Exports: Argentina Will Regain First Place on a Podium

Argentina will be leading the podium having USA and Brazil behind

After a drop due to drought, Argentina this year will once again be the main exporter of soy flour, a product that in a normal year usually generates more than US$10 billion out of the US$20 billion that the entire complex brings to the country ( in addition to flour, grain and oil). However, the growing production of this byproduct in Brazil and the United States poses a threat, since part of it is destined for export, increasing competition in the international market and putting pressure on prices.

The data arises from a report prepared by the Rosario Stock Exchange (BCR) where the entity reported that with the normalization of the Argentine harvest and the sustained growth in Brazil and the United States, the crushing and foreign trade of soy flour project record numbers for this year. Last year - in the midst of the collapse in production due to the drought - the country left the first place as an exporter of soybean meal to Brazil.

However, it was warned that, although Argentina maintains the highest average processing capacity per plant, this leadership is challenged by certain trends that could affect its long-term position. The decrease in the number of active plants in Argentina, along with a high idle capacity, contrasts with the growth observed in countries such as China, the United States and Brazil in recent years. "Currently, China is the country with the most installed capacity and annual processing level, followed by the United States and Brazil, with Argentina located in fourth place in terms of production," he indicated.