The Intercooperative Confederation of Agriculture (CONINAGRO) spread the “Traffic Light of Regional Economies”” for the month of July, which showed that only three productive segments are in the green, linked to rice and vegetables.
The report that monitors 19 productive segments, offers a simplified analysis of complexity and production in Argentina.
The traffic light has been prepared monthly since 2018 and uses an index that classifies the various Argentine agricultural products in three colors: green, yellow and red.
These colors represent the health status of each activity based on three pillars: business, production and market.
The July figure, in line with the June figure, reflects a complex context for regional economies in terms of agroindustry.
Coninagro: “63% of regional economies are in critical condition”
Only three activities showed favorable signs, which is explained by attractive producer prices, four productions face uncertainty, which could impact producer prices and costs.
While twelve activities are in a critical situation due to factors such as low demand, high costs and stagnant prices.
In July, the situation of green production (rice and vegetables) did not show significant improvements, especially in the case of vegetables, which remained with a price volatility that raises uncertainties for the future.
The economies in yellow (poultry, cotton, tobacco, pork and peanuts) in July continued with large fluctuations that impacted prices and generated instability.
Economies in the red, meaning those facing major challenges such as low demand, high costs and stagnant prices, were numerous in both June and July.
What are the segments in red?
Sweet Citrus: In the red for the fourth consecutive month. Prices are rising but not keeping pace with inflation, while storage and logistics costs are increasing.
Forest production: It remains in the red. Although domestic prices have risen, demand is low, both in construction and exports.
Grain (wheat, soybeans, corn, sunflowers, barley and sorghum): They remain in the red. Prices in pesos are low and exports have decreased.
Milk: It has been in the red for more than 12 months. Although average prices are above inflation, production has fallen significantly.
Cassava: It remains in the red, with prices well below inflation.
Honey: Its red color deepens due to very low prices and production problems.
Dad: In red for low prices.
Sheep production: Also in red, with all indicators in negative.
Pears and apples: They remain in the red, affected by low prices and high costs, although there is a slight improvement in exports.
Pig production: It changed from yellow to red due to price stagnation.
Wine and must: They have remained in the red for more than a year, combining low prices, lower domestic consumption and exports.
Yerba mate: In the red for the third consecutive month, with producer prices falling and few expectations of improvement.
Source: Ambito
