The drought hit the transport of grains hard in Córdoba

2023-07-08 03:01:00

It escapes no one that the drought that seriously affected the agricultural sector in recent years is not a reason for concern exclusively for producers. Tranqueras outside, there are countless activities that are affected by the drop in the production of different crops.

One of the items that felt the blow was cargo transportation, which saw its activity drop between 50% and 60%, according to the admissions of industry leaders.

To the extra effort that transport businessmen must make due to the rise in costs, the weak campaign of coarse grains 2022-2023 was added.

To the extra effort that truckers must make due to the rise in costs, the weak campaign of coarse grains 2022-2023 was added. (The voice)

According to calculations by the Córdoba Grain Exchange, the drop in production in the province meant some 750,000 fewer truck trips than in previous seasons.

The impact on the reduction can be felt both in the traffic on the routes and in the entry of trucks to the ports.

“There were lower yields than expected and the truth is that peanuts are saving us today. The number is not the best, but at least it gives work,” said the head of the president of the Cordovan Federation of Freight Transport, Pablo Trapani.

“We are looking forward to the second-rate corn. This keeps you moving, but billing goes down because nothing goes to the ports, almost everything goes to collection centers, silo bags or feedlot consumption”, added the transporter leader.

To the extra effort that truckers must make due to the rise in costs, the weak campaign of coarse grains 2022-2023 was added. (The voice)

The businessman estimates that the decline in activity might also have an impact in the future. “Truckers are going to be lost for the next campaign, those who have vehicles will surely shrink, to stay in business,” he predicted.

For his part, the manager of the Córdoba Cargo Trucking Business Chamber, Rolando Pérez, agreed that the decrease in activity is around 50%.

“The drop in the soybean harvest is very noticeable compared to last year. It is seen that many producers decided to save harvest due to uncertainty. They will take it out as they need the money, ”he said. “Where the dry didn’t hit, the frost hit,” he added.

To the extra effort that truckers must make due to the rise in costs, the weak campaign of coarse grains 2022-2023 was added. (The voice)

The “soybean dollar 3″, the measure implemented by the Ministry of Economy between April 10 and May 31, and which offered a slight improvement in the exchange rate, hardly helped to reactivate activity.

“The movement is very little. There is no harvest. We hope it moves a bit, but with this type of change, if the government does not appeal to another measure that generates expectations for the future, it will not improve,” Pérez indicated.

The manager expressed that, in the middle of an election year and with the expectation of a change of political sign, uncertainty is growing. “Elections don’t help either. He who has a remainder may invest in merchandise, but how long can he sustain himself? ”, he wondered.

inflation and rates

Added to the decline in activity on routes is a sharp rise in costs as a result of inflation. According to data from the Argentine Federation of Freight Trucking Business Entities, in the first five months of the year (January-May) the rise in costs amounted to 44.6% and the accumulated variation between May 2022 and May 2023 was 133.7%.

Meanwhile, rates have not risen at the same rate as inflation. “The fuel, the covers and the mechanic have prices from June, while the rates were left behind months,” Pérez said.

To the extra effort that truckers must make due to the rise in costs, the weak campaign of coarse grains 2022-2023 was added. (The voice)

For his part, Trapani indicated that, despite the fact that the amounts are updated, the value of the grain tariff “is far from reality.”

“In order to be competitive, you have to give a 10% discount, and those numbers often do not leave you a profit. Between taxes, contributions, spare parts and fuel, it is uphill. There are other trucks that arrive in the province with more affordable rates, but they come without papers, without insurance or with destroyed tires. It is a danger, and that is why we ask for more controls, ”she pointed out.

Endure and avoid conflict

The leaders know that a difficult context is compounded by a horizon that is not too clear if activity continues to decline. The appearance of drivers from other provinces who charge lower rates is a point that worries freight transport entities.

“If the situation worsens, it will be necessary to suspend or dismiss. We prioritize local drivers. We are holding on. Drivers from other provinces appear who offer their services at a lower price, and that can cause problems,” said Trapani.

“Sometimes they talk in good manners and other times there are fights on the roads. We try not to have social problems. It is also not good that trucks from other provinces do not work here because we also go to work elsewhere, ”he explained.

According to the leader of the Cordovan Freight Transport Federation, the government authorities are not providing help. “We have not received any aid or state subsidy. The emergency is there, but it stayed there. There is no reduction in taxes or patents. There was no help from the Nation or the Province. Nothing. The election year does not contribute. The priority today is to avoid conflicts and crimes. We prioritize giving the service and if there is misery, distribute it ”, he closed.

The fall, in numbers

According to the economist of the Córdoba Grain Exchange, Gonzalo Agusto, in the province the fall in the gross value of production with respect to its potential is of the order of US$ 9,000 if soybeans, corn, wheat and peanuts are added.

While in the 2021-2022 campaign, 27 million tons were collected by adding all the crops, in the 2022-2023 campaign it was 18 million tons. “But if it had been a normal year, it might have reached 41 million tons, a record,” Agusto said.

In the national context, the numbers are not encouraging either. According to the Rosario Stock Exchange, due to the drought, grain production at the national level will be 44% lower than last season. While in the 2021-2022 campaign 116.2 million tons were produced, in the 2022-2023 campaign, according to the entity, 65 million tons will be harvested, that is, 51 million tons less between wheat, corn and soybeans.

economic retraction

Meanwhile, according to data from INDEC’s Monthly Estimator of Economic Activity (Emae), the drought had a strong impact on the country’s economy. During last April, economic activity registered a 4.2% drop compared to the same month of the previous year (something that had not occurred since December of last year), while compared to March it had a decrease of 1.9%.

For Emae, the “agriculture, livestock, hunting and forestry” sectors had a retraction of 36.8%. This sector has a strong impact on the economy, which is why it explains almost 90% of the drop in the level of activity.

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