GRAIN PRODUCTION, MARKETING, AND TRANSPORTATION IN ARGENTINA
 

Hector Ordoñez, Alejandro Lalor, and Stephen Fuller

TAMRC International Market Research Report No. IM-3-01
October 2001

Report to the U.S. Department of Agriculture, Agricultural Marketing Service, Agricultural Transportation and Marketing Division,
Washington, D.C. on Contract Agreement #12-25-A-3793


Abstract:  Argentina is currently the world’s second-largest exporter of corn, the largest exporter of soybean oil, the second-largest exporter of soybean meal and an important competitor in the world wheat market.  This study offers descriptive information regarding grain farming, marketing and transportation in Argentina.  Grain production costs in Argentina are found to be lower than in the United States but marketing and transportation systems are comparatively inefficient partially offsetting their competitive advantage in production.  Recent improvements in the Argentinian transportation and marketing systems have enhanced efficiency but the majority of production is marketed in the months following harvest resulting in traffic congestion and exacerbated marketing costs.  The harvest-time marketing surge is, in part, a result of inadequate storage in rural areas and an ineffective railroad industry that cannot move large quantities of grain in comparatively short periods of time.  Attracting capital for construction of storage facilities and expansion of railroad capacity is difficult, however, Argentinian firms are currently pursuing international corporation to invest in alternative grain transportation and logistics systems that are thought to be financially rewarding.
 
 

The Texas Agricultural Market Research Center (TAMRC) has been providing timely, unique, and professional research on a wide range of issues relating to agricultural markets and commodities of importance to Texas and the nation for more than twenty-five years.  TAMRC is a market research service of the Texas Agricultural Experiment Station and the Texas Agricultural Extension Service.  The main TAMRC objective is to conduct research leading to expanded and more efficient markets for Texas and U.S. agricultural products.  Major TAMRC research divisions include International Market Research, Consumer and Product Market Research, Commodity Market Research, and Contemporary Market Issues Research.