The expected 700,000 tons is quite far from the numbers recorded under normal weather conditions.
Soybean harvest projections continue to be bleak among producers due to the agricultural emergency due to water deficit. The drought has hit so hard that according to production estimates, the volume harvested would be almost 77% lower than originally projected for 2023.
The 700,000 tons that are expected to be harvested, at best, are a long way from the more than 3 million tons that would be reasonable to have under normal climatic conditions. Faced with this complex panorama, producers seek to try to save what is possible, and obtain financing for a new planting.
The drought continues to hit the Uruguayan economy enormously and weakens the productive system after last year’s record exports, as it is expected a drop in gross domestic product (GDP) close to 3%. In this scenario, the new pulp mill PSU 2 all eyes are concentrated in search of compensating for the drop in national placements in the trade balance.
The BSE must pay 95 million dollars in compensation for the drought
He State Insurance Bank (BSE) must pay the largest compensation in its 111-year history due to the negative effects of the drought in Uruguay has generated, and continues to generate, in agriculture. The BSE estimated at the end of March that the amount to be paid would be around 90 million dollars. Today, that figure is already updated in 95 million dollars.
“It is the biggest loss in the history of the bank, and not only talking about agricultural insurance, but taking over all the portfolios and all the sales branches that Banco de Seguros has,” he said. Andres Grunert, supervisor of Commercial Area of the Agroeconomic Departmentin dialog with Underline.
“All those claims were below what this was,” insisted the supervisor, who also explained that what the BSE charges for the agricultural item is 3% and in compensation “the relative weight is much greater.”
In any case, Grunert clarified that “the bank is very solid” and that it has a patrimony of 700 million dollars: “Today the bank operates with more ease than what the Central Bank requires and, in addition, some international agencies have rated the bank triple A”.
Source: Ambito
