February 19, 2004

Argentina 2003-04 Wheat Output Up 13.8%

The size of Argentina's 2003-04 wheat harvest will beat all previous expectations as farmers produce a higher- than-expected 14 million metric tons this year, the Agriculture Secretariat estimated Wednesday in its monthly crops report.
 
The new forecast is up from last month, when the Secretariat estimated 2003-04 output at about 13.2 million tons.
 
The latest estimate puts production up 13.8% from 2002-03, when Argentina produced 12.3 million tons, according to official data.
 
The Secretariat said farmers planted 6.035 million hectares of 2003-04 wheat, compared with 6.3 million hectares the previous year.
 
While area is down from a year ago, yields are better than they were last year, partly because farmers are using more agrichemicals than in the past.
 
"The estimate is based on the better yields that have been obtained in the wheat regions in center-north parts of the Pampas region and those that are being achieved as the harvest progresses in southeastern Buenos Aires," the Secretariat said, repeating verbatim comments made in last month's report.
 
"In this latter region, precipitation over the last three months of 2003 favored the development of a very good number of grains per shaft," the Secretariat said. "In addition, the absence of foliar diseases, like those found during the last campaign, has helped vegetative development. Consequently, we see excellent yields that will compensate for the weak results produced in regions that were affected by the drought. Given that (the Pampas) region accounts for more than 30% of total production, we can put forth this estimate (of 14 million tons) that is positively different from the previous month."
 
The U.S. Department of Agriculture has estimated 2003-04 output at 13.5 million tons.