Due to the drought, the soybean, wheat and corn harvest will decrease by 50 million tons. Even with the higher prices, the loss of net profit of the production sector already amounts to US$ 14,140 millionand the impact on the economy reaches 3 points of GDP.
The situation was very bad but in recent days things have gotten worse for agricultural production. The hit on the pitch “was dramatic”, indicated the Rosario Stock Exchange (BCR). “There are no words to describe the impact that a campaign marked by all historical meteorological records has had: rainfall deficit for the third consecutive year in summer, persistent heat waves until late March and agronomic frosts until October in 2022 and as early as February 2023,” the agency said. Crops, pastures, livestock and natural resources have deteriorated “to the point of leaving us on the eve of winter with a storm of losses‘ they complained.
In soybean, wheat and corn crops alone, which make up 87% of Argentina’s grain production and 43% of the country’s total exports, Losses exceed $14.14 million. If we add to this the lower demand for goods, labor and financial services, total losses to national economic activity amount to US$19,000 million. “The drought has already caused 3 points of Argentina’s estimated GDP for the year 2023,” the BCR said.
For net exports of wheat, soybeans and corn, including oils, flours, biodiesels and other derivatives, the foreign exchange revenue projection for the 2022/23 will drop to USD 21.740 million$13.950 million less than in 2021-22 and $14.240 million less than estimate at planting time, September 2022.
Due, there will be a decrease in the collection of export rights of more than 2,314 million dollars compared to what was expected at the plantationand another $3,742 million would be lost in other taxes, including profits. Thus, the drought pulverized tax revenue estimated at a total of $6,056 million.
Source: Clarin
