Saturday, January 5th 2013 - 05:41 UTC

Blackouts and agriculture collapse forecasted in drought stricken north-east Brazil

North-east Brazil is suffering its worst drought in decades, threatening hydro-power supplies in an area prone to blackouts and potentially slowing economic growth in one of the country's emerging agricultural frontiers.

Despite President Rousseff’s ‘ridiculous’ comments, hydro-power in the north-east is below generating capacity

Lack of rain has hurt corn and cotton crops, left cattle and goats to starve to death in dry pastures and wiped some 30% off sugar cane production in the region responsible for 10% of Brazil's cane output.

Thousands of subsistence farmers have seen their livelihoods wither away in recent months as animal carcasses lie abandoned in some areas that have seen almost no rain in two years.

“We are experiencing the worst drought in 50 years, with consequences that could be compared to a violent earthquake,” said Eduardo Salles, Agriculture secretary in the north-eastern state of Bahia said in an emailed statement.

Dams in the Northeast ended December at just 32% of capacity, according to the national electrical grid operator. That puts them below the 34% the operator, known as ONS, considers sufficient to guarantee electricity supplies.

As reservoir levels fell, state-controlled Petrobras imported nearly four times more liquefied natural gas (LNG) in the first nine months of 2012, a back-up for hydro-power generation that has hurt the firm's profits.

Brazil's reliance on hydro-power to generate electricity has fallen to 67% of all electricity generated from about 75% five years ago, according to the government-run energy research group EPE.

But the low water levels have still set off alarm bells in a country with a history of energy shortages that crimped economic growth as recently as a decade ago.

President Dilma Rousseff dismissed talk of an energy crisis on December 27, calling the idea of Brazil potentially needing to ration energy “ridiculous.”

A spokesperson at Brazil's Agriculture ministry said the federal government has not calculated the financial cost or the loss to crops expected from the drought. However, the ministry is trying to mitigate the economic impact by making additional lines of credit available to small farmers, the official said.

Crop supply agency Conab is also sending corn to the region in hopes of saving livestock.

Bahia state officials, however, said the measures were not enough and on December 30 asked for more federal resources to help some 20 million people living in the semi-arid tropical region stretching north from Minas Gerais state.

“The last comparable drought in the region was in the early 1980s ... even if rains come in the next few days it's not going to make a difference for some areas,” Celso Oliveira, a meteorologist with Sao Paulo-based Somar, told reporters.

The states that have received the least rainfall are Bahia, Brazil's fourth most populous state, Pernambuco, whose capital Recife is one of 12 host cities for the 2014 soccer world cup and an important port, and Piauí, Oliveira said.

The government's Conab agency says Bahia should produce 3.76m tons of soybeans this season, out of the 82.6m tons it expects from Brazil's overall crop

7 comments Feed

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1 TipsyThink (#) Jan 05th, 2013 - 09:51 am Report abuse
that is símply the périodic rules of the náture
2 GeoffWard2 (#) Jan 05th, 2013 - 01:55 pm Report abuse
If you cut down your forests you get less rain.
3 Brasileiro (#) Jan 05th, 2013 - 04:11 pm Report abuse
Belo Monte Dam need to be built quickly. International NGO's dont can stop the Dam, our people need more energy to the light of machines and houses. GET OUT INTERNATIONAL NGO's.
4 GeoffWard2 (#) Jan 05th, 2013 - 07:52 pm Report abuse
we need Belo Monte asap.
We need max water to make Belo Monte work.
We need forests, resulting in clouds in the catchment.
We need rain in the North West.
5 Brasileiro (#) Jan 05th, 2013 - 09:47 pm Report abuse
GeoffWard2, the North West is the fast growth region in Brasil. Belo Monte will be the growth support for decades. Brasil is one. Each State have responsability to help the others. Long live North, Northeast, Southeast, Central Weast ans South. Long live BRASIL!
6 yankeeboy (#) Jan 07th, 2013 - 02:39 pm Report abuse
I hope CFK realizes that Brazil is not going to be in any shape to help Argentina out of their recession. They'll be lucky not to go into one themselves.
7 Clyde15 (#) Jan 07th, 2013 - 06:32 pm Report abuse
Why are you hell bent on destroying your country?
When you have cut down all your forests, Brazil will be a dust bowl !

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