Argentina is world
famous for its cattle industry and has been for over
400 years, when Spanish cattle began multiplying rapidly
on the free ranges of the highly fertile Pampas around
Buenos Aires. From the legendary King Ranch of Texas,
to the infamous western outlaw duo of Butch Cassidy
& The Sundance Kid, cattle ranchers have always
found their way to Argentina over the centuries in search
of good lands, hospitable climates and affordable prices.
However, today it is not only the cattle industry that
beckons foreigners to Argentina, but the general agricultural
sector as well, demonstrating the continuing growth
of the country’s agricultural economy into a world
class player.
Argentina is about one third of the size of the continental
United States, stretching about 2,300 miles from north
to south and encompassing a dizzying array of climates
that range from dense tropical jungles in the north,
to sub arctic in the south. Between these extremes
are found large areas of exceptional agricultural
productivity, covering an incredible variety of crops,
which has put Argentina on the map as one of the largest
producers of food in the world today. The west of
the country, bounded by the Andes mountains, is home
to a thriving viticulture industry that produces fine
wines recognized the world over for their quality
and consistency year after year. Centered around Mendoza,
in the arid region at the foot of the towering Andes
Mountains, this industry traces its’ roots far
back into Argentine history, to early European settlers
who brought their wine making skills with them to
the new world. This area is also a major center for
growing a wide variety of fruits and citrus crops
and is also known for its’ vast olive orchards,
which support a substantial export market of olives
and olive oil.
Farther south rests Patagonia, the vast arid land
of the great Estancias, large sheep ranches that sometimes
cover over a million acres. This region actually begins
nestled up against the southern Andes in an area of
much higher rainfall, where alpine forests and sapphire
blue lakes give way to low mountains and snow melt
rivers full of trout and salmon. Moving east from
the mountains, the climate becomes drier, and the
terrain quickly transforms into vast rolling lands
well suited to sheep raising and limited livestock
operations. The climate here has cold winters and
little rain, and thus most commercial agriculture
takes place north of this land in the more temperate
climates. It was in the mountains of the far west
of Patagonia that Butch Cassidy & The Sundance
Kid established their cattle ranch, nestled in a deep
valley and thus protected from the harsh winters.
They actually pioneered the practice of sheltering
cattle ranches in these deep alpine valleys in Argentina,
a practice that is still successfully followed to
this day in the spectacular scenery of Patagonia.
On the central eastern
Atlantic coast of Argentina are found the phenomenally
fertile Pampas, which extend some 300 miles in all directions
from the capitol, Buenos Aires. Once known solely for
the millions of cattle and horses that roamed freely
across the vast grassy plains, the Pampas are now also
home to a wide variety of crops, including many cereals,
grains, vegetables and a rapidly expanding percentage
of soy beans. Argentina is now one of the largest producers
of soy beans in the world, and is increasing production
each year. In very large areas of Argentina, wide varieties
of crops will grow well, the magic blend of soils and
climates that is so elusive in many parts of the world
being the rule here rather than the exception. Many
areas of Argentina not previously used much for farming
are now coming into production, as modern farming methods
and new seed varieties make lands once used primarily
for cattle more profitable to farm. Many a cattle rancher
has sold his herd and converted to farming, while many
others have gladly sold their cattle lands to farmers
at a handsome profit and purchased a bigger spread in
areas still well suited to cattle than farming.
It is a rare time of
opportunity in Argentina now, and many changes are taking
place in the cattle and agricultural sectors, opening
up a myriad of possibilities for cattle ranchers, farmers
and land investors. The impact of technology and the
global market place has been powerful these last few
years here, and the dynamics of farming and ranching
in Argentina are undergoing a profound and fundamental
synthesis. As farming moves farther into traditional
cattle areas, the price of cattle land, which plummeted
with all other land prices in the Peso
devaluation of 2001, is rising steadily as the land
seeks a new value based upon its’ economic productivity
as farmland. As the cattle ranchers either convert their
lands to farms, or sell their lands to farmers and seek
other suitable ranch land with their profits, they in
turn are fueling a new land market in previously ignored
lands once thought of as marginal. These lands, quite
adequate for raising cattle, are seeing a steady rise
in value as well, presenting opportunities for investors
to buy large tracts of land at low prices and to resell
them a short time later at solid profits.