Speaking at the IDMA Global Grain & Milling Forum, Gustavo Idígoras, President of CIARA-CEC, highlighted the growing role of Argentina and the wider Mercosur region in global grain, oilseed and by-product trade. Argentina produces around 160 million tonnes of cereals and oilseeds annually and has the capacity to export nearly 120 million tonnes, positioning the country as a major contributor to global food security.

Gustavo Idígoras, President of the Argentine Edible Oil Association and Grain Exporters Association, CIARA-CEC, joined the IDMA Global Grain & Milling Forum online and shared his assessment of South America’s expanding role in global agricultural trade. Speaking during the session titled “Global Grain Trade: Trends, Risks & Opportunities”, Idígoras focused on Argentina, Brazil and the wider Mercosur region, emphasizing their importance as suppliers of grains, oilseeds and agricultural by-products to international markets.

He described Argentina as “a full contributor to global food security” thanks to its large production base and export-oriented agricultural structure.  Idígoras said Argentina produced around 160 million tonnes of different cereals and oilseeds this year. This includes approximately 65 million tonnes of corn, 50 million tonnes of soybeans, 28 million tonnes of wheat, 10 million tonnes of sunflower, as well as sorghum and other grains. 

Argentina’s domestic market is relatively small compared with its production capacity. According to Idígoras, domestic consumption is less than 40 million tonnes, which allows the country to export around 120 million tonnes annually. This makes Argentina one of the world’s leading agricultural exporting countries, after the United States and Brazil. 

Idígoras also emphasized this export-oriented structure, pointing out that Argentina, Brazil and other Mercosur countries are becoming increasingly important in global grain and by-product flows, with South America’s weight in global agricultural trade set to grow in the years ahead.

One of the key drivers of Argentina’s future growth is the gradual reduction of export taxes. Idígoras told that the government of President Javier Milei has introduced a schedule to reduce export duties on soybeans, corn, wheat, sunflower, sorghum and other crops, with the aim of lowering them as much as possible by the end of 2028.  For Argentine farmers, this is a critical development. Export taxes directly reduce the price received by producers. Idígoras noted that Argentina previously applied a 33% export tax on soybeans, while the current rate is around 24% and is expected to decline further. In corn, export taxes are being reduced from 8.5% and are expected to fall to around 5.5%. 

According to Idígoras, economic impact assessments show that zero export duties could increase Argentina’s agricultural production from around 160 million tonnes to 200 million tonnes per year, representing a 30–40% increase from current levels. 

WHEAT PRODUCTION JUMPS FROM 18 MILLION TO 28 MILLION TONNES

Idígoras said Argentina is working to increase wheat production and develop new export markets beyond its traditional destinations. In the latest campaign, Argentina increased wheat production from 18 million tonnes to 28 million tonnes, with the additional 10 million tonnes resulting from both favorable weather and the use of improved technology packages. 

Part of this production is milling wheat, while another part is feed wheat. This gives Argentina the flexibility to serve different types of buyers, from flour millers to feed users. Idígoras said Brazil remains Argentina’s most important wheat market, with annual demand of around 5 million tonnes on average. However, with Argentina now able to export around 18 million tonnes of wheat, the country needs to allocate roughly 12 million tonnes to other markets. 

Indonesia has become the second-largest market for Argentine wheat, particularly for milling wheat. Argentina is also developing new outlets in North Africa and Asia, including Malaysia and Thailand, especially for feed wheat when prices are competitive. 

SUNFLOWER RETURNS AS CLIMATE RISK RESHAPES CROP CHOICES

Idígoras also pointed to sunflower as a crop gaining renewed importance in Argentina. According to Idígoras, climate change has become a structural challenge for Argentina’s agriculture. Over the past 10 years, the country has experienced two campaigns with severe drought, during which production fell by more than 50%, from around 160 million tonnes to 80 million tonnes or even less. 

This has encouraged renewed interest in crops better adapted to climate stress. Idígoras said sunflower varieties are more rustic and better suited to difficult climatic conditions, which is one reason why farmers are becoming more confident about planting sunflower again. International demand is another driver, especially after the Russia-Ukraine war disrupted traditional Black Sea flows of sunflower oil and sunflower meal. Argentina is now supplying larger volumes of sunflower oil to India. 

LOGISTICS AND THE PARANÁ RIVER REMAIN CENTRAL TO EXPORT COMPETITIVENESS

Idígoras highlighted logistics as a key factor shaping Argentina’s export competitiveness. He referred to plans to deepen the Paraná River waterway from 34 feet to 40 feet, a development that would allow larger vessels and improve the efficiency of export flows. This point is highly relevant for global buyers. Argentina’s ability to expand exports depends not only on production, but also on river logistics, port efficiency, freight costs and the capacity to move large volumes reliably to world markets. The Paraná River system is one of Argentina’s most strategic export corridors for grains, oilseeds and by-products. Improving draft capacity would reduce logistics constraints and strengthen the country’s ability to compete in international markets.