March 24, 2009

Argentina's farm exports in January were down sharply on the year due to falling prices and lower volume sold, local think tank IES Consultores said in a report Monday (March 23).

Agricultural exports in January were down 45.6 percent on the year in terms of value and 37.9 percent in volume, IES said.

The decline in January reflects a sharp drop in prices during the second half of 2008 and much smaller wheat and corn production due to drought.

The poor start to 2009 follows a bumper year in 2008.

Argentina's farm exports in 2008 were valued at US$26.3 billion, up 31.3 percent on the year.

The main reason for the gain was a spike in prices early in the year, which allowed for the gain despite government restrictions on exports and strikes launched by farmers during the first half of 2008, IES said.

However, the volume of goods shipped totalled just 71.4 million tonnes, down 5.1 percent on the year, according to IES.

Exports of cereals in 2008 were valued at $6.8 billion, up 45.1 percent on the year. The amount of cereals exports was almost unchanged on the year, but the average price rose 45 percent.

Oilseed exports in 2008 were worth US$19.1 billion, up 27 percent on the year.