In the midst of challenging climate conditions with significantly reduced rainfall in Argentina, drought has taken a toll on the country’s wheat production, resulting in losses of up to $900 million.
Many experts warn that the impact of the reduced production won’t affect agriculture alone but also the livestock that will struggle to find adequate food.
Lorena D’Angelo, a market analyst at AZ-Group, stated, “Preliminary estimates of the economic losses due to the lack of rainfall on wheat can reach $900 million.”
She cautioned, “This figure comes after accounting for the loss of three million tons in the harvest, from an initial estimate of 18 million tons down to 15 million tons, and current grain prices,” as reported by the Argentine newspaper “Infobae.”
These calculations do not account for shipments that will be carried out this year, pending from the previous season. At different times, the government has extended shipments, affecting exports for the 2022/2023 season.
In the first nine months of the year, 1,698,000 tons were exported, a decrease of 85.6% compared to the same period in 2022 when 12,634,900 tons were exported.
According to data compiled by the Central Research Office, a million hectares are planted in this region, which covers southern Santa Fe, northern Buenos Aires, and southeast Córdoba.
About 400,000 hectares are considered to be in regular condition, while another 100,000 hectares are in poor condition. In the worst-affected areas, estimates indicate that yields will range from 5 to 15 quintals per hectare.
