Argentine farming has a revival and aims for new production records in 2020
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The agricultural super harvest this year, the boost in meat exports and the opening of new markets for the regional economies has put the sector at the forefront of the exit from the current grueling recession.
The agro-industrial sector will receive President Mauricio Macri tomorrow at the formal opening of the Palermo Livestock Exhibition with more than the good financial numbers on the table to discuss.
It is the farming sector that once again has proved this year that it is the main engine of the Argentine economy and has already made it clear that its commitment is to go for more production.
In this sense and even when they admit that there is uncertainty about the October election result, the planting of the main cereals is progressing strongly in the search to mark new milestones of dedicated hectares and also new productive maximums for the grain market.
After the devastating drought of 2018 that decimated production and was the detonator for the economic and financial crisis, the sector sought its revenge and obtained it: an agricultural campaign of 147 million tonnes, an absolute record, according to official estimates.
That super harvest is underpinned by a “sea of corn” from the production of 57 million tonnes; 55.3 million tonnes of soybeans and 19.5 million tonnes of wheat, in 2019.
Added to this was the sharp uptick in beef exports, with the extension of the protocol agreed with China in 2018. In the first half of the year, sales to the world of meat increased by 47.4% year-on-year to 225,726 tonnes, with the Asian giant as 72% of the shipments and 60% of the value of those operations. China also enabled pork imports including, further driving of that activity.
Thus in the first half of the year, the agro-industrial sector (primary products and agricultural manufacturers) accounted for 64% of exports in value, exceeding USD19.5 billion.
While foreign exchange income, through the liquidation of cereals, increased between January and June to USD 10.7 billion, below the same period of the previous year but in a context, above all for soybeans and derivatives.
All with export duties that put several regional economies in a bind. As reported yesterday, the withholdings contributed more than $44,260 million for tax revenues and mark the lowest real drop against inflation so far this year.
The total export duties collected grew by 299% year-on-year, the second-highest following the peak of 493% they had reached in March.
In the midst of a year when there may be a presidential replacement, the sector did not curb investment. In some official and entity offices, this responds to full confidence that Macri will be re-elected.
The new wheat planting covers 6.5 million hectares and points to a new record of 21.5 million tonnes, while the imminent planting of maize will take surface from the soybeans to a new another new record.
Source: La Cronista ( translated )
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