First Mercosur meeting under the presidency of Paraguay
Development of grains might be harmed due to high temperatures and dry weather. It is estimated that one-third of the soybean and corn planted area should face water deficiency and decreased moisture levels. Weather forecasts indicate below-average rainfall in most agricultural areas. Lack of rain has been widespread, with few areas recording more than ten mm in recent days. (Agricultural Risk Office; National Meteorological Service)
2023/24 soybean harvest was estimated at 52.5 million tonnes. Estimated reduction from 55% to 44% in crops considered to be in good or excellent condition. Crops in medium or poor conditions increased from 2% to 8%. (Buenos Aires Cereal Exchange)
China’s General Administration of Customs authorized the import of wheat from Argentina. “Argentine wheat export market for the Asian giant is operational for the first time… this is an important step for Argentine exports”, according to a statement from the Secretariat of Agriculture. The 2023/24 wheat harvest is expected to reach 15.5 million tonnes, an increase of 23% when compared to the previous harvest. (GACC; Department of Agriculture)
Beef exports from Argentina reached a record of 682 thousand tonnes in 2023, despite the retenciones [export taxes]. The amount is 7.7% higher than in 2022. “The deterioration in the purchasing power of the Argentine population reduces the ability to keep beef on the domestic market”, according to the director of the consulting firm HN Agro, Hyberville Neto. (Secretary of Agriculture; HN Agro)
Survey on “AgTechs” [agricultural startups] in Brazil and Latin America identified 977 active startups in the region, 809 of which were Brazilian. The companies operate mainly in the markets of biotechnology, backoffice [companies with an administrative focus, such as accounting or HR], livestock management, drones, etc. (Liga Ventures; Hub CNA Digital; Bunge)
4,761 family farmers from the State of Bahia will provide more than 8,500 tonnes of food through the Food Acquisition Program – PAA, in which the State buys food, without bidding, and allocates it to people in situations of food and nutritional insecurity and to those in need of social assistance, etc. Federal Government invested US$ 12.4 million for the PAA program in Bahia, through the National Supply Company. (MDS)
Technical Assistance and Rural Extension Company of the State of Minas Gerais has donated bean seeds to 12 thousand families that were harmed by drought in 2023, in 254 municipalities. “Each family receives a package with 10 kg of seeds and will be able to harvest about 600 kg of beans in their first harvest”, said Otávio Maia, president of the company. (Emater-MG)
Brazilian Development Bank – BNDES has approved financing of US$ 162 million to the Agricultural Cooperative of the State of Mato Grosso do Sul for the construction of a soybean processing unit in the city of Naviraí, State of Mato Grosso do Sul. (BNDES)
Road freight values increased by 21.4% in the 4H of 2023, compared to the same period in 2022. Average freight value increased for soybeans (132%), corn (21.7%) and fertilizers (22.2%). “Fertilizers drove freight rates in the Southeast, especially in the States of Minas Gerais and São Paulo,” said Federico Vega, CEO of Frete.com, a website that compiles data on cargo transportation. (Frete.com)
Soybean harvest was estimated at 148.55 million tonnes, 7.3% lower than 2022/23, with an average yield estimated at 3.269 tonnes/ha. For corn, the estimate is 116.3 million tonnes, or 14.8% less than in 2022/23. Production was negatively impacted by the weather. (Datagro)
BTG Pactual bank reduced the projections for SLC Agrícola’s financial results regarding 2023 and 2024, with an estimated reduction in Ebitda by 7% in 2023 and 21% in 2024. Revenue projection was reduced by 2.8% and 8.9%, respectively. Analysts from BTG Thiago Duarte, Henrique Brustolin and Pedro Soares said that after the incorporation of the Terra Santa and Xingu farms, in 2021/22, SLC did not announce other major expansions of planted area. Therefore, the company must now begin to expand the planted area by approximately 35 thousand hectares per year, on average. (BTG Pactual)
States of Minas Gerais, Goiás, Bahia, São Paulo, Rio Grande do Sul and Mato Grosso concentrate approximately 92.5% of the agricultural area equipped with central pivots in Brazil, according to a report published by the National Water and Basic Sanitation Agency. (ANA)
Crisis in the dairy market has accelerated the concentration of large-scale farmers. “We are changing the profile of milk farmers in Brazil. This process was already happening, and this crisis in 2022 and 2023 only increased the speed”, said Paulo do Carmo Martins, researcher at Embrapa. (Embrapa Dairy Cattle)
Coffee production reached 11.4 million 60 kg bags in 2023. The country maintained its position as the third largest producer in the world, after Brazil and Vietnam. According to Esteban Ordóñez, commercial manager at the National Federation of Coffee Farmers, approximately 40% of the coffee produced in the country is classified as conventional, while the remaining 60% has “some type of added value”. (FNC)
Colombia requests help to the UN to extinguish forest fires. “We are going to request support from the United Nations. There is a protocol for this”, announced the country’s president, Gustavo Petro. According to him, the USA, Chile, Peru and Canada have already responded positively to the requests for help. Total of 31 fires were active as of January 25th, in five different regions. According to the Institute of Hydrology, Meteorology and Environmental Studies, 87% of the country is at “maximum risk” of fires. (Ideam; Government of Colombia)
Ministers of Agriculture and Livestock from 34 countries in the Americas will meet from October 29th to 31st in San José, Costa Rica, where they will debate the most important topics in the sector. Meeting will serve as a framework for the meeting of the Inter-American Board of Agriculture, formed by the 34 ministers of Agriculture from the member countries of the Inter-American Institute for Cooperation on Agriculture. (IICA)
Panama Canal Authority has reduced daily traffic by nearly 40% when compared to the same period of last year. Many ships have already been diverted to longer routes, which increases costs and carbon emissions. Global maritime transport company Maersk announced that it will move part of its cargo through land routes in Panama, via railways. (ACP; Maersk)
First Mercosur meeting under the presidency of Paraguay, represented by Ambassador Didier Olmedo, took place on January 24th, in Asunción. Among the priorities of the new administration is the need to advance the trade agreement with the European Union, in addition to promoting negotiations with the United Arab Emirates. The countries’ foreign ministers also committed to providing technical support in the process of incorporating Bolivia into Mercosur. (Mercosur)
Minister of Agriculture, Fernando Mattos, said that developed countries, which are mostly the ones responsible for climate change, should economically compensate developing countries, which are suffering the impacts of extreme weather phenomena. “Developed countries must provide the necessary resources to compensate developing countries that suffer the impacts of climate variability on their agricultural production”, said Mattos during his participation in the Global Forum for Food and Agriculture, in Berlin, Germany. “Climate change also creates instability from an economic, social and even political point of view”. (Ministry of Agriculture)
Uruguay reported, on January 30th, the first case of equine encephalomyelitis in a human. This viral disease is transmitted by mosquitoes, and had so far only been detected in horses in the country. Argentina, which declared a health emergency in November of 2023 due to outbreaks in the center and northeast of the country, has already recorded dozens of infections and deaths from equine encephalomyelitis in humans. (Ministry of Public Health)
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