April 24, 2007

Argentina loses US$453 million in agriculture casualties due to heavy rains

Heavy rains in Argentina last month have caused 1.4 billion Argentine pesos or US$453 million in losses in the agriculture sector.

The adverse rains damaged two million tonnes of soybeans, 200,000 tonnes of corn, and 27,500 heads of cattle, according to data of Argentine agriculture associations SRA, FAA and Maizar.

The figures do not still include the losses incurred in 3,000 locations of dairy companies which reduced the milk supply by 11 percent. The situation has prompted dairy companies to suspend their exports from April 2007 in order to be able to cover the domestic demand.

The torrential rains and floods have also decreased Argentine dairy production, which totals 1.4 million tonnes annually, to drop by 15 percent year-on-year this year.

Floods and heavy downpour destroyed almost two-thirds of the agricultural and livestock area of the province of Santa Fe, eastern Argentina; part of the northeastern area of Cordoba province, central Argentina; the northern part of Buenos Aires; and the southern part of Entre Rios province, eastern Argentina.