by PressSoybean production in Argentina faces a number of challenges
Farmers in Argentina may reduce soybean production
Argentina is ramping up soybean production for the 2024-2025 crop season, but meeting targets could prove challenging. According to FAS analysts, local farmers could face a number of limiting factors.
Economic processes and weather conditions will constrain increased soybean production. Therefore, farmers can only achieve high results by adopting new approaches.
It is worth noting that Argentine growers have begun to consider soybeans as a substitute for corn. Corn harvests have been declining for several years due to the impact of disease and unfavourable weather conditions. In addition, corn prices are falling, which is also a factor in reducing its production.
In 2024, Argentina produced 52 million tonnes of soybeans. It was 49.5 million tonnes in the previous season. However, future bean harvests could be at risk. The country is experiencing an increase in average temperatures, leading to a decrease in soil moisture. This, in turn, increases the risk of lower yields and poorer product quality. In some regions of the country, farmers have been forced to delay planting due to a lack of moisture. Despite this, local producers see soybeans as a critical crop for the development of the agricultural sector. One of the main advantages of its cultivation is its low production costs compared to other crops.
Sector challenges
Soybean production in Argentina faces a number of challenges:
— shortage of quality seed;
— scarcity forces farmers to reduce planting density, which can have a negative impact on yields;
— unfavourable climatic conditions affect production volumes;
— a general increase in production costs.
These factors complicate agricultural development. At the same time, farmers try to compensate for a possible decrease in yields by expanding their cultivated areas. Another way to increase production is to introduce innovative technologies into the cultivation process. However, this requires investment, which is a significant problem for many farmers.
Analysts are more optimistic about the soybean crushing sector. They note an increase in demand for the product due to stable crop supplies from Paraguay.
Production forecasts
USDA analysts have revised US bean production. The figure is expected to be just over 121 million tonnes in 2025. Last season, the US harvested around 113 million tonnes.
The forecast for Brazil remains unchanged at 169m tonnes. Argentina’s harvest will be around 51 million tonnes. With exports expected to be in the region of 4.5 million tonnes.
World soybean production is forecast at 425 million tonnes. Exports are expected to be close to 182 million tonnes. And ending stocks around 132 million tonnes.