Argentina: A seemingly unending line of trucks in the ports due to a record harvest

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It is proving to be a record harvest which should be around the 140 million tons of grains, a rise of 24% compared to the past agricultural cycle affected by a drought, and thus a barrage of trucks to the ports of the Rosario, which is the largest agro-industrial port and exporter of grains and by-products has begun.

According to official estimates, these exports should contribute more than USD 25 billion to the economy.

In addition, it is estimated that this increase in production will represent a positive impact on the economy of 1.2% of GDP, as projected by the School of Economics and Business of the National University of San Martín.

Thus, it could help cushion partly the decline of other sectors of the economy affected by the current recession.

This morning, the ports of the Gran Rosario entered 4,961 trucks in a week that, according to the forecasts of grain market analysts, will be key because it marks a massive income increase to the exporting terminals.

This Monday at Rosario which exports 85% of agro-industrial exports, 2,950 trucks with maize arrived, a record, bearing in mind that the same day last year entered 1,990 due to the drought. The amount of maize that entered that day represents 48 % more than on the same day of 2018.

According to The Government, the maize crop, which is advancing with very good yields, will be around 49.7 million tonnes, 14% more than the previous cycle. That volume of production would mark a record for Argentina.

Also, 1,842 tonnes of soy load was unloaded on Monday, according to data from the Bolsa de Comercio de Rosario (BCR). The soy harvest is a little delayed, but with the amount of beans that entered that day shows that it too will be a record harvest.

According to the official forecasts, the soy harvest will be around 54.3 million tons, a jump of 44 % from the last drought harvest.

In the ports of Rosario, according to the data of the BCR, up to the 18 April, 1,742,295 tons of maize will be loaded on ships whose ship traffic also began to increase in the past few days. To date, 1,204,078 tonnes of soybean meal and 165,400 tonnes of oil are have been exported.

The massive arrival of trucks to the port terminals of the Gran Rosario begins to show that it will be a key year for the agro-industrial sector, after the estimates of the Strategic Guide of the Agro, which manufactures the BCR, indicate 32 million of tonnes more.

The maximum volume of coarse grains in the 2014/15 harvest cycle this year will be exceeded by 5 times. “40% of maize has already been harvested with excellent yields,” the report said.

In addition, the first crops of soy has been harvested showed very good yields. According to GEA’s report, “They are around 38 to 45 quintals per hectare in the region. In Marcos Juárez, said the lots that did not suffer the excess water and are being harvested with yields ranging from 44 to 60 qq/ha. Those who were affected by flooding are around the 35 qq/ha. “

Javier Mariscotti, a broker at the Rosario Stock Exchange, said that “since last week there began to be greater demand for the sale of maize, with a harvest that will be very good. We believe that during this week there will be a greater entry of trucks to the port terminals than ever before. “

Multiplier Effect

For the moment, a multiplier effect of the crop in the different links of the agro-industrial chain is expected.

“Mobilizing all this additional harvest to the port or industrial areas implies the need to use the equivalent of one million trucks more than in the previous campaign,” The School of Economics and Business of the National University of San Martin said.

Considering an average distance of 200 kilometers to the ports for the transfer of the production, for the sector of the carriers the extra production will mean to increase its income by $28 billion pesos.

“It Is expected that the increase in the production of these crops will generates a greater demand for labour. Consequently, 139,000 additional jobs (or equivalent hours) would be created during sowing and harvest periods, considering both the jobs that occur directly and indirectly, “said the report, by Adrián Gutiérrez Hair and Agustina Ciancio.

Provincial withholdings and other taxes, with the additional production with respect to drought year will generate another 72.1 billion pesos.

It Is worth remembering that in September last year, by increasing the field retentions and generalizing them for all sectors of the economy, the Government anticipated withholding revenues for this year of $280 billion pesos.

Source: La Nacion

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