The figures are updated day by day and this new heat wave is unique worsen the prognosisS. In this edition of Expoagro, which opens its doors this Tuesday in San Nicolás, there is already talk that the drought will deny the The Argentine economy is no less than 20,000 million dollars. In other words, close to 2 points of GDP.
Dramatic. And the question everyone is asking is what will happen to the payment chain. How will the debts be paid off? the one contracted at the beginning of the campaign, which turned out to be worse than the most pessimistic forecasts.
“There are producers who they cannot meet with the grain pledged to pay for the inputs we sold them at the start of the campaign,” he said clarion Charles AchettoniFrom coninagre.
In the field, the raw material that producers extract from the earth is a payment currency, perhaps more valuable than pesos. This is why there are many debts incurred for wheat, soybeans or corn that cannot be fully paid precisely because crops have collapsed.
“Half of the debt is with the suppliers of inputs, from seeds to fertilizers and everything you can think of,” says the commercial director of a multinational company.
“We have to sit down and see how the situation is regularized. No one is going to take a producer off the field, what they’re trying to do is help them,” he adds.
Banks already play a key role in this. Juan Cuattromoowner of BaProcommented that the online management of a special line for producers with land in areas officially declared in emergency has been systematized.
He National Bank is preparing something like this.
Daniel Funes de Rioja, head of the UIA, was at the opening dinner that took place on Monday night at the Hotel Colonial de San Nicolás. He admitted to this newspaper that the situation is very difficult, but he is confident, paradoxically, that the amount of pesos in the economy will cushion the impact.
He says it can help that too debt-to-peso conversion clarifies outlook for banks, key players when it comes to relieving pressure on producers.
“We hope that the exchange will serve to reassure. Economists talking to the UIA say the end of the mandate can come with the debt in pesos ordered and with the right money”.
Likewise, the decrease in the amount of grain to be harvested, transported and processed is an undeniable problem. I am fewer contracted trucks, less tires to changefewer plates of food sold in motorway canteens, less manpower, fewer liters of diesel, less everything.
This does not mean that Expoagro does not maintain this condition single window in which the ecosystem commonly known as “the field” shows how its frontier of productivity and efficiency shifts year after year, making it clear why today it continues to be one of the main engines of the economy Argentina.
The headwind this drought signifies is another opportunity for him to prove that the beginning is moving forward, yet again.
Source: Clarin
