Argentina Reclaims Top Spot in Global Soybean Meal Market After Overcoming 2023 Drought

According to the latest report from the Rosario Board of Trade (BCR), Argentina has regained its position as the world’s leading exporter of soybean meal. Traditionally, since the 1997/1998 harvest, Argentina has held the top spot for soybean meal exports, which was severed by the worst drought in 60 years during the 2022/2023 season.

The extreme drought impacted Argentina’s production and crushing capacity, allowing Brazil to surpass Argentina as the largest exporter for the first time in 25 years. However, in the first half of 2024, Argentina’s soybean meal exports surged 46% compared to the previous year, reaching nearly 14 million tonnes, compared to 11.7 million tonnes from Brazil and 7.8 million tonnes from the United States.

According to the BCR, this growth occurred despite an idle production capacity of around 42% over the past three regular seasons. “Although Argentina has the infrastructure to increase soybean crushing, there has not been a significant increase in soybean production in recent years,” the economists behind the report noted.

Compared to Brazil and the United States, Argentina has fewer processing plants, but they are larger and more efficient, making its total annual processing capacity comparable to that of the other global powers. Specifically, Argentina has 43 plants, while Brazil has 85 and the United States has 75. However, the total annual capacity stands at 66.82 million tonnes, 66.77 million tonnes, and 73.71 million tonnes, respectively.

“Over the past ten years, approximately half of the annual crushing in Argentina, Brazil, and the United States occurs during the first half of the year. Brazil and the U.S. have shown steady and relatively stable growth during the analyzed period. In contrast, Argentina has experienced more variability over the last decade,” the study detailed.

Looking ahead to the 2023/2024 crop season, global soybean meal imports are expected to have grown by 25% over a 14-year period. Meanwhile, U.S. and Brazilian exports would have grown at an average annual rate of 4% and 3.2%, respectively, over the same period.

On the other hand, Argentina experienced an average annual decline of 0.9% in shipments to the foreign market. “Although Argentina remains a key player in the international soybean meal market, it no longer holds its dominant position without challenge and has lost ground in a market that continues to expand,” BCR specialists said.

Source: Forbes Agro

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