MercoPress. South Atlantic News Agency

Uruguay record year for farm production and export

Sowing wheat at Uruguayan farm

Farm production in Uruguay will consolidate its sixth year running of expansion, 66.5% since 2002, and farm exports are forecasted to reach 4.2 billion US dollars, a 51% increase over last year, according to a report from the Ministry of Agriculture Programming and Policies Office, OPYPA.

The report points out that farm exports will increase in all sectors, which is basically understandable because of the jump in international prices, "which are evolving much faster than volumes exported". Most of the increase in Uruguay export from the farm and food industry is catapulted by the livestock sector which represents 62% while agriculture is responsible for 34% and the forestry and pulp sector the remaining 4%, according to economist Veronica Duran who wrote the OPYPA reports. Of the fourteen faro items considered, ten register export increases with beef sales leading and representing 37% of agro exports equivalent to 1.57 billion US dollars. In US dollars the increase is 78%. OPYPA also estimates that rice exports will jump 78%, oilseeds and related products 75%, diary produce 40% and wood and pulp exports 21%. In the first quarter of 2008, the agriculture GDP increased 6.6% in real terms and the projection for the whole twelve months is 11.2%. This means that between 2002 and 2008, agriculture's GDP expanded 66.5%, and by the end of the year will have overtaken the most recent record, dating back to 1998, by 39%. Livestock slaughter in Uruguay is running 10% above last year and OPYPA also anticipates that cereal and oil seeds production will continue to advance boosted by international prices.