-Caveat Lector-

> P A N U P S
> Pesticide Action Network Updates Service
> ===========================================
>
> Argentina: Industrialized Agriculture and GE
>
> February 12, 2001
>
> Herbicide tolerant genetically engineered (GE) soy has been widely
> adopted
> by farmers in Argentina as part of a shift towards a more
> input-intensive,
> industrialized system of agriculture. Although there may be some
> short-term
> advantages, farmers' earnings could drop if GE soy is rejected by
> importing
> countries. In addition, farmers in Argentina may find that economic
> and
> ecological impacts associated with GE crops and export-oriented
> agricultural
> create serious problems in the long term.
>
> Argentina accounts for 21% of the total global acreage of GE crops,
> second
> only to the United States. The country produces 10% of the world's
> soybeans
> and is the largest exporter of crushed soybean and oil (31% and 36%
> respectively). The crop and its derivatives account for one fifth of
> Argentina's export earnings. In 1999, 64% of its crushed soybeans
> were
> exported to the European Union.
>
> Approximately 800,000 hectares of Roundup Ready soy were grown in
> Argentina
> in 1996. By the 1999/2000 season, more than 80% of the total soybean
> acreage
> or 6.6 million hectares had been converted to Roundup Ready. The
> conversion
> to GE could adversely affect soy exports because more and more major
> European companies are making the move to non-GE ingredients.
>
> Loss of export markets is not the only danger facing Argentine
> farmers.
> Since 1991, increased industrialization of the agricultural sector,
> including adoption of GE soy, has had a number of negative impacts.
>
> * Increasing role of transnational companies in the agricultural
> sector:
> Industrialization of grain and soybean production has boosted
> dependence on
> foreign agricultural inputs. Removal of import tariffs led to the
> bankruptcy
> of domestic farm machinery manufacturers. The commercial seed sector
> has
> become increasingly controlled by subsidiaries of transnational
> corporations.
>
> * Declining profit margins: Prices for soybean declined 28% between
> 1993 and
> 1999, while prices for gasoline, a vital component of industrialized
> agriculture, have risen by 26%. Farmers' profit margins fell by half
> between
> 1992 and 1999, making it difficult for many to pay off bank loans for
> machinery, chemical inputs and seeds.
>
> * Concentration of holdings: Between 1992 and 1997, the number of
> producers
> in the soybean-growing region of Argentina dropped from 170,000 to
> 116,000--a 32% decrease--while the average size of a farm increased
> from 243
> to 357 hectares. In this same region, at least 50% of the acreage is
> managed
> by third parties.
>
> These dramatic changes in Argentina's agricultural system have their
> roots
> in the economic conditions and government policies of the 1980s. In
> the
> past, farmers alternated cultivation of grains with cattle pasture in
> the
> highly fertile region of Argentina where soybeans are now grown. In
> the
> early 1980s, grain and oilseed prices increased while the market for
> cattle
> declined. These market conditions, combined with government policies
> including the government's abolition of export levies on agricultural
> products, set the stage for agriculture in Argentina to become
> increasingly
> export orientated.
>
> Growing oilseed for export created more demand for imports of
> machinery,
> pesticides and fertilizers. In a short time, the lack of crop
> rotation
> resulted in declining soil fertility and a related increase in
> fertilizer
> use--from 0.3 million tons in 1990 to 2.5 million tons in 1999. To
> combat
> increased soil erosion, "no till" sowing methods were widely
> introduced,
> leading to an increase in herbicide use.
>
> The rapid adoption of Monsanto's Roundup Ready soybean (genetically
> engineered to be resistant to glyphosate) was the next step in the
> industrialization of Argentina's agriculture, resulting in even wider
> use of
> glyphosate (Monsanto's brand Roundup). Glyphosate is not protected by
> patent
> in Argentina. As demand has increased, prices plummeted, making it
> more
> attractive than any other herbicide for weed control. Between 1991
> and 1999,
> glyphosate use skyrocketed--increasing from 1,000 to 58,000 cubic
> meters
> annually. However, dependence on one herbicide, even glyphosate,
> increases
> the likelihood of herbicide-tolerant weeds. Glyphosate resistance has
> been
> reported for weeds such as ryegrass under similar conditions in
> Australia.
> While this problem has been acknowledged by the government, measures
> to
> detect and isolate such weeds have not yet been implemented.
>
> Argentina's present export-oriented commodity production system is
> likely to
> drive more small farmers out of business and adversely affect the
> environment. Diversification that would include growing a variety of
> crops
> for export and domestic uses would enhance food security and
> environmental
> sustainability. However, this would require a drastic change in
> Argentine
> agricultural policy, including subsidies for small farmers.
>
> Source: "Herbicide Tolerant Soybean: Just another step in a
> technology
> treadmill?" by Volker Lehmann and Walter Pengue, Biotechnology and
> Development Monitor. September 2000.
>
> Contact: Walter Pengue, Centro de Estudio Avanzados, Universidad de
> Buenos
> Aires J.E. Uriburu 950, 1 piso, 1114 Buenos Aires, Argentina; email
> [EMAIL PROTECTED]
>
> PANUPS is a weekly email news service providing resource guides and
> reporting on pesticide issues that don't always get coverage by the
> mainstream media. It's produced by Pesticide Action Network North
> America, a
> non-profit and non-governmental organization working to advance
> sustainable
> alternatives to pesticides worldwide.
>
> You can join our efforts! We gladly accept donations for our work and
> all
> contributions are tax deductible in the United States. Visit our
> extensive
> web site at http://www.panna.org to learn more about getting
> involved.
>
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> Pesticide Action Network North America (PANNA)
> 49 Powell St., Suite 500, San Francisco, CA 94102 USA
> Phone: (415) 981-1771
> Fax: (415) 981-1991
> Email: [EMAIL PROTECTED]
> Web: http://www.panna.org

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