Argentina: They project growth in alfalfa exports for 2022

Alfalfa

Argentina

Published Nov 18, 2021

Tridge summary

The forage value chain plans to increase its exportable balances for next year, despite the logistical problems generated by the lack of containers. In 2020, exports of alfalfa and by-products totaled 120,000 tons and generated foreign exchange for USD38 million, according to the Argentine Alfalfa Chamber and for this year, they estimate that external sales will close over 100,000 tons. In 2019, 105,000 were exported, with a turnover of USD32.5 million and in Argentina, the area devoted to this crop covers about 3 million hectares. In dialogue with BAE Negocios, the head of the entity, José Brigante, explained that in the last five years, the annual growth rate for exports was 20%, with shipments that went from 30,000 to 120,000 tons. Globally, commercial operations in this area mobilize 8 million tons per year, with prices of USD340 per ton in alfalfa -which increased USD40 in the last five years- and USD280 for by-products.

Original content

Until October, alfalfa sales reached 70,000 tons, a lower rate in the year-on-year comparison, while to that date, pellet shipments totaled 19,000, a figure that equaled the shipments of 2020. As the by-products are marketed in the field of Latin America, were not affected by logistical problems. The main countries that drive foreign trade in livestock fodder are China and the Arab markets, which present a sustained demand. Until last year, this product was taxed 9% in export duties, which was later reduced to 5% and after joint management between the chamber that brings together these producers and the Argentine Agroindustrial Council (CAA), the withholdings were eliminated, when the Ministry of Agriculture removed this tax from a series of activities linked to regional economies. The destinations of Argentine alfalfa are divided into two groups, which vary according to the type of products. Bales are the main business and the main destinations are the Arab countries. In 2020, ...

Source: Baenegocios