Drought in Rio Grande do Sul generates economic losses of R$ 36,14 billion for producers

The financial losses that producers in Rio Grande do Sul are expected to achieve due to the drought that is ravaging the State already reach R$36,14 billion. This is what the second survey carried out by the Federation of Agricultural Cooperatives of the State of Rio Grande do Sul (FecoAgro/RS) reports, considering the numbers that have been released so far.

The impact on soybeans is R$29,51 billion on the Gross Production Value (VBP), while for corn this value is already R$6,62 billion. The study also considers that the domino effect in the economy of Rio Grande do Sul, considering that the input-product matrix, for every R$ 1,00 generated from the gate to the inside, another R$ 3,29 will be generated in other sectors that operate outside the gate due to This harvest gain could reach R$ 115,67 billion just considering the drop in both crops.

The calculation methodology used by FecoAgro/RS considered the IBGE's initial production expectation and the percentage of losses released this week by the Cooperative Technical Network (RTC) was applied, which consulted 23 partner cooperatives of the network until January 22nd, considering also the average price received by the producer in January 2022.

According to data from the Cooperative Technical Network (RTC), soybean crop failure is 48,7% and in some regions losses exceed 70%. As for corn, estimates point to a loss of 70% of crops according to FecoAgro/RS. In the previous survey, on January 4, the numbers were 59,2% for corn and 24% for soybeans, with a financial impact of R$5,41 billion and R$14,36 billion respectively, totaling R$19,77 billion. The initial production estimated by IBGE, included in the calculations, was 20,95 million tons of soybeans and 6,09 million tons of corn.