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.