CIARA-CEC, the association of agricultural commodity exporters in Argentina, announced yesterday that its members exported USD 23.719 billion worth of agricultural commodities in 2019. This was 17% more than in the previous year, despite the South American country being in an economic crisis.
The association's members also include global market leaders such as Cargill and Bunge, which account for 45% of Argentina's grain exports.
This year's exports were higher than in the last 17 years, despite low prices on the global market. Argentina is one of the world's largest exporters of soybeans, soybean meal and corn. The country was hit by rising inflation in 2019, which also weakened the exchange rate of the peso. This allowed producers to increase their exports in November and December after a successful harvest.
Exports in December were worth USD 2.223 billion, the highest level since 2002. The association points out that it is necessary to maintain this pace of exports in order to sell the large harvest volumes. However, this requires stable exchange rates and reliable export rules from the government.
In December, the new left-wing head of government Alberto Fernandez took office and immediately increased export tariffs for soybeans, wheat and maize. However, farmers with a large distance to the export port are now to receive tax rebates.
Grain is Argentina's most important export.
Source
HANSA Terminhandel
