RIO DE JANEIRO, BRAZIL – The Chamber of Petroleum Industries of the Argentine Republic (CIARA) and the Center of Grain Exporters (CEC), representing 48% of Argentina’s exports, announced that companies in the sector turned over an amount of US$3 billion in the last month of August, a historical record for this century in the eighth month of the year.
Cumulative foreign exchange earnings from agricultural exports reached US$23.2 billion in the first eight months of the year. August’s amount is a record for that month in the statistics since the beginning of this century and the entire historical series.
However, this monthly total reflects a decrease of 13.35% compared to the previous month of July and an increase of 74.97% compared to the same month of August last year.
Also, foreign exchange inflows in the first eight months of the year (US$23.2 billion) represent a 74% increase over the same period last year and an absolute record for the same period since the beginning of this century.
These results were achieved thanks to the significant logistical efforts forced by the historic low of the Paraná River. However, international commodity prices proved to be a point of attraction that made producers’ sales move.
The liquidation of foreign exchange is related to the purchase of grain, which is later exported either in its unaltered state or as processed products after industrial processing.
The oilseeds-cereals complex
The oilseeds-cereals complex, including biodiesel and its derivatives, accounted for 48% of Argentina’s total exports last year, according to Indec data.
The country’s main export product is soybean meal (14.2% of the total), an industrial byproduct produced in this agro-industrial complex, which currently has a high idle capacity of almost 50%. The second most important export product last year was corn (11%), and the third most important was soybean oil (6.9%), according to Indec.
According to the US Department of Agriculture (USDA), Argentina is expected to rank first in soybean oil and soybean meal exports in 2020/21.
According to a report by Argentina’s Ministry, the soy complex alone, which accounted for 27% of Argentina’s total exports last year, represents 16% (344,865 jobs) of the jobs created by all agro-industrial chains in 2017 of Labor.