Argentina’s soybean exports reduce domestic processing rates

US President Donald Trump’s trade war with China has reverberated in Argentina, dealing a blow to the country’s massive soybean crushing industry. Although overall soybean sales from the country have reached a six-year high, soaring raw bean exports from the South American country to China have slowed supplies to local crushers, Reuters reports.

The paradox of a growing export market creating problems domestically is worrying industry leaders. According to CIARA-CEC, the Chamber of Commerce of Argentine Grain Exporters and Crushers, idle crushing capacity in the country rose to 31% in July and continues to rise.

“Frankly, we are worried. This means job losses in Argentina and a reduction in export value,” said Gustavo Ydígoras, president of CIARA-CEC. “This trade war has not brought Argentina any benefits; on the contrary, it has caused harm.”

He added that the conflict also led to a soybean surplus in the US, allowing American soybean meal to “aggressively” compete with Argentine soybean meal for consumers in Southeast Asia.

According to official data, Argentina’s exports of unprocessed soybeans for the 2024/25 harvest have risen sharply to 8.81 million tonnes, a six-year high, driven by strong demand from China, the world’s largest soybean consumer, which sources raw materials for processing at its own industrial complexes.

With nearly a third of Argentina’s 2024/25 harvest still unsold, exporters plan to nearly double their sales volumes from the 4.7 million tonnes shipped last season.

Tags: export, soybean, Argentina