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Published by: Business Monitor International
Published: Jun. 29, 2009 - 54 Pages
Table of Contents
- Executive Summary
- SWOT Analysis
- Nigeria Agricultural SWOT
- Industry Business Environment Overview
- Market Overview
- Supply Demand Analysis
- Argentina Sugar Outlook
- Table: Argentina Sugar Production, Consumption & Trade
- Table: Argentina Sugar Production, Consumption & Trade
- Industry Forecast - Argentina Rice Outlook
- Table: Argentina Rice Production, Consumption & Trade
- Table: Argentina Rice Production, Consumption & Trade
- Industry Forecast - Argentina Dairy Outlook
- Table: Argentina Milk Production & Consumption
- Table: Argentina Butter Production, Consumption & Trade
- Table: Argentina Cheese Production, Consumption & Trade
- Table: Argentina Whole Milk Powder Production, Consumption & Trade
- Table: Argentina Milk Production & Consumption
- Table: Argentina Butter Production, Consumption & Trade
- Table: Argentina Cheese Production, Consumption & Trade
- Table: Argentina Whole Milk Powder Production, Consumption & Trade
- Industry Forecast - Argentina Livestock Outlook
- Industry Forecast - Argentina Livestock Outlook
- Table: Argentina Poultry Production, Consumption & Trade
- Table: Argentina Pork Production, Consumption & Trade
- Table: Argentina Beef & Veal Production, Consumption & Trade
- Table: Argentina Poultry Production, Consumption & Trade
- Table: Argentina Pork Production, Consumption & Trade
- Table: Argentina Beef & Veal Production, Consumption & Trade
- Industry Forecast - Argentina Grains Outlook
- Wheat
- Table: Argentina Wheat Production, Consumption & Trade
- Table: Argentina Wheat Production, Consumption & Trade
- Corn
- Table: Argentina Corn Production, Consumption & Trade
- Table: Argentina Corn Production, Consumption & Trade
- Barley
- Table: Argentina Barley Production, Consumption & Trade
- Table: Argentina Barley Production, Consumption & Trade
- Sorghum
- Argentina Sorghum Production, Consumption & Trade
- Table: Argentina Sorghum Production, Consumption & Trade
- Industry Forecast - Argentina Grains Outlook
- Table: Argentina Soybean Production, Consumption & Trade
- Table: Argentina Soybean Production, Consumption & Trade
- Competitive Landscape
- Table: Agricultural Commodity Producers & Traders
- Table: Agribusiness Suppliers
- Table: Integrated Agricultural Producers
- Market Strategy - Grains Update
- Corn
- Table: Corn
- Soybean
- Table: Soybean
- Rice
- Table: Rice
- Wheat
- Table: Wheat
- Market Strategy Softs Update
- Cocoa
- Table: Cocoa
- Coffee
- Table Coffee
- Milk
- Table: Milk
- Sugar
- Table: Sugar
- Downstream Supply Chain Analysis
- Industry Forecast Scenario - Food
- Argentina Food Consumption Indicators -- Historical Data & Forecasts
- Confectionery Value/Volume Sales - Historical Data & Forecasts
- Food & Drink Trade Balance - Historical Data & Forecasts
- Industry Forecast Scenario - Retail
- Argentina Mass Grocery Retail -- Value Sales by Format -- Historical Data & Forecasts
- Sales Breakdown by Retail Format Type -- 2008 & 2018
- Economic Activity
- Company News Alert - Danone Reconsidering Merits Of JV Strategy?
- BMI Forecast Modelling
- How We Generate Our Industry Forecasts
AbstractIn BMI's Argentina Agribusiness Report for Q3 2009, we introduce the new Soybean Outlook. Soybeanproduction has exploded in Argentina over the past few decades. In 1970, less than 50,000 hectares (ha)of land was planted with the crop. In 2008, more than 16mn ha were given to soybeans. In the past decadealone, the area harvested has more than doubled, changing the face of Argentinian farming. Prior to thecurrent problems at least, Argentina was the world's largest exporter of soybean meal and oil and thirdlargest exporter of soybeans behind only Brazil and the US.
In 2009, Argentinian agriculture is in crisis. Soybean production has not escaped. We forecast this year'sharvest to be 28% smaller than the 2008 crop at 33.23mn tonnes. The long drought in the Southern Coneof South America has seen yields plummet as crops are wiped out by water shortages. The volume ofsoybeans crushed domestically will also fall this year owing to the tight supplies, though by a muchsmaller amount. We expect exports of whole soybeans, however, to fall by as much as 50%.
Despite this setback, we expect the rise of soybeans to continue in Argentina once climatic conditionsallow. Strong economic growth in emerging markets, most notably China, will see incomes rise andconsumption of meat rise alongside. This will keep demand for Argentina's soybean and soybeanproducts exports high. Domestic consumption will also be helped by a new renewable fuels law cominginto force next year that mandates for all diesel sold in the country to contain at least 5% biodiesel. Weexpect the production of biodiesel from soybean oil to rise rapidly this year in preparation for theincreased demand.
Despite the rapid fall in soybean production, we do not expect it to be the crop hit worst by the drought.
Our forecasts for wheat and corn production are even bleaker. For wheat, we expect production toplummet 50.6% year-on-year (y-o-y) to 8.30mn tonnes while for corn we forecast a drop of 40.0% y-o-yto 12.31mn tonnes. Exports of these crops will fall to the lowest level in years. We expect it to be sometime before production of these crops reaches the levels seen in 2008. Farmers have been encouraged toturn to other, hardier crops and the area planted to wheat and corn is expected to fall sharply this year.
Less stringent government control on exports has also provided incentives for farmers to move to moreminor crops.
Also struggling badly is Argentina's iconic beef industry. With much of the pampas dried out, stock losshas been heavy and slaughter weights are well down. We expect production to fall this year and nextowing to the reduced size of the national herd. If the weather doesn't improve soon, production could fallso low next year that imports of beef are required to meet demand. An unheard of situation in Argentina,formerly the world's number one beef exporter.
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