Argentina’s soybean processing falls to lowest since 2004

The volume of soybean processing in Argentina at the end of last year decreased by 29% and reached the minimum value since 2004 – 27 million tons. Such data were announced by experts of the Rosario Grain Exchange.

They noted that the participants of the national processing sector in the reporting period worked in conditions of raw material shortage as a result of the reduction of domestic production of beans.

“Although imported soybeans somewhat compensated for the losses,” the experts noted. – In 2023, more than 36% of the processed oilseed was purchased abroad.”

The exchange estimates that soybean imports have reduced unused capacity, sustained employment and national exports.

“Unutilized capacity in Argentina last year reached a figure of 54% and was the highest in the history of the Argentine vegetable oil industry. But in the absence of imports, this figure could be around 70%,” according to analysts at the exchange.

It is also worth noting that the share of soybean supplies from Brazil in the total volume of oilseed imports by Argentina in 2023 increased to 39% compared to 9% in 2022.

Tags: soybean, Argentina