The contribution of the primary sector to the value of Argentine production grows

Published 2021년 4월 18일

Tridge summary

The article provides an overview of the challenging year faced by Argentina's grain sector due to the pandemic, rainfall deficit, and Paraná River's historical downpout. Despite these challenges, the increase in the value of production and exports has helped mitigate the impact on the economy. Under the assumption of stable prices and unchanged production estimates, the internal value of production for the 2020/21 campaign is projected to reach US $ 28,500 million, with wheat, corn, and soybeans contributing 83% of this total. However, marketing costs are expected to rise by 7%, resulting in a production gate value of US $ 23,370 million, the highest on record. After subtracting production costs, the estimated total for the producer before income tax is US $ 10,440 million, with soybeans and corn being the largest contributors.

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

Original content

The recomposition of the international price of agricultural commodities that has taken place since April / May 2020 to this part has provided some relief in a very challenging year for the grain producing sector. The pandemic, the deficit of rainfall, the historical downspout of the Paraná River, the main exit route for Argentine grains, have posed enormous difficulties to overcome. In addition, the improvement in the value of Argentine production and exports help to reduce the impact of the above on the economy. As analyzed in previous editions of this newsletter, the higher value of the main Argentine export products in 2020/21 would leave as a balance a significant income of foreign currency from exports of grains and by-products, which would also lead to an increase in the collection for export duties. Making two major assumptions (which will have to be seen if they are confirmed): prices remain at levels similar to those currently in force and there are no new cuts in ...

Source: On24