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Due to the drought, they would enter US$1.5 billion less

Ajeet Nandwal by Ajeet Nandwal
August 29, 2022
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Argentina is going through the third consecutive year under the climatic phenomenon of La Niña. It means that for the last three agricultural campaigns, its territory has been affected by rains that are less than the historical average, with the negative effects that this entails in any agricultural activity.

Of course, these production losses have an economic impact, for the farmer and for the country. In the case of the producer, the effect is immediate: lower harvest volume, which leads to an obvious adjustment in its margins and profitability, in a context of increased input costs, inflation and exchange delays, although good international prices They can cushion this lower volume available, said the chief economist of the Agricultural Foundation for the Development of Argentina (FADA), David Miazzo.

For the weak Argentine economy, the drought is also bad news. “It is already known that wheat production is going to be much lower than last year’s, which is going to generate a direct impact on the income of dollars, mainly between January and February,” said Miazzo, who estimated that they are probably missing ” about $1.5 billion.”

The lack of rainfall promises to continue in the coming months and in the short term there is no prospect of a normalization of the volumes of rain. According to a report from the Institute of Climate and Water of the National Institute of Agricultural Technology (INTA), there is between 70% and 80% chance that the drought will extend during the spring months and even into early summer.

Against this background, the harmful effects and their consequences are counted as the days go by and the rains do not come. As detailed by the Head of the Strategic Guide for Agriculture (GEA) of the Rosario Stock Exchange (BCR), Cristian Russo, the first consequences of this decrease in water supply in this new agricultural campaign can be clearly seen in wheat , whose fall in the occupied area is from one million hectares to 5.9 million, according to Infobae.

“The productive potential of this campaign speaks of 17 million tons, while last year the production was 23 million,” he added. There are 1.8 million hectares planted with wheat in fair to poor conditions due to the fact that a large part of the Pampas region and the north of the country suffers from this condition.

Russo pointed out the north of Buenos Aires and the center-south of Santa Fe as areas especially affected by La Niña. In some places, such as Pergamino, there has been no rain of more than 5 millimeters for three months and in other places there was not even any rainfall.

“The region not only had a difficult winter, but there was a very marked lack of water during the fall, which is when the rains are expected to replenish the water reserves in the soil. That did not happen and missing up to 200 millimeters were recorded in the Pampas region. It is the effect that is being seen, added to a complex summer and the fact that it has been complicated for 20 months by the two Girls that happened, ”he concluded.

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Ajeet Nandwal

Ajeet Nandwal

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