1 of every 5 dollars that Argentina exports is generated in Santa Fe province
Santa Fe closed the year 2020 again as the second most exporting province. The agro-industrial complexes, great protagonists of the Santa Fe export basket. Good news so far this year and prospects for the rest of 2021.
It has been detailed on more than one occasion that the greater metropolitan area of Rosario city is the most important agro-export port node in the world, while about 40% of Argentine exports are exported through its ports. However, these exports of goods originate in various provinces of the Argentine territory.
Following the INDEC methodology, which details the origin of Argentine exports by province, if we take Santa Fe we find the second-largest exporting province in the country. Both in value as well as in exported tonnage, the province concentrates more than 20% of the value of Argentine exports. Santa Fe is only behind Buenos Aires province, which accounts for 35% of dispatches.
Last year Santa Fe province generated exports for more than 27 million tons, worth more than US $ 11,239 million. With these data, 2020 closes with a drop of 22.1% in the quantities and 21.2% in the amounts exported. It should not be forgotten that 2019 showed the highest exported tonnage originating in Santa Fe history. This brand was difficult to match, with a very different production outlook in 2020 crossed by the deficit of rainfall and the pandemic. Santa Fe export products suffered a more pronounced decline than that observed at the national level. Argentina ended 2020 with total exports of US $ 54,093 million, showing drops of 8.5% in quantities and 15.7% in dollars compared to 2019.
What products does Santa Fe export?
In the average of the last three years, about 39% of the total value of Santa Fe exports consisted of SB meal and pellets, totaling more than US $ 5 billion per year. Considering the external shipments of SB meal and pellets harvested in Santa Fe (which average 14 Mt), the province reaches a 52% share of the total average exported nationwide in this area (27 Mt). Naturally, given the size of the industrial structure of the Up River, this participation increases considerably if the shipments of by-products based on SB harvested in other provinces, but processed in Santa Fe, are considered, reaching around 98% of total exports of these by-products.
In a context of low exports for the last year, the performance of beef is very remarkable. Only in 2020 Santa Fe generated exports of this meat for about US $ 800 million. Wheat and maize also stand out in the province, growing their average exports 112% and 65% respectively, if we compare the 2008-2010 average with 2018-2020. Unfortunately, statistical secrecy prevents further analysis of other exported goods.
Where is the production of Santa Fe exported?
In 2020, Santa Fe registered exports to more than 137 countries, out of the 224 Argentine export destinations. Last year the main commercial partner of the province was India, with business for more than US $ 1,111 million, which is explained almost entirely in SB oil. They are closely followed by China and Vietnam, with US $ 1,100 and US $ 928 million, respectively.
The province produces and exports mainly meats to China, this item representing more than half of the amounts shipped last year. The Asian giant was the destination country for the largest amount of exports from Santa Fe in 2019, and again in 2020, it achieves very high export values. For their part, Vietnam, Indonesia, and Malaysia, member countries of the ASEAN, are important clients in the purchase of SB flour and pellets, in addition to a large part of wheat shipments.
Brazil is a very relevant client and a highly diversified destination in terms of the goods that are exported. Last year exports from Santa Fe were 25% primary products, 33% manufactures of agricultural origin and 42% manufactures of industrial origin. Likewise, within these large items, the exported goods are further disaggregated.
Finally, the economic bloc with the greatest weight in exports from Santa Fe is the European Union, overall surpassing any of the aforementioned countries, with more than US $ 1,848 million exported in 2020. The Netherlands, Italy, Spain and Poland are the most important destinations for Santa Fe products. Flour, pellets and biodiesel are the outstanding products in Santa Fe exports to the countries of the European bloc.
What to expect from 2021?
This year we find a much more encouraging outlook for the world economy. More vaccination will represent greater economic growth and consequently, a greater demand for Santa Fe’s export products. In addition, the significant increases in international prices that the province’s export products have been registering are extremely useful when it comes to dynamizing and deepening the foreign trade of our country. The province of Santa Fe is a major exporter of Argentine agribusiness, at the same time that it has the capacity to export from world-class biotechnology to valves for Ferrari, the well-known global sports car company.
According to the Provincial Institute of Statistics and Censuses (IPEC), Santa Fe exports in the first two months of the year showed a growth of 64% in value and 17% in export volume, with prospects still very favorable for the second two months (March -April 2021). If this trend takes hold, export activity, with related industries that provide services, can help boost the economy of Santa Fe after the acute crisis brought about by the COVID-19 pandemic.
Source: https://bcr.com.ar/
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