Agribusiness accounted for 55% of Argentine exports in 2023

Agribusiness exports constituted 55% of Argentine exports in 2023, despite experiencing a 36% decline compared to 2022 due to drought, as reported by the Rosario Stock Exchange.

“The agribusiness sector generated exports totaling $36.642 billion in 2023, marking a 36% decrease from 2022,” stated the report. It also highlighted that “agribusiness chains accounted for over half of Argentina’s exports,” although “their contribution to the overall export scene was the lowest in over a decade.”

Argentina‘s total exports in the past year amounted to $66.701 billion, reflecting a 25% decrease from the record $88.446 billion in 2022.

Despite the adverse effects of the drought, agribusiness still comprised 55% of the country’s export portfolio.

Out of the 12 primary export complexes, nine were linked to agribusiness chains, with the most significant declines observed in the nation’s top three grain chains: soybeans, corn, and wheat.

The report explained, “Since 2011, agribusiness’s share of national exports has not been this low; after nearing 70% of total exports in 2021, agribusiness contributed 55% to Argentina’s exports in 2023, largely due to the severe drought.”

Wheat exports plummeted by 70% compared to 2022, recording the lowest volume since 2014 and the lowest value since 2015 (US$1.414 billion compared to US$4.702 billion in 2022).

The chart below shows Argentina’s wheat exports from Jan 2019 and Dec 2023. The data is from DataLiner.

Argentina Wheat Exports | Jan 2019 – Dec 2023 | TEUs

Source: DataLiner (click here to request a demo)

Brazil emerged as the primary wheat trading partner, with $924 million, followed by Chile ($249 million), Uruguay ($47 million), and Bolivia ($40 million).

Despite a decline in soybean exports – 2023 marked the lowest export value for this complex since 2009 – the oilseed industry remained Argentina’s top export complex.

Soybean exports experienced a 44% year-on-year decline, dropping from US$24.670 billion in 2022 to US$13.697 billion in 2023.

Economists Natalia Marín, Guido D’Angelo, and Emilce Terré, authors of the report, emphasized that “it has been over 20 years since such a reduced export volume due to a drought was observed, particularly notable considering a 20% decrease in soybean planting two decades ago.”

Moreover, 23% of the planted soybean area was lost, indicating significant crop damage.

In terms of destinations, India remained the primary purchaser of Argentine soybean oil ($1.387 billion), followed by Vietnam for Argentine soybean meal ($1.048 billion), while China retained its position as the primary buyer of soybeans ($1.021 billion).

D’Angelo noted, “Last year’s circumstances were unprecedented, with soybean production hitting lows not seen this century; for instance, one in four hectares planted with soybeans could not be harvested.” He also highlighted the positive growth in other export sectors, such as oil, gas, and mining.

Corn exports decreased by 33% in 2023, with the lowest volume since 2018, largely due to a 22% reduction in planting area and the worst yield since 1996. However, sustained late corn planting mitigated some of the production losses.

Analysts from the Rosario entity mentioned that “the main partners for the corn complex, as varied as the destinations for Argentine soybean meal, are countries where the upward trend in livestock stocks continues, indicating promising demand in the recovery expected in the next campaign.”

Exports of beef, hides and skins saw a 17% decline in value compared to 2022, despite a 16% increase in exported tonnage. These products generated $3.504 billion in 2023, with major destinations including China, Germany, Israel, and the United States.

The chart below shows Argentina’s beef exports from Jan 2019 and Dec 2023. The data is from DataLiner.

Beef Exports from Argentina | Jan 2019 – Dec 2023 | TEUs

Source: DataLiner (click here to request a demo)

Among the sectors mentioned by D’Angelo, the automotive sector experienced slight growth in 2023, although increased imports contributed to the sector’s trade deficit. In metal mining, the gold and silver complex showed similar trade levels in 2022, while the lithium complex saw double-digit export growth.

Lastly, the rise in oil exports in 2023 failed to offset the price decline, resulting in a deficit in the oil-petrochemical complex’s foreign trade. However, reduced international prices and the productive capacity of Vaca Muerta reduced the need for imports, with the deficit decreasing from nearly $7.3 billion in 2022 to $2.135 billion in 2023.

Source: Télam

Click here to read the original news report in Spanish: https://www.telam.com.ar/notas/202402/654961-agroindustria-exportaciones-2023.html

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