Argentina’s agricultural exports moved US$ 10.9 billion in the first six months of the year, according to data from the Center of Cereal Exporters. During last week alone, the sector moved US$ 308.7 million. Compared what was exported in 2016, it represents 45.6 percent of the sum of the whole year.
Category Archives: Livestock
The Brazilian version of the farm bill, called locally as Plano Safra (Crop Plan), was announced today (07.06) and the total amount available was R$ 188.3 billion (almost US$ 58 billion). The amount provided is lower than what was available during the 2016/2017 season if inflation is considered. The investment in the previous crop was R$ 185 billion.
By far, the largest percentage of the plan is put on credit subsidy programs. The total amount used in that is R$ 150 billion. Of this total, R$ 116.26 billion will be used on loans with controlled interested rates and R$ 34 billion with regular interest rates.
“We are here to reaffirm our unequivocal support to Brazilian agriculture. The farm business is synonym of efficency,” said Brazilian president Michel Temer at the lauch of the program.
By Luís Vieira
U.S. President Trump has conditioned the entrance of Argentinian biodiesel and beef into the American market.
In May, the U.S. officially announced that it suspected antidumping of Argentinian biodiesel, and it would suspend those biodiesel imports until it ends an investigation.
Separately, Argentina’s beef had a prior allowance for imports set by the Obama administration, but it is now under revision by Trump’s White House.
The Brazilian Real has dropped almost 40 cents comparing to the U.S. Dollar this Thursday (05.18). The dollar in Brazil is now worth R$ 3.38. The devaluation is after a political that involved a bribe between the country’s largest meat maker and packaging company, JBS, and the president of the nation, Michel Temer. Usually, when the Brazilian currency value drops, grain exports tend to grow.
By Luís Vieira
The Trump administration, since its beginning and prior to the election, has been criticizing trade agreements and what it calls unfair practices, mostly toward the U.S. manufacturing complex and allegedly those coming from Mexico.
Nevertheless, undesired consequences have been seen, and the most affected sector is U.S. farm business.
Mexico, one of the top buyers of U.S. food, has been announcing new sources for supplies of several products from major competitors, attempting to minimize purchases from the U.S., before any type of change in the North American Free Trade Agreeement (NAFTA) is made.
According to an input analyst at Scot consultancy from the state of Sao Paulo, Rafael Ribeiro, the scenario is very positive for cattle ranchers and only would change in an “atypical condition”. Ribeiro says that even with low quotations for the animal protein sector, the market is favorable because of low input prices.
“Only a climate factor with impact on production or yet a dollar very favorable to exports, that are atypical at the current moment, could impact the price of these inputs. Even if that happens, cattle raisers will not wait for the last time to buy,” concludes Ribeiro.
As a result of the Federal Police investigation that discovered a tainting scandal, the meat exports from Brazil dropped from US$ 60.5 million on Monday to US$ 74,000 yesterday. This morning, a new country announced that will block the entrance of Brazilian meat: South Africa.
After a Federal Police investigation that discovered meat tainting by several meat packers in Brazil, Japan, the European Union, Mexico, Egypt, Hong Kong, China and South Korea announced a blockade of any meat imports from the country. Brazil’s Agriculture minister, Blairo Maggi, said today that the country could lose up to 10 percent of the market share. “It could take Brazil up to five years to recoup its market share,” he told a Senate committee.
The president of the Argentina Rural Society, Luis Miguel Etcheverre, announced today that the country will break a new record and will produce six million metric tons of meat this year. “The field in Argentina has already started to take off. There is a major effort of producers, including beef, poultry, sheep and pork. Among all, there will be a production of six million tons,” said Etcheverre.
Etcheverre also said that this will be a result of less government intervention in the sector with the end of export taxes and limits to exports, effectively putting the agricultural business in equality with other sectors of Argentina’s economy.
Fires that seemed to be unstoppable were supressed by autorities in Argentina in a surface that overcame 3.4 million acres. Most of this area is located in the provinces of La Pampa, Rio Negro and southwest of Buenos Aires and the majority of the fields belong to cattle farmers. The financial losses were not accounted yet, but the government announced subsidized credit rescue programs to help those ranchers.