Oilseed consultant suggests Argentina in a tough spot as soy exporter
A global oilseed consultant suggests Argentina is in a precarious spot compared to other soy exporters.
John Baize says Argentine soybeans leaving the country are taxed at a rate of 33 percent, and domestic demand is weak.
“And if we take the soybean meal market away from them, that’s going to back up and hurt those crushers down there, (and) it’s going to back up on the farmers ultimately. So I think they’ve got real challenges down the road.”
He tells Brownfield the government in Argentina has failed miserably by not pushing for more homegrown meat and poultry production.
“They’ve been taxing those products, so it’s really going to cause a lot of problems for the soybean processing industry, and ultimately for the farmers there.”
Conversely, Baize says the U.S. and Brazil continue to strengthen soy export capabilities.