Drought has reduced the economy by 546 million US dollars, according to the government



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Although the impact on the area sown after the drought in early 2018 has been less than expected, according to the Minister of Livestock, Agriculture and Fisheries, Enzo Benech , the portfolio estimated losses in the agricultural productive sector at $ 546 million, ignoring the economic repercussions generated by the demand for other services that make up the agricultural value chain.

At a press conference given yesterday afternoon, Minister Benech He said that the "drought hit hard", but that some lessons were learned from previous situations. This is especially the livestock sector, which should wait to know how many calves you have when giving birth to cows to badess the damage.

With respect to agriculture, the Government reported that 89% of the area planted was affected by drought. The estimated loss due to the decline in soybean production is US $ 434 million, while for maize and sorghum it is estimated at US $ 32 million.
However, from the portfolio, it was stated that the data provided did not take as a reference what was produced in the 2016-17 harvest, but the average of the previous five years. Ministry of Economy Responsibility estimates for soybean yield were 59% lower than in the previous season, while data presented by the YMPE predicted a 50% decline in production of soybeans. soy.

The national yield for the 2017-18 crop according to the recent DIEA survey was 1,214 tonnes of soybeans per hectare.

With regard to livestock, the bulk loss of animal supplementation was estimated at nearly US $ 16 million, after detecting after the water deficit a sharp increase in imports of maize and sorghum burland. December 2017 and March 2018 compared to the same period as the three years before. On the other hand, based on the weight of the slaughtered animals, no loss was detected. When estimating the losses due to the lower birth of calves and the increase in mortality, the loss is estimated between 35 and 40 million US dollars. On mortality, Benech was pleasantly surprised at how low he was (births were affected by 2%).

Emergency and Debt Plan

On the distribution of soybean envelopes as part of the agricultural crisis unleashed in late February, it was reported that out of the 1,417 family producers qualified to receive the soy bale, 1,305 beneficiaries who accessed the entrance. According to the Ministry, there were 112 producers who withdrew from the operation and another which reduced the amount requested. In total, the portfolio has allocated more than 8 million kilograms of soybeans to relieve the severe drought that has affected the country.

On the other hand, Benech expressed his concern to mention that despite the fact that in the agricultural sector were almost US $ 550 million and nearly half of the sector's debt is to the Banco República, only 10% of the client portfolio has been presented to the entity to avail the possibility of reprofiling of its debt. Given this circumstance, BROU has extended the deadlines and agricultural producers have until August 10 to attend the institution.

In turn, it was reported that 2,500 agricultural producers of 19,000 beneficiaries have claimed VAT refund for the purchase of diesel.

The confidence of Astori

The Minister of Economy Danilo Astori said in Océano FM that the strike of soya weighed negatively on the GDP of the country, but that He was confident that meat exports, especially if the Japanese market was open, could cushion the decline in agricultural production. However, Benech did not encourage such an estimate and pointed out that a 50% impact of what is expected is difficult to correct with other elements that have longer cycles.

Bilge figures

  • $ 434 million was the estimated loss by the government at the national level for the decline in soybean production. 2,691,451 kilos were expected and the lost production was 1,357,265 kilos, half.
  • $ 27 million was the loss due to the decline in corn production. From a yield of 7,136 kilos per hectare in 2016-17, he went to one of 4,340 in the 2017-2018 campaign (-39%).
  • $ 4.5 million was the loss due to the decline in sorghum production. From a yield in 2016-2017 of 4,553 kilos per hectare, it increased to 2,639 in 2017-2018 (-42%).
  • $ 546 million was the estimated total loss by the government if the entire sector was taken: soybean, corn, sorghum, import supplements, fewer calves and wounds ($ 23 million US).

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