The exports March fell a 4% YoYAccording to the latest report from Uruguay XXIwith bovine meat, wheat and soybeans as the main causes of the slight decrease in placements of Uruguay, in the midst of an extreme drought whose effects on Uruguayan production are already beginning to be noticed.
In March, export applications, including placements of the Free trade zonetotaled an amount of 1,033 million dollars. Compared to the performance of a year ago —a record year for exports for the country—, this means a decrease of 4%.
The negative variation, as indicated by Uruguay XXI and can be observed in the individual yields per product, is mainly explained by the exports of beef, wheat and soybeanswhich had a strong downward impact on global figures.
Drought, the main factor behind the decline
The most impressive numbers are those for soybeans and wheat: as main export cropsthe impact that the water deficit had —and still has— on production is already beginning to be noticed in international trade.
In this sense, the March statistics show that soybean placements fell 87% compared to a year ago, while the of wheat decreased by 68%.
This data already allows us to envision a complex outlook for the second half of the year, when the greatest impacts of the drought are expected to become evident, according to experts. This first sample enters the amounts not estimated by the Ministry of Livestock, Agriculture and Fisheries (MGAP): From the portfolio, they foresee at least 1,800 million dollars of losses, in addition to the resulting induced losses, such as, for example, the reduction in exports.
Likewise, with the loss of two thirds of soybean production, it is expected that the export numbers for the coming months will also show significant declines, especially compared to a record year.
Refering to bovine meatthe item fell 20% compared to March of last year. The most important explanation is in the decrease in exports to China, which lowered demand by 34%. However, it is also expected that in the coming months the impact of the water deficit will begin to be felt, especially in the birth rate, which would reduce the availability of cattle for slaughter.
The positive points in exports
In return, the rape and carinata, pulp and malt had a positive impact in the third month of the year. In this sense, the first products tripled the exported value that was registered in March 2022, and went from representing 14 million dollars to 45 million dollars.
The cellulose, For its part, it continued to experience an increase in placements during the last month, reaching a total of 166 million dollars, which represented an increase of 12% compared to the same period of the previous year, when 148 million dollars were exported. . This product represented 14% of the total exported in 2022 and this percentage increased to 16% in 2023.
Also, exports of malt more than tripled year-on-year, reaching $29 million last month.
Source: Ambito
