Uruguay Anticipates Near-Record Soy Harvest After Severe Drought

Uruguay is on track for an exceptional soybean harvest, rebounding strongly from last year’s harsh drought.

Rainfall has revived the farms, sparking optimism in the agricultural sector.

Marcos Guigou of Agronegocios del Plata (ADP) predicts a highly successful year, though not quite record-breaking.

ADP’s soybean output is expected to double to approximately 78,000 metric tons. This is due to yields reaching about three tons per hectare.

Soybeans play a crucial role in Uruguay’s exports, often surpassing $1 billion in revenue during peak years.

Exante, a local consultancy, projects this year’s harvest at nearly 3.5 million metric tons.

This is a significant rebound from 2023’s devastating drought, which wreaked havoc on crops and prompted a water crisis.

The upcoming harvest promises to be the best in seven years. Farmers are eager for this turnaround, especially with soy prices down by about 22%.

Despite financial pressures, including a rise in late loan payments, support from crop insurance and winter crop revenues has helped.

ADP invests in irrigation to protect against future droughts, aiming to irrigate 1,000 hectares by next year.

This move aims to secure the land and future yields, highlighting the strategic response to climate challenges.

This step is vital for Uruguay’s agricultural resilience, ensuring steady growth and stability in the face of environmental uncertainties.

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