March 14, 2022

Argentina stops export registration for soy oil and soymeal

Argentina has stopped the registration of export sales of soy oil and soymeal, which the domestic industry has disapproved, Reuters reported.

The move by Argentina, the biggest exporter of processed soy products in the world, has stopped the sales and export of the 2021/22 crop. But physical shipments have not begun as harvesting has not taken place.

Argentina's decision is expected to affect the global soy market, which has seen rising prices because of Russia's invasion into Ukraine.

Government data has shown about 5 million tonnes of soy oil and other soy byproducts from the 2021/22 campaign have so far been formally registered for export.

Argentina's CIARA chamber of oilseed processors and exporters said the government has closed export registration because the government wanted to raise tariffs by two points on exports.

The chamber said the government's move opposes Argentina's export interest and will affect the income of foreign currency and employment in the agroindustrial chain.

Export tariffs were not mentioned by the government statement, but this has been a point of contention with farmers and exporters. The government needs the dollar income and tax revenues from soy sales as it battles high debt.

There is a 31% tax implemented on Argentina's soy oil and soymeal exports. Its 2021/22 soy crop is projected at between 40 million to 42 million tonnes, but it was badly affected by drought at the start of 2022.

-      Reuters