Uruguay

by W. H. Koebel

To face p. 280.

In the meanwhile Argentina has stepped into the gap that North America had of necessity left vacant, and the establishment of its frigorifico will now enable Uruguay to take a hand in this business of shipping. The River Plate countries are undoubtedly in a position to cope with the situation for an indefinite period of years, although its effects are already evident to a certain extent upon the local markets of Argentina. In the latter country I have been present at the stockyards in November when the herds of cattle that had arrived from the Campo were being sold. The faces of those estancieros who were present were beaming, for prices were ruling quite exceptionally high. The reason lay in the demand for the London Christmas beef that had sent its stimulus all this distance—an emphatic proof of the closeness of touch that now obtains between the River Plate and the British Isles.

Were the position to begin and end at this point it would be simple enough. Some developments, however, have occurred of late that render the outlook for the future far more complicated. There seems very little doubt that the time will come when England will no longer enjoy the practical monopoly of imported beef. The desire for the admission of this commodity in several of the great European countries is becoming more and more accentuated, and it is highly probable that the agitation that is now being carried on in favour of this new departure will eventually result in the breaking down of the barriers that at present oppose the trade. It is, of course, impossible to estimate the full extent of the consequences of a move of the kind, but that it must cause a rise in the price of beef in the English markets is inevitable.

In the face of these possibilities the prospects of the River Plate countries are, of course, more favourable than ever before. With the markets of Europe open to their cattle and meat, the added stimulus to the industries of these countries cannot fail to be enormous. But here again an element has come into being that, although it will have no effect upon the industry, taken as a whole, must necessarily threaten many of the interests involved. The Beef Trust of the United States has been keenly alive to the great pastoral developments in South America. Accurately foreseeing that the importance of the present day is merely a prelude to what is to come, the great corporation has now descended wholesale upon the shores of the River Plate, has already bought up a number of frigorificos, and it will be through no want of endeavour of its own if it does not sooner or later acquire the remainder.

I have no desire to tilt against the Beef Trust, which is very probably an excellent institution, but one that, since it openly lays no claim to a purely philanthropical policy, cannot be expected to safeguard the welfare of concerns that do not tend towards its own advancement. Should this corporation, therefore, attain its present object of securing the frigorificos, and the consequent monopoly of the purchase of cattle for export, the actual producers of the live stock will find themselves face to face with a situation of which they have previously had no experience. It is quite possible that it will suit the corporation to buy the cattle at prices similar to those which now obtain—or it may not, since it is well known that the estanciero continued to exist in a more or less affluent fashion when his cattle sold at lower rates than is the case at the present day.

In any case the matter seems to be taken fairly lightly in the South American countries most concerned. The prevalent idea is that, should the danger be realised, it is easy to legislate against trusts—a theory that may, or may not, be correct. Putting aside for the moment, however, these possible complications, it will be clear that the position of the River Plate countries as regards the shipment of their beef is quite exceptionally favourable. So much so, indeed, that it is not without the bounds of possibility that the spread of agriculture may at some future period receive a check in favour of the purely pastoral industry. For the wheat and maize-producing lands are considerably in excess of those that raise cattle in sufficient quantities for serious export. Fresh areas suitable for wheat-growing, moreover, are continually being lit upon, whereas the discovery of new grazing lands is obviously more limited. It is true that our own colony of Rhodesia promises to take an important share in the cattle-breeding industry—a promise the fulfilment of which may be anticipated with confidence. With this exception, the countries of the River Plate will undoubtedly hold the balance of power in all matters appertaining to that very, very important article beef.

In addition to that of the carcasses themselves, another very important product of Uruguay is the extract of meat produced by the Liebig (Lemco) Company. Fray Bentos was the original home of this industry, with which the place has been associated since 1865. Of late years the Lemco interests have spread far beyond their original frontiers, for of the total of nearly five million acres at present owned by the concern many hundred thousands of acres exist in Argentina, Paraguay, and even in Rhodesia. As a matter of fact, the working power of the recently constructed factory at Colón in Entre Rios, upon the Argentine bank of the river, exceeds that of Fray Bentos. Nevertheless, the importance of this latter place will be evident enough when it is explained that in 1910 over one hundred and seventy-nine thousand head of cattle were slaughtered there in order to provide the necessary extract of meat.

The Lemco town of Fray Bentos is by way of being a model specimen of its kind. The establishments of the managers here, and the dwellings of the workmen are each admirable of their kind, and very replete with the comforts and luxuries that appertain to the various walks of life. The streets, moreover, are broad and well-engineered, and the schools and various institutions denote a liberal spirit on the part of the directors of the concern.

To turn from the meat industry to that of agriculture, we come, naturally enough, to a far less imposing condition of affairs, but one, nevertheless, that is increasing in importance each year. The chief cereal of Uruguay is wheat. At the present moment nearly three hundred thousand hectares have been devoted to the raising of this crop. Although the discovery of fresh lands suitable to the production of wheat has caused this particular area to increase, the main centres in cultivation up to the present have been rather strictly localised. The provinces that contain the really important wheat districts are those of San José, Colonia, and Canelones. The lines of railway, however, that have recently been constructed to the east and west of the Republic are opening up much land that is undoubtedly admirably suited for the production of this cereal. Wheat, it may be explained, is a crop the nature of which renders it more immune than the majority from the attacks of the voracious locust. By the time the all-devouring insect is wont to make its appearance, the ears of the wheat are as a rule hardened to a sufficient extent to render them unpalatable. Wheat therefore, frequently escapes, wholly or in part, where the maize crop suffers severely from the ravages of the locusts.

The production of maize is only very slightly less than that of wheat. The yield of this commodity in 1909 amounted roughly to one hundred and seventy thousand tons, while that of wheat fell just below two hundred and thirty-four thousand tons. Generally speaking, it may be said that the districts where wheat is grown are suitable for the cultivation of maize, and thus in Uruguay the two are wont to flourish to a large extent side by side. It is worthy of note, however, that whereas the wheat area has remained more or less stationary, although its development is now practically certain, that of maize has increased to a marked extent—from one hundred and forty-five thousand hectares, in fact, in 1900 to over two hundred thousand hectares in 1909.