Argentine soybeans are the most vulnerable to European regulations

Published 2024년 5월 13일

Tridge summary

The European Union's regulation against deforestation, set to take effect in January 2025, aims to prohibit the import of products linked to deforested areas. This regulation is of particular importance to Argentina, a significant supplier of soybeans and beef to the EU, which is the world's main importer of soy flour. The EU is also a key market for Argentine biodiesel, although its exclusion from the regulation's deforestation requirements will be reviewed in June 2025. In 2022, 21% of Argentina's exports of beans, flour, and soybean oil were shipped to the EU, a higher percentage than from its main competitors, Brazil, Paraguay, and the US. Argentina's economy relies heavily on these exports, with the EU accounting for a significant portion of soy flour consumption in the bloc.

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

Original content

The European regulation on deforestation is underway and will come into force from January 2025. This is regulation 2023/1115, which aims to ensure that a series of products imported by the European Union (EU) do not come from deforested areas. To this end, the export complex has been working since the end of 2019 on Visec (Sectoral Vision of the Argentine Gran Chaco). It is a platform that brings together the soybean value chain and is focused on neutralizing negative environmental impacts. In addition to soybeans, beef exporting meat processing plants recently began to participate in this space. This initiative is not minor, taking into account the importance that the European market represents for exports of the soybean complex. According to a report prepared by Guido D'Angelo and Patricia Bergero, from the Rosario Stock Exchange (BCR), the EU is the main global importer of soy flour, a product of which Argentina is the world's leading exporter. “Geolocation and production ...

Source: Suenaacampo