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PARAGUAY – Update on Salitre Cue farm activities (January 2023).

Situation/weather: We have recently registered some heavy rains so as in Argentine Mesopotamia (Misiones, Corrientes, and Entre Ríos) and also in southern Brazil which fit for once with our irrigation period of the rice. The region is again facing the consequence of La Niña weather pattern. Lot of concerns have already expressed after the downspout at the Paraguay River nears its third consecutive all-time low. The low water level has a direct impact on navigability, which, in turn, raises freight costs.

Rice: Given the hydrological forecasts for the season and boom in input prices, we have decided with our partner GPSA only to sow 390 ha of rice for this cycle. If for whatever reason we would face any shortage in rains or pumping restriction on the river, we could fully mitigate our risk by using the water of our artificial lake of 480 ha to fully irrigate for the entire period our rice fields. So far, the weather gave us reason.

All rice fields sowed are in very good conditions as you can see. We are in the pick of the irrigation period and have a very uniform crop.

Corn: In addition to rice, we have decided with our partner to sow 488 ha of corn this year as a rotation to soybean. We are in the process to finish with the sowing and the crop is emerging in the early field sowed as you can see.