Miller Magazine Issue: 129 September 2020

ArgentIna 82 MILLER / September 2020 over 100 new mills were installed as a consequence of an interesting profitability level fostered by informal compe- tition. However, the milling industry shows low, null and negative profitability due to the unused installed capacity of up to 50% and the existence of unloyal competition. Flour mills are located as follows: 84 plants in the province of Buenos Aires, 39 in the province of Córdo- ba, 24 in Santa Fe, 15 in Entre Ríos, six in Tucumán, five in Salta, four in La Pampa, two in San Juan and Jujuy, and one plant in each of the provinces of San Luis, San- tiago del Estero and Chaco. The FAIM also reports that 29 plants in Argentina have a milling capacity of more than 360t per day, 61 plants between 120 and 360t per day, 49 plants between 34 and 120t per day and 45 plants produce less than 34t a day. Wheat and corn mills were given a monthly subsidy for the volume of wheat sold in the domestic market. However, these subsidies were removed in 2017. There is a 10% import tariff on wheat and a 12% tariff on imported flour and 16% for its subproducts. The milling industry in Argentina mostly has a strong local and nearby market focus. There is little prospect of Argentina, with its limited growth in wheat produc- tion over the next decade and mostly small sizes of flour mills, being able to command a large presence in global flour markets. Its most likely future will remain servicing domestic flour demand as well as exporting to nearby Mercosur countries. Wheat Production, Consumption and Export in Argentina (1000 Tons) 2018/19 2019/20 2020/21 Production 19500 19300 20000 Consumption 6050 6300 6200 Exports 12188 13100 13400 Source: USDA Corn Production, Consumption and Export in Argentina (1000 Tons) Wheat Production, Consumption and Export in Argentina (1000 Tons) 2018/19 2019/20 2020/21 Production 19500 19300 20000 Consumption 6050 6300 6200 Exports 12188 13100 13400 Source: USDA Corn Production, Consumption and Export in Argentina (1000 Tons) 2018/19 2019/20 2020/21 Production 51000 50000 47600 Consumption 13800 13800 14200 Exports 37244 36000 33000 Source: USDA Barley Production, Consumption and Export in Argentina (1000 Tons) 2018/19 2019/20 2020/21 Wheat Production, Consumption and Export in Argentina (1000 Tons) 2018/19 2019/20 2020/21 Production 19500 19300 20000 Consumption 6050 6300 6200 Exports 12188 13100 13400 Source: USDA Corn Productio , Consu ption and Export in Argentina (1000 Tons) 2018/19 2019/20 2020/21 Production 51000 50000 47600 Consumption 13800 13800 14200 Exports 37244 36000 33000 Source: USDA Barley Production, Consumption and Export in Argentina (1000 Tons) 2018/19 2019/20 2020/21 Production 5060 3800 3500 Consumption 1500 1300 1400 Exports 3237 2500 2400 Source: USDA