The climatic disaster that is taking place in the current 2022/23 agricultural campaign will cause a decrease in foreign currency income that will affect both productive communities and the Argentine economy in general. So far, only considering the climatic adversities in wheat and barley crops, economic losses are estimated at around 3.3 billion dollars.
This is indicated by a report prepared by technicians from the R&D unit of CREA (a non-profit civil association made up and directed by agricultural entrepreneurs), who warned, based on the SEA survey – made up of a sample of 1,380 agricultural entrepreneurs from different regions–, that the problem will also occur in summer crops, which register delays in their implementation in many areas.
The survey recorded a 30% reduction in the corn area in the early sowing date in this campaign compared to the planned one, while the soybean planting, although it would grow in area, registers delays in several regions.
“In any case, a large part of the supply of coarse grains forecast for March and April 2023 will not be available due to planting delays in many regions affected by drought,” said Ariel Angeli, leader of the R&D unit at CREATES.
“This reduction in the availability of grains, in addition to being a problem for agricultural companies, will also represent a challenge for the economy due to the lower availability of foreign currency,” he added.
The next SEA CREA survey will take place in March 2023.
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