BUENOS AIRES (Reuters) – Argentine Economy Minister Sergio Massa met with agricultural exporters on Friday to analyze and “seek solutions” to help the country’s key grain industry after it was hammered by the worst drought the country has faced in at least 60 years.
The dry spell is contributing to a broader economic slump battering the South American country, marked by sky-high inflation and a weakening local currency.
Massa said he would meet with farmers over the next week, and by the beginning of February expected to have prepared some answers for farmers struggling with dry soil resulting from a drought that began in May.
Lack of rainfall almost halved wheat output this cycle and hampered production of the current soybean and corn crops, though local grains exchanges predict fresh rains could bring some relief in coming days.
Argentina is the world’s leading exporter of soybean oil and meal and the third largest exporter of corn, as well as a major wheat supplier. Its production is being closely watched after Russia’s invasion of Ukraine prompted major disruptions and spiking prices in the grains market.
“We understand that there are things that we will be able to resolve and others that we will not,” said Massa in a statement, adding that a shared effort would have to be made between the government and farm sector leaders.
Massa also highlighted that Argentina’s agro-industrial sector had pushed its exports to record levels last year.
(Reporting by Walter Bianchi; Writing by Sarah Morland; Editing by Sandra Maler)
