by PressCorn exports resumed in Argentina after complete ban in December
Corn exports in Argentina: changes in the rules for the supply of the crop
Corn exports in Argentina have been restored after restrictions imposed by the authorities last December. Due to numerous appeals from local farmers, the Ministry of Agriculture decided to revise the rules, and instead of a ban on supplies set limits on the sale of the crop. Now no more than 30,000 tons can be sold per day.
On December 30 last year, the Argentine government announced a two-month suspension of corn exports. The reason was the authorities’ desire to stabilize grain prices on the domestic market, which went up sharply as a result of a long recession in the economy of the country, which was aggravated because of the pandemic. Argentine farmers were negatively greeted by such innovations, a wave of protests arose across the country, and to reassure people, authorities were forced to revise the terms of the restrictions.
According to an official statement from the line ministry, after negotiations with the domestic market participants were able to find an optimal solution. Daily limits will provide the necessary volume of corn supply in the local segment, as well as help to stabilize domestic prices from fluctuations on the world market.
The crop is used in Argentina as fodder for animals and birds. The government’s original goal was to keep a large supply of corn in the country. This would have reduced the cost of feed for the livestock industry, which in turn had a positive effect on increasing the food supply.
However, this initiative was not to the liking of the farmers, who strongly opposed the export ban. As a result, mass strikes were organized in different parts of Argentina. Market participants argued that the new embargo hinders the development of the agricultural industry and prevents an increase in investment.
Producers of other crops, including soybeans, sunflowers and wheat, also strongly opposed the embargo. In their opinion, government interference in the export of products reduces the level of trust in the government by representatives of the agricultural sector and leads to the suspension of investment in many agricultural projects.
It should be noted that Argentina has been increasing corn exports since 2017. Last year, from January to October, it sold 34.5 million tons to the world market, up 10% from the same period in 2019. Such figures were a record for the country. The big buyers of local products are Vietnam, which accounts for 22% of total shipments. It is followed by Egypt and Algeria with 10% and 9%, respectively.
Experts predict that this year’s supply may also be reduced as a result of a smaller corn harvest. It was sown on 200 thousand fewer hectares of land than last season.