Argentina: Drought costs top $14 billion for soybean, corn, and wheat growers

Published 2023년 3월 13일

Tridge summary

A severe drought in Argentina has led to a significant decrease in the forecasted harvests of soybeans, wheat, and corn, resulting in a loss of net income for the producing sector of US$14,140 million and an estimated impact on the country's GDP of 3 points. The drought, exacerbated by deficit rainfall, heat waves, and frosts, has caused widespread damage to crops, animals, and natural resources. The losses extend beyond the agricultural sector, with estimated total losses for national economic activity reaching US$19,000 million. The drought is also expected to reduce foreign exchange income from wheat, soybean, and corn complexes by US$13.950 million compared to the previous campaign and decrease tax revenue by a total of US$6,056 million.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The drought caused the forecast for soybean, wheat and corn harvests to fall by 50 million tons. Even with the higher prices, the loss of net income from the producing sector already amounts to US$14,140 million, and the impact on the economy reaches 3 points of GDP according to a report from the Rosario Stock Exchange. Deficit rainfall for the third consecutive year in the summer, persistent heat waves until well into the month of March, and agronomic frosts as late as October 2022 and as early as February 2023 generated the impact. The blow to the "open-air factory" of the countryside has been dramatic: crops, animals, natural resources, have seen their conditions deteriorate week by week, leaving them on the eve of winter with a gale of losses. With the focus on soybean, wheat and corn crops (jointly responsible for 87% of grain production in Argentina and 43% of the country's total exports, as an average of the last 3 years), the losses for the sector producer exceeds US$ ...

Source: Nuestro Agro