After decades of stagnation, the agricultural sector in Argentina responded during the first half of the 1990s to the removal of high levies on agricultural exports. At the same time customs duties on mineral fertilizers were greatly reduced. By the mid-1990s maize production had tripled, soybean production had doubled and wheat production had increased by 50 percent. Since then, wheat and maize production have stabilized but soybean production has continued to climb.
Argentina is best known historically as a cattle-raising country, on the Pampa, and even in 1960 Argentina still accounted for a third of the world’s exports of beef and veal. Today almost all the meat is consumed domestically but Argentina is now the world’s third largest exporter of soybeans, the third largest exporter of maize and the fourth largest exporter of wheat. Soybean exports have increased almost three-fold since 1990.
The level of crop production that prevailed until 1990 did not need much fertilization, especially given the extensive areas of rich soils, but the large increase of grain production in the first half of the 1990s required a substantial increase. Fertilizer consumption rose five-fold between 1990 and 1996, from 165 000 tonnes of nutrients to 855 000 tonnes in 1996. Since then fertilizer consumption has stabilized. The main increase in crop production has been in soybeans, a crop that does not require heavy fertilization.
This study explains the reasons for these developments. It provides information on the different agricultural regions in Argentina and their resources. The changes in recent years in the profiles of the agricultural producers and the productivity of different groups according to the level of technology they have adopted are described. During the 1990s, two important technical innovations in the Pampa region were the sowing of herbicide resistant varieties of soybeans and direct sowing.
Wholesalers and retailers are increasingly offering farm services, including the offer of fertilizers in bulk and blends. A nationwide system for agricultural education, research and the communication of information has facilitated the transmission of new technologies.
The proportions fertilized of the main crops are now near their ceilings but there is some scope for increases in rates of fertilizer use. Soybeans and, to a lesser extent, sunflowers are likely to account for most of the increase in the arable acreage. These are crops that are not heavy consumers of fertilizers.
