The worst drought in Uruguay in 100 years
Wheat exports should result in US$ 2.3 billion. Estimated growth of 40% in the 2023/24 wheat harvest, or 16.2 million tonnes, that could mean additional revenue of US$ 1 billion when compared to the last season. (Rosario Stock Exchange)
Cattle population may decrease by 2 million animals because of high mortality, lower weaning rate and high slaughter rate in 2023. “Slaughter, mainly of confined cattle, will remain very high for at least another three months… Until then, the supply of cattle should fall from 15% to 20%”, according to analyst Ignacio Iriarte. (Marfrig)
Brasil BioFuels wants to become the largest cocoa producer in the world by 2030. The group announced that it will plant 30,000 hectares of cocoa in consortium with assai palm, through agroforestry systems in the Amazon. The first thousand hectares will be planted in 2023. (Brasil BioFuels)
Argentina became the second destination of Brazilian soybean, from January to May. Only in May, exports reached 978.5 thousand tonnes. Argentina can buy up to 3 million tonnes more from Brazil in 2023. “The crushing margin in Argentina, importing soybeans from Brazil, was profitable, it was more worth importing than buying soybeans internally. This favored Argentina’s imports of soybeans from Brazil,” said Gabriel Faleiros, an analyst at S&P Global Commodity Insights. (S&P Global Commodity Insights)
Extreme cold led 2,700 head of cattle to death in the State of Mato Grosso do Sul and caused damage of US$ 2.09 million. “More than 90 ranchers, in 18 cities in the State, were affected. The highest concentration of deaths was in Nova Andradina”, said the president of Iagro, Daniel Ingold. The cold was characterized by an abrupt drop in temperature, going from approximately 30°C to 4°C in just nine hours. (Iagro)
JBS invests US$ 167.81 million to triple the capacity of their slaughterhouse in the city of Diamantino, State of Mato Grosso. According to the company, this will be the largest slaughterhouse in Latin America. (JBS)
Agricultural Research and Rural Extension Company of the State of Santa Catarina launched a new variety of irrigated rice, called SCSBRS 126 Dueto. It was developed to face climate change in southern Brazil. The variety shows tolerance against extreme temperatures during the reproductive phase of the plants. (Epagri)
Harvest Plan should be announced next week. Expectation is for more than US$ 83.71 billion for agricultural production. Ministry of Agriculture requested US$ 3.87 billion to subsidize interest rates of the Plan, above the US$ 770 million offered during the last season, that ends in two weeks. (Ministry of Agriculture)
Occurrence of frosts concerns the fruit market. “Temperatures reached between -1°C and -4°C… There is a risk of kiwi bacterial disease, aggravated by the low temperatures. Therefore, it is important to monitor the orchards…” said Carlos Cruzat, president of the Committee of Kiwis from the Association of Fruit Exporters. Monserrat Valenzuela, manager of the Citrus Committee, said that damage to citrus can only be assessed 10 days after the occurrence of frost, and depends on the minimum temperature, exposure time, species, variety, and maturity of the fruits. (Asoex)
Fruit exports dropped by 6.6% in volume during the first five months of 2023. 1,734,000 tonnes were exported, or US$ 4.35 billion FOB. Fresh fruits represent 83% of the total. (Odepa)
Authorized import of poultry meal from Brazil to be used as animal feed. This market is estimated at US$ 554 million, according to data from 2022. (Ministry of Agriculture)
Rice farmers are against the imports announced by the Ministry of Agriculture. The industry supports the imports, since there is a deficit of approximately 120 thousand tonnes. The rice should be imported from Colombia, Argentina, Brazil or Uruguay, but prices and quality are still being discussed. (Corpnoarroz)
President Andrés Manuel López Obrador announces an agreement with tortilla manufacturers. It determines the mandatory use of non-GMO white corn. New tariffs will also be established on white corn imports from countries without trade agreements with Mexico. According to Obrador, the tariffs should promote domestic consumption. (Government of Mexico)
Authorities warn of the risk of extreme drought, that might affect the functioning of the Panama Canal locks. A state of climate emergency was declared. Surcharges and weight limits were imposed on ships crossing the Canal. (Government of Panama)
Agricultural exports reached US$ 2.8 billion in the first four months of 2023. Coffee exports fell by 70% in the period. (Adex)
The worst drought in the country in 100 years. This forced the government to declare a state of emergency for the second time in 2023. Since March, there is the possibility that the country will run out of drinking water in certain regions. National Administration of State Sanitation Works decided to increase water salinity levels in order to make reserves last longer. Ministry of Public Health authorized the addition of 400 mg/L of sodium and 700 mg/L of chloride in the water. (OSE; MSP)
Forestry industry should represent up to 6% of Uruguay’s GDP in 2024. Exports could reach US$ 3 billion, according to Carlos Faroppa, director general of forestry at the Ministry of Agriculture. (MGAP)
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