April 1, 2011

Argentina to authorise additional corn exports

Argentina is about to approve the export of an additional three million tonnes of 2010/11 corn in the endeavour to seek new markets, including China, according to the agriculture minister.

The South American country is the world's second-biggest corn exporter after the US, but the government restricts exports of corn and wheat to ensure the local market is well supplied.

It has already allowed the shipment of 8.5 million tonnes of 2010/11 corn, which farmers started to bring in several weeks ago.

"Three million tonnes more will be opened up in the days ahead," said Agriculture Minister Julian Dominguez.

The government's quota system for corn and wheat exports is a constant complaint among farmers, who say the government intervenes too heavily in the sector and drives down the prices they receive by capping exports.

"Argentina is working to open and consolidate new markets. We finished negotiating with China last year and now we are negotiating with Russia," Dominguez said.

China, already a major market for Argentine soy and soyoil, has restrictions on the importation of genetically-modified corn strains, which account for about 80% of the South American country's crop.

Chinese food health officials arrived in Argentina this week to work on a protocol that would pave the way for Argentina to start shipping corn to the commodity-hungry nation. However, Dominguez said it was still too early to announce the export of corn to China.

Argentina is expected to harvest 20.8 million tonnes of 2010/11 corn, according to the Agriculture Ministry. Meanwhile, Maizar, Argentina's private corn-growing association, estimates a crop of 22 million tonnes.

Once the three million tonnes is approved for export, bringing total authorised exports to 11.5 million tonnes, most of the 2010/11 will be spoken for, considering that the country consumes about eight million tonnes.