Argentina returning to the global markets: grain exports to reach 93 MMT in 2016/17 - L. Pierbattisti (video)


Argentina returning to the global markets: a bad news or new opportunities for rivals? This was the subject of the speech of Leandro Pierbattisti, Chief Analyst and advisor for  Argentinean Federation of Elevators Association, at the XIV International Conference "Black Sea Grain: Wind of Change" . In particular, he informed that MY 2016/17 features substantial year-on-year increases in planted acreage (from 34 to 36 Ml ha), the harvest of cereals (from 111 to 125 MMT) and grain and oilseed exports (from 82 to 93 MMT). At the same time, much slower growth was seen in the stagnation period (between 2010/11 and 2015/16), when export duties and quotas were in effect.

“Small production volumes by no means imply a low level of exports,” stressed L. Pierbattisti, adding that Argentina features weak domestic consumption of some cereals and oilseeds that leads to abundant exportable stocks. According to the speaker, 30% of Argentina’s corn production is consumed domestically, while this ratio equals 9% for soybean meal and 33% for soybean oil. The respective percentages in Brazil are 72%, 52% and 80%; those in the U.S.A. equal 84%, 84% and 90%, respectively.

Also, the speaker told about logistics problems of Argentina, with insufficient storage capacities being one of them.  According to him, the bulk of goods in Brazil and Argentina are carried by trucks and rail, contrary to the U.S., where river transport accounts for 60% of shipments.

Meanwhile, according to the speaker, Argentina is advantaged over Brazil in this respect owing to available silo bunkers. L. Pierbattisti also emphasized the necessity of investments in logistics infrastructure. In particular, it is projected that Argentinean Governent will spend USD 11 Bl on upgrading the seaport access system.

The speaker stated that, in case of full utilization of the port capacities, Argentina is capable of exporting up to 108 MMT of crop produce in 2016/17 (against a forecast of 90 MMT), including up to 100 MMT of grains and up to 8 MMT of vegoils.
XIV International Conference “Black Sea Grain: Wind of Change” took place on April 5-6, 2017 in Kiev, Ukraine, and brought together over 700 agribusiness operators from 55 countries worldwide. Organizer – consulting agency UkrAgroConsult.  




Readers choice: TOP-10 articles of 2016 by UkrAgroConsult