The election of President Mauricio Macri in Argentina in December 2015 has opened a new economic vision for the country which promotes greater international trade and provides stimulus to the agricultural sector, global inspection company SGS said in a recent agri trade newsletter.

As part of his initiative, soyabean export tax had been lowered by 5%, and the export tax on corn, wheat, sunflower and other regional crops eliminated.

“The removal of foreign exchange restrictions had the immediate effect of devaluing the local currency by 40% against the US dollar, but it is hoped that improved profitability for the farmer will partially compensate for the drop in the international price for grain,” SGS said.

During this growing season, crops had suffered from heavy rains and a hot summer, while El Niño had brought a succession of storms, floods.

“It is predicted that these conditions will continue for the rest of the summer and probably on into the autumn.”

The climatic conditions had led to a good provision of water, allowing for record yields.

“On the negative side, there is also higher pressure placed on crops from resilient weed-types. These have been seen in most soyabean crops, and have made weed control a primary issue for farmers.”

Most regions had reported higher yields, but lower quality crops, in terms of protein percentage.

Planted area was similar to the previous season and with yields predicted to be comparable, it could be concluded that production would match, or exceed, previous volumes, SGS said.

“We predict that last year’s high yields will be maintained, but that issues of low protein content will remain.”