Argentinian agroindustrial sector turnover billed U$S 47,000 million in 2017

According to the opinion of the economists of Grain Exchange of Buenos Aires at the First Congress of the Agricultural Outlook of Buenos Aires Cereals Stock Exchange, the turnover of the agroindustrial sector scheduled for next year would be about U$S 47,000 million, double or even more than the contribution to the automotive industry.

They indicated an expected interannual turnover of 20%, adding that there will be an additional contribution of U$S 7,600 million to the economy.

On the other hand, they also said that the decision of the national government to eliminate and reduce export duties on grains had virtually no impact on the country's tax revenues by 2017.

They explained that the final reduction in tax costs to the state was only 3%, and the impact was almost null if revenues increased contributions, gross income, and other taxes were taken into account.

Economists praised the changes in the public policy, especially the reduction and elimination of export duties, and said that they generated revenues of approximately U$S 12.150 million in 2017. This represents about 8.7% of the total revenue of the country, taking into account all economic activities.

In addition to this, the Agricultural Estimates Department of Grain Exchange said that the agroindustrial industry would be able to project an agricultural area of 32.25 million hectares, with specific advances in corn and sunflower cultivation.

In another order, Hubertus Guy, senior economist at the Organization for Economic Co-operation and Development (OECD), said that "Argentina and Brazil will contribute 50% to the expansion of world agricultural area in the next 10 years."

He felt that "malnutrition in Latin America will fall below 5% in that period, despite growth in population."

He also found that "the management of risks such as climate change, which can affect the market, was required to improve food security in the world."

Meanwhile, Maximo Torero, the director of Markets, Trade and Institutions of the International Research Institute for Food Policy (IFPERI), said that "the increasing population and climatic change are challenges that need to be tackled to improve the global portfolio through trade."

He stressed the need to "improve access to international markets, improve weather forecasts and market-based hedging to deal with the volatility."

Marisa Bircher, Secretary of Agroindustrial Markets of Argentina, noted that "diversity remained a challenge, because exports to China were concentrated in two products," but stressed that Argentina had "25 open markets, developed in the last 9 months, working with the Senasa National Health Service and Food Quality."