Argentinian government postponed lowing of soybean export duty

11.10.2016

Argentinian president Mauricio Macri announced that soybean export duty will not be lowered (-5%) neither in 2016, nor in 2017 as it was planned previously, informs UkrAgroConsult. Instead, the government is going to lower it by 0.5% every month since January 2018 to December 2019.

The reason for such decision is higher level of country`s budget deficit in 2017, which is expected to reach 4.2% of GDP against previously expected 3.3%.

Though, for producers of the Northern provinces, which are not top-producers, the duty will be lowered by 5% to 25%. Farmers of these provinces postponed sowing campaign, expecting the governments` final decision, as at the current 30% duty soybean production is still not profitable compared for example to corn, due to high cost of logistics.

According to estimates of Argentinian Agrarian Ministry, in 2016/17 soybean production will equal 57 MMT and exports – 10.7 MMT.

 

UkrAgroConsult

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