Paraguay – Sowing season has started at Salitre Cue farm (August 27, 2019).
On August 27, we began with the sowing period with block G (in yellow). Our objective for the cycle is to sow our so called “base” surface of 1,600 ha and the production is dedicated 100% to IRGA 424 cultivation. We choose not to extend our planted surface this cycle given market outlooks, especially for Brazil (Brazil plans to continue to reduce its imports by protecting its internal market; Paraguay production can be viewed as an adjustment variable for Brazil needs).
Timing and good seeds are key in this stage: We are in the optimal sowing period for our region which will help to produce a fast growing, uniform crop that will have higher yields and better competition against weeds and other pests. The seeds used are all certified one as they lead to lower seeding rates, higher crop emergence, reduced replanting, more uniform plant stands, and more vigorous early crop growth. Vigorous growth in early stages reduces weed problems and increases crop resistance to insect pests and diseases. All of these factors contribute to higher yields and more productivity in the farm.
Paraguay – Renovation of the school of Arequita, next to Salitre Cue farm (August 2019).
As part of your engagement in the development of the local communities nearby our operations, we decided to provide some support to the small school of the village of Artigas near our farm by realizing some refresh and upgrade of the structure. The roof of the school deteriorated significantly with the torrential rains registered earlier in May as you can see. We have now fixed it, and took also advantage to refresh the dining room for the kids and install a small kitchen. Finally, the waterhole used for drinking water and cooking for the children was adjusted. We want to create a healthy environment for 9 children and their teacher attempting the school, and promote favourable work conditions for them. You can see the situation before and after renovations.
PARAGUAY – Land preparation at Salitre Cue farm (August 2019).
Land preparations of the fields have been completed. This cycle, we planned to sow over 1,500 ha with rice. Rice cropping requires adequate land preparation. Operations include land clearing, weeding, pre-irrigation, plowing and levelling.
The main objective of land preparation is to create a favourable environment for the rice plants to germinate and grow. Adequate land preparation will help to:
1/ improve soil structure (better ventilation, permeability, and loosening of the root zone) to make root penetration easier, and field topography in order to facilitate irrigation and drainage,
2/ distribute weeds and crop residues evenly over the field and incorporate them into the soil,
3/ obtain good recovery of fertilizer nutrients, and control weeds.
We are also testing new rock protections inside the main drainage. Those protections were built during the maintenance period of the season. Seeds are waiting to be sowed.
Argentina – Macri suffers crushing defeat in Argentina primary elections (August 11, 2019).
Argentine voters soundly rejected President Mauricio Macri’s austere economic policies in primary elections on Sunday 11/08/19, casting serious doubt on his chances of re-election in October.
A coalition backing opposition candidate Alberto Fernandez (Center-left) – whose running mate is former president Cristina Kirchner – led by a wider-than-expected 15 percentage points with 47.3% of votes, with 88% of ballots counted. Pro-business Macri registered 32% of the votes and centrist former finance minister Roberto Lavagna a distant third with just 8.3%.
If Fernandez was to register the same result in October, he would be president as Argentina’s electoral law requires a candidate to gain 45% for outright victory, or 40% and a lead of at least 10 points over the nearest challenger.
Macri’s chances to get a second mandate appear all but over. His camp has lost popularity due to a deep economic crisis which drove the inflation rate to nearly 50% last year and slashed Argentines’ purchasing power. He was taking the necessary, painful steps to get the economy going after 12 years of leftist populism under Cristina Kirchner and her predecessor and late husband, Nestor Kirchner but the electorate issued a resounding rejection of his handling of the economic situation.
On the other side, the markets have little faith in Alberto Fernandez, who is widely seen as dependent on Cristina Kirchner. The possibility that Cristina Kirchner could return to power put markets on edge due to the prospect of heavy state interventionism and protectionism. On top of that, Mrs Kirchner is currently still facing a series of trials for corruption (a dozen) during her 2007-2015 administration. She denies all the allegations.
There could be an even stronger degree of market volatility given the spread in the results. At market opening on 12/08/19, The Argentine peso plunged already by 5.1% to 48.50 per US dollar … it could turn into a hectic trading day for Argentina.
To be followed: The 1st round of the presidential election will be held on October 27, with a run-off set for November 24, if needed.
Paraguay – Secret energy agreement with Brazil causes great government crisis in Paraguay (August 2019).
The secret agreement signed on May 24, 2019 between Paraguay and Brazil regarding Itaipu hydroelectric power station (one of the most powerful in the world) has hit the conservative government of the Paraguayan Mario Abdo Benitez.
The deal became only public by end of July. In less than 24 hours, the foreign minister and some other Paraguayan senior officials were forced to resign after learning that the terms of renegotiation of the Itaipu plant agreement benefit only Brazil. The deal would increase costs for Paraguay by more than USD 200 million.
Paraguay’s Senate rejected on July 29 the agreement and instructed the Executive Branch to handle all negotiations with Brazil related to Itaipu on the basis of transparency.
Brazil’s president came to rescue his ally: Bolsonaro sees Abdo as an ideological ally and knows any future government of Paraguay is unlikely to be as close to his government as the current one. A Liberal Party interim government would take a harder approach to the Itaipu negotiations and many other bilateral and multilateral issues facing the two countries. Brazil announced on August 1st the cancellation of the deal and offers a new negotiation as a way to help Abdo to save face.
The Colorado party members withdrew their support for the impeachment motion that failed. President Abdo has been cautioned by the Paraguayan Parliament not to make the same mistakes and a Bicameral Investigative Congressional Commission has also been created to find out exactly what happened and why.
