Argentine crises cause the country to lose 10 million tons of soybeans in six years

The Argentine combination of withholdings taxes and the volatile exchange market between official and parallel is hindering the development of grain production. Soybean has been paying the bill the most.

Six years ago, producers in Argentina, the third-ranked soybean producer in the world, harvested 56 million tons. In the last harvest, the country only harvested 46.5 million tons. Next harvest, if the weather helps, it will be 52 million tons, according to the US Department of Agriculture (USDA).

While Brazil practically doubled production in this period to 144 million tons, the same thing with exports, the endless economic instability of its neighbors caused the country to lose 10 million tons.

Data from analysts in Buenos Aires point out that the 33% withholding tax on exports that the Fernandez government imposes in an attempt to avoid the inflationary pressure coming from international prices destroys the producer’s profitability. In the same period, Argentina lost 3 million hectares with the oilseed, reaching 17 million last season.

Source: Money Times

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