In order to analyze the historical moment that wheat is experiencing in Argentina, with the campaign already expected as a record and a new lead in the series, this medium contacted Gonzalo AgostoPresident of the Argentine Wheat Association and Chief Economist of the Cordoba Grain Exchange.
“It is an honor for me to be President of the Argentine Wheat Association, But it is also very challenging“We will have a record harvest,” said Gonzalo Agosto. He explained why: More than 25 million tonsThis is a big challenge for us, because there are more products It means having to position it in different markets“.
What factors determine a large wheat yield?
Updated estimates indicate 25.5 million tons, a growth of 37% compared to last year and 14% higher than the previous record for the 2021/22 season. With this size, the country will once again rank fourth in the world as exporters. In this context, he explained that this performance is the result of two factors: “The product that I invested a lot of money And the climate that Accompanied very well“.
However, not everything is in order. Agosto warned of strong downward pressure on internal and external prices: “We have Big fall In prices. At the international level, the main exporters They have very large quantitiesAdded to this is the tax impact: “Argentine wheat.” Penalized for exporting 9.5%.Which directly affects the product.”
Argentina and the search for competitiveness
This productivity jump forces Argentina to strengthen its presence abroad. “To compete with markets held by other countries, We have to come out cheaper“, I confess.
The interviewee insisted that a stable relationship with international buyers is key: “When one does not follow through or change the rules of the game; Which causes markets to open or close“.
Amid the enthusiasm for the record, doubts have arisen about the quality of wheat protein. “The Harvest Still Advances, pThey can be specific problems“, he commented. He also pointed out that the market already stipulates penalties or rewards depending on the level of grain: “There is a price that is negotiated and then based on that price, if there are certain qualities, The product can get a bonus or discount“.