Argentina Crop Updates 2022- Part 2

Argentina Crop Updates 2022- Part 2

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How Fertilizers Affect Total Crop Production and Yield

4.6 million to 5 million tons of fertilizer were consumed in Argentina during the 2019-2020 growing season. According to a survey by Fertilizer Asociacion Civil, this had a 6-8% increase in 2021.

The agricultural sector has experienced significant growth. Technological advancements in production methods, the increasing use of fertilizers, and the recent campaigns’ higher relative production of wheat and corn have significantly impacted the fertilizer market, driving up demand and, ultimately, the importation of necessary inputs.

How the Russia-Ukraine Conflict Affects Argentina’s Crop Production

In 2021, Argentina exported goods equivalent to $680 million to Russia. Out of this export, agricultural products accounted for about 95%, and Moscow is one of the top three markets for dairy goods, lemons, and Argentine pears.

Many of these regional economies’ productions lost money as a result of the imbalance in the global markets that caused the exchange rate to jump from 75 to 130 rubles to the dollar in just 30 days.

The exporting businesses to these markets have identified the following as the primary issues:

  • Renegotiations as a result of Ruble devaluation

  • Inability to clear payments

  • Increase in logistics cost

Main Crops Affected by the Conflict

Citrus: Lemon sales declined due to the war and significantly dropped exports from northwest Argentina.

Pears and Apples: Due to Russia’s invasion of Ukrainian land, 30% of Argentina’s planned pear and apple exports to Russia were not carried out, leading to a massive effect on the revenue Argentina could have gained.

Wine: The conflict between Russia and Ukraine impacted around 3% of Argentine wine exports, which make up all foreign sales. According to official statistics, Russia spent €949 million on wine purchases in 2021, and Russia was a significant consumer of bulk Argentine wine.

Wheat: The war between Russia and Ukraine, which combined had accounted for 30% of international shipments before the crisis started in late February. It has caused a worldwide wheat shortage, which Argentina is a significant exporter of.

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Certificates & Standards

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Non Organic

 Synthetic chemicals are used on the crop or product to boost its growth.

EU Organic

Providing a clear structure for the production of organic goods across the whole of the EU

ISTA

Setting the standard for optimizing packages that are survivable, sustainable, and successful.

BRC

Requiring food processors to follow to build an effective food safety management system.

GFSI

Procedure by which a food safety-related scheme is compared to the GFSI Guidance Document

HACCP

Protecting food from biological, chemical and physical hazards during production

ISO

Standard aids for the creation of products that are safe, reliable, and of good quality.

Gluten Free

Food that is processed to remove gluten and use of ingredients with less than 20 ppm of gluten.

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