Category: Industry

Information about Argentina’s economic sectors

China would invest $3.5 bn for pork production in Argentina

This week the Memorandum of Understanding between Argentina and China could be signed to boost the growth of the local pork sector and then export pork to China. Investments could exceed $3.5 billion over the next six years. It would accompany by the construction of 25 integrated units in several provinces where they will install feed processing plants, biodigesters, hatcheries, cold storage, and effluent treatment plants. Today, Argentina’s pork production is around 700,000 tons and could double.

The government presented a plan to promote gas production and export

The national government presented on Thursday the guidelines to increase gas production during the next four years. It has as its central pillar a 4-year competitive auction scheme for onshore development. For off-shore projects, an eight-year term will apply to amortize costs. It aims to secure fixed blocks of 70 million cubic meters per day (MMm3/d) for production companies for 365 days until 2024. It plans to authorize export volumes of up to 11 MMm3/d during the summer season. By promoting local production, the desired effect is to achieve a reduction in imports of Liquefied Natural Gas (LNG) and liquid fuels, to enable a reduction in the cost of the service.

Corn harvest covers 6.12 hectares with an average yield of 81.7 quintals per hectare

The corn harvest ended this week at the national level with a production of 50 million tons, exceeding the soybean harvest for the first time in 20 years, reported the Buenos Aires Grain Exchange (BCBA). The corn harvest covered a total area of 6.12 million hectares, with a national average yield of 81.7 quintals per hectare. The reduction in export duties and the incorporation of technology made it possible to increase production.

Agribusiness plan advances to achieve returns of 4% to 7%

The project of differential withholding and refunds for agribusinesses is advancing. This week, the Argentine Agribusiness Council (CAA) made the first concrete proposal to the government: rebates ranging from 4% to 7%. Two levels of rates would apply according to the degree of industrialization: 4% for products with less processing and 7% for those with more processing. No refunds would grant for exports of soya beans, maize, wheat, barley and sunflower. The Foreign Ministry believes that shipping from the sector could increase from $65 bn to $8 bn in the next two years.

The industry grew 13.8% per month in June

Due to the reopening of more activities after the strict confinements to prevent the spread of Covid-19, the manufacturing industry showed a monthly recovery of 13.8% in June. Although there was a 6.6% drop in comparison with the same month in 2019, the year-on-year decline was the smallest since February. The food and beverage sector rose by 4.8% compared with June last year, while the chemicals sector saw a 7.6% improvement. Since February there has been no year-on-year growth in the industry. The industry grew 13.8% per month in June

Soybean producers invested $741 per hectare with a profit of just $4.

Total soybean production reached 49.6 mn tons, with yields of 29.4 quintals per hectare, and planting of 16.8 million hectares. Compared to the previous cycle, despite having the same area planted, water stress generated interannual falls of about 12% in yield and 10% in production. The participation of the State in agricultural income was almost 70% last June, where 26% of total taxes are co-shared, 67% are national (not co-shared), 5.2% are provincial and 0.8% municipal. Producers invested an average of $741 per hectare but made a profit of just $4.

A partnership between Shell and TGS to build a gas plant in Vaca Muerta

The Argentine subsidiary of the Anglo-Dutch oil company Shell announced yesterday an agreement with Transportadora de Gas del Sur (TGS) for the construction of a new gas treatment plant in the Bajada de Añelo block. The contract will be for a minimum term of two years and consists of the provision of midstream gas dehydration, filtering, regulation and measurement services with a capacity of up to 1 million cubic meters per day. The gas pipeline is 150 kilometres long, crosses 30 productive areas of the Vaca Muerta formation, and will allow transportation of up to 60 MMm3/d, which will condition at the plant built in Tratayen, before injection into the regulated transportation systems.

Government supports $100 billion agriculture export plan

The Argentine Agribusiness Council (CAA) submitted to the Government its proposal to export for $100 billion. In the CAA they argue that, with the promotion and encouragement of investments, an export plan, a law for that purpose and fiscal and financial stability for ten years, the country can jump from $65 billion in exports to $100 billion. Also, it would generate roots in the interior and 700,000 new jobs, more than 200,000 of them directly contributed by agribusiness.