Paraguay – Update on Salitre Cue farm rice production (December 2017).
Weather: October and November were very wet months. We registered respectively 441 mm of rain vs 255 mm as historical average for October and 427 mm vs 193 mm as historical average for November. For the calendar year 2017, we already registered 1,000 mm rain above the 12 months historical average, and December is forecasted to be humid.
Nevertheless, the World Meteorological Organization (WMO) is announcing for 2018 the likely arrival of the opposite phenomenon for the region with El Nina event.
Sowing: Over 1,000 hectares have been sowed so far and around 250 hectares are in progress, delayed by weather conditions. Our target for this campaign is to produce 9,000 tons of paddy rice.
The planted area is developing very well as you can see, thanks to the heavy rains which irrigate naturally the fields (ie less artificial irrigation via pumping is required). What helps the development of the crop on one hand is hurting the end of the sowing.
Optimization of the irrigation system: As previously mentioned, we are performing some adjustment in the irrigation system in order to have a more efficient and secure use of water. Part of them have been completed like the direct connection of the main pump station with the Master channel, short cuts in some connections and aerial filling system of key channels, generating future efficiencies in maintenance.
Remaining adjustments are going to be performed after the harvest will be completed in February as we want to connect the Master channel to the artificial lake (Reservoir).
Uruguay – Forestry business is attracting investors’ interest (November 2017).
The Finnish pulp and paper maker UPM (listed on Nasdaq) and the Government have signed a preliminary agreement for the construction of a new pulp mill ($2.32 billion) to be located close to the city of Paso de Los Toros, in the department of Durazno. The Government will develop the rail and road network by funding the construction and long-term maintenance of the network.
If UPM decided to move forward, the mill will have an annual capacity of about 2 million tons of eucalyptus market pulp. The impact of this project for Uruguay is estimated at 2 GDP basis points and more than $1 billion in export revenues each year.
The project will be really structuring for the country on account of its importance for the economy of Uruguay and for whole infrastructures it will create.
Uruguay – Update on Santa Maria farm activities (November 2017).
A relatively wet winter: Cumulative rainfall for July-October period was 501 mm, +26% compared with the historical average for the same period (August and September were particularly wet). However, the climate of the last part of October and first half of November was more favorable, which should limit problems especially for crop activities.
Winter crop: 374 hectares were sowed with barley (expected yield of 3.5 tons/ha) and harvest will start soon. The partly heavy rain registered after sowing period are causing concerns about barley quality in Uruguay.
Most important factors limiting crop production are diseases, favoured by high moisture during spring time, and abiotic stresses such as excess rainfall, high temperatures during grain filling, and drought during part of the growing cycle mostly in late sown crops. Sowing time is June and July, but later sowing dates are frequent due to excess rainfall.
Cattle activities: Autumn service of heifers took place (insemination of 306 heads) and we are very proud to obtain a pregnancy ratio of 93%. They are in very good shape and have access to dense pasture.
Below you will find some young steers. You can notice the uniformity of the herd which illustrate work performed since year in genetic selection and ongoing hard work of the farm personal.
Paraguay – Rice production cycle at Salitre Cue farm (November 2017).
Rice cultivation performed at Salitre Cue is a step-by-step production until harvest and post-production activities took place. From the moment land is being prepared until harvest is taking place 9 months elapse.
Pre-planting stage which take around 4 months, is now almost behind us, expect in one block. We are late there due to the accumulation of bad weather conditions. To illustrate, we register 145 mm of rain for the single day of 7 November with intense lightning and electricity cuts. Activities like pre-sowing fertilization, herbicide application, taipas nivelation as well as sowing are impossible under those conditions.
Meanwhile, the 1st blocks sowed which amount to 850 hectares are in irrigation stage until January (nutrients have been applied). So far, the plants grow and develop normally even if incremental work is currently required given weather conditions to management water in the fields. After this stage, plants are going to enter in the flowering period (high brightness is required for an optimal development of rice grains) before rice grain achieve is maturity, and harvest stage begun.
Argentina – Standard & Poor’s ups country’s rating from B to B+ (November 2017).
S&P Global Ratings raised its long-term sovereign credit ratings of Argentina to ‘B+’ from ‘B’ as “the outlook on the long-term ratings is stable”. This action reflects greater confidence about the government’s political capacity to continue pursuing its economic agenda, resulting in more predictable economic policy and governance. In this context, S&P expects moderate but sustained economic growth in the next 3 years and lower potential volatility.
After its electoral gains, the government is aiming to eliminate distortions and promote investment while reducing tax pressure (Corporate taxes should be lowered from 35% to 25% within 5 years).
However, public-led infrastructure investment will continue to play a decisive role in driving growth. The Government, inter alia, foresees the construction of 7,000 km of roads. The total amount of the combined projects is estimated to $26 Billion and will be invested over 5 years.