2014-02-07 21:33:01 - Argentina Agribusiness Report Q1 2014 - a new market research report on companiesandmarkets.com
With an election on the horizon and given continued problems with the economy, the Argentine grain sector will play centre stage over the medium term. With foreign reserves under pressure, grain exports (particularly soybean) will remain vital. Soybean will remain the pre-eminent crop in Argentina over the long term, and we expect the poultry production to show the most promise within the livestock complex. We have downgraded several forecasts, some due to changes in historical data and others due to reduced growth expectations. In particular, we are forecasting lower sugar production in 2013/14 due to poor weather in key growing regions, and see reduced growth in poultry consumption, as demand has risen significantly in recent years, and we believe per
capita growth is slowing. We see potential for a mild rebound in beef production, as sector fundamentals remain challenging despite a significant decrease in grain prices.
- Corn production growth to 2016/17: 8% to 27.9mn tonnes. Our revised growth projections stem from lower average corn prices in coming years along with more substitution to soybean plantings.
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