January 19, 2006

 

Argentina ups 2004/05 corn output estimates to 20 million tonnes

 

 

Argentina's farmers produced a record 20 million tonnes of corn in 2004/05, according to a new estimate released Wednesday by the Agriculture Secretariat.

 

This puts production up from the previous estimate of 19.5 million tonnes, which was itself a record.

 

The last time Argentina's corn production came close to that figure was in 1997/98, when output totalled 19.36 million tonnes.

 

"The main reason for the increase estimated here is an increase in planted area in central parts of Buenos Aires, southern Santa Fe, Entre Rios, Cordoba, Chaco, Santiago del Estero and Tucuman," the Secretariat said.

 

In addition, the Secretariat said farmers produced record yields last season, thanks to favourable weather and improved use of agri-chemicals and hybrid seeds. In some cases, yields surpassed 10 tonnes per hectare, well above the average of about 7 tonnes/hectare.

 

The more optimistic estimate of 2004/05 production contrasts starkly with the negative prospects for the 2005/06 crop.

 

In the same report Wednesday, the Secretariat said farmers will harvest between 13 million and 14 million tonnes of corn in 2005/06. That puts the Secretariat's forecast, the first of its kind this season, down measurably from the 16.8 million tonnes forecast by the US Department of Agriculture for Argentina this season.

 

The Secretariat estimated the planted area of 2005/06 corn to 3.05 million hectares, down slightly from 3.07 million a month earlier. If the latest forecast holds, it would put area down 10.3 percent on the year.

 

The combination of an extended drought, high production costs, high export taxes, and lower corn prices led many farmers to plant less corn this season. The decline in area is particularly pronounced in centre-north Buenos Aires, southern Santa Fe and in Entre Rios.

 

The Secretariat also said that recent rain in key production areas arrived too late in the planting season to reverse the damage already been caused by the drought. As a result, yields are expected to drop this year.

 

The Secretariat said farmers already have planted 95 percent of this season's crop.