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THE ARGENTINE AGRICULTURAL SECTOR. FOREIGN AGRICULTURAL SERVICE US EMBASSY, BUENOS AIRES, ARGENTINA. IMPORTANCE OF THE AGRICULTURAL SECTOR. About 20% of the total supply of the national economy is generated by the agricultural sector.
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THE ARGENTINE AGRICULTURAL SECTOR FOREIGN AGRICULTURAL SERVICE US EMBASSY, BUENOS AIRES, ARGENTINA
IMPORTANCE OF THE AGRICULTURAL SECTOR • About 20% of the total supply of the national economy is generated by the agricultural sector. • The food industry is demanding a growing number of inputs and services, adding value to the final products. • Local agricultural production exceeds remarkably the local market demand. • Around 11.2% of the economically active population (13.4 million people) are involved in agriculture, forestry and fishing. • Owing to direct and indirect effects, each additional job in the sector creates 3.5 jobs in the rest of the economy. • Within the national economy this sector pays 10% of total salaries.
ARGENTINA ISLAND RICH • Argentina • 2.8 million sq km (1.07 million sq mi) • 28 million arable hectares (69.2 million acres) (10.3%) • United States • 9.1 million sq km (3.72 million sq mi) • 166 million arable hectares (410.2 million acres) (18.1%)
Average Rainfall • North and Central • Rainfall decreasing from east (45 inches) to west (insufficient for dry land farming). • Far west (Andes foothills) receives 30 inches • Humid pampas with average annual rainfall of about 900 mm (40 inches) • South • Extremely dry • Largely used for pasture, with some fruit farming.
MOST IMPORTANT INDUSTRIES WITHIN THE AGRICULTURAL SECTOR • Cash-crop production: soybeans, corn, wheat, sunflower, sorghum, rice. • Industrial crops: cotton, sugar cane, tobacco. • Fruit production: grapes, deciduous fruits, citrus, berries (nascent). • Livestock production: cattle, sheep, dairy, poultry. • Fisheries.
ARGENTINE AGRICULTURAL EXPORTS - 2005 • Total Argentine agricultural exports: USD 20.9 Billion (50% of total exports)
NO-TILL PLANTED AREA • 19.46 of 29.10 million hectares planted with no-till (80%) in 2004. • Only 5,000 hectares of 20.5 million planted with no-till in 1977.
Soybeans • Most important Argentine field crop • Account for 50% of national grain and oilseed production. • Argentina is world´s third largest producer • 19% share of world production. • The largest exporter of soybean oil. • The largest exporter of soybean meal.
Soybeans Net Results (In US$/ha unless noted otherwise) • Net income: 674 • Direct costs: 151 • Harvest costs: 54 • Marketing costs: 87 • Overhead costs (500 ha farm per year): 150 • Net Result: 232 (US$94/acre) • Average yield: 3.4 MT/ha (50.7 bushels/acre) Date: December 2006
SOYBEAN EXPORTS(2005-2006) • Beans: 2.149 • Oil: 2.448 • Meal: 4.175 (US$ Billion)
WHEAT • Domestic consumption is 38% of production. • Argentina is 4th largest world wheat exporter. • Exported 7.7 million MT in 2005-2006. • Argentina has always exported a higher proportion of wheat than its major competitors and is more exposed to international price fluctuations.
WheatNet Results (In US$/ha unless noted otherwise) • Net income: 509 • Direct costs: 171 • Harvest costs: 41 • Marketing costs: 62 • Overhead costs (500 ha farm per year): 150 • Net Result: 85 (US$34/acre) • Average yield: 4 MT/ha (60 bushels/acre) Date: December 2006
CORN • Argentina produces 2% of the total world production • Exports about 13% of the total world exports. • Exports 76% of production • Argentine exposure to international price fluctuations affects domestic prices of poultry of pork. • Recently the local Agricultural Secretariat authorized the utilization of Round up Ready corn cultivars.
CornNet Results (In US$/ha unless noted otherwise) • Net income: 972 • Direct costs: 245 • Harvest costs: 78 • Marketing costs: 179 • Overhead costs (500 ha farm per year): 150 • Net Result: 320 (US$130/acre) • Average yield: 8 MT/ha (128 bushels/acre) Date: December 2006
SunflowerNet Results (In US$/ha unless noted otherwise) • Net income: 455 • Direct costs: 141 • Harvest costs: 37 • Marketing costs: 42 • Overhead costs (500 ha farm per year): 150 • Net Result: 85 (US$34/acre) • Average yield: 2.5 MT/ha (2222 lbs/acre) Date: December 2006
SORGHUM • Argentina produces 3.7% of total world production. • Exports: 200,000 MT (3.6% of the total world exports). • Argentina is the world´s second largest exporter of sorghum after US.
PEANUTS • Peanuts are mostly planted in the Cordoba province (98% of total production). • Owing to the prevaling climatic conditions in this province the oilseed produced here is of a very good quality and free from aflatoxins. • Argentine peanuts are mainly exported to Canada, US, Netherlands and UK. • Argentine peanut oil is mostly exported to Netherlands, US and Hong Kong.