Argentina Increases Agribusiness Export Revenue by 17% in May

Argentina’s agribusiness export sector recorded US$ 3.05 billion in revenue in May, according to data from the Chamber of the Oil Industry of the Argentine Republic (Ciara) and the Grain Exporters Center (CEC) — entities representing 48% of the country’s total exports.

According to the organizations, the revenue increase stems from the progress in the soybean harvest and the ongoing reduction of export duties, driven by Decree 38/25.

“These conditions encouraged higher foreign currency settlements by exporting companies, which account for 48% of Argentina’s total exports,” Ciara-CEC stated.

The monthly inflow of foreign currency, converted into Argentine pesos, is the mechanism that enables companies to continue purchasing grains from producers at the best possible price. Foreign currency settlement is primarily linked to the purchase of grains intended for export, either in their raw state or as processed goods following industrial processing.

In Argentina, most of the foreign currency inflow from this sector occurs well before the actual export, typically 30 days for grain sales and up to 90 days for oil and protein meal exports. This lead time also depends on the harvest season and type of grain, meaning that foreign currency settlement is not delayed.

“Despite fluctuations that may occur, the May data confirms a positive trend for Argentina’s agribusiness trade amid improved international prices and the country’s increasingly competitive conditions,” the entities stated.

Export Duties (Retenciones)

Last Wednesday, during a meeting in Córdoba attended by local Stock Exchange president Manuel Tagle, Economy Minister Luis Caputo provided details about the future of export duties (“retenciones”) after June 30. Caputo confirmed that rate reductions will continue from July but clarified that the measure will not apply to so-called “coarse grains” — such as soybeans, corn, sunflower, and sorghum.

The minister also noted that a complete elimination of export duties could only happen in about a year.

“If we wanted to eliminate agricultural export duties immediately, we would need financing to get through that transition period. It’s not true that more revenue is collected the next day — on the contrary, less is collected. If that happens, the sustainability of the fiscal anchor is at risk,” Caputo said during his remarks.

The oilseed and cereal complex, including biofuels and their byproducts, accounted for 45% of Argentina’s exports in 2024, according to Indec, the country’s official statistics agency, equivalent to Brazil’s IBGE.

Source: Globo Rural

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