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Argentina aims to produce 160 million tons of grain by 2020

According to the strategic plan (known as “PEA”) recently announced by President Cristina Kirchner, Argentina aims to produce 160 million tons of grain, amounting to $100 billion in exports, by 2020.

The plan has been developed by representatives from 23 provinces, 53 universities, agricultural schools, business associations, producers and family farmers, officials said.

She said the plan would require expanding the area of grain production from 34 million to 42 million hectares (84 million to 100 million acres). “In 2020 we will produce more than 160 million tons of grain thanks to technological and scientific advances,” Kirchner told an audience of around 2,000 people.

In Argentina, the underlying quality of land, access to water, the rapidly improving agricultural industry infrastructure, the transportation channels, the basic lower cost structure, and most importantly, the cost of land today are why agricultural investments in Argentina are more attractive than most of other markets.

Argentina’s soybean and corn sectors are widely acknowledged as being one of the most efficient in the world. While a competitive exchange rate against the dollar helps it conquer export markets, this is only a small part of the story.

The dominance of no-till farming in Argentina is a key factor in making the country’s oilseed and grain sectors so super-efficient. With less labor, diesel and equipment required under a no-till system, Argentine farmers are able to achieve a big cost advantage over their U.S. counterparts.

Argentina is the second largest exporter of corn, the third largest export of soybeans and the fourth largest exporter of wheat.

Argentina’s Pampas region is its most productive region, and it’s intensively used for producing soybeans, corn and other crops. Over half of the massive growth in oilseed and grain production in the 15 years has come by utilizing what was previously pastureland. One-quarter of the recent growth comes from double cropping.

Argentina is likely to lead the global expansion in agriculture with surplus land and existence of large-scale farm operations. The South American country — one of the biggest food exporters in the world — would need to increase grain production by 50 percent over the next nine years to meet the goal.

Contact the Gateway to South America team  to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Uruguay and Chile, providing expert advice on property acquisition and investment tours.

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www.gatewaytosouthamerica.com

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