“Soybean dollar” exchange rate comes into effect again, in Argentina
“Soybean dollar” exchange rate comes into effect again. Goal of the preferential exchange rate is to speed up soybean export shipments and generate revenue in dollars. Government expects to attract US$ 3 billion until the end of December. High inflation and tight capital control have forced farmers to delay selling their production as a hedge against currency devaluation. When the “soybean dollar” was stipulated in September, the measure stimulated the flow of nearly US$8 billion into the country, of which approximately US$5 billion remained in central bank reserves. (Ministry of Economy)
On the first day of the special exchange rate, 298,911 tonnes of soybean were sold, the highest amount since the end of the previous “soybean dollar” program. Special exchange rate is 230 pesos to the dollar. (Rosario Stock Exchange)
Until now, 72.6% of the 2021/2022 soybean harvest has been exported. Total for the 2021/2022 soybean harvest was 44 million tonnes. (Ministry of Agriculture)
Beef price downward trend. Exports in October were 52,769 tonnes, 5.8% lower than the previous month. Main reason for this drop is the demand decrease from China, the largest export destination. (Consortium of Argentine Meat Exporters)
Corn shipments to China started last week. This should intensify exports of the 2021/22 harvest. China is the world’s largest corn purchaser and should import 18 million tonnes in the 2022/23 harvest. Imea informed that the demand for corn from the State of Mato Grosso should increase, since the State corresponded to 55.59% of the total exported by Brazil until October, in the current season. (Mato Grosso Institute of Agricultural Economics)
Grape farmers in Petrolina, State of Pernambuco, face losses with the past rains, mainly those that occurred between November 28th and 29th. Vines fell and are rotting because of pests and diseases that proliferate in the rainy season, harming production in the State. According to the president of the Farmers Union of Petrolina, Jailson Lira, almost 2,000 fruit farmers suffered losses because of the past rains. “In addition to increasing spraying to control pests and diseases and carrying out the drainage service, grape farmers still have to invest in covering the vines and compromising a good part of their earnings with labour expenses and constant price increases of agricultural inputs”, concluded Lira. (SPR; Inmet)
Hidrovias do Brasil will start operations on a mega barge convoy, the largest to operate in the country, that should increase by 40% the volume of grain transported by the Tapajós, Amazonas and Pará rivers. With 35 barges, 10 more than the traditional convoy, the new operation, authorized by the Navy, will carry 70 thousand tonnes of grain. (Hidrovias do Brasil)
Soybean sowing reaches 88.65% of the estimated area for the 2022/23 season, above the historical average (81.51%), but below the year 2021 (91.89%). “The highlight of this week is the return of rainfall, especially in the Center-South, allowing the acceleration of planting”, says the director of Pátria Agronegócios, Matheus Pereira. (Pátria Agronegócios)
Assaí (Euterpe oleracea) exports have increased 15,000% in the past 10 years. State of Pará is the biggest domestic consumer and exporter of the fruit, responsible for 95% of the national production, exported by the State as frozen pulp. USA is the main importer of Brazilian assaí. (Pará State Industry Federation)
Ministry of Agriculture establishes quarantine for the entire State of Amazonas because of the disease known as cocoa moniliasis, caused by the fungus Moniliophthora roreri. Measure also includes the cities of Cruzeiro do Sul, Mâncio Lima, Rodrigues Alves, Marechal Thaumaturgo and Porto Walter, in the State of Acre. Quarantine was motivated by the detection of a new case of the disease, in Tabatinga, State of Amazonas, on the border between Brazil, Colombia and Peru. (MoAg; Official Gazette)
Hortifrut quarterly revenue increased 19% because of the greater blueberry supply and sale of 75% of the company HFE Berries Perú SAC. Hortifrut earned US$ 627 million in the first nine months of 2022. (Hortifrut)
Chilean Institute of Agricultural Research will lead the Ibero-American Network for the Digitalization of Agriculture and Livestock (RIDAG) until 2024. Objective is to promote the digital transformation of the agricultural sectors in Spain, Argentina, Uruguay and Chile. (INIA)
Agriculture National Society requests truck drivers to end strike to avoid further economic damage. “We need truck drivers to stop the strike today, because they will seriously affect the entire production system, the supply of supermarkets and processing sites”, said Cistián Allendes, president of the entity. It is estimated US$ 500 million losses per week only because of the interruption of fruit exports. (SNA)
First case of highly contagious avian flu was detected in the Chanagua region. Among 180,100 susceptible birds, 49,900 died. Intervention zones were defined in the focus region and in the surveillance zone. Among the measures to prevent the spread of the virus, there are also surveillance in the area outside the restricted zone, traceability, movement control, disinfection of the affected area and quarantine. (Ministry of Agriculture; International Organization for Animal Health)
Department of Agriculture started vaccination in commercial production units, in areas of high risk for animal health and in farms where there are breeding chickens because of the H5N1 avian influenza virus cases registered in seven States of the country. Only in the regions of Jalisco, Sonora and Nuevo León, six million chickens are expected to be vaccinated. (Department of Agriculture)
Ministers of agriculture from Brazil and Paraguay signed a cooperation agreement on animal health, focused on joint action on sanitary and epidemiological surveillance in cities located on the border of the countries. Also discussed were the procedures necessary to enable cultivation of tilapia in the Reservoir of the Itaipu Hydroelectric Power Plant. Production potential is estimated at 400,000 tonnes per year of tilapia, with annual revenues of US$ 390 million and creation of 10,000 direct jobs and 40,000 indirect jobs. To make production viable, it is necessary to change Paraguayan laws and repeal previous agreements between the countries. (Ministry of Agriculture)
50% drop in passion fruit production in 2022, in part because of the natural cycle of the plant, that needs to be replanted every two or three years. Peru is the world’s main supplier of passion fruit, especially juice. There are 6,500 hectares of passion fruit planted in coastal areas. (Association of Exporters of Peru – ADEX)
Argentina, Brazil and Paraguay warn that they may adopt measures in retaliation against Uruguay, that is negotiating its access to the Trans-Pacific Association Agreement (TPP). Uruguay has been trying for years to enter into private trade agreements. “In light of the Uruguayan government’s measures regarding individual negotiations of trade agreements with tariff dimensions… the three countries reserve the right to adopt the measures they deem necessary to defend their interests in the legal and commercial spheres,” according to a note from the representatives from Argentina, Brazil and Paraguay. Mercosur’s internal regulations determine that trade agreements signed by member countries must be previously agreed upon. (Mercosur; Reuters)
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