The government is raising the alarm because the drought continues to devastate all the productive regions of the country. And it is already hitting soy and corn, the two main crops that generate foreign currency in the country.

Wheat is the most sown winter crop in the country and the lack of water, especially in the Pampas, is affecting production. The coup de grace of the last few days was given by unexpected frosts in the core area and south-east of Buenos Aires which ended up “electrocuting” the harvest.

According to the latest private estimates of the Rosario Stock Exchange and the Buenos Aires Cereal Exchange, a harvest of between 13.5 and 14 million tons is already expected compared to 23 million last year, which means a decrease of almost the 40%.

And the same exchange from Rosario already ensures that the crop exports more than 1,500 million will fall in relation to the last campaign when they reached $ 4,600 million

This smaller volume did warm up the internal market as it is a key input for millers. To avoid price hikes, the government decided last week to extend scheduled grain shipments for the current campaign from the December-February quarter to decompress domestic prices around that time when the harvest is largely underway. of the country.

In turn, the lack of moisture in the plots delayed the sowing of maize and soybeans, the two main crops grown in the country.

In the case of cereals, 22% of the planned 7.3 million hectares have been planted and they expect producers to turn to late sowing, so they haven’t discounted production for now. And what about oilseeds so far only 5% of the planned 17 million hectares have been planted against the 50% that had been implemented last year up to this date.

It should be noted that in the first half of 2022 the agri-food chains were generated $ 30.944 million in exportsequal to 70% of Argentine exports for that period: 12,000 million dollars for the soybean complex and 4,800 million dollars for corn.

In this negative context, the good news was given by the climatologist Leonardo De Benedettis which announced that rains are expected in the central region for this week, with accumulations of up to 80, 100 and 120 millimeters.

The livestock is also another of the productions in crisis due to lack of grass growth. Faced with less feed consumption, there will be fewer calves and next year you will feel strong in the meat broth. “The breeding and finishing of animals with cereals is uneconomical. The price of the meat at which the producer sells has remained constant for 5 months, while the price at the counter has increased in price”, warn from the Rural Society of the rosary beads. .

The regional economies do not escape this dramatic drought and in recent days the frosts that have aggravated the problems have been added: in Mendoza, the main wine region of the country, it has hit 10,000 hectares of vineyards. In addition, it affected another 10,000 hectares of orchards.

“This devastating scenario can only be compared to what happened in 1992, when fruit and wine grapes were lost,” said Carlos Achetoni, president of the Argentine Agricultural Federation (FAA).

The institution has warned him late frosts hit San Juan, where several departments were affected by the fall of late frosts, in the middle of spring, with greater damage to melon, tomato and grape plantations, as well as in Cafayate, Salta, with considerable losses. Likewise, the production of vineyards, cherry trees, walnuts and pumpkin plantations in the Alto Valle de Río Negro were also affected.

Faced with this situation, the Minister of Economy, Serge Massaannounced on Monday from Mendoza a fund of 1,500 million dollars to finance the production recovery, which will be activated when the provinces present the damage estimates, the number of producers affected and their production stratification, a proposal for the distribution of the amounts to Non Refundable Contribution (ANR) or Refundable Contribution (AR) before the Secretary of Agriculture, Livestock and Fisheries of the Nation

In addition, it indicated that from 20 November to 30 December for all regional economies that reach an agreement between exporters and producers, and that participate in the Fair Prices program, they will be able to access a differentiated exchange rate that compensates for losses.