A terrible season closed the region’s wheat producers, said the president of the Ñuble Farmers Association, Carlos González, who criticized the passivity of Cotrisa and the Ministry of Agriculture in the face of what he described as “a perfect storm” for the producers, with prices that, in most cases, did not cover production costs.
González expressed his support for the southern wheat farmers, who expressed their rejection of the “low prices” and asserted that Cotrisa’s response came late and had no effect on the price.
The union leader recalled that, “the minister came out with great fanfare saying that Cotrisa was going to intervene, that it was going to operate in the Parral area, when we said it was too late, and in the end the effect was zero. Furthermore, with the money that Cotrisa had, which was around 6 billion pesos, it had no impact on anything, since he could barely buy 2% of the total volume of wheat, which is nothing. In short, zero contribution from the government and the season is over…”
In the Ñuble mills that are still receiving grains, for the week of March 5 to 11, 2024, the prices being paid for strong wheat (gluten greater than or equal to 30%) range from $23,000 to $23,500 per quintal. During February, meanwhile, the price reached $24,000.
Scenario for grains
The farmers’ helmsman stated that “the result is that the situation of the wheat growers is critical, a very bad year is added to a very complicated year, many farmers liquidated wheat to try to pay commitments and saved oats because the market was looking promising, but unfortunately, it radically changed the oat business. The purchasing powers, especially in the south, stopped buying, because it is foreseen that oats are going to go down internationally because production, like that of Canada, is higher than expectations.”
On the other hand, González observed that “the corn market is declining more internationally,” the effect of which will be felt in April-May, given the expected delay in the harvest.
Regarding raps, he maintained that “they always talked about US$ 700 per ton, but now they are talking about US$ 400 and, in addition, paid in installments, finishing paying the producers in October.”
“All the elements have come together for the perfect storm: wheat, oats, corn, raps. I do not remember, in the 35 years that I have been there, a year in which all the crops had problems. It looks like a black year,” he described.
“With this scenario, plus the farmer’s lack of access to credit, with high interest rates, I don’t want to think about what will happen this year in 2024, when the producer wants to plant again. From what we have surveyed among the partners, there will be a sharp drop in the planted area, more than 50%,” warned the leader, who emphasized that, “there is no money and there are no credits. And those who can apply for loans, their debt capacity is reduced.”
“Let our authorities understand that if we do not strengthen agriculture, Ñuble has no chance of getting out of the high levels of poverty,” he pointed out.
#Lapidary #balance #wheat #season #anticipates #decline #sowing