The production of soybeans Argentinaone of the world’s largest exporters of the oilseed, totaled 21 million tons in the 2022-2023 campaign, with a year-on-year collapse of 51.5% and registered its lowest volume in 20 years as a result of a drought historical.
The data comes from a study by the Buenos Aires Grain Exchange, released this Tuesday, according to which production was 22.3 million tons less than in the previous season, when it reached 43.3 million tons.
“The drought, added to the high temperatures recorded over the center of the agricultural region during a large part of the crop cycle, have resulted in losses of harvestable area (…) and have generated a significant decrease in yields”the statement said.
The Stock Exchange specified that it is the worst harvest since its records began in the year 2000. According to the report, almost all the producing regions of the country were affected, with a fall in the yields of Four. Five%the worst levels in 10 years, with just 15.4 quintals on average per hectare.
The government of Alberto Fernández estimated that the global loss due to the drought in Argentina will be around 20,000 million dollars this year, almost 3% of the Gross Domestic Product.
Argentina, the world’s third largest producer of soybeans behind Brazil and the United States in the 2021-2022 season, is the world’s leading supplier of soybean meal and oil. It is also the third world exporter of corn.
The Argentine Chamber of the Oil Industry and the Cereal Exporters Center reported that exporting companies liquidated 1,581 million dollars during June, which represented a year-on-year drop of 59% and 62% less than in May.
In the first semester, the cereal-oleaginous sector lost 42% of its export value compared to the same period last year.
Rosario, the largest agro-export port in the country, 300 km north of Buenos Aires, recorded a sharp drop in the volume of grains unloaded in the first half, with 12.6 million tons, 60% lower in the interannual comparison and the lowest since 2001, according to the Rosario Stock Exchange.
The three-year drought caused millions in losses to the coffers of Argentina, which faces annual inflation above 110% and it is in need of foreign currency to meet its commitments, particularly with the International Monetary Fund (IMF) for a credit agreement of 44,000 million dollars.
Source: AFP
Source: Gestion
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