Market insights on Argentine agriculture

Latin America stands out globally because of its high production potential in the agricultural sector. It is widely recognized that the territory holds a position of great importance as a food provider in the world market. The expansion of agricultural frontiers in the region was mainly driven by rising global demand for food and biofuels, which in turn is the result of population growth and changes in eating habits, spurring Latin America to become the fastest growing market for pesticides. As we know, the use of pesticides is very closely linked to problems with plant structure and the occurrence of disease. This series of articles offer a brief introduction to current market conditions, the main crops being produced, and the pests commonly seen in select Latin American countries, allowing readers to explore the options presented by this huge potential market.

Argentina is a major agricultural exporter, second only to Brazil among its Latin American peers. Argentina is the largest exporter of soybean meal and soybean oil in the world and third in bean exports. Grain exports (mainly corn and wheat) are its second most important crop, accounting for 18% of the total agricultural exports and bringing the overall share of grain and oilseeds to about 70% of the total.

The potential of the Argentine market is huge. According to statistics, in Argentina, the application volume of pesticides has increased at a blistering 20% annual rate over the last five years. Some 320,000 tons of pesticides are used in the country every year, especially in soy fields, where animal feed for Europe’s meat industry is produced. The Argentine pesticide market was estimated to be worth US $2.4 billion in 2015.

The following table shows the main crops (by area) and corresponding pests/diseases/weeds in the Argentine market:


Agrofina, one of the few companies that have achieved a sustainable growth  in Argentina during the last years, notes that “This year, the business environment has improved as a result of the latest government measures, appreciation of the US dollar, and elimination of corn and wheat export taxes, favoring a farmer's economy. Nevertheless the market is still cautious with regard to AC demand, which has been delayed until the inputs need to be used.”