In the realm of global agriculture, a remarkable partnership is emerging between India and Argentina. At the heart of this alliance is the lifeblood of Argentina’s agricultural economy, the ‘soybean’.
Enrique Erize, President of Argentina’s leading agricultural research consulting enterprise, Nóvitas SA, is instrumental as a consultant in bridging the gap between 800+ farmers and the international market.
India-Argentina Bond in Agricultural Trade
The relationship between India and Argentina in the field of agriculture is getting stronger day by day. India’s role as a primary consumer of Argentine soybean products is a testament to this growing partnership. The combined efforts of experts including Enrique Erize and his team are not only improving the agricultural landscape but also promoting international relations.
President Ayres expressed that “Argentina and India are very close” this presents a vision of agricultural prosperity and is a testament to the power of cooperation. With reciprocal visits and knowledge exchange projects between Indian and Argentinean farmers on the horizon, the future holds the promise of a deeper and more productive agricultural relationship between the two countries.
Cultivating Soybean Excellence
Argentina, best known as the world’s third largest soybean producer, thrives as an agricultural sector. Major crops like sunflower, maize, wheat, barley and other cereals also dominate the country’s crop landscape. However, it’s not just about cultivation; It is about the art of selling produce in global markets.
Aries and his team aren’t just focusing on traditional farming techniques or technological advances. Instead, his expertise lies in guiding farmers on how to effectively commercialize their produce. They help farmers improve their income by navigating the complex world of international trade. As a major exporter of soybean products, including soybean oil and soybean meal, Argentina sees India as its number one client.
Argentina is a major player in the soybean oil and meal market, exporting 80% of its production, giving it an edge over competitors such as other soybean-producing countries. Additionally, due to rising climate and geopolitical concerns, as well as inflation, Argentina is seen as a reliable supplier of soybeans. This is because it produces mainly for export and has minimal domestic consumption.
India: Key User
On the other hand, India stands as the largest consumer of Argentina’s soybean oil and soybean meal. This symbolic relationship is leading both countries to a new era of agricultural prosperity.
Joe’s battle for supremacy
Amid this collaboration, anyone is emerging as a contender against wheat, especially in the developing industry. Argentina produces 4 million metric tons of barley and 20 million metric tons of wheat annually.
Despite being a strong competitor in the global agricultural arena, Argentine farmers struggle with government constraints. Export tax on soybean oil is about 30 percent of the international price and weighs heavily on their profits. These dynamics illustrate the delicate balance between thriving in the global marketplace and coping with government-imposed financial burdens.
Furthermore, Argentina’s agricultural landscape is highly influenced by climatic conditions. Last year’s crop was hit by the country’s worst drought, but forecasts for 2023/24 suggest a sharp increase with production expected at around 50 million metric tonnes. Fluctuating climate adds another layer of complexity to the complex world of agriculture.
Finally, the India-Argentina soybean connection is not just about trade. Rather, it is about fostering a strong agricultural partnership that benefits both countries and paves the way for a brighter future in the world of farming and trade.
First Published: 25 September 2023, 15:53 IST