Growth in Argentine Agricultural Market Powered by Exports

Identifying positive trends in the global marketplace is a key to developing trade and economical growth in a power generation industry that is always looking towards the next big thing.

Growth in Argentine agricultural market powered by exports

STAMFORD | AvK’s Lucas Ercolesse has recently concluded a report into the Argentinian agricultural market which has experienced a strong growth in exports in the last 12 months, thanks to the Argentine government negotiating multilateral trade agreements and implementing local incentives.

In 2018 Argentina exported soy, corn, cereals, wheat, flour, sunflower, cotton and livestock among others to more than 170 destinations. During this time the Argentine exports of agricultural products to the world reached a total of over $61.6 billion, 5% over the value in 2017.

Argentina Agricultural Outlook for 2019

Ercolesse explains the trend: “This growth in the market is expected to continue in 2019. According to LCG, a consulting firm specializing in the Argentine economy, exports will be around $71.6 billion the highest value since 2014.

“Another factor adding to the optimism is the signing of a new trade deal with China for agricultural products. According to the local newspaper La Nación the Asian region is 15% of global demand for agricultural products and Argentina’s sales to this region has been on a rise: in 2018 they were almost 7 times more than in the year 2000 and reached a turnover of $9 billion in all exported products.”

Record levels of production

This growth is backed by record levels of local production, which according to Luis Miguel Etchevehere, President of Sociedad Rural Argentina, will reach 145 million tons in 2019.

With the boom of the agricultural market in the country, Ignacio Scheinsohn, Sales Representative of Cummins Argentina, states that La Pampa Húmeda in the northern part of Argentina has become the second largest producer of soy and corn in the world, after the United States. Farmers are looking for reliable, high performing equipment to take advantage of this growth.

Scheinsohn adds: “The Argentine farmer is focusing on reducing costs to improve the profitability of their business. The cost of energy has risen significantly and is critical to business profitability. Fuel consumption, maintenance costs, downtime (stationary equipment), operational efficiency, are variables considered at the time of making an investment in new equipment. You cannot risk the failure of equipment in the field because it becomes a critical situation quickly.”

This is where the Argentine agroindustry can benefit from the durability and superior quality that STAMFORD® alternators offer. With building support and delivery in the region, Ercolesse hopes STAMFORD® | AvK® can help to further help grow this agricultural market:

“Supporting the Argentina agricultural market with immediate availability of the product, local support and 3-year warranty on the new S-Range products, makes STAMFORD® | AvK® the brand that can be trusted.

“We hope to help build this industry to reach its maximum potential for the benefit of everyone involved.”

If you’d like to find out what STAMFORD® | AvK® can do for agricultural power delivery contact our regional representatives today.

Forwarded from Stamford News