Paraná River Flooding Affects Over 5 Million Cattle: Potential Impact on Beef Prices and Inflation

The flooding of the Paraná River affects more than 5 million heads of cattle

The arrival of rains throughout the country is leaving behind the worst drought in Argentine history, but what seemed to be a relief also brought problems linked to the flooding of rivers, such as the Paraná, which forced producers to mobilize massively their cattle. There are more than 5 million heads affected and specialists warn that this situation may generate greater pressure on beef prices in the coming months and, consequently, on inflation.

You may be interested in: Food, rates, prepaid, fuel: what will happen to prices until the end of the year

The Institute of Economic Studies and International Negotiations (IEEyNI) of the Argentine Rural Society (SRA) estimated that a little more than 5 million heads may be affected by the flooding of the fields, in Entre Ríos, Corrientes, Misiones, Chaco, Buenos Aires and Santa Fe.

“The greatest impact would be seen on the east coast of the river, since in the coastal provinces between 30% and 37% of their provincial stock is in danger. On the west coast side, the most affected is Santa Fe, with 6 departments surrounding the river and 15% of its stock on alert,” detailed the IEEyNI.

The agricultural leader of Paraná, Juan Etchevehere, warned that some producers carry out their activity on the islands of the river so during these hours they move their animals to the heights. “The peak of the flood will reach our area, La Paz department, between November 9 and 11 and will completely flood, according to forecasts, all the islands in the region,” he lamented.

You may be interested: Inflation slowed in October according to private measurements that do not rule out a new jump after the ballot

Etchevehere also said that currently there are more than 600,000 heads of cattle on the Entre Ríos islands and nearly 300 producers affected by the flood. The SRA leader also highlighted the shortage of barges that could help get to higher areas more quickly.

“The boatmen are making a great effort so that this flooding of the Paraná River does not become a tragedy. Today it is very difficult to find fields available to house so many animals and the feedlots, for the most part, are full. We must remember that Entre Ríos recently experienced one of the worst droughts in its history, so currently almost no producer has reserves or forage available,” Etchevehere pointed out.

Heads of cattle affected by area (SRA)

The livestock producer from Reconquista, Santa Fe, Mario Capozzolo, said: “The majority of the islanders are taking out the ranch as they are given the cargo flats and they are already taking it to everything that is the high altitude area in the fields.”

You may be interested: In the last 5 years, inflation in Greater Buenos Aires was up to 132 points lower than in the rest of the country

“In the area, the river exceeded five meters so the producers are trying to remove the farm so that the water does not reach their necks, although they say that the water level will not rise as much due to the historic dry season that we are experiencing. suffering, but they are already opening the Paraguay River. In addition, small islanders from the Villa Ocampo area are asking those traveling on Route 11 to be careful because there are many farms on the shoulders,” Capozzolo said.

In the Delta area in the province of Buenos Aires, they began to prepare to mobilize their farms in case the flood also affects them. In this regard, producer Analia Esperón from San Nicolás explained: “I have a livestock ship with a loading capacity of five cages. The panorama that we are seeing here is the non-reduction of the water situation due to the issue of the southeast. Although the fields are high, there are several ridges, the situation is to take everything big for work and see how the passage of El Niño (more rains) continues. “We are very alert with what is happening in Corrientes, Rosario and with the situation in Andresito and Iguazú.”

In recent weeks, there have been sharp increases in beef prices on the counters and the floods are adding concern due to the possibility of new increases. Although the SRA commented to Infobae that the situation “for now” should not affect the counters, specialists point to the effect in the medium and long term. The Ministry of Agriculture did not respond to this media’s query.

The president of the Chamber of Industry and Commerce of Meat and Derivatives of the Argentine Republic (CICCRA), Miguel Schiariti, commented: “The animals that were near the delta will surely go to other fields, which have already begun to recover from the drought due to rain and higher temperatures. The growth of grass can make the cows stay a while longer to gain cheap kilos: that brings a drop in supply in the short term and more pressure on prices.”

Schiaritti linked the increases that were seen in recent weeks at the farm and that were later transferred to the counter “to the fluctuations of the market and political instability.” Nobody, he explained, “wants to get rid of an asset in pesos today because they don’t know “How much will it be worth after the elections?”

For David Miazzo, chief economist of the Agricultural Foundation for the Development of Argentina (FADA), the floods do not help, but in the short term they can lead to a greater supply at slaughter, due to the impossibility of moving the livestock elsewhere. “The drought generated a lower supply that will last at least until next year. The rising delta for now is focused on that area, so initially there may be more production and then it moderates,” he stated.

The Ministry of Commerce renewed the price agreement for popular cuts of meat in butcher shops and supermarkets until the end of the month.

According to the survey by the Beef Promotion Institute (IPCVA), in September the average price of the different cuts rose 19.4% compared to August and in August it had increased 30.2% compared to July. Thus, the interannual variation measured by the entity showed an increase in prices of 163.8%, when the general inflation recorded for that period was 138.3 percent.

In parallel, the Ministry of Commerce renewed this Wednesday until the end of the month the price agreement for popular cuts of meat in butcher shops and supermarkets. The 7 cuts of meat from the Fair Prices program will be maintained in participating businesses throughout the country with new values. The agreement will be valid until November 30 and represents a 10% increase compared to the prices in force until the recent update.

2023-11-04 14:36:00
#increase #meat #coming #flooding #Paraná #affects #million #heads #cattle