Page 12 - ARUBA TODAY

A12 WORLD NEWS
Wednesday 4 april 2018

Argentine drought hits farmers hard, undermining economy

By ALMUDENA CALATRAVA
PERGAMINO, Argentina
(AP) — Jorge Josifovich is
silent and downcast as he
walks under the pounding
sun in one of Argentina's
most fertile agricultural re-
gions, staring at soy crops
parched by the country's
worst drought in years.
The drought, which began
in November, has caused
big losses, reduced expec-
tations of economic growth
and raised concerns
among farmers, govern-
ment officials and experts
in the world's third-largest
exporter of soybean and
corn. "It's dramatic," said
Josifovich, a farmer and
agricultural engineer who
provides advice to grow-
ers. He picked up soy seeds
from a plant that stands In this March 23, 2018 photo, Jorge Josifovich, a farmer and agricultural engineer who provides advice to growers, looks at drought-
at about half its normal affected soy near Pergamino, Argentina.
height. "Not only is there Associated Press
the physical loss of grain
yield, but there's also the rises in fuel and transporta- ing to the exchange. The "This is directly hitting our ing maturities on agricul-
loss of quality, which lowers tion costs. drought has also hurt the pockets," Alejandro Calde- tural loans and extending
the product's final price." The value of grain exports poultry and pork sectors as ron, president of the farm- new credit lines with longer
That's a blow to Argen- this year could be cut by well as the silos that store ing group Rural Society of grace periods so growers
tina, where farming is the up to $3.4 billion as a result grain and the trucking and Pergamino, said as he in- can continue buying tools
economy's main engine, of the drought, accord- shipping companies that spected soy plants with Jo- and other equipment.
and high or low prices for ing to recent estimates by transport it. "You'll have less sifovich at a field about 140 Still, many growers say the
soy and other commodi- the Buenos Aires Grains beef and a problem with miles (220 kilometers) north- government needs to do
ties can either help sus- Exchange. But the impact (a rise) in prices," Ezequiel west of Argentina's capital. more. So far, the estimate
tain or bust government could be even more bruis- de Freijo, chief economist Badly needed rains that for the soy harvest has
investment plans. Presi- ing if related industries are at the Argentine Rural So- had been expected in re- dropped to 39.5 million
dent Mauricio Macri was taken into account."This ciety, said about the out- cent days never came. metric tons, a 31 percent
counting on a near-record situation is frustrating be- look for next year. He said Argentina has been hit plunge from the 2016-17
soy crop this year to boost cause it impedes the gov- the consumption of Argen- by severe droughts in the season. Corn is expected
economic growth to 3.5 ernment from reaching tine diesel fuel will also be past. The last one, in 2008, to come in at 32 million
percent in 2018. Instead, its expected growth, and reduced by 2.5 percent in killed thousands of cows, metric tons, a 22 percent
what is expected to be the it hits other sectors," said 2018. And about a million cut grain output and stirred drop from expectations
poorest harvest in at least Fausto Spotorno, an eco- fewer trucks will be used growing discontent among earlier in the season.
a decade has already cut nomic analyst at Orlando to transport grain in 2018 farmers who complained Many farmers are de-
growth forecasts by up to a Ferreres & Asociados, a compared to last year be- about what they said was manding insurance that
percentage point. Buenos Aires-based con- cause of the drought. That a harmful government poli- can once and for all pro-
While Macri struggles to re- sulting firm. translates into an estimated cy and a lack of aid for the tect them from inclement
duce the country's high fis- Argentina's famed meat $1.1 billion in losses. agricultural industry. weather. "We have a busi-
cal deficit and tame infla- and dairy industries, which Soy makes up more than This time around, Macri has ness that is out in the open
tion, Argentines continue depend on corn and a third of all Argentine ex- announced that his gov- air and we depend on
to lose purchasing power soymeal for animal feed, ports, and Argentina is the ernment would provide weather," Josifovich said.
and many are growing in- are facing more than $600 world's top supplier of soy debt relief to drought-hit "Sometimes, our complaints
creasingly frustrated with million in losses, accord- oil and meal. farmers, including delay- are justified."q