The main regional economies of Corrientes are in crisis
According to a report released by CONINAGRO, the sectors of forestry, yerba mate, sweet citrus fruits and cattle ranching exhibit negative signs. Only rice maintains good performance.
A survey done by the Confederación Intercooperativa Agropecuaria Limitada (CONINAGRO), in Argentina 15 of 19 regional economies are showing signs of crisis or in crisis. Of the representative activities of Corrientes, rice is experiencing positive growth, but forestry, yerba mate, sweet citrus fruits and cattle ranching are going through crisis scenarios.
The entity’s traffic light from last April shows 3 green, 1 yellow and 15 red, making the situation even worse compared to previous months.
The green colors are explained by some active demand and some cost management strategies, and the yellow has high price volatility (rises and falls abruptly).
Meanwhile, the red ones combine some of several situations such as low demand, high costs for the production scheme, stagnant prices, among others.
The case of sweet citrus fruits shows a red color due to low prices, where we are waiting for autumn and winter, since they are the most important period when the new harvest arrives.
Forestry production shows forest prices implemented at par with inflation, perhaps slightly higher, but the level of demand is very low (an indicator that we are going to incorporate in future reports is a monitoring of the level of construction), it has also dropped a lot the export and is observed in the table, that is why the activity is in red.
Beef production continues to be an interesting challenge to summarize: the prices of the steer and calf categories grow on average 4% in April, year-on-year they are still maintained due to the significant jump that, in December, production levels measured through slaughter are beginning to see decreases and both international and local demand are among the lowest in the last decade, which is why the color changes from green to light red.
In the case of yerba mate, prices have stagnated at the producer (green leaf) and this situation is expected to worsen in the following month. Consumption has stagnated in volumes and overproduction, added to imports, does not present a good outlook: activity goes from green to red.
Cotton continues to have quality problems in some areas (sprouting), but with an improvement in the area compared to the previous campaign, with prices well below inflation (+124% year-on-year vs. 289% inflation), and maintaining a year in red. Exports reacted slightly, not enough to change the color of the traffic light.
