Climate and government are problems for Argentina’s rural producers

The rural producer in Argentina, especially those dedicated to corn and wheat cultures, count on two problems: the high taxes imposed by the government of President Alberto Fernández and the adverse weather conditions, mainly due to the effects of the La Niña phenomenon.

At least this is the analysis of the agronomist engineer and agricultural market consultant of Brandalizze Consulting, Vlamir Brandalizze.

In Brandalizze’s view, Argentinean farmers have already taken the first steps in the 2022/23 harvest with not very positive figures.

When participating in the news program ‘Mercado & Companhia’ on Monday, October 24, the specialist pointed out that the drought caused by La Niña caused the corn production area in the country to be cut by the Buenos Aires Grain Exchange.

In addition, the projection for wheat was reduced.

“The crop is with delayed planting. The weather has not been favorable; the rains are very scarce, especially in the center-south of Argentina,” commented Brandalizze.

“Already starting with an unfavorable situation in the case of Argentine corn,” he continued, who recalled: farmers had already suffered with La Niña in the last cycle.

The interviewee exposed partial numbers referring to corn, demonstrating the reason for local producers not to get excited.

“They should have about 35% of their crops planted, but they closed the last week with about 17%. They are with less than half [of the area] that should have been planted,” observed the consultant.

WHEAT: BRAZIL CAN GRAIN MARKETS

The rural problem in Argentina is not limited to the corn crop. Weather issues – predominantly dry weather – may cause Argentina to decrease wheat production volume.

Vlamir Brandalizze considers that the product tends to lose quality because of the lack of rainfall.

Thus, he points out that Brazil can benefit directly in the international scenario.

“Now comes Argentina, with dry weather. Initial projections [of wheat] of more than 21 million tons, but now pointing to just over 16 million [tons],” said Brandalizze when talking to journalist and presenter Pryscilla Paiva.

“And what does that reflect? That Brazil, which is harvesting a good crop, will have a space to export,” he complemented, recalling that many wheat buyers “scattered around the ports.”

ARGENTINA’S GOVERNMENT IS ALSO A PROBLEM FOR THE RURAL PRODUCER

Besides commenting on issues related to climate problems, which directly affect the productivity level of Argentina’s agriculture, Brandalizze reinforced that, in his view, public policies are another problem for the sector.

“The government taxes the producer a lot,” he lamented. “The big obstacle is that the capitalization of the Argentine producer is small; many are in complicated financial situations.”

With information from Canal Rural

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