Once in a Century Drought Affecting Argentina’s Exports

At the cause of a once-in-a-century drought, the water level of Argentina’s primary grains transport river has fallen, decreasing farm exports and adding to the costs of logistics.

For the last three years, Southern Brazil has been struck by severe drought. Water levels in the Rosario, Santa Fe port hub where 80% of Argentina’s agricultural exports are loaded have been reduced due to this incident.

According to Guillermo Wade, manager of the Chamber of Port and Maritime Activities in Argentina, shallow water in Rosario, has caused 18% to 25% less cargo to be loaded into ships.

South America, is the world’s third-ranked corn provider and first-ranked soymeal livestock feed exporter, supplying hog and poultry fattening ingredients to Europe, Southeast Asia, and beyond. Most of Argentina’s hard currency comes from farm exports, which are needed to help bank reserves weakened by a three-year recession.

Due to the increase in the amount of soy and corn being transported to the Bahia Blanca and Necochea ports, shipping companies are now having to pay more for their supply chain logistics.