Market Trends of Argentina Grains Industry
This section covers the major market trends shaping the Argentina Grains Market according to our research experts:
Cereals Dominate the Market
Maize, Wheat, Corn and Soybeans have turned out to be quite profitable for Argentina farmers. It is the third-largest exporter of corn and the sixth-largest exporter of wheat. Furthermore, these commodities play an important role in the South American economy is highly exported commodities. Domestic corn consumption in Argentina has soared in the past few years, with estimates surpassing the 15 million ton mark in 2019. Similarly, corn production is also expected to increase in the following years and the high export tax in soybean to encourage domestic consumption in Argentina Market is driving the production of grains in the market.
Cereals Export Dominate the Market in Terms of Value
The demand for cereals such as Soybean, Wheat, Barley and Maize is increasing due to a significant increase in animal feed demand. Production of crops like maize has significantly increased due to an increasing livestock population driving the demand from the feed industry. Maize and Protein concentrate traditionally comprise of more than 70% of farm-made diets. Henceforth, Argentina exports the cereals to major countries like Brazil, Algeria, Vietnam, Chile and Egypt. The 5-8% increase in the cereal export value from Argentina denotes the increase in demand for cereals globally. This trend is expected to continue well into the forecast period and this factor is expected to drive the Argentina market for grains during the period.
