“Grain production in Cordoba in the 2022/23 campaign, stands at the lowest level in eleven campaigns. The gross value of production would fall to the lowest value in five campaigns and falls by USD 7,000 million compared to the previous campaign”, states in the summary of its latest report the Grain Exchange of Cordoba.
The work of the technicians of the entity is a picture of the ravages that the drought caused in the Mediterranean production, with the logical consequences that are transferred to the economic level: “With normal yields, production could have exceeded 41 million tons, but it would only reach a little more than 21 million tons. In this context, the gross value of the provincial production would be USD 7.7 billion lower than the potential”.
Just 20 days ago, at the end of February, the BCCBA pointed out in a meeting with the sector press that, with the cuts in the grain harvest, the province was going to lose USD 4.7 billion, but that these projections would surely be modified if the weather situation did not improve. This last report is an account of this warning.
All percentages, in free fall
“Grain production in Cordoba for the 2022/23 campaign, including winter and summer crops, would be the lowest in the last 11 campaigns and would reach a volume of just over 21 million tons. This implies a drop of more than 16 million tons with respect to the previous cycle. The harsh conditions experienced by the crops, such as below normal rainfall, mainly, added to intense heat waves, early frosts and hail, are responsible for this situation”, the Exchange points out in more detail in the update.
“In this context, the gross value of production would reach USD 8.3 billion, USD 7 billion less than the previous season, and the lowest value in five seasons. Moreover, this figure is more than USD 1.7 billion below the historical average of USD 10.1 billion,” the report states.
The gross income from production, which is calculated as the domestic market price for production, measures the retribution to the agents in charge of production, that is, the amount of dollars generated for those who participate in the production process, minus export duties and port expenses. This variable would reach a sum of USD 5,900 million, USD 5,000 million less than in the 2021/22 season and the lowest value in five seasons, according to the economists of the entity.
Corn, at the head of the decline
“The crop that would lose the most with respect to its potential in Córdoba is corn with more than USD 3.4 billion, followed by soybeans with losses of USD 2.825 billion soybeans, wheat with USD 754 million and peanuts with USD 565 million,” the document lists.
Examples of the disaster
Going back to the February report, in order to understand the magnitude of the crisis, the BCCBA compared the economic amounts of the damages with more tangible issues. Thus, in February, with a loss of USD 4.7 billion, Cordoba lost the equivalent of 40 thousand one-bedroom apartments, or more than 100 thousand double-cabin pick-up trucks, or 7 thousand harvesters.
With the numbers updated to USD 7.7 billion loss, now the number of apartments is 64,400, vans 172,000 and harvesters 11,300.