World Grain - June 2015 - (Page 24)

COUNTRY FOCUS Key Facts Focus on Argentina Country plays major role in bridging the gap between Northern Hemisphere harvests of grains and oilseeds by Chris Lyddon 72 Argentina is one of the most important grain and oilseed producing countries in the world, playing a huge role in supplying the market at a time that bridges the gap between Northern Hemisphere harvests. It does it against a background of political uncertainty, especially about currency, which often affects grower and exporter behavior LQZD\VWKDWPLJKWQRWDSSHDUMXVWL¿HGE\JOREDOPDUNHWFRQGLWLRQV The International Grains Council (IGC) projects Argentina's 2015-16 total grains production at 49.2 million tonnes, down from 51.1 million in 2014-15. It put the wheat crop at 12.5 million, compared to 13.9 million the year before. The maize crop is put at 28 million tonnes in 2015-16, compared to 30 million the prior year. The barley crop is put at 3.7 million tonnes, up from 2.9 million. Sorghum production is projected at 4.5 million tonnes, up from 3.8 million and oat production is forecast to fall to 400,000 from 500,000 tonnes. Argentina's total grains exports in 2015-16 are projected at 29.6 million tonnes, up from 26.3 million in 2014-15. Wheat exports are projected at 7.5 million tonnes in 2015-16 up from 4.8 million. Maize exports are forecast at 17.5 million tonnes, down from 18 million. Barley exports are expected to rise to 2.8 million tonnes (2 million feed and 800,000 malting) from 2 million (1.4 feed, 600,000 malting) the year before. Argentina Sorghum exports are expected to rise to 1.8 million tonnes from 1.5 million. Argentina is less of a soymeal exporter than it was. "Argentina's exports reached a peak of 13.6 million tonnes in 2010-11 (April/March), but have been markedly lower in the period since, averaging about 8 million tonnes annually from 2011-12 to 2014-15 on competition from other origins and sluggish farmer selling in more recent years," the IGC said. "The latter factor may be important in the current MY (ending March 31, 2016), with shipments seen rising moderately, to 8.1 million tonnes (7.5 million). Argentina's soymeal exports are projected at 27.6 million tonnes, up from 23 million. ³+LJK LQÀDWLRQ DQ RYHUYDOXHG SHVR OLPLWHG ¿QDQFLQJ DQG government policies have all combined to force producers to re- Bolivia 64 56 48 Paraguay Brazil 24 80 Uruguay 32 Chile South Pacific Ocean 32 South Atlantic Ocean 40 24 40 48 48 24 Capital: Buenos Aires Population: 43,024,374 (July 2014 est.) Religions: Nominally Roman Catholic 92% (less than 20% practicing), Protestant 2%, Jewish 2%, other 4%. Location: Southern South America, bordering the South Atlantic Ocean, between Chile and Uruguay. Government: Republic. Chief of state and head of government: President Cristina Fernandez De Kirchner (since Dec. 10, 2007). Economy: Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May 2012, the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and preapproval of all imports. In July 2012, the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. During 2013, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and import controls to limit the drain in Central Bank foreign reserves, which nevertheless dropped $12 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. In early 2014, the government embraced some orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and took measures to mend ties with the international financial community, including: engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and presenting a proposal to pay its arrears to the Paris Club. Nevertheless, the government in July 2014 defaulted again on its external debt after it failed to reach an agreement with U.S. holdout creditors. The government's delay in reaching a settlement and the continuation of interventionist policies are contributing to a prolonged recession. GDP per capita:  $22,100 (2014 est.); inflation: 36.4% (2014 est.); unemployment: 7.7% (2014 est.). Currency: Argentine pesos (ARS): 8.96 pesos equal 1 U.S. dollar (May 20, 2015). Exports: $76.47 billion (2014 est.): soybeans and derivatives, petroleum and gas, vehicles, corn, wheat. Imports: $65.9 billion (2014 est.): machinery, motor vehicles, petroleum and natural gas, organic chemicals, plastics. Major crops/agricultural products: Sunflower seeds, lemons, soybeans, grapes, corn, tobacco, peanuts, tea, wheat; livestock. Agriculture: 10.4% of GDP and 5% of the labor force. Internet: Code: .ar; 11.232 million (2012) hosts and 13.694 million (2009) users. Source: CIA World Factbook June 2015 / World Grain /

Table of Contents for the Digital Edition of World Grain - June 2015

World Grain - June 2015
Table of Contents
From the Editor-in-chief - Flour output data points to eating trends
Calendar of Events
News review - Ceremony marks opening of Whitewater Mill
ADM plans extensive improvements at Argentina port
Dangote Flour Mills hurts Tiger’s earnings
GrainCorp Oils increasing oilseed crushing capacity
Noble Agri appoints former ADM executive as CEO Jansen
Hovis names new CEO
Southern Africa nations facing food shortage
EBRD provides loan to Turkish edible oil producer
Gruma full steam ahead on European expansion
Oilseeds, grains push Wilmar earnings up 49%
GrainCorp earnings drop on smaller crop
ADM makes management appointments in key areas
ADM earnings surge on oilseed crush margins
Bunge returns to profit on soybean crushing
GrainCorp plans upgrades at 13 sites
Grain Market Review - Rice
Country Focus - Argentina
Technical Profile - Crustless pan bread favored in Argentina
Feature - Bridging a Gap
Feature - Chinese Reforms Creating Market Uncertainties
Feature - Investing in Food Security
Feature - Grain Storage and Handling Projects
Feature - IAOM Conference 2015
Feature - China, currency impacting markets
Feature - A new plan for Egypt
Feature - Team approach to marketing for Canadian grains
Canadian wheat customers share their experiences
Feature - IAOM MEA District Conference & Expo
Feature - Traders Utilizing Exchanges More than Ever
Supplier News
Product Showcase
World Grain Archive
Advertiser Index

World Grain - June 2015