Argentina VegOil Exports: India Declares a Big Interest


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Sep 14, 2023 | Agricultural Markets News

Reading time: 2 minutes

When analyzing Argentina’s VegOil products processed by the agribusiness cluster, Soybean stands out remarkably, with an approximate share of 92% of the total, followed by sunflower, with a much lower figure of 6%. At the same time, peanuts, cotton, rapeseed, and flax represent less than 1% of the total.

The focus lies on the Soybean crop due to the greater relative importance of its share in the industry’s total processing. However, we do not dismiss the importance of each of the remaining products destined for industrialization. An approximation to a strengths and opportunities analysis of the Argentinian Oil industry is as follows:


1. Processing capacity
According to data by J.J. Hinrichsen, Argentina has an excellent Oilseed processing capacity, with 67.5 million tons per year. Compared to other countries of the region, Argentina does not have a significant number of factories, as Brazil does, but its productive scale stands out since its median processing capacity per plant (5,387 t) is much higher than that of the rest of the countries of the region.

In this way, this productive scale, added to other factors such as the closeness of production to factories with access to a waterway, gives excellent efficiency to the chain of value and international competitiveness to Argentinian meals and Vegetable Oils.

2. Exportable balance of Oils and meals
When analyzing the exportable supply of the main Oilseed by-product producing countries that compete with Argentinian production, the country is characterized mainly by its low ratio of local consumption compared to the total production of derivatives. Domestic use is only 10.6% for Soybean meal, while for Soybean Oil, 26.4%. The use of sunflower by-products (meal and Oil) is higher and close to 50%.

Although Argentina is not the largest producer of Soybeans, the low domestic consumption allows it to boast a big exportable balance, which makes Argentina the leading global supplier of those by-products. In the case of sunflowers, Argentina is also among the first places due to the exportable balance that shows for Oil and meal.

3. Closeness of the production to Rosario city agribusiness cluster
Regarding the geographical location of the group of Oilseed industrializing factories, the main part of the installed capacity is on the banks of the Paraná river in the region of Rosario.

80% of the installed capacity of Oilseed crushing is in Santa Fe, and almost its totality is located in the towns near Rosario. Under this manufacturing structure, an element of great importance is the closeness of production to this industrial area focused on export. Approximately 78% of the Argentinian Soybean production, the main crop locally industrialized, is within a 300 km radio from the port factories around Rosario city.


1. Price forecast favorable for meals and Vegetable Oils.
Following the FAO and OECD forecasts for 2021-2030, the price of Oilseeds and by-products rose significantly during the second half of 2020 because world demand grew faster than supply. Although a downward correction is expected for the next few years, better outlooks for production are forecast. From that moment on, prices are forecast to rise slightly in nominal terms, although a specific reduction in real terms could be expected towards the long-term trend. As for key decisive factors of Oilseed price trends, the perspective of an increase in the real price of crude Oil should back the price of Oilseeds and their by-products until 2030.

Argentina VegOil Exports: India Declares a Big Interest

VegOil Trade in Argentina

According to AgFlow data, Argentina’s largest VegOil export market was India (0.6 million tons) in July – August 2023. The following markets were China (0.12 million tons), Mexico (88,220 tons), Canada (79,000 tons), and Peru (46,960 tons). Total imports hit 1.2 million tons in the last two months.

Other sources: BCR

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