Agricultural sector collapses and its GDP falls by 20% due to the climate crisis

Agricultural sector collapses and its GDP falls by 20% due to the climate crisis

The agricultural sector continues to deal with the devastating consequences of the crisis that it went through during the second half of 2022 and the first months of this year, due to climatic phenomena such as extreme droughts and irregular rainfall.

These weather events have caused an unprecedented collapse in this subsector, evidenced by the 20% drop in its GDP during the month of April, reported the head of the Ministry of Economy and Finance (MEF), Alex Contreras.

According to the official, it is the highest since there is a record on agricultural GDP and is attributed to the reduction in the area planted to the main transitory crops in the country.

According to official data, between August and November of last year, there was a 20.3% decrease in the planted area compared to the same period of the previous agricultural campaign.

Among the most affected crops are wheat (-49.9%), quinoa (-34.4%), grain peas (-34.3%), beans (-27.8%), starchy corn (-23 .2%), potato (-18.6%) and others (see infographic).

  In crisis.  Agricultural sector stopped planting due to lack of rain in the period 2022-2023.  This is putting the population's food security in trouble.  Photo: The Republic

In crisis. Agricultural sector stopped planting due to lack of rain in the period 2022-2023. This is putting the population’s food security in trouble. Photo: The Republic

The Minister of Economy also explained that Cyclone Yaku and the El Niño phenomenon have affected about 42,000 hectares of crops, which is equivalent to about 2% of the national agricultural area. In addition, he pointed out that these weather events caused the loss of almost 39,000 hectares.

crisis would continue

The executive director of Cepes, Laureano del Castillo, indicates that it is expected that the fall of the GDP persist in the coming months due to the negative impact of climate change on the biological cycles of plants, caused by fluctuations in temperatures.

As an example, he cites that there are currently problems in the flowering of mangoes for export and pests in lemon plantations.

Although he refers that at this moment it is not yet possible to quantify the impact of the reduction in GDP, he warns, as the situation evolves, that possible supply problems or shortages of certain products may be identified.

  Disaster.  The intense rains caused by Cyclone Yaku and the El Niño Costero phenomenon affected agriculture and left isolated populations after the rivers overflowed.  Photo: diffusion

Disaster. The intense rains caused by Cyclone Yaku and the El Niño Costero phenomenon affected agriculture and left isolated populations after the rivers overflowed. Photo: diffusion

On the other hand, the expert emphasizes that lower agricultural production has a direct impact on other subsectors.

“Less production means less transportation and marketing, which can lead to product shortages and price increases,” he says.

Finally, it warns that this situation leads to changes in people’s diet, which puts their food security at risk. “This will mainly affect the poorest households,” she concludes.

Credicorp: Economy would only grow 1.3%

The chief economist of Credicorp Capital, Daniel Velandia, indicated that the expected growth of the national GDP, which was estimated at 1.8% in the first quarter, has now been cut further and remains at 1.3%.

Among the factors that have led to this new calculation is the suspension of the first fishing season in the north-central area due to weather factors.

Another reason for the cut in the estimate is the drop in agricultural GDP due to droughts and rains, as well as the problems with access to fertilizers that Peru faced during 2022 and that affected this year’s crops.

The word

Alex Contreras, Minister of Economy and Finance

It is the worst agricultural crisis since we have records and we are facing a double El Niño that is affecting fishing. In 2022, 2 million tons of anchovy were caught and now we do not even reach 100,000 tons.”

larepublica.pe
larepublica.pe
larepublica.pe

Source: Larepublica

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