Investing in agriculture for 2023
Hardy investors are seeking new ways to grow their money. IN THE next 40 years, humans will need to produce more food than they did in the previous 10,000 put together. But with sprawling cities gobbling up arable land, agricultural productivity gains decreasing, and demand for biofuels increasing, supply is not keeping up with demand. Clever farmers, scientists and entrepreneurs are bursting with ideas. But they need money to make this jump. Financiers more often found buying and selling companies have cottoned…
Argentina’s worst drought in memory lands a new blow to the economy
Gross domestic product in South America’s second-largest economy, which desperately needs US dollars, will shrink 3 per cent this year, worse than the previous forecast for a 1.5 per cent contraction, as one of the worst droughts in recent memory ravages crucial farm exports. Argentina’s looming recession will be more profound than first expected as one of the worst droughts in recent memory ravages crucial farm exports. Gross domestic product in South America’s second-largest economy, which desperately…
Argentine and Brazil agribusiness have an “ecological surplus”
Economist Nicolás Torre, from the IERAL Institute of the Mediterranean Foundation, published an extensive thread on the social network Twitter, highlighting that both Argentina and Brazil have a positive “ecological footprint”. That is, they have more natural resources available than those they consume annually to survive. Torre’s report came in response to accusations against South America in recent weeks. First by The President of France, Emmanuel Macron, when he said that Brazil does not…
Argentina’s land laws stifle sustainable agriculture
Fewer and fewer farmers grow soy, grains and cereals in Argentina. Though overall exports are at historic highs, over the past three decades the country’s land laws have allowed land to become increasingly concentrated in fewer hands and dedicated to the production of a smaller range of crops, census data shows. Experts say this agribusiness model based on short-term profit disincentivises sustainable practices. The combination of intensive agrochemical use, genetically modified seeds and direct sowing without…
Global crop supply fears send soybeans prices to the highest in six years
Soybeans traded at the highest level in more than six years as increasing demand from top importer China and dry weather in the major producing areas of South America spur growing concerns over global supplies. Prices have climbed more than 40 percent since March after China started snapping up cargoes to feed a massive increase in hog numbers as the country recovers from African swine fever. Now the development of southern hemisphere crops in Brazil and Argentina has been threatened for weeks by lack…
Panic Sweeps Argentine Pampas as Farmers’ Old Nemesis Returns – Peronism
All across the Pampas, in one wind-swept little farming town after another, a sense of dread has suddenly set in. Mauricio Macri, the man who championed the cause of the Argentine farmer, is almost certain to lose his re-election bid in October and will hand back the presidency to the leftist party that tormented the region for years. A primary vote held a few weeks ago made that clear. The concern is so severe that many here aren’t waiting for the actual election to confirm Macri’s defeat. They can’t,…
The incredible rally of the Argentine corn exports
The weekly RIA Consultores’ report shows this week that during the first half of the year, Argentina exported 17.1 million metric tons of corn, 44% up 2018 in volume and 32% up in value. This amazing growth is based on a 57 MMT record harvest and on bullish prices. According to the Agro-Industry Secretariat, during the 2018/19 campaign corn production peaked at 57 MMT, which 34 MMT will be exported and 9 MMT will remain as carryover for the next season. This week the International Grains Council stressed…
For the sixth consecutive month, the level of activity in the Argentine rural real estate market increased
Farmland sales and rentals increased by 18% in June, compared to May 2018 driven by the positive exchange rate stability and the rebound of the Governments popularity in recent surveys. The rural farm price index that measures the level of activity in the rural real estate market (Incair) grew again once again in June and accumulates six consecutive months of increases, reported the Argentine Chamber of Rural Real Estate (Cair). The indicator, which is based on the real estate operations carried out and surveys…
Argentina’s 2019 wheat crop expected to be a record
Argentine farmers are expected to plant 6.5 million hectares of wheat in the 2019/20 season, the government said in a report, citing good rainfall as the reason for the increase from its previous forecast of 6.46 million hectares. “Good soil moisture conditions have favored planting,” the agriculture secretariat said in its monthly grains report. Wheat in Argentina is planted in June and July and harvested in December and January. Some 39% of this season’s wheat crop has been planted so far, the report…
43% of Argentine Agricultural Producers believe that the economy will be much better in 2020
Agricultural producers have expectations about the future of the country somewhat similar to those of last year, according to the entity CREA. ( farmers techinical support organisation ) The survey, conducted in March of 1,233 CREA agriculture entrepreneurs, highlighted that 43% considered that the country’s situation would be better in one year, while in 2018, 46% thought that. In the past year and a half, they reported, “there was a progressive decrease in expectations”, although at levels…
Argentina: After the USD dollar rally, they expect up to USD 25 billion from this years harvest
This was estimated by the Ministry of Finance. Soybean exports will be the main foreign exchange generators for up to USD 17,200 million of this the 25 billion. In the midst of the strong rise of the USD dollar, the Government stressed that in the coming months they expect foreign exchange for up to 25 billion dollars. Soybean exports will be the main foreign exchange generators for up to USD 17,200 million. Corn exports would reach USD 4,874 million in 2019 (calendar year), with a conservative view, and thus…
It is expected that Argentina’s Ag futures will grow 35% this year
A good sign for the Argentine farm economy: during the past January, the Buenos Aires Futures Exchange (MATBA) operated 3.2 million metric tons of grains futures, growing 14% versus January 2017 and beating a new record for this month reaching 60 MMT. In the previous years (2015 to 2017) MATBA operated between 1.5 and 1.9 MMT of futures contracts in January. The first large step occurred in 2018 when volume jumped to 2.8 MMT, but now the trend seems to secure and the wheat is the “star” crop. As its output…
Argentine winter crops bring fresh dollars to a weak economy
In January, oilseed industry and grain exporters entered USD 1,756 million into the Argentine economy, versus USD 1,040 million in December 2018. Some analysts celebrate this fact saying that thanks to better harvests of wheat and barley, export companies are enhancing the income of dollars into the Argentine economy. According to the press release of the Oilseed Industry Chamber (CIARA), this increase of export dollars is related to the purchase of these two winter crops by the exporters. In fact, 8,4 MMT…
Agri-business starts to lift the Argentine economy
SAN ANTONIO DE ARECO (ARGENTINA) (AFP) – Federico Zerboni gazes out from his 4×4 as it rumbles across the pampas, fertile fields of rapeseed and soybean visible as far as the eye can see. An agri-business boom in Argentina, fueled largely by soybean and grain exports, has helped offset some of the pain of a bitter recession that forced President Mauricio Macri to call on the International Monetary Fund for a $56 USD billion bailout. Zerboni, 53, said his 6,000-hectare (14,800-acre) farm —…
Adecoagro – One of the largest agricultural companies in South America
Adecoagro started operating in 2002 with the purchase of 74,000 hectares of land in Argentina and from then on they became one of the largest agricultural companies in South America. Adecoagro production is mainly focused on sugar and ethanol, but it is also producing soy, rice, corn, and dairy. The company’s main competitive advantages are its low production costs, clean ownership structure, varied land ownership, and strong valuation (stock price below book value). Your stock screener or data provider…
