January 28, 2025

Positive balance for Argentina's 2024/25 wheat harvest in productive and economic terms

The 2024/25 wheat harvest in Argentina delivered a positive balance in both productive and economic terms.

According to a recent report published by the Buenos Aires Grain Exchange, the campaign concluded with 18.6 million tonnes, a 23% increase compared with the previous cycle. The increase was supported by a 7% growth in planted area, to 6.3 million hectares. This growth was driven by favorable weather in autumn, ensuring adequate moisture for planting, combined with pricing that encouraged producers to allocate more land to the crop.

One of the campaign's highlights was the recovery in yields, which reached 30.4 quintals per hectare, 7% above the previous campaign. Key regions such as the northern core and southwestern Buenos Aires province were instrumental in achieving these results, offsetting declines in other areas like southeastern Buenos Aires province.

The wheat sector's performance was not limited to production. It also had a significant impact on exports and tax revenues. Exports are projected to reach US$2.9 billion, a 49% increase over the previous cycle. This reinforces Argentine wheat's position in international markets, where its quality and competitiveness are highly valued.

The sector's fiscal contribution was estimated at US$926 million, up 20% year-on-year. These revenues are essential for the country, not only as a source of foreign exchange but also as a tool to support the economy as a whole.

The success of the 2024/25 wheat campaign was marked by a combination of favorable weather conditions, improved agronomic management, and strong international prices that encouraged investment in technology. Autumn rains were crucial for ensuring proper crop establishment, especially in the northern core regions and the central agricultural area.

The exchange noted that the favorable conditions in these areas led to yields that exceeded the five-year average. However, not all regions were free from challenges: southeastern Buenos Aires, for instance, experienced below-average yields due to unusually high temperatures during the crop's critical development phase.

With increased production volumes, the Argentine wheat sector's economic contribution in 2025 is expected to grow by 26% compared to the previous year, reaching US$2.9 billion.

- Buenos Aires Herald