By Artur Piva
Argentina will have a lower beef production in 2023 compared to the volume of 2022.
The data are from the United States Department of Agriculture.
By its estimates, Argentina will drop 140,000 tonnes in beef production in 2023.
This way, the result will fall to 3 million tonnes.
The data show another setback among the main products of Argentine agribusiness because they are in the same line of cuts for the local grain harvest forecast.
According to the Rosario Stock Exchange, the country’s main trading desk, the combined harvest of the three main local agricultural grains will be 43% lower in 2023.
On the list: wheat, soybean, and corn.
That’s 50 million tonnes less, by the most recent figures.
The decline in Argentina’s agricultural production comes amid an intense drought.
The damage caused threatens the results of Argentina’s Gross Domestic Product (GDP).
A recent report by the Rosario Stock Exchange estimated the economic losses caused by the lack of rainfall at about three percentage points.
“Focusing only on soybean, wheat, and corn (together responsible for 87% of Argentina’s grain production and 43% of the country’s total exports, on average over the last three years), the losses for the producing sector exceed US$14.140 billion,” the document states.
“If we add to this the impact of lower demand for freight, labor, and financial services, among others, the total losses to the national economic activity reach US$19 billion.”
“In other words, the drought has already taken 3 points off Argentina’s estimated GDP for 2023.”
With information from Revista Oeste
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