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Since the 1997/98 season, Argentina has been the main global exporter of this product. However, during the 2022/23 season, the country suffered the worst drought in the last 60 years, seriously affecting its production and crushing capacity. Faced with this scenario, Brazil surpassed Argentina as the leading exporter of soybean meal for the first time in 25 years.
Data for the first half of 2024 show a remarkable recovery in the volume of soybean meal exported by Argentina, with an increase of 46% compared to the same period in 2023, thanks to its production returning to normal. However, despite the year-on-year growth, when analyzing the performance in the medium term, Argentina's production lags behind its closest competitors.
It is important to note that this moderate growth is affected by an idle capacity that has hovered around 42% during the last three seasons with normal production.
Compared to Brazil and the United States, Argentina has fewer processing plants, but they are larger and more efficient, allowing its total theoretical annual processing capacity to be comparable to that of Brazil and not far from that of the United States. Furthermore, unlike other competing countries, the Argentine industry is geographically concentrated, mainly around the city of Rosario, where about 80% of the national crushing capacity is located.
In general terms, the United States and Brazil far exceed Argentina in total soybean crushing volume. However, this difference is not directly reflected in a greater presence in the international export market. The main reason lies in the domestic consumption patterns of each country, since both the United States and Brazil allocate a considerable part of their production to the domestic market. Even so, year after year, both countries have increased their share of the international market, driven by growing global demand.
Although Argentina continues to be the leader in the international soybean meal trade, its leadership is no longer unquestioned and it has lost ground in a market that continues to expand.
August 23, 2024/ Rosario Stock Exchange/ Argentina.
www.bcr.com.ar
