Grain production destinations for the 20/21 campaign

Grain production destinations for the 20/21 campaign

The production of grains for the 2020/21 season fell for the second year in a row, while at the same time, the planted area reached a historical record. It is expected that 73% of the production will be exported while the rest will go to domestic consumption.

Despite falling for the second consecutive year, production in the 2020/21 campaign in Argentina is estimated to be the third-highest in the country’s history. The total production of the campaign reached 127.5 Mil MT, maize being the main grain produced in Argentina with 50 Mil MT harvested, and SB as the second-largest production at 45 Mil MT. The drop in the total production of the 2020/21 campaign was due to sharp falls in the yields of the main grains since the sown area is estimated to have grown and reached a historical record of 38.7 Mil Ha. The largest increase in the planted area occurred in the planting of sorghum, which according to MAGyP data, reached 950,000 hectares, up 430K hectares compared to last season, mainly due to better margins expected in the crop at the time of sowing and better relative prices as a result of the appearance of China as demand in foreign markets. Meanwhile, the strongest drop in planted area occurred in the wheat crop, which fell by 300,000 hectares compared to the previous season, due to weather problems that prevented the full completion of sowing plans in the middle of last year. Regarding yields, the main drop was in SB cultivation, which caused oilseed production to fall in Argentina by more than 5 million tons (Mil Mt).

For the 2020/21 season, a total of 93.4 Mil MT of grains and by-products is expected to be exported, which is equivalent to 73.25% of Argentina’s grain production. Of this total export, 56.8 Mil MT are expected to be grains, cereals, and oilseeds, while 36.6 Mil MT of industrial products derived from the processing of cereals and oilseeds are expected to be exported. This implies that 39% of Argentina’s grain exports have some degree of industrial processing. This value has been falling since the peaks registered in 2013, mainly due to the greater export of maize and wheat that it carries out after the recovery of the area in both grains since that year.

On the other hand, it is expected that 39.9 Mil MT of grains and by-products will be turned over to domestic consumption. Of this total, it is estimated that 21.1 Mil MT of grains will end up being consumed in the field, without going through the commercial circuit. This “in the field” consumption considers seed production, grains for animal consumption, balanced meals, and the industrial consumption of oilseed expeller. The rest of the domestic consumption, 18.8 Mil MT, is estimated to be of “industrial origin”. This type of consumption considers the production of processed grains that are not exported. Within this group we can see 4.2 Mil MT that comes from the oil industry (SB meal and oil that come from large factories by extraction method, biodiesel, glycerin, lectin, and other by-products) and 14.7 Mil MT from mills, balanced and others among which is the production of malt, wheat flour and both dry milling and wet milling as well as the production of ethanol from maize.

Source: https://bcr.com.ar/

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