Argentina regained first place in the international soybean meal market

Published Aug 26, 2024

Tridge summary

Argentina, a traditionally leading exporter of soybean meal, has been surpassed by Brazil due to severe drought damage to its production and milling capacity. Despite a notable recovery in the first half of 2024, Argentina's growth is influenced by idle capacity and lack of significant increase in soybean production. Meanwhile, Brazil's export growth is hampered by higher operating costs and the effects of a historic flood. The United States and Brazil dominate the soybean crushing market but export a significant portion of their production, contributing to a 25% increase in world imports over the past fourteen years.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

At the international level, soybean meal exports have traditionally been led by Argentina, Brazil and the United States. Since the 1997/98 campaign, Argentina has remained the world's leading exporter of this product. However, during the 2022/23 campaign, the country suffered the worst drought in the last 60 years, which seriously affected its production and milling capacity. Faced with this scenario, Brazil surpassed Argentina as the main exporter of soybean meal for the first time in 25 years. Data for the first half of 2024 reveal a notable recovery in the volume of Argentine soybean meal exported. Argentina has managed to increase its exports by 46% compared to the first half of 2023, by virtue of having returned to its normal production level. However, despite the year-on-year growth, when evaluating performance over the medium term, local production dynamics are surpassed by its closest competitors. It is important to note that this moderate growth is influenced by idle ...

Source: Chacra Magazine