Miller Magazine Issue: 129 September 2020

ArgentIna 78 MILLER / September 2020 Argentina is the third-largest economy in Latin Ameri- ca, with a population of approximately 44 million. It has vast natural resources in energy and agriculture. Within its 2.8 million square kilometers of territory, Argentina is endowed with extraordinary fertile lands. It is a leading food producer with large-scale agricultural and livestock industries. However, the historical volatility of economic growth and the accumulation of institutional obstacles have impeded the country’s development. Urban poverty in Argentina remains high and reaches 35,5% of the population. Financial turbulences in 2018 impacted the country and implied the revision of the economic plan and the need for a program with the International Monetary Fund (IMF). The economic situation presents a precarious balance. The Argentine peso has lost 68% of its value since 2018. Annual inflation is over 50% and after a 2.5% fall of GDP in 2018, the economy contracted an additional 2.2% in 2019. Argentina has a longstanding tradition as one of the world’s largest agricultural producers. The country has a solid comparative advantage in agriculture due to its exceptionally fertile lands, especially for cereal and livestock production. The country has a vast network of industrial and small-holder farmers; it is the world’s third-largest producer and exporter of soybeans after the US and Brazil. It produces 5% of the world’s grains and exports large amounts of wheat and corn. It has a 15% share of the world’s grain and byproducts trading. The geographical spread across elevation and latitude provides Argentina with a wide range of climate zones. The large physical size of the country supplies ample ag- ricultural and pastoral land for Argentina’s population. The array of climate zones enables Argentina to pro- duce many kinds of agricultural products, including ce- reals, oilseeds, horticultural crops, peanuts, dairy, beef and sheep products. The volume of these agricultural products is often surplus to domestic requirements and so Argentina is a principal exporter of many agricultur- al products. Grain production in Argentina is centered mostly in three provinces —Córdoba, Santa Fe and Buenos Aires. These three provinces are the source of around 80% of the nation’s crop production. Argentinian food crops dominate the agricultural market in the region. Two-thirds of Argentina’s exports are agricultural. Maize is the most important food crop, followed by wheat and barley. Climatic conditions, cou- pled with good knowledge about transfer activities, are the factor driving the agriculture sector in the country. Support through various agricultural organizations like ACSOJA, which helps to promote the scientific-techni- cal research in production and industry areas, as well as commercialization of agricultural products, aids in the growth of agriculture in the country. Argentina is re-emerging as an important southern hemisphere producer and exporter of cereals, with wheat production growing and remaining a key feature of Argentinian grain production. It is one of the world’s biggest exporters of wheat and wheat flour and it has the highest per capita wheat consumption in South America. Wheat area has increased as a result of the pol- icies put in place by President Macri’s administration. Argen- tina’s grains industry has large- ly self-funded its industry-good functions. Rather than rely on government funding and action, the grains industry has estab- lished and supported its own set of industry-good organizations. While yield and production variability are important fea- tures of a country’s grain sec- tor, even more important to global grain markets is the vol- atility of a country’s exportable surplus. Argentina’s population is not rapidly increasing and there is unlikely to be any fur- ther increase in per capita flour consumption, which at around