An industry representative estimates that the drought in Chile will reduce the value of fruit exports by around 8 percent this year.
The National Agricultural Society (SNA) president, Cristian Allendes Marin, told Bloomberg that the lack of rain in the country is hampering agriculture.
According to him, the closest year to 2021 in terms of rainfall was 2019, which was particularly dry.
Then, exports were down 13 percent, and the total agriculture sector’s domestic product was down 1.5 percent. There is a growing water crisis in the middle and north of the country. Several reservoirs are under alert, in their worst state since 2019.
The expert believes, however, that agriculture or farmers are better prepared than 2019, a particularly tough year for the sector, and the “impact should be somewhat less”.
According to the projections of the SNA, fruit exports for an year without drought could total more than USD $ 7.1 billion.
“However, we believe that the drought will bring this number down by about 8% to just over US$6.5 billion. Other items such as wine, wheat and corn, too, could see production fall. Meanwhile, only cherries and hazelnuts will show growth, with many orchards coming into production, which will increase shipments abroad.”
If the shortage of rainfall continues, the basins of the Copiapó River up to the Sixth Region and part of the Seventh Region will be affected and will be facing a complicated and scarce situation as early as this month.
“Although the August rains helped to fill the soils with water, to hold irrigation for more days and to accumulate some reserves, it is insufficient for the accumulated water deficit and to face the entire summer of irrigation of agricultural products,” he said.
“Therefore, efforts must continue to be made to carry out medium and long-term water works to ensure the availability of water for both human consumption and food production.”
