Argentina’s agricultural exports moved US$ 10.9 billion in the first six months of the year, according to data from the Center of Cereal Exporters. During last week alone, the sector moved US$ 308.7 million. Compared what was exported in 2016, it represents 45.6 percent of the sum of the whole year.
Category Archives: Sorghum
The agricultural sector in Argentina has sold in the year of 2016 the sum of US$ 23.9 billion, according to the Center of Cereal Exporters. Comparing to 2015, the country has shipped US$ 19.6 billion of agricultural products. The newest number is just below the record of 2011, when Argentina’s ag sector exported US$ 25.1 billion. Just in the last four days of 2016, exporters had sold US$ 241 million.
After a recent trip to Asia, Brazil’s Minister of Agriculture, Livestock and Supply, Blairo Maggi, announced that the country will get approximately US$ 2 billion through more trade with these new open markets. “The government stimulates and creates the rules, but the negotiation has to be done by private copanies,” said Maggi.
The goal of Maggi’s mission was to increase the share of Brazil’s participation of agricultural production from seven to 10 percent of the world’s total output. The markets of South Korea and Malaysia had open their doors for Brazil’s swine meat. In the case of Vietnam, the market was reopened for beef, poultry and swine meat, while Indian opened its market for Brazilian leather, wood and fish. In Thailand, negotiations just started for the entrance of Brazilian beef there. In China, the negotiations involved several different products, including grains, coffee and sugar.
The government of the Buenos Aires province has authorized an increase of 23.5 percent on transportation prices of grains and cereals. Buenos Aires is the largest producer of soybeans, wheat, and corn in Argentina. The increase considered the “wages implied on the personnel, costs of transportation and the amortization of capital”.
The government of the new Brazilian president Michel Temer seeks to approve a bill that flexibilizes the rules regarding the purchase of land by foreign citizens. Since 2010, foreign citizens just can purchase law with a limit of 12,300 acres. The new government considers the flexibilization of the law a key change for the country’s economic recovery and development.
Archer Daniels Midland announced on Tuesday it has begun the expansion its bulk grains terminal and silo space at Brazil’s port of Santos, Reuters reported. Greg Morris, ADM’s processing head, affirmed in a statement the work will raise the company’s capacity to transport grains through the terminal to 8 million tons from a current 6 million metric tons per year. Reuters also reported that the expansion and modernization is also expected to help reduce the trader’s emission of particulates of grain dust into the air around its terminal, which had prompted complaints from local businesses and residents. The works should finish by the end of 2017. “We are continuing also with the expansion of our export terminal … in Barcarena (in Para state), which will raise capacity to 6 million tonnes annually,” Morris said.
The new president of Argentina, Maurício Macri, confirmed today the elimination of the export taxes on corn, wheat, sunflower, beef, and sorghum. The soybean export tax was reduce from a rate of 35 percent to 30 percent – with the promise of a new reduction of five percentage points in one year. “Our fiscal loss will be compensated with the income tax generated by the gains. But we will also improve enforcement and nobody will avoid taxes,” emphasized Macri.
According to a study released by the Federation of Agriculture and Livestock of Rio Grande do Sul, the Inflation of Production Cost in Brazil jumped 1.25 percent in July in the comparison with the previous month. The top influence on that increase was the price of fertilizers and agrochemicals. Throughout the year, costs for rural producers jumped 4.60 percent.
On the other hand, prices paid to Brazilian producers on average jumped 4.65 percent from June to July. During 2015, the value paid to farmers readjusted 3.26 percent. Antônio da Luz, an economist at the federation, forecasts that during the whole year, prices will surge in two digits. “Our costs will increase a lot more than those for final consumers,” analyzed Luz.
Argentina’s exports of sorghum to China are officially authorized by Chinese authorities this Monday. The permission is a result of a phytosanitary agreement between the two countries signed on July of 2014. China’s General Administration of Quality, Inspection, and Quarantine Supervision highlighted the agreement was a result of a visit of president Xi Jinping.
Until 2012, Chinese sorghum imports were not higher than 100,000 annually, mostly used for alcoholic beverages. In 2013, after some local farmers started to use it to forage, the demand jumped to 2.4 million tons. The top world’s sorghum suppliers are Argentina, Australia, and the United States.
After a phytosanitary agreement between China and Argentina, the South American country will be able to export sorghum to Asians and benefit from the skyrocketing demand in this season already. According to numbers from the United States Department of Agriculture, the Chinese imported a volume of 84,000 tons of sorghum in the 2011/2012 season. In the 2013/2014, imports of the grain jumped to stunning 3.4 million.
Prior to the Argentinian agreement with China, the only countries allowed to exported sorghum to that populous Asian country were the United States, Myanmar, and Australia. In the meantime, in Argentina, it seems that farmers are already aware of the trade possibilities with the grain. The sorghum surface increased from 1.4 million acres to 2.9 million acres in the last five years.
However, problems will be seen in the next crop because of the lack of technology, knowledge and market dynamism, experts say. “Sorghum is fragmented market (in Argentina). It does not have a region of producers, but isolated growers with insignificant material able to export”, said Esteban Martínez, a researcher at Nidera‘s Department of Sorghum.
Sorghum can also be specially attractive for Argentine growers because it does not have the undesired tax on exports (called locally retentions). That is one of the reasons that the crop already caught the attention of local growers.