High inflation and a currency devaluation has led some Argentine soybean farmers to keep their crops out of the market, leading to a standoff with the government.
Argentina is the world’s third largest producer of soybeans, so farmers not selling their soybeans means the government is losing tax revenue. To counter the situation, officials announced cuts in financial aid to producers who were holding back stock.
But a booming industry was taking hold behind the standoff. The vast Argentine plains are peppered with plastic storage bags — a cost-effective and versatile option for farmers speculating that the price of soy will eventually go back up.
Ipesa is a major supplier of the bags and also one of the largest companies in Argentina. It exports to more than 50 countries and is a world leader in the market.
Storage bags have helped farmers save money on transportation, and were increasingly being used to hold onto valuable stock. But with the dropping international price of soybeans, producers must decide whether to sell their crop or continue to hold out.
CCTV America’s Joel Richards reports from Pergamino, Buenos Aires.