Market Trends of Argentina Grains Industry
High Export from the Country
Argentina stands as one of the world's key grain exporters, significantly contributing to global food security. Its vast territory of 2.8 million square kilometers encompasses exceptionally fertile lands, positioning Argentina as a leading food producer with robust agricultural and livestock sectors.
Maize, wheat, corn, and soybeans have proven highly profitable for Argentine farmers. The country ranks as the third-largest corn exporter and the sixth-largest wheat exporter globally. These commodities are crucial to Argentina's economy, serving as major export products and playing a vital role in the broader South American economic landscape.
Argentina's extensive arable land is a key factor in its substantial grain production, establishing the country as a major force in the global grains market. Maize stands out as a significant component of Argentina's agricultural exports. In 2023, Argentina exported 21.8 million metric tons of maize, according to the ITC Trade Map. Vietnam, Peru, Algeria, and Malaysia were among the primary importers of Argentine maize. This high export volume highlights Argentina's crucial role in meeting global cereal demand, driven by both food and feed requirements.
In 2023, Argentina's grain exports experienced a significant decline, falling by 44% to approximately USD 8.1 billion, according to FAO reports. This sharp drop was primarily attributed to a historic drought that severely impacted crop yields, disrupting the agricultural sector on a large scale. Farmers across major grain-producing regions faced lower-than-expected harvests, with staple commodities like maize, barley, wheat and soybeans particularly affected. However, Argentina is estimated to regain its global market share in the coming years. With more favorable weather conditions and strategic production initiatives, the country could experience a resurgence in its grain output.
Growing Demand for Food and Animal Feed
Argentina has experienced a significant increase in grain consumption, particularly wheat, barley, and corn, driven by growing demand in both the food and feed sectors. USDA data indicates that domestic wheat consumption reached approximately 6.7 million metric tons in 2023, while barley consumption was 1.65 million metric tons. These figures are estimated to increase as demand for grain-based products and animal feed continues to grow.
Corn plays a crucial role in Argentina's livestock industry, which consumed about 70% of the nation's total corn production in 2023, according to USDA. The expanding livestock sector has been a key factor in the rise of maize production, as corn is an essential feed component for cattle, poultry, and swine. FAOSTAT reports that maize production in Argentina increased from 58.3 million metric tons in 2020 to 60.3 million metric tons in 2023, meeting the needs of the growing livestock population.
Production of other crops such as wheat, soybean, and barley has also increased to meet the rising demand for both human and livestock consumption in the country. The growing global population, including Argentina's, is creating additional demand for consumption and trade opportunities. Consequently, the increasing demand for food and feed in Argentina is expected to drive the country's grain market during the forecast period.
