The wheat campaign has ended, which would contribute almost US$3,000 million to the economy

The wheat harvest 2024/25 In Argentina it left a positive balance both in productive and economic terms. According to a recent report published by the Buenos Aires Cereal Exchange, The campaign closed with 18.6 million tons, 23.2% more compared to the previous cycle.

The increase in production was supported by a 7% growth in the planted area, which reached 6.3 million hectares. This increase responded to favorable weather conditions during the fall, which ensured good humidity for planting, along with a price context that encouraged producers to allocate larger areas to cultivation.

One of the most notable aspects of this campaign was the recovery of average yields at the national level, which stood at 30.4 quintals per hectare, 7% above the previous campaign. Regions such as the northern core and southwest of Buenos Aires were key to this result, compensating for falls in other areas such as the southeast of Buenos Aires, affected by high temperatures during the critical crop period.

The performance of wheat was not only limited to the productive sphere, but also generated a significant impact on exports and tax collection. Shipments abroad are projected to reach US$2,910 million, representing an increase of 49% compared to the previous cycle. This increase in exports reinforces the position of Argentine wheat in international markets, where its quality and competitiveness are valued.

On the other hand, The sector’s contribution to the treasury is estimated at US$926 million, a growth of 20% compared to the previous year. These incomes are essential for the country, not only as generators of foreign currency, but also as a tool to support the economy as a whole.

The weather played in favor of the cereal

The success of the 2024/25 wheat campaign was marked by a combination of favorable weather conditions, improvements in agronomic management and an economic context that encouraged investment in technology. The autumn rains were essential to guarantee adequate implementation of the crop, especially in the northern core and central regions of the agricultural area.

Regarding returns, the stock exchange entity highlighted that the better conditions in the aforementioned areas allowed it to obtain results above the average of the last five years. However, not all regions were without challenges: the southeast of Buenos Aires, for example, faced below-average yields due to unusually high temperatures at the most critical time for crop development.

The economic performance of the sector also reflects a favorable global context. More competitive international prices encouraged producers at various stages of cultivation to increase their investments, improving the use of fertilizers and agronomic techniques. This approach made it possible to optimize results and guarantee the competitiveness of the cereal in international markets.

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Exports and marketing of the harvest

The economic impact of the 2024/25 wheat campaign in Argentina transcends numbers. There are thousands of truck trips from the fields to the ports, it is the conversion of raw materials into by-products from milling and its consequent added value. That is why it is vital to continue with the elimination of bureaucracies, obstacles to exporting and price distortions that make our production less competitive, as occurs with withholdings.

It is worth remembering that for the first time in many years there are no longer restrictions on export quotas, although a 12% export duty is still applied, which reduces the producer’s profitability. In any case, after the increase in production volume, the economic contribution of the wheat complex in 2025 is expected to grow by 26% compared to the previous year, reaching $2.89 billion.

Regarding exports, the Buenos Aires stock market highlighted that “they are expected to recover by 49%, generating income of US$2,910 million. Until January 15 (closing date of the report), sales abroad were estimated at 12.2 million tons, of which the industrial sector has purchased 8.3 million tons, 29.% more compared to the campaign. 2023/24.

Perhaps the most disturbing fact is that the ratio between what was sold/produced corresponds to 45% of the total, and that 10.26 million tons remain to be sold. Although the percentage is similar to that of other years, the question is whether with this level of prices and export duties, producers are going to get rid of wheat as they usually do or if they will wait for better conditions despite the economic emergencies. This same concern is already beginning to float in the air regarding the rest of the campaign and we will have the answer in the coming months.