Chia seeds: drought affects yields
July 31, 2024 at 9:55 AM ,
Der AUDITOR
Rising prices in South America
As the experts from Chelmer Foods state in their latest report with regard to Ponto International, prices declined at the start of the harvest, but then rose again. According to the report, however, this is not due to high demand; buying interest is relatively low and should remain so for the time being over the summer season. However, yields in Paraguay have been lower, which is driving prices up, because while buyers were able to wait in June, some suppliers now need goods to be able to supply their customers. Added to this are increased freight costs, which are driving up export prices.
Things looked so promising...
Growers in Paraguay had created the best conditions for a high chia seed crop. An estimated 150,000-180,000 ha of chia seeds are said to have been grown there this year and the good prospects pushed prices down in May and June. However, high temperatures and low rainfall caused yields in the main cultivation region to shrink. In some cases, only 200 kg/ha were harvested, whereas in previous years the yield was up to 700 kg/ha.
Farmers and exporters alike were negatively surprised and farmgate prices soared. In the south of the country, however, the outlook is better, which is why market players are assuming that the crop of 50,000-55,000 mt could still be higher than last year's result. Yields will be re-evaluated in September/October, which should give the market a better overview of the result.
Bolivia also lacked the necessary rainfall. Despite the increase in acreage to 30,000 ha, production is estimated at only 10,000-11,000 mt. What is not covered by domestic production has to be compensated for by imports from Paraguay.
In Argentina, the area under chia seeds was somewhat lower this year. Initially, the plants were able to develop under favourable weather conditions, but shortly before the harvest, drought and comparatively cool temperatures set in. This resulted in a slight drop in yield, which is why the crop is said to have totalled 4,500-5,000 mt.
View more:
- price charts for oilseeds, grains, spices and more
View related articles
