Argentina’s milk production costs are among the lowest in the world, with high productivity due to strong capital investment in recent years.
Argentina is the world’s third largest soybean producer and the world’s largest exporter of soybean-derived products. Grain and oilseed production both competes with and complements cattle raising. Many farmers rotate crops to maintain soil fertility on pastureland.
Argentina’s membership of the South American common market (Mercosur) alongside Brazil, Paraguay, Uruguay and Venezuela gives access to a market with a combined GDP of US$1,100 billion and a population of over 200 million.
Growing trade between these countries will spur development in Argentina’s agricultural sector.
Getting your product into market
Argentina imports most of its agritech-related products, largely from Brazil and the United States.
As a member of Mercosur, Argentina maintains low trade barriers and tariff rates for members. Tariff rates for goods from non-Mercosur countries generally range from zero to 35 percent.
Regulations
In general, Argentina does not have any import barriers outside ad-valorem import duties.
All imports can enter the market in the packing of their country and language of origin. However, all consumer goods need an additional label or sticker in Spanish that includes information about the importer, the name or description of the product, the country of origin and volumes.
Regulations on labelling may change slightly for specific products like food or pharmaceutical products. Many food-related imports also require sanitary certificates issued by the relevant authority in the exporting country.
Industry standards for agribusiness in Argentina are many and varied and depend on the product.
Phytosanitary import permits are required for most plant material and livestock.
Opportunities
- There is demand for innovative agricultural technologies, particularly in modern machinery, hybrid seeds, animal breeding and genetics and consultancy services for sowing and harvesting.
- Agricultural machinery is a growing market as farmers look to increase yields and productivity. There is increasing demand for accessories and devices to better measure seed, agrichemical and fertiliser volumes.
- Demand for more sophisticated irrigation systems is expanding as the agricultural sector seeks higher yields. Less than 5 percent of farmland is irrigated and most of this is by gravity-fed systems. In the absence of a competitive domestic manufacturing industry, there is a large potential for exporters to enter this market.
- Local beef cattle are generally of a very high standard, however, dairy cows need to continue to improve to meet high quality standards and achieve productivity gains.
Challenges
- Legal uncertainties over creditor and contract rights and frequent and unpredictable regulatory changes diminish the attractiveness of some sectors for foreign investors.
