There are some factors such as the modifications to the Export Increase Program, which improved the prices in pesos paid for raw materials by up to 30% and stimulated the sale of grains in the first month of the year.
The report also mentions that the oil and export industry continues to work with high levels of idle capacity, indicating that there is even greater growth potential in this sector.
The devaluation of the local currency and the increase of approximately 120% in the value of the dollar implemented by the administration of Javier Milei They generated a favorable environment for the agro-export sector by resulting in an improvement in the prices received by grain producers and exporters.
This phenomenon stimulated sales and it is anticipated that the upward trend will persist in the grain market for at least a while. In addition, this operation also stimulated the liquidation of foreign currencies, which led to the acquisition of dollars and the increase in reserves of Central bank.
As reported by the Chamber of the Oil Industry of the Argentine Republic (CIARA) and the Cereal Exporters Center (CEC) during the month of January, companies in the sector settled the sum of US$1,522 millionrepresenting an increase of 64% compared to the same month of January 2023 and an improvement of 22% compared to the month of December 2023.
This increase is due to several factors, including:
- The new agricultural dollar regime, which provides a more favorable exchange rate for grain exports.
- The macroeconomic movements of the new government, which positively impact the confidence of producers and exporters.
The export of grains and agricultural by-products is a key sector for the Argentine economy, since it represents 48% of total exports. The country’s main export product is soybean meal, which is an industrialized by-product generated by this agro-industrial complex.
The report also mentions that the oil and export industry continues to work with high levels of idle capacity, indicating that there is even greater growth potential in this sector.
Likewise, the oilseed-cereal complex, including biodiesel and its derivatives, contributed, in 2022, 48% of Argentina’s total exports, according to INDEC data.
Source: Ambito
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