World Grain - June 2015 - 24

COUNTRY FOCUS

Key Facts

Focus on Argentina
Country plays major role in bridging
the gap between Northern Hemisphere
harvests of grains and oilseeds
by Chris Lyddon

Argentina is one of the most important grain and oilseed producing
countries in the world, playing a huge role in supplying the market at
a time that bridges the gap between Northern Hemisphere harvests.
It does it against a background of political uncertainty, especially
about currency, which often affects grower and exporter behavior
LQZD\VWKDWPLJKWQRWDSSHDUMXVWL¿HGE\JOREDOPDUNHWFRQGLWLRQV
The International Grains Council (IGC) projects Argentina's
2015-16 total grains production at 49.2 million tonnes, down from
51.1 million in 2014-15.
It put the wheat crop at 12.5 million, compared to 13.9 million the
year before. The maize crop is put at 28 million tonnes in 2015-16,
compared to 30 million the prior year. The barley crop is put at 3.7
million tonnes, up from 2.9 million.
Sorghum production is projected at 4.5 million tonnes, up from
3.8 million and oat production is forecast to fall to 400,000 from
500,000 tonnes.
Argentina's total grains exports in 2015-16 are projected at 29.6
million tonnes, up from 26.3 million in 2014-15. Wheat exports are
projected at 7.5 million tonnes in 2015-16 up from 4.8 million. Maize
exports are forecast at 17.5 million tonnes, down from 18 million.
Barley exports are expected to rise to 2.8 million tonnes (2 million feed and 800,000 malting)
from 2 million (1.4 feed, 600,000 malting) the
year before.
Argentina
Sorghum exports are expected to rise to 1.8
million tonnes from 1.5 million.
Argentina is less of a soymeal exporter than
it was. "Argentina's exports reached a peak of
13.6 million tonnes in 2010-11 (April/March),
but have been markedly lower in the period
since, averaging about 8 million tonnes annually from 2011-12 to 2014-15 on competition from other
origins and sluggish farmer selling in more recent years,"
the IGC said. "The latter factor may be important in the
current MY (ending March 31, 2016), with shipments seen
rising moderately, to 8.1 million tonnes (7.5 million). Argentina's soymeal exports are projected at 27.6 million tonnes, up
from 23 million.
³+LJK LQÀDWLRQ DQ RYHUYDOXHG SHVR OLPLWHG ¿QDQFLQJ DQG
government policies have all combined to force producers to re-

Bolivia

Paraguay

Brazil

Uruguay

Chile
South
Pacific
Ocean

South
Atlantic
Ocean

Capital: Buenos Aires
Population: 43,024,374 (July 2014 est.)
Religions: Nominally Roman Catholic 92% (less than 20%
practicing), Protestant 2%, Jewish 2%, other 4%.
Location: Southern South America, bordering the South
Atlantic Ocean, between Chile and Uruguay.
Government: Republic. Chief of state and head of
government: President Cristina Fernandez De Kirchner (since
Dec. 10, 2007).
Economy: Argentina benefits from rich natural resources,
a highly literate population, an export-oriented agricultural
sector, and a diversified industrial base. Although one of
the world's wealthiest countries 100 years ago, Argentina
suffered during most of the 20th century from recurring
economic crises, persistent fiscal and current account
deficits, high inflation, mounting external debt, and capital
flight. The economy in 2010 rebounded strongly from the
2009 recession, but has slowed since late 2011 even as the
government continued to rely on expansionary fiscal and
monetary policies, which have kept inflation in the double
digits. The government expanded state intervention in the
economy throughout 2012. In May 2012, the Congress
approved the nationalization of the oil company YPF
from Spain's Repsol. The government expanded formal
and informal measures to restrict imports during the year,
including a requirement for pre-registration and preapproval of all imports. In July 2012, the government also
further tightened currency controls in an effort to bolster
foreign reserves and stem capital flight. During 2013, the
government continued with a mix expansionary fiscal and
monetary policies and foreign exchange and import controls
to limit the drain in Central Bank foreign reserves, which
nevertheless dropped $12 billion during the year. GDP grew
3% and inflation remained steady at 25%, according to
private estimates. In early 2014, the government embraced
some orthodox economic policies. It devalued the peso 20%,
substantially tightened monetary and fiscal policies, and
took measures to mend ties with the international financial
community, including: engaging with the IMF to improve
its economic data reporting, reaching a compensation
agreement with Repsol for the expropriation of YPF, and
presenting a proposal to pay its arrears to the Paris Club.
Nevertheless, the government in July 2014 defaulted again
on its external debt after it failed to reach an agreement with
U.S. holdout creditors. The government's delay in reaching a
settlement and the continuation of interventionist policies
are contributing to a prolonged recession.
GDP per capita: $22,100 (2014 est.); inflation: 36.4%
(2014 est.); unemployment: 7.7% (2014 est.).
Currency: Argentine pesos (ARS): 8.96 pesos equal 1 U.S.
dollar (May 20, 2015).
Exports: $76.47 billion (2014 est.): soybeans and
derivatives, petroleum and gas, vehicles, corn, wheat.
Imports: $65.9 billion (2014 est.): machinery, motor
vehicles, petroleum and natural gas, organic chemicals,
plastics.
Major crops/agricultural products: Sunflower seeds,
lemons, soybeans, grapes, corn, tobacco, peanuts, tea,
wheat; livestock.
Agriculture: 10.4% of GDP and 5% of the labor force.
Internet: Code: .ar; 11.232 million (2012) hosts and
13.694 million (2009) users.
Source: CIA World Factbook

June 2015 / World Grain / www.World-Grain.com

http://www.World-Grain.com

World Grain - June 2015

Table of Contents for the Digital Edition of World Grain - June 2015