Argentina

Abstract

Soybean production is embedded within a productive system that cannot be analyzed on its own. Several political and market factors, both nationally and internationally, explain the development and growth of soybean production throughout the globe. In the case of Argentina, the evolution of the agricultural system of soybean production has been characterized by continuous technological improvement. This has changed the entire agricultural system and set the base for society's growing demands for environmental and socially responsible goods, including most recently biodiesel. An advancement of regulatory context has allowed for better control of the future development of land usage. In Argentina's case, the Minimum Standards for the Environmental Protection of the Native Forests Act is an example toward that direction. The Argentine soy industry is one of the most dynamic economic sectors of the country, generating almost 30% of the foreign currencies income due to exports and representing almost 30% of gross domestic product (GDP) from the agro-industrial sector. Argentina has until recently been the world's leading exporter in soybean oil, soy meal, (soy) biodiesel, and the third highest in soybeans. However, policy changes in 2012-2013, especially an imposition of import duties by the European Union on Argentine biodiesel, have almost paralyzed the sector. Thus, the future expansion of this industry in the country is heavily dependent on internal and external changes in policies and is thus uncertain.