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Uruguay Crop Production
Crop production in Uruguay has never been as important
as
livestock raising. Only about 8 percent of the land area
was
dedicated to growing crops in the mid-1980s, compared with
75
percent dedicated to livestock. The amount of land under
cultivation has varied according to the world price of
livestock
products. When beef prices have declined, for example,
ranchers
have planted wheat or corn. Rising livestock prices in the
1980s
resulted in a considerable decrease in the area dedicated
to most
crops. Because crop production had gradually become more
efficient through mechanization, however, crop yields did
not
necessarily decline.
Although crop yields per hectare had generally
increased,
erosion of the thin topsoil layer became a significant
problem in
Uruguay during the 1980s. It was estimated that 30 percent
of all
arable areas had been adversely affected. The ill effects
were
most serious in areas that had been under continuous
cultivation
for long periods.
Rice surpassed wheat as Uruguay's most significant crop
in
the 1980s. In contrast to the general downward trend in
farmed
land area, the land dedicated to rice production increased
from
55,000 hectares in 1980 to 81,000 hectares in 1988. Over
this
same period, production rose from 228,000 tons to 381,000
tons, a
67 percent increase. Only about 40,000 tons were consumed
domestically; most of the rice was exported. The preferred
farming system for rice production was closely connected
to
livestock raising. Rice was grown for two years; then the
land
was sown as pasture for four or five years to renew the
fields
and provide grazing for cattle. The most common variety
produced
was the American "Blue Belle" type. The drought that
gripped
Uruguay in 1988-89 caused rice producers to lose an
estimated 6
percent of their crop, worth about US$2.4 million. The
hardest
hit areas were in the north, in the departments of
Artigas,
Rivera, and Tacuarembó.
Wheat production and hectarage both declined during
most of
the 1980s. This decline reflected the increasing land area
dedicated to livestock production and the fact that
Uruguayan
wheat producers could not effectively compete with wheat
producers in other countries. International competition
became
more important after the government discontinued its
subsidies
for wheat farmers during the economic liberalization of
the
1970s. Uruguay was no longer self-sufficient in wheat
production
by the mid-1980s, when about 80,000 tons per year were
imported.
Wheat farming was largely mechanized by the 1980s, but
advanced
tractor equipment acted mainly to reduce the labor
requirement on
farms, rather than leading to huge production increases.
Most
farmers made only limited use of pesticides and
fertilizers.
Thus, wheat production per hectare was below that of most
other
countries. Nevertheless, the area dedicated to wheat
farming rose
in 1989, and production was expected to begin increasing
again.
Indeed, wheat production grew to 414,000 tons in 1988.
Corn production stagnated during the 1980-88 period.
Like
wheat farmers, corn farmers were adversely affected by the
government's freeing of agricultural prices in the late
1970s.
Unlike wheat, however, corn was not an important
commercial crop;
farmers used it primarily to feed their animals. No longer
selfsufficient , Uruguay imported almost US$2 million worth of
corn in
1988. Some farmers had substituted sorghum cultivation for
corn
because it provided roughly the same nutrition as corn but
better
withstood drought conditions.
Other crops produced in Uruguay in the 1980s included
barley,
soybeans, oats, sunflowers, peanuts, sugarcane, potatoes,
flax,
and cotton. Barley, soybeans, and sunflowers were produced
mainly
for export; the other crops were produced on only a small
scale
for the domestic market. Production of sugar was
uneconomical,
relying on a large government subsidy. Uruguay imported
cotton
(US$6.6 million in 1988) for its textile industry.
Citrus farming was a bright spot on the agricultural
horizon
in the 1980s. Citrus and produce farms were originally
established around Montevideo to supply the city with
fruits and
vegetables. During the 1980s, these farms expanded,
allowing
Uruguay to become a net exporter of citrus fruit (oranges,
lemons, and grapefruit). The exported value increased from
US$5
million in 1980 to US$21 million in 1986. One large-scale
citrus
plantation added packing facilities and a juice-and-oil
plant,
with at least half of its production intended for export.
The
government encouraged such diversification of agriculture.
Data as of December 1990
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