Argentina Grain Market Report and Forecast 2024-2032

Argentina Grain Market Size

The grain market in Argentina is projected to grow at a CAGR of 3.10% between 2024 and 2032.

Argentina Grain Market Outlook

• As per the industry reports, the total wheat production for Argentina was estimated to be around 15.4 million tons in the year 2023-24.

• As per the Argentina grain market dynamics and trends in 2023, Argentina was the fourth largest producer of corn in the world.

• The Argentine government announced that it intends to allocate around USD 550 million for the construction of a fresh grain port in the Rosario area.

Argentina Grain Market Growth

The rising demand from the food sector, rapidly changing weather conditions, and technological advancements in the agricultural sector are crucial market drivers fuelling the growth of the Argentina grain market. Argentina's agricultural sector, particularly its grain production, is heavily impacted by weather patterns. The country's grain yields are subject to fluctuations due to the influence of the La Niña and El Niño phenomena, which directly affect rainfall and temperature patterns.

Argentina Grain Market Trends

Advances in agricultural technologies, such as genetically modified (GM) crops, precision agriculture, and enhanced pest control methods, have led to higher yields per hectare and enhanced the overall quality of the grains, enhancing Argentina's competitiveness in the international market.

Market players are offering innovative and high-quality grain seeds in the country to enhance their market reach and boost Argentina grain market value. Bioceres Crop Solutions announced in May 2024 that it has commenced the sale of genetically modified wheat seeds in Argentina, making it the first time this technology has been accessible to farmers worldwide.

Recent Developments

As per the Argentina grain market analysis, the Argentine government announced that it aims to invest around USD 55O million for the construction of a new grain port in the Rosario region of the country. The construction of the new port began in March 2024.

Industry Outlook

According to the Argentina grain industry analysis, the wheat production in the country is expected to witness a growth of 1 million tonnes compared to the previous weather-affected season, to reach a value of around 16.8 million tonnes in the fiscal year 2024-25. Barley is projected to reach a value of 5.2 million tons, whereas rice is expected to witness an expansion on around 205,000 hectares.

According to the Foreign Agricultural Service (FAS) report, wheat production for 2023-24 was expected to be 15.4 million tonnes, whereas the production for 2022-23 was 12 million tonnes. The wheat consumption in 2023-24 was estimated at 6.9 million tonnes in the country. Several consumers in the country are shifting their preference towards affordable food products with high wheat flour content, which boosts the growth of the Argentina grain industry.

The wheat export for 2023-24 was projected to be 10.2 million tonnes, whereas the corn exports were estimated to be 41 million tonnes. Corn production in 2023-24 was estimated to be 57 million tonnes, whereas the production in 2022-23 was estimated to be 35 million tonnes. The FAS stated that current conditions for crop growth are good in the country.

According to industry reports, wheat production in the country is estimated to reach 21 million tonnes in 2025, due to the adoption of high-end technologies by farmers, the increase in the area in which wheat is sown, and the adoption of better wheat varieties.

The grain shipments of Argentina reached a record high value of 60.66 million tons in 2021 which boosted the Argentina grain industry revenue. As per the  Rosario Board of Trade, this was the largest volume of grain shipments in the South American countries in history. The top three exported grains were corn, wheat and soybeans with respective values of 38.4 million tonnes, 11.6 million tonnes, and 5.2 million tonnes.

Factors Contributing to the Growth of the Argentina Market

• Favorable climatic conditions and fertile soil supporting high agricultural productivity.

• Government initiatives and subsidies promoting grain production and export fuels Argentina grain demand growth.

• Advancements in agricultural technologies and farming practices.

• Increasing global demand for grains such as soybeans, corn, and wheat.

• Expansion of international trade agreements enhancing export opportunities.

• Growing investment in infrastructure and logistics improving supply chain efficiency.

Challenges Faced by Producers in the Argentina Market

• Volatile international grain prices affecting income stability for farmers.

• High costs of inputs such as seeds, fertilizers, and pesticides can negatively affect Argentina grain demand forecast.

• Unpredictable weather patterns and climate change impacting crop yields.

• Limited access to financing and credit for small-scale farmers.

• Infrastructure bottlenecks causing delays and increasing transportation costs.

• Regulatory and policy uncertainties affecting long-term planning and investments.

Key Growth Opportunities in the Argentina Market

• Adoption of precision farming techniques to enhance productivity and resource efficiency.

• Expansion into new export markets with increasing global food demand aids Argentina grain demand.

• Collaboration with research institutions to develop drought-resistant and high-yield crop varieties.

• Development of value-added grain products such as biofuels and organic grains.

• The usage of advanced storage and logistics solutions to reduce losses after harvest.

• Rising investment in sustainable agricultural practices and certifications with global standards.

Market Competition in the Argentina Market

The key players in the Argentina grain industry include Los Grobo Group, Cargill inc., Aceitera General Dehez, Bunge Global SA, and Syngenta AG. 

Competitive Strategies by Key Players in the Argentina Market

Brand Differentiation: Los Grobo Group focuses on maintaining high-quality standards and leveraging their strong market presence to build brand loyalty, which can boost the demand of Argentina grain market. 

Operational Efficiency: ADM is actively involved in streamlining operations and leveraging economies of scale to maintain competitive pricing and high-quality standards.  

Product Innovation: Cargill Argentina and Bunge Global SA are investing in innovative grain products and processing techniques to meet specific market needs.

Strategic Partnerships: Cargill Inc. and Bunge Global SA are forming alliances with local farmers and cooperatives to secure high-quality raw materials and ensure supply chain efficiency.

Argentina Grain Industry Segmentations

“Argentina Grain Industry Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Grain Type

• Wheat

• Rice

• Corn

• Barley

• Oats

• Others

Market Breakup by Production Method

• Conventional

• Organic

Market Breakup by End Use

• Food and Beverages

• Animal Feed

• Biofuels

• Others

Argentina Grain Market Share

Based on end use, the market is divided into food and beverages, animal feed, and biofuels, among others. Animal feed holds a considerable grain market share in Argentina, fuelled by Argentina's substantial agricultural production, especially in soybeans and corn as soybeans are primarily transformed into soybean meal, a feed ingredient rich in protein, while corn is utilised in its original state for animal feed.

Competitive Landscape

The market players are introducing genetically modified seeds with enhanced quality to stay ahead in the competition.

• Cargill, Incorporated.

• Archer Daniels Midland Company

• BUNGE ARGENTINA S.A.

• Syngenta Group Co., Ltd.

• Others

Argentina Grain Market Regional Analysis

As per the industry reports, the Rosario region is considered one of the most important agricultural centre in the country. This region accounts for around 80% of the agro-industrial exports in Argentina in South American region as of the 2022 April report. The construction of a new grain port in the Timbúes region of Rosaria is expected to support the market expansion.

Key Highlights of the Report

Argentina Grain Market Report Snapshots

Argentina Grain Market Size

Argentina Grain Market Growth

Argentina Grain Market Trends

Argentina Grain Market Share

Argentina Grain Companies

Argentina Grain Market Regional Analysis