly emerging. Thanks to a daily close control, the cattle is overall in good shape as you can see.

We have already performed a very early weaning of 700 calves (300 heads of 65kg each and 400 of 55kg) given the drought situation we are facing. Normally, the weaning is performed with animals between 100/100 kg. We are planning another weaning of around 600 heads during the 1^st week of December. We have also successfully inseminated 400 heifers.

This year, we have subleased to a contractor 200 ha where corn will be planted and we will be paid in kind as we need corn to feed our heard. You can see below the land preparation work currently performed, and subject to soil conditions, sowing should start in December.

River cleaning: Maintenance and adjustments work performed in the river El Dorado are now almost completed (90%). Our aim was to redirect over a 4 km distance the course of the river and to clean the channel (digging more deeply and making it wider) in order to allow the river flow and to avoid water entering in the farm.

We got also permission to build a kind of external protection wall along the river so that in the event of a flood, the farm will not be affected. You can see some pictures below of the soil movements performed. In the highest parts, the protection wall reaches 5 meters in height.

Cattle operation and pastures: We have around 2,400 heads at the farm. Like our farm in Corrientes, dryness which affects the whole region is impacting the animals at various levels (well-being, production, diet, fertility, etc) as well as pastures available. Some heifer calves, weakened by the situation, need already to be supplied with corn and pellets as pastures are not dense enough to address their needs especially in terms of protein).Grassing area has reducing given the lack of water and the flood situation we faced earlier did allow us to sow pasture on cleaned fields (only wild vegetation has grow).

Fire: In the evening of October 15, after a hot (37°C) and windy day, a fire has started in the natural forest reserve on the outside edge of the farm (along the river). Fortunately, the gauchos could detect it on time and stopped it before entering in the productive areas of the farm (ie cattle area). Only some external fences where affected, and we have repaired them by using some wood of the natural forest reserve.

Since the beginning of the year, Fires in Argentina have raged around 7,700 km² (it’s more than a quarter of the entire country of Belgium).

Set against a backdrop of swelling tension in exchange markets and fast growing poverty, the Argentine government needs to reach asap an agreement with the IMF to refinance its $44-billion credit line.

Argentina reached already in August a deal with foreign creditors to restructure $66 billion in debt after months of negotiations, and needs now to agree with the IMF on new terms on the repayment of a $44 billion loan agreed in 2018. On his side, the IMF sounds a warning over rising global debt levels and proposed reforms to the debt-restructuring process for countries that struggle to meet their obligations. In this frame, the IMF will carry out a mission on Argentina’s debt restructuring to reach an agreement over a new credit programme. Government officials say they simply want to refinance the $44 billion and that they are not seeking for additional funding.

The Central Bank’s monetary policy and currency controls will be a focal point in the government’s negotiations with the IMF for a new financing programme. To this aim, the Central Bank announced it will end a policy of “uniform devaluation” and allow greater volatility. During the 1^st week of October, Argentina announced also a slew of new measures such as cutting taxes on certain crop exports temporarily as the Central Bank was losing reserves at a faster pace in recent days, in part stemming from savers withdrawing dollar deposits. Individual demand for dollars intensified after the government tightened capital controls September 15, and the dollar reached 141 per peso on the black market. Those measures do not seem to cope for now with the larger issues Argentina is dogging.