PARAGUAY – Review visit at Salitre Cue farm (December 2019).
Situation/weather: Hotter and dryer than normal conditions have been experienced during September to November. The irregular rains have resulted in low water levels on the Paraguay River and its tributaries, which have disrupted barge traffic and water pumping for rice producers. We had to face several restrictions periods of water pumping (either whole or partial) from the river imposed by the authorities.
However, thanks to our artificial lake of 480 ha we could mitigate the problem and continue to irrigate the fields for the rice plants under irrigation (stage sowing). Among all our neighbours, we are the only one having this water reserve as you can see on the aerial view of the area. Depending the level of our river, we could also secure an authorization to pump alternately (10 hours a day).
The rainfall in Paraguay has now increased a bit, but all crops farmers are still concerned about the irregular nature of the rains.
Market: The entire region is currently in crisis rather driven by the economic situation or political (Chile, Colombia, Peru, Argentina, Bolivia as well as Brazil). Brazil currency reached in November his historical lowest level against the US dollar. Knowing that around 90% of the Paraguayan rice production goes to Brazil, very low opening prices have to be expected for this season. Paraguayan producers are also worried about the change in administration in Argentina (exports are barged down the Parana Rive to ports in Argentina). The prior administration of Mrs. Kirchner leveed a tax on crops when they transited through Argentina and farmers are concerned that the tax will be reinstated once again under the new administration.
Production: 1,250 ha are under irrigation and the sowing of 350 ha more has been completed. The intense uniform green colour of the crop shows that water is well distributed, and that the nitrogen applied is being well used by the plants. The 1st plots sowed are now in blooming stage and you can see some aerial application of fertilizer performed in the latest plots sowed.
ARGENTINA – Review visit at Curupi Pora farm (December 2019).
Situation/weather: While drought has ravaged the wheat and barley crop on the Pampas growing belt, we have an optimal situation and weather. Thanks to a wet previous cycle and the current usual hot temperature for this period of the year, pastures have been boosted and are now highly abundant and dense in all section of the farm.
Even Santa Lucia River with his current optimal level allows a direct drinking access to the cattle and expands the grazing area bordering the limit of our farm with the river. The farm is in excellent shape thanks to the permanent hard work of the gauchos and their manager, Ricardo Borda.
Silage and pasture program: We have sowed around 150 ha of corn, which will be use later to feed the herd. Herbicide has just been applied and we are expecting yields around 4.5t/ha.
As part of our program, we are in process of sowing subtropical pastures (Bracchiria) which showed good resilience to heat waves and water shortfalls.
Cattle operation (4,700 heads): The cattle is in excellent shape as you can see for the various categories. We have started the insemination process of the heifers.
We are also anticipating some market conditions changed by selling some male calves (180 kg) as well as some fattening cows (460 kg). Across all categories, we are planning to sell around 1,500 heads.
Australian water tank (400,000 liters of capacity)
URUGUAY – Conservative Lacalle Pou wins Uruguay presidential election (November 28, 2019).
Center-right candidate Luis Lacalle Pou (a business-friendly conservative) won Uruguay’s presidential election after his rival conceded, bringing an end to 15 years of leftist rule in the country.
Mr Lacalle Pou, a 46-year-old lawyer and a former senator, defeated Daniel Martinez (former mayor of Montevideo) in the runoff election after a recount of votes. The gap between the two candidates who were in the run-up was only 3,090 votes.
He plans to put more police in the streets as public safety has been eroding, but also wants to tackle the country’s high taxes rate and cost of living through austerity measures to reactivate the economy. He will take power on March 1st at the head of a right-wing coalition of 5 parties.
Uruguay should remain a bastion of peace and stability in a turbulent region.
ARGENTINA – Update on San Bartolo farm activities (November 2019).
Situation/weather: After having faced a wet summer as Northeast Argentina has been hit by extensive flooding (please refer to post of January 2019), water is evacuating more slowly than it used to, reducing the available grassing area for the cattle.
Our situation is not unique as our neighbours are facing the same situation. After having performed some investigations, it appears that not only the river has been affected by the flood faced earlier this year, but some illegal internal protection wall built by some farmers upper the river has changed the water course. Local authorities are investigating to identify the origin of the problems and to take measures against. Meanwhile, we are also talking with our neighbours to the local authorities so that they start to perform readjustments in the river and authorize us also to build some internal protections to prevent.
Cattle operation (2,613 heads): Overall the cattle is in decent condition given the situation faced earlier this year (heifers and female calves suffered the most). We are working on the improvement of the heifers since beginning of December; we will start with the insemination process of the heifers. We have currently 363 heifers (2 years old) at the farm. Our objective is to achieve a pregnancy ratio above 80% with 80% of weaned calves. Last year, we registered 76% of pregnancy ratio.
20 young bulls (2 years old) have just been transferred from Curupi Pora farm for genetic purpose. Bull selection can be the most powerful method of genetic improvement in the herd. However, young bulls have not the same fertility power as they are still growing and so far, they have only been fattened (overly fat). Bulls should be gradually stepped down in condition to avoid nutritional disorders and adverse effects on semen production.
URUGUAY – Presidential election headed to November runoff (October 27, 2019).
Uruguay’s presidential election concluded Sunday night with none of the candidates earning the outright majority needed to win in the first round. Leading candidates Daniel Martínez of the Frente Amplio (leftist coalition that’s governed Uruguay for almost 15 years) and Partido Nacional’s Luis Lacalle Pou will face off in a November 24 run-off.
Mr Martinez (right side of the picture), ex-mayor of Montevideo and former minister, had around 38% with a third of votes counted, well short of the absolute majority needed to win outright. His rival, former senator Lacalle Pou (left) was running second with 30%.
Even if Mr Lacalle Pou has more conservative view, both candidates are focused to reboot the economy and the outlook of this election won’t change the stability of Uruguay’s democracy. Uruguay’s country risk will remain stable, and the country has not become riskier than last week for Investors.
The winner of the November 24 runoff will start his 5 year term on March 1, 2020.
Finally, Uruguayans also elected 99 deputies and 30 senators and voted on a series of referendums on tough on crime measures.