The Maize Market in Argentina is estimated to register a CAGR of 4.6% during the forecast period (2020-2025). Argentina is the fourth largest maize producing countries in the world and is the major exporter of maize. In South America, Argentina and Brazil account for more than 90% of the total maize trade. According to FAO, Argentina produced 43 million tons of maize in 2018 under the coverage of 7 million hectares of land. The consumption patterns of the maize crop in Argentina show that a major part of the maize produced is used as animal feed. Animal feed alone accounted for 75-80% of the total maize consumption in Argentina. Only 0.3 million metric tons of the total maize in Argentina is used in food processing.
Key Market Trends
Rise in the Maize Cultivation Area
The area under maize cultivation has been increasing continuously since 2016, the primary reason for such an increase is the rise in domestic and export demand and demand from animal feed industries. According to FAO, Area under maize cultivation was recorded as 7.1 million hectares in 2018 which is 0.6 million more than the previous year. Even though the area under cultivation is increasing, a drastic reduction in the maize yield is noticed. In 2018, the country witnessed a reduction of 6.01 million metric tons of yield, mainly due to drought conditions.
Argentina Dominates the Maize Exporting Market
Argentina is the second-largest exporter of maize in the world after the United States. The country exported maize worth value of 4.1 billion in 2018, which is 13.4% of the global exports. The major exporting partners are Vietnam, Algeria, Egypt and Malaysia with 18.8%, 14.3%, 11.4% and 9.6% of the exporting value share. Ukraine, Indonesia and India are the minor exporters of maize from Argentina. Even though Argentina is one of the top exporters, it imports a minor quantity of maize from the USA and Bolivia.
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