July 30, 2008

Uruguay is expected to sharply increase agricultural output and exports this season in response to high international commodity prices, according to a report by Uruguay's s Office of Agricultural Planning and Policy, or OPYPA.

The area planted during the 2008-09 crop year is expected to be the largest in the last 20 years, with wheat area up 40 percent from last season, the OPYPA said.

Yields are also expected to be higher this season due to challenging weather conditions in the 2007-08 crop year, the report said.

OPYPA sees barley production rising 55 percent, wheat up 50 percent, sunflower seeds up 33 percent, corn up 31 percent, and soy production up over 30 percent.

Beef production is also expected to rise by 1.2 percent.

Farm exports as measured in dollars are also seen rising sharply, mainly due to higher prices, but also based to a lesser degree on increased shipments.

The dollar value of beef exports is seen rising 83 percent on the year to $1.46 billion, while soy sales will rise 67 percent to $350 million and rice 78 percent to $500 million, OPYPA said.

Wheat and wheat flour exports are seen rising 241 percent to $93 million and wood exports will rise 21 percent to $300 million.

Uruguay exported 775,000 tonnes of rice in 2007-08 and is forecast to ship 800,000 tonnes this season, according to the US Department of Agriculture.

Uruguay's beef exports in 2008 are set to rise to 410,000 tonnes, up from 385,000 tonnes in 2007, according to the USDA.