Argentina under a soybean crisis due to droughts

Argentina finds itself under a soybean crisis due to a very harsh drought that has been affecting the region for the last couple of months. Aggravating the country’s economic stability while under  a scenario of social and political turmoil. As the country faces serious financial problems one of its main sources for injecting dollars into the economy finds itself truly hampered by the harsh climate conditions. Putting producers on a very tricky spot, as well as the whole agri food chain.

The lack of rain and strong temperatures in regions such as the Pampa Húmeda, which is one of the main soybean producing regions within the country has significantly affected production. The lack of adequate conditions for the development of this crop,has seriously diminished its production levels. As recognized by local entities involved in agricultural commodities’ trade such as the Stock Exchange of the city of Rosario.

Authorities expected a approximate production 19.7 million tons for the country’s most fertile region (which includes the plains at the center of the country). However, under recent conditions, “it is expected that production levels will drop to 10.7 million tons. Yet, the number continues falling apart and yielding every week” as stated by the report from the Rosario Stock Exchange(Argentina).

Aware of the impacts that this will have on producers’ pockets, leaders of different agricultural groups and cooperatives have set the alarms off. Warning the public, as well as government authorities about the current situation. Considering the fact that it is highly likely that important production sectors may not be able to harvest anything at all during this campaign. Therefore, the fear of bankruptcy lingers in the air, as it has become an extremely worrying matter.