Argentina’s soybean harvest is forecast to be higher than last year, but the industry faces challenges

Argentina is expected to produce more soybeans between 2024 and 2025, but the crop faces “a number of complex challenges due to weather conditions, economic pressures and production practices,” according to a report from the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS), World Graine reported.

Soybean production is estimated at 52 million tons, up from last year’s crop of 49.5 million tons. Producers are opting for soybeans over corn due to concerns about the effects of drought and disease, as well as its higher prices compared to corn, the FAS report explained. Economic factors will also incline farmers to choose soybeans because production costs for soybeans are significantly lower than for other crops.

Due to recent shortages of high-quality seed on the market, farmers are reducing planting density to give each seed more room to germinate, but this will likely result in lower overall yields, FAS elaborates.

“Overall, a combination of environmental, economic and technical challenges paints a challenging picture for Argentina’s soybean sector in 2024-25,” the analysts said, ”While increased acreage and technological advances may support production, unfavorable weather conditions and poor seed quality could prevent yields from reaching their full potential, and the financial burden on producers remains significant.

Processing is expected to increase slightly from 41.5 million tons to 42 million tons.

“The Argentine soybean processing industry has been buoyant this year, driven by rising domestic production and a steady flow of imports, mainly from Paraguay,” the FAS said in a statement.

Tags: soybean, Argentina, crop forecast