WASHINGTON: The value of Argentine agricultural exports has soared in the wake of reforms introduced by the country’s new president, according to the industry group SRA. The dollar-denominated value of exports of 21 key agricultural commodities rose by 44% in the first three months of 2016, compared to the same time last year. The rise in exports follows the election of Mauricio Macri, who took office December 2015, after running a pro-agriculture and pro-business campaign.
Mr Macri made a number of reforms to agricultural export policy, including the removal of export quotas; the scrapping of export taxes on wheat, corn, soymeal and soyoil exports; a cut in soybean export taxes; and the floating (and thus devaluation) of the peso.
Agricultural commodities were the fastest growing export category in the first three months of 2016, SRA said, and accounted for 51% of all exports by dollar value in the quarter, up from 37% a year earlier. The value of wheat exports rose by 68% to $644m; barley by 58% to $296m and corn by 63% to $1.07bn.
Vegoil and vegoil products saw particularly robust export growth. Soyoil exports were up 72% by value, at $988m, with sunflower oil exports soaring by 225% to $143m. Exports of biodiesel, which is Argentina is largely derived from soyoil, rose by 107% to $126m. Exports of unprocessed soybeans, which are still taxed at 30% in a bid to encourage domestic processing, rose by 30%, to 35m tonnes.
