The Buenos Aires agricultural input distributors anticipated a good campaign of grain fines 2021-2022, in line with official estimates, which project a planting of 7 million hectares and a harvest of 20 million tons.
These numbers are similar to the planting intention of the last cycle, which were pulverized by climatic factors and a production volume that stood at 17 million tons, far from initial expectations.
One thing to keep in mind is that the relationship between input and output is favorable, even despite the increase in some inputs, such as fertilizers.
This situation was offset by the rise in price international wheat, which in Chicago is trading at USD233 per ton, about USD37 more compared to April of last year.
Lionel Camps, general manager of the Business Chamber of Distributors of Agrochemicals, Seeds and Related Bonaerense (Cedasaba), estimated that, although some issues in wheat and barley remain to be defined, “the last rains that occurred in the province will be an incentive to that it is decided to incorporate more hectares of grain thin “.
In dialogue with BAE Negocios, the manager estimated that the producers’ management strategy aimed at increasing yields -with prices international markets are seductive – but without neglecting quality, through the management of agronomic variables such as fertilization. On average, the cereal had yields of 4,700 kilos per hectare in the southeast of Buenos Aires during the last harvest, but in specific batches – and according to the material sown – it can exceed 7,000 kilos per hectare.
Although the purchase of seeds is carried out at a lower rate compared to last year, a good performance is perceived in marketing of fertilizers, especially phosphorous. Camps remarked that the farmer invests in technology because he knows that the business is about maximizing yields.
He also highlighted a trend that can be seen in this new commercial pre-campaign, which is an increased use of seed cures. “It was not so common, but now the producer seeks to ensure the implantation of the crop,” he remarked.
In a webinar that the Undersecretary of Agricultural Markets organized at the end of March, officials and analysts put numbers to the next cereal campaign. In this sense, two scenarios were presented regarding the planted area, with a floor of 6.5 million hectares and a ceiling of 7 million. With an average yield of 3,100 kilos per hectare -and in the absence of climatic incidents-, it will reach 20 million tons, which at prices current will generate USD4,660 million. In tax revenues, and with 12% of rights of exports, represent USD550 million that enter the fiscal coffers.
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