GDP decreased by 1.6% in 2023 in Argentina
More heavy rainfall in grain-producing regions could be very damaging to soybean and corn farms. “The rains we are getting are completely unnecessary, very damaging to the south and east of Entre Ríos, south of Santa Fe and north of Buenos Aires,” said German Heinzenknecht, meteorologist at Applied Climatology Consulting. “We are seeing excess water in these areas”, according to Marina Barletta, an analyst at Rosario Stock Exchange. “There are places that have exceeded 300 mm so far in March and there we are seeing some flooded soybean farms”, said Barletta. (CCA; Rosario Commerce Exchange)
In February of 2024, milk production reached 686 million L, 12.1% less than in the previous month and 17.8% less than in the same period in 2023. This was the lowest production since 2020. (Milk Chain Observatory of Argentina)
GDP decreased by 1.6% in 2023. “The 1.6% decrease of GDP in 2023 corresponded to the increase in imports (2.2%), private consumption (1.1%) and public consumption (1.2%) and the decline in exports (-6.7%) and gross fixed capital formation (-1.9%) in relation to 2022”, according to report from the National Institute of Statistics and Census. Annual inflation rose to 276.2% in February – the highest level in 32 years. (Indec)
AGCO will temporarily suspend part of its operations at the Santa Rosa Unit, State of Rio Grande do Sul, for up to 3 months. “The layoff proposal, presented and negotiated with the Metalworkers Union of Santa Rosa, was approved by employees by a large majority (93%)… and aims to readapt production to current market demand, maintaining the level of employment”, according to a company note. At the end of February, John Deere negotiated a similar agreement with the Metalworkers Union of Horizontina and Region, State of Rio Grande do Sul, to suspend activities at the site for 60 days. (AGCO; John Deere)
Government of Minas Gerais will exclude companies that import powdered milk from the Special Taxation Regime. In 2023, the State of Minas Gerais imports of powdered milk reached US$ 62.6 million. In 2024, purchases continued to grow: in the first two months, they reached US$ 12.7 million. “Milk farmers represent a very important class in Minas Gerais, with more than 220 thousand micro and small farmers, which creates many jobs and brings a lot of income to the countryside. Minas Gerais is the State that produces the most milk and dairy products in Brazil. These farmers have suffered a lot from competition from imported milk, which we consider unfair”, said the Governor of Minas Gerais, Romeu Zema. (Government of Minas Gerais)
Minister of Agriculture, Carlos Fávaro, said that the government should extend certain contracts for farmers of soybean, corn, cattle and dairy, which expire in 2024. “Investments that expire in 2024 will be extended in accordance with the contracts, perhaps leaving it for the last [installments] if they have two or three years to mature or spread out in installments during the due dates of the installments”, said Fávaro. (MAPA)
Tirolez, a cheese company from the State of Minas Gerais, has opened up a factory in Caxambu do Sul, State of Santa Catarina. The investment of US$ 30.14 million aims to triple the company’s production capacity. The new plant has the capacity to process 1 million L of milk per day and to produce 5 thousand tonnes of mozzarella cheese per month. (Tirolez)
Joint operation with the Ministry of Agriculture, Civil Police of Rio de Janeiro and the Military Police of São Paulo dismantled an olive oil fraud scheme, with the seizure of more than 100 thousand L of adulterated products. The companies imported olive oil according to the law, but adulterated it with soybean oil in a clandestine facility in Saquarema, State of Rio de Janeiro. (MAPA)
Cutrale Group should invest US$ 100.47 million in planting 5,000 hectares of oranges on the border of Sidrolândia and Campo Grande, State of Mato Grosso do Sul. This decision signals the expansion of the Brazilian citrus industry to regions with less pressure of the “greening” (Huanglongbing) disease. (Government of Mato Grosso do Sul; Cutrale)
According to the World Resources Institute, Chile is one of the countries with the highest water stress in the world, and could run out of water supply by 2040. Cogoti Reservoir, in the Coquimbo region, in northern Chile, which has a capacity of 150 million m³, is completely exhausted on the eve of the end of summer. “In the last five years, rainfall has been below normal, which has caused water flows to remain at minimum values for the fourth consecutive year,” according to the Center for Advanced Studies in Arid Zones. (Ceaza; WRI)
Number of rice farmers fell by 20.6% in 2023, compared to the last census carried out in 2016. There was an increase of 7.3% in production and 3.3% in the planted area. (Fedearroz)
Two Minerva Foods meat processing plants have been authorized to export to China. This is the first authorization to export beef from Colombia to China. (Fedegan)
Mexico is expected to import between 14 million and 16 million tonnes of yellow corn in 2024, an amount that is within the average of recent years, according to the Secretary of Agriculture, Victor Villalobos. (Department of Agriculture)
Number of hectares harvested was the lowest since 2018. Around 13.45 million hectares were harvested, which represented a drop of 10.2% compared to 2022. Furthermore, 2023 had the highest number of “damaged” hectares, in which crops were planted, but did not germinate, being more than 1.11 million hectares. (Department of Agriculture)
Agricultural sector must ration the use of water, according to the president of the Union of Production Guilds, Hector Cristaldo. “The scenario for corn and soybean crops is complicated due to very difficult weather conditions. Under current conditions, there must be a planning and rationalization of water use. The impact of the lack of rain is so strong that, for farmers, with the current scenario, the use of water to irrigate crops is practically demonized”. (UGP)
Agricultural exports increased by 23.2% in January, compared to the same period in 2023, with highlights to grapes, blueberries and coffee. Total reached US$ 1.062 billion during the period. Grape exports reached US$ 316 million. (Comex)
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