PARAGUAY – Progress made in land preparation at Salitre Cue farm (August 2020).
We made good advances in land preparation: over 1,000 ha have been fully prepared now (tillage, land levelling, field drainage and aerial application of herbicide). Our objective for the cycle is to sow in partnership our so called “base” surface of 1,600 ha and the production will be dedicated 100% to IRGA 424 cultivation. We choose not to extend our planted surface given all market interties (slow trading activities, Brazil situation and pandemic situation).
We are going to sow again in stages this cycle and we are targeting to start the sowing of 1st stage by August 25 (540 ha). This way we can have a harvest in stage and reduce our operating risks (weather issues and irrigation restrictions) while we will have a better control of the plots as they are not going to be all in the same stage at the same moment.
Fertilizers were delivered by our partner at farm and stored in our facilities.
We are also in the final stage of the maintenance of our water pumps. The entire process has been delayed due to the pandemic (limitation of circulation of service providers, delays to import spare parts, etc).
On 2 of the 4 big pumps at the river water pumping station (each with a 2,600 liter flow per second), power and control cables had to be replaced given the intensive use of our pumps. Those cables are key but their imports were delayed. Those pumps are going inside a pipe with those cables and have then to be installed with a tensioning steel cable to prevent movements’ function that when water creates turbulence inside the pipe, cables have no movement and they don’t hit the pipe walls.
To proceed, we need 1st to remove the pumps from their pipes. It s a very technical process because If water reaches inferior place, pump needs to be treated in lab conditions (dismantled and all inside water needs to be removed; likely bearings will also need to be replaced). At the re-pumping station, the smaller pump there (1,600 liter flow per second) needed a much lighter maintenance, only small spare parts had to be changed. The costs of maintenance can rise very quickly if you don’t pay attention.
ARGENTINA – Update on Curupi Pora farm activities (August 2020)
Situation/weather: While Government extends lockdown in the Buenos Aires metropolitan area (AMBA) until August 16 and prohibits all social gatherings in Argentina for the next 15 days, more flexible measures have been applied in most of Argentina’s 23 provinces. The AMBA region is concentrating 90% of all cases of covid-19. However, movement restrictions are still prohibited between provinces for non essential services which are creating troubles for them. For us, advisors or providers like vets cannot visit all our farms as they are located in different provinces.
In addition, weather is not help us and we are concerned about drought situation we are facing at the farm. No rain occurs and wide daily fluctuation in temperature are registered (8° C in the morning vs 29 to 34°C in the afternoon) which affects re-growing of pastures. In some part of Santa Lucia River, we register only 20 cm of water, and its winter/raining period…
Cattle operation and pasture program: We have currently above 6,400 heads at the farm. Given the weather conditions we are facing, the cattle is overall in good shape.Cattle video
We are just starting 1st grassing on ray-grass sowed in May. The pasture is missing rains.
Here you can see OAT emerging sowed earlier this year (same status as ray-grass) as well as heifers 2 years which will start service in October/November.
We also installed a new solar water pump at one of our water tank.
ARGENTINA – Debt restructuring deal reached with creditors (04/08/2020).
Argentina’s government announced on Tuesday 4 it had reached an agreement with its principle creditors to restructure more than $65 billion in foreign debt following seven months of negotiations and shifting deadlines.
The deal with key creditors like BlackRock Inc, Ashmore Group Plc, and Fidelity Investments would provide “significant debt relief” by adjusting the dates of payments without raising the total amount of capital and interest to be paid. The government of Mr Fernández didn’t provide a net-present value for the agreement, but sources close to the case are saying the deal is worth about 54.8 cents on the dollar. Argentina’s last offer was worth 53.5 cents per dollar while creditors request 56.5.
President Fernández must now turn his attention toward the I.M.F. as the country looks to resolve issues with its senior creditor and replace the failed financing arrangement signed under Macri’s administration in 2018. He must also focus on reigniting an economy that has been shuttered for months, and sparking growth as the country braces for one of its sharpest economic contractions on record (13.5% decline in gross domestic product according to Bank of America forecast).
ARGENTINA – Clearing performed in Tata Cua forest (August 2020).
We are currently performing some clearing activities of pine trees (culling and thinning).
This work allows, in a very dense stand produced from seedlings, to remove a certain number of “young plants” or wild re-growing plants, to promote the growth of futures crop trees.
In general, the first clearing is done in the third or fourth years after planting and the second clearing is carried out between the fifth and the seventh year. Our 750 ha forest is planted with pine trees, eucalyptus and grevillea trees.
ARGENTINA – Debt deal at impasse as creditors unite to reject government’s offer (July 2020).
Three groups of creditors have announced on Monday 21 that they have rejected Argentina’s proposal to restructure $65 billion of debt and delivered a counter offer to government – which President Alberto Fernández promptly dismisses out of hand. “We have made a possible offer and it is impossible for us to move from this last effort, which is a very, very big effort,” said President Fermandez in a statement delivered on TV Pública.
Argentina’s last offer was worth 53.5 cents per dollar, a significant improvement on its original starting position of 39 cents. Having originally proposed a 3 year grace period, the offer reduced that to 1 year, with repayments beginning in September 2021.
Creditors’ groups, however, dismissed the idea that there wasn’t more room for negotiation. “Argentina’s offer is short of what the creditor groups can accept,” they said in a statement, adding that they would not meet the government’s August 4 deadline to find an agreement. To be continued …