Expogro starts with a focus on technology and sustainability, but with an eye on economics

March has begun and with the new month Expogro 2024, the YPF Agro Edition, the mega-exhibition of the agro industry, will be the main attraction of the Argentine countryside for four intense days, considered by many to be the most efficient in the world. In harnessing resources with innovation, advanced technology and enormous growth potential.

Years of stockpiles, price controls, export controls and exchange rate lags have become a real “burden” on production and employment, adding to a spectacular drought in 2023, the worst in 60 years. With a mix of business opportunities and expectations for the turnaround already seen in economic affairs, the agricultural industry is looking to turn to and get this year's fair.

From March 5 to 8, the Expogro will be held at the Exposition Grounds and Kilometer 225 of National Route 9 on the San Nicols Highway in Buenos Aires Province. Spread over an area of ​​around 8,000 square meters, there will be stands for all tastes and needs. , around 600 companies offer their products and services and crops stand up to 12 stories tall.

Producers, technologists and researchers from public and private sector organizations, input and equipment manufacturers, financial institutions and business representatives from around twenty countries will also attend. on the siteGo to rural Argentina and buy if they can. Of course the political class will wave, but will also receive demands for concrete steps to uplift the sector.

The country's Secretary of Agriculture, Livestock and Fisheries, Fernando Villella, will focus on the country's development and potential in the bioeconomy, confirmed Interior Minister Guillermo Francos and Governors Maximiliano Bullaro (Santa Fe). Martin Lariora (Crdoba), Gustavo Waltz (Corrientes) and Rogelio Frigerio (Entre Rose).

The biggest expectation is that the President will arrive at Javier Mili's San Nicolás property today at 12, when he is scheduled to hold talks with the producers.

Signs of the economy

One of the best attractions of ExpoAgro is the presence of agricultural machinery called “Fieros”, which this year comes with several launches in search of customers interested in adding investment and technology, the necessary “anabolic” to increase productivity. The stars this year will be tractors, sprayers and seeders, but also fertilizer spreaders, semi-trailers and hoppers, the full suite of tools increasingly needed in production.

On a walk through the stands, attendees will be able to see and evaluate the offerings of companies based on fertilizers and herbicides, seed companies and sunflower, corn and soybean genetics. They can get into the 4×4 pickups of automotive companies, an important feature that has grown hand in hand with the countryside, and of course, they will go through public and private banking levels to learn about credit lines, tailored to producers.

But exhibitors, exhibitors, producers, entrepreneurs and consumers all keep an eye on signals from the economy. The change of government last December created renewed expectations, which still await actual confirmation.

While the sector recognizes that the government has a pro-market outlook, for example, they appreciate the restrictions on exports of seven cuts of beef (beef, roast, top roast, butt, skirt, plate and madamebre) and they welcome the exchange. Honestly, taking the official gross exchange rate from $350 to $800 (today it's already $844), the tax chapter is a thorn in the side.

Credits that come with export rights alarm many. Ideologically, libertarian liberalism advocates the removal of all barriers, “ballasts” and taxes that affect production and free trade. That is why during the election campaign, President Millay promised to eliminate export taxes and raise the exchange rate.

Bitter truth

But the data kills the story, and as soon as they take their seats, President and Economy Minister Luis “had to swallow the toad because he relies entirely on Caputo, Agriculture, Livestock and Fisheries Secretary Fernando Villella. Even with the maintenance of withholdings and the financial chapter of the ill-fated omnibus law, rates on soy derivatives should be raised from 31% to 33% and rates on all other products to 15%.

In the case of farm products, the impact was enormous – due to the volume exported – in the case of wheat and corn, which were taxed at 12%, and even higher for meat and dairy products (9%) and sunflowers (7). %).

The possibility of some specific announcements for the sector and the official exchange rate will be adjusted at a monthly rate of 2% with inflation of 25.5% in December, which reached 20.6% in January and it is assumed. May be around 15% in February, don't continue to lose competitiveness. And exporters want to know whether they should continue with the dollar mix they have, 80/20 between official and MEP, which stands at $882.88 today, less withholdings of course.

The good news for the countryside is that the drought is behind us and this thick campaign promises a significantly bigger harvest. According to Rosario stock market estimates, the soybean harvest will reach 49.5 Mt (million tons), a significant improvement compared to the 20 Mt reached in 2022/23. An additional 1.3 million hectares are cultivated and yields are significantly higher, from 16.3 QQ/ha (quintals per hectare) to 29.9 QQ/ha.

As far as maize is concerned, the harvest will reach 57 metric tons, a record, higher than last campaign's 36 metric tons. Although the planted area is slightly less, the yield is faster, from 51.7 QQ/ha to 76.9 QQ/ha. This higher production will be converted into dollars that will enter the country and contribute to increasing BCRA's reserves.