Argentina

Growing Global Demand

• Global food security and a growing world population are driving demand for agricultural products.
• The world’s population is expected to grow by approximately 2 billion people by 2050, reaching 9.7 billion. To meet this demand, it is estimated that food production will need to increase by 70% over the same period.
• This macroeconomic environment therefore offers continued growth opportunities for Argentinean producers.

Favourable Climate and Production Cycles

• Argentina’s climatic diversity allows for different types of agricultural production in different regions of the country.
• The temperate climate in most parts of the country is ideal for large-scale crop and livestock farming.

Abundant Natural Resources

• Argentina has vast tracts of fertile land suitable for agriculture and livestock farming.
• Data from INTA (National Institute of Agricultural Technology) indicate that the country has approximately 157 million hectares suitable for agricultural production.

Diversified Agricultural Production

• In 2020/2021, soybean production is expected to reach 45.5 million tonnes, according to data from the Buenos Aires Grain Exchange.
• Mainly known for soybeans, Argentina is also one of the world’s largest producers of maize, wheat, sunflower and beef.

Export to International Markets

• Argentina is a major exporter of agricultural products, facilitated by its strategic geographical position and developed port infrastructure.
• In 2021, agro-industrial exports reached USD 48 billion, representing more than 70% of the country’s total exports, according to the Ministry of Agriculture, Livestock and Fisheries.

Foreign Investment Friendly Policies

• There are clear regulations on land ownership by foreigners, which provides legal certainty for investors.
• The Argentine government has implemented policies to attract foreign investment in the agricultural sector, offering tax incentives and facilities for land acquisition.
• Specifically, the recent approval of the Law of Bases in the Chamber of Deputies of Congress, on 28 June 2024, contemplates a chapter with the Incentives Regime for Large Investments (RIGI) that will grant investments at least USD 200 million in income tax rebates and authorisation to import capital goods and will only tax their exports in the first three years.

Agricultural Innovation and Technology

Argentina is a leader in agricultural technology in Latin America, with a strong adoption and development of new innovations in the sector.

Dozens of start-ups and scale-ups lead different verticals and operate in other countries. Here are some examples:

• Drones and Remote Sensing:
  • The use of drones and remote sensors to monitor crops and soils is on the rise. These devices allow farmers to obtain accurate data on the state of their fields, detect problems early and make informed decisions about the management of their land. Companies such as S4 and Auravant are leading in this technology in Argentina.
• Software and Digital Plataforms:
  • Platforms such as Agrofy and Agroptima offer digital solutions for farm management, facilitating the planning, monitoring and marketing of agricultural products. These tools help farmers improve the management of their operations and connect to wider markets.
  • Kilimo develops irrigation management solutions based on big data and predictive analytics. Its platform helps farmers optimise water use, improving efficiency and reducing costs.
• Biotechnology and Genetically Modified (GM) crops:
  • Bioceres is a biotechnology company that develops innovative solutions to improve agricultural productivity and sustainability. Its flagship product, HB4, is a drought and herbicide tolerance technology for soybean and wheat crops.
  • Argentina is one of the largest producers of GM crops, such as soybeans, maize and cotton. These crops have been modified to resist pests and diseases, and to increase productivity. By 2020, more than 90% of the soybeans grown in Argentina were GM.
• Precision agriculture:
  • Precision agriculture involves the use of information technologies and geospatial data to optimise agricultural production. This includes the use of GPS systems for precise planting and fertilisation, which reduces input use and increases efficiency. Self-guided tractors and precision planting equipment are common examples.
• Agricultural Fintech:
  • Agrotoken is a fintech that tokenises grains such as soybeans, corn and wheat, allowing farmers to use their yields as digital assets to access financing and other economic opportunities.
• Robotics and Automation:
  • The manufacture of automated farm machinery, such as seeders and harvesters equipped with advanced technology, is achieving great results in improving accuracy and efficiency in farming. Scale-up Plantium is a leader in this field.