American
farmers are scared. They
can only shrug their shoulders
unable to even talk about
it. What could provoke this
kind of anxiety? Competing
with Canadian pork? You’re
kidding: they’ll soon
be crushing us with tons
of countervailing duties.
WTO trade negotiations?
I doubt it, most aren’t
even aware of what’s
going on.
Then what? Or should I say,
who?
The Brazilians, yes sir,
the Brazilians: they’re
the reason for all those
sleepless nights. The Chicago
Tribune, a prestigious newspaper
with a distribution that
not only covers Chicago
but all of the Midwest as
well, has just published
a series of articles by
Andrew Martin on Brazil’s
agriculture. And this reporter
is writing very unsettling
stuff.
This is just one quote among
so many others: “Smithfield,
an American company, has
just built, in collaboration
with a Brazilian partner,
on 2,500 acres of land in
Diamantino, the largest
pig farm in the world, capable
of housing 150,000 pigs
at one time. And not a neighbour
in sight. They plan to build
another similar farm right
next door, at the same cost
of $30 million. With cheap
and plentiful soy and inexpensive
labour – $5 per day
is considered good money
in these parts – they’re
ready to take over the world
market.
What else did this reporter
have to say? Oh yeah. Brazilians
are hugely ambitious when
it comes to their pork industry.
In fact, they wish to duplicate
this scenario with poultry.
Remember, about 20 years
ago, half the world market
belonged to the Americans.
Starting from next to nothing,
the Brazilians have now
conquered 31% of that market,
and it’s still growing.
I’m pretty sure it’s
the same thing for soy,
a very popular ingredient
in animal feed rations.
In fact, the U.S. controlled
80% of the world’s
soy market in the 1960s.
Today, its market share
has shrunk by more than
half. Brazil and Argentina
have taken advantage of
this debacle and now supply
over 50% of the world market.
That, my friend, is why
Americans are fretting!
Confronted with this existential
predicament, American politicians
try to be supportive. We
hear them say, ad nauseam,
that American agriculture
remains strong. They’re
better looking, they’re
the nicest, the richest,
and the best. So, why are
they worried about Brazil?
Yeah, why are they?
Furthermore, they like to
add with a hint of malice,
that South America is filled
with incongruities: its
government is unstable and
its bureaucracy is totally
corrupt. There are bandits
roving the great plains
of Matto Grosso, just like
in the Old West, stealing
and pillaging impoverished
peasants. Notwithstanding
the ongoing scandal with
the Amazon forest as it
is being plundered and crushed
by bulldozers, as we speak.
But, they vigorously insist,
the biggest obstacle facing
Brazil’s agriculture
is transportation. Remember
that: waiting lines that
are miles long, thousands
of underused trucks –
from the newest and shiniest
decorated with a slew of
female forms to the oldest
and most rickety wire-held
vehicles – travelling
incredible distances to
reach the slaughterhouses,
on dirt roads that haven’t
been maintained and are
dangerous to boot. In short,
Brazil’s agriculture
is not a threat!
And that, my friends, is
how it is with American
agriculture: it is led by
politicians who would rather
appease than provide explanations
for the truth. As for the
WTO? Just some harmless
negotiations that will enable
national markets to gain
greater access to Brazilian
products. But that’s
fine because Americans are
better looking, they’re
the nicest, the richest,
and the best!
Sweet dreams, my dear American
farmers, all’s well…