Bolivia’s soy farmers are facing severe disruptions due to a fuel shortage, exacerbated by declining foreign reserves and local gas production. This crisis threatens agricultural productivity and could result in significant food losses. The government is attempting to alleviate the situation through subsidies and facilitating fuel imports, but farmers are increasingly concerned about accruing debt and maintaining their operations.
In Santa Cruz, Bolivia’s agricultural heartland, farmers are increasingly anxious due to a worsening fuel shortage that threatens their harvest operations. Agriculture plays a crucial role in Bolivia’s economy, making the impact of this crisis particularly concerning as farmers struggle to access necessary fuel supplies.
The fuel scarcity is attributed to a decline in foreign currency reserves over the past decade and a significant reduction in local gas production. This has resulted in long queues at fuel stations and has become a pressing issue for the government of President Luis Arce, which is attempting to stabilize prices by implementing subsidies.
Joel Eizaguirre, a soybean farmer, expressed his concerns, stating, “If there is no fuel, producers will go deeper into debt.” He emphasized that insufficient fuel would force farmers to make difficult decisions that could adversely affect all stakeholders in agriculture.
Jaime Fernando Hernandez, the manager of the oilseed and wheat group ANAPO, warned that a shortage of diesel for agricultural machinery could lead to significant losses in food production, including vital crops such as soy, corn, and sorghum. This could have cascading effects on the food supply chain, impacting livestock, poultry, and dairy products.
In response to these challenges and mounting pressure from the ongoing dollar and fuel crises, the Bolivian government has taken measures to facilitate imports. This includes allowing the state oil company YPFB to utilize cryptocurrency for fuel payments. Eizaguirre noted, “Personally, I’d rather have fuel cost 11 bolivianos than not have enough fuel to harvest our grain, or not be able to plant during this approaching winter,” demonstrating the urgency of the situation for farmers amid rising costs.
The severe fuel shortage in Bolivia is posing a significant threat to agricultural productivity, particularly in the critical soy farming region of Santa Cruz. As the crisis deepens, farmers face the peril of mounting debts and potential food shortages, prompting government intervention aimed at mitigating the impacts. Their priority remains access to enough fuel to ensure successful harvests and future planting, underscoring the delicate balance between agricultural viability and economic pressures.
Original Source: www.tradingview.com
