Flour exports, the main export product of the soybean complex, plummeted by 10% and shipments of raw soybeans increased by 50%. The elimination of the tariff differential ended up affecting the milling margin, and as a consequence, Argentina started exporting more beans than usual. At this moment, the use of the installed capacity of the agricultural industry is below 60%.
Gross domestic investment fell 10.5% in June in the year-on-year comparison and stood at 19.7% of gross domestic product. June investment was of $5.35 billion and accumulated in the first semester, a drop of 16.5% concerning the period of 2019.
The meat processing industry estimated that this production could grow by one million tons by 2030, supported by increasing domestic consumption for a simple matter of population increase and exports. This estimate seems reasonable, and if we subtract the 200,000 tons that would be absorbed by the domestic market, there will be 800,000 tons left with bone, which would represent a doubling of exports in the record year 2019.
Argentina experienced an extraordinary jump in the volumes produced by cereals and oilseeds. The higher production was due, in part, to a growth in the area, but a greater extent to leaps in productivity. Within this framework, and to improve the replacement of nutrients and take care of a strategic resource such as the soil, promoting the use of fertilizers in the areas of cultivation in Argentina would bring significant benefits, both in volume and in economic terms. It would make it possible to obtain profits for the agro-industrial chain of more than 2.8 billion dollars, a figure that would allow the government to generate a contribution of almost $660 million per year.
Vista, a company, created less than four years ago, has all its operations in Vaca Muerta. The collapse of oil consumption and the collapse of international prices doubly affected Vista, which reported losses of nearly $40 million in the second quarter of the year. Vista refinanced $75 million of upcoming maturities in 2020 and 2021. $45 million was extended for 18 months and corresponded to the syndicated loan with a consortium of banks, and $30 million represents to short-term bank debt that extended from 12 to 18 months.
The project, which would have an investment of $4 billion and could double Argentina's pork production over the next four years, is moving forward. The signing of this diplomatic contract could trigger the construction of 25 industrial farms that would increase pork production by more than 882,000 tons, and corn by more than 3 million tons, and would generate 9,500 jobs. They could increase exports by $2.5 billion a year.
During the first half of the year, slaughter increased by 280,000 head; production grew by 4%; and exports increased by 20%. Argentina ranks sixth as a world producer of beef, fifth as an exporter and supplies 7% of global demand. China absorbs 80% of Argentina's meat exports.
The Ministry of Economy on Wednesday obtained about 110 million pesos ($1.52 bn), 22% more than it sought to place in the bidding of Ledes, Boncer and a fixed-rate bond with maturity between 2020 and 2022.
The level of formal employment in construction fell 2% in May against April, completing a period of nine consecutive months of losses equal to or higher than that percentage, according to the monthly report of the Institute of Statistics and Registration of the Construction Industry (IERIC). The study indicated that for the first five months of the year employment accumulated a drop of 25.8% year-on-year, while about 150 thousand jobs were lost in the construction industry in 2020 until May.
Electricity distributor Edesur presented its balance sheet for the first half of the year, reflecting losses of 2.58 billion pesos ($35.85 mn) and a 50% inter-annual collapse in its investments, which the Board of Directors attributes mainly to the freezing of tariffs.