Market Trends of South America Wheat Industry
Increasing Domestic Consumption
Wheat consumption in South American countries, particularly Brazil, Colombia, and Argentina, has seen a significant increase in recent years. According to the United States Department of Agriculture (USDA), the region's annual wheat consumption reached approximately 30.1 thousand metric tons in 2023. The high nutritional value of wheat has expanded its use in the food and processing industries across the region. Improved living standards and increased disposable income have led to greater health awareness among urban consumers. Additionally, the rise in lifestyle-related diseases has positively influenced wheat consumption demand.
Brazil stands as the largest wheat consumer in the region, importing wheat worth approximately USD 1.2 billion in 2023, primarily from Argentina, as reported by the ITC Trade Map. The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) reports that urban populations now comprise over 81% of South America's total population in 2023. This urbanization trend has led to increased consumption of convenient wheat-based products, especially bread and pasta. In Argentina, for instance, per capita bread consumption reached 75 kg per person in 2023, according to the USDA. The proliferation of quick-service restaurants and cafes in urban areas has further boosted wheat consumption in major South American cities.
Argentina Dominates the Market
Argentina plays a crucial role in the South American wheat market, producing approximately 61.2% of the region's total wheat, with an annual output averaging 20.5 million metric tons, according to FAO Statistics. The country's favorable geographical conditions, advanced agricultural technologies, and strategic economic policies have established it as a significant global wheat exporter.
Wheat exports are economically vital for Argentina. In 2023, these exports generated about USD 871.8 million in revenue, forming a key part of the country's agricultural export portfolio, according to ITC Trade Map. This export capacity is supported by well-developed agricultural infrastructure, including an extensive network of grain elevators, modern transportation systems, and strategic port facilities along the Paraná River.
Argentina has three main wheat-planting areas: North, Central, and South. The Central and Southern regions contribute over 95% of the production, with planting beginning in the second half of May, according to FAO Statistics. Argentina is also a major wheat consumer in South America, using it for noodles, dumplings, buns, and pastries in everyday cuisine. Wheat is primarily used as flour for various preparations in the country.
Corporate initiatives are also supporting Argentina's wheat market. In 2023, Florimond Desprez, a seed breeder and producer, partnered with Bioceres to develop and market wheat varieties with new biotechnologies for South America, particularly Argentina. Given these factors and the increasing adoption of technology in the region, Argentina is expected to maintain its dominance in the wheat market over the forecast period.
