Argentina Agriculture Market by Crop Type, Type and Geography - Size and Forecast 2023-2027

Argentina Agriculture Market Forecast 2023-2027

The agriculture market in Argentina is estimated to increase by USD 19.26 billion and grow at a CAGR of 5.2% between 2022 and 2027. The rapid expansion of agricultural exports emerges as a key factor fueling market growth in Argentina. With its agriculture sector thriving on staple crops such as wheat and supplemented by the cultivation of coffee and soy-based crops, the country holds significant potential. Moreover, the importation of agricultural machinery and technology from leading exporting nations like the United States is enhancing Argentina's domestic poultry industry.

What will be the size of the Agriculture Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by crop type (soya bean, maize, wheat, and others) and type (conventional and organic). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Crop Type

The market share growth by the soya bean segment will be significant during the forecast period. In 2022, soya bean was one of the most produced and consumed crops in Argentina. According to the data published by the United States Department of Agriculture (USDA), soya bean production in Argentina in the fiscal year 2021-2022 was 49.5 million metric tons, making Argentina one of the largest producers and exporters of soya beans along with Brazil across the Latin America (LATAM). Such factors will increase segment growth during the forecast period.

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The soya bean segment was valued at USD 26.98 billion in 2017 and continue to grow by 2021. In Argentina, the production of crops such as soya beans is increasing, driven by the increased demand for consuming soya beans and soy-based items due to several health advantages.  Furthermore, soybeans contain hormone-like compounds (known as phytoestrogens) that replicate the action of the female hormone estrogen, resulting in the reduction of menopausal symptoms (such as hot flushes) among them. Additionally, an increasing number of customers nationwide are converting to veganism as a result of rising health awareness and the desire for nutritious diets is driving the need for the cultivation of crops, including soya beans, to fulfill the protein requirements of the vegan population. Thus, several vegan food manufacturers in Argentina are launching soy-based food items, leveraging the production of soya beans. Such offerings are estimated to fuel the growth of the soya bean segment of the agriculture market in Argentina during the forecast period.

Market Dynamics and Customer Landscape

The market in Argentina is experiencing significant growth and trends driven by various factors. The rapid development in the agriculture sector, coupled with technological advancements, is reshaping the landscape. Argentina's diverse agricultural activities, ranging from wheat cultivation to fruit production, are benefiting from advancements in planting, harvesting, and irrigation machinery. Moreover, contractor services are increasingly contributing to efficiency and productivity in rural activities. The market is witnessing a surge in crop production, including wheat, oilseeds, fruits, and vegetables, fueled by the adoption of modern agricultural equipment. Additionally, the expanding applications of agricultural products in food, fabrics, fibers, and biofuel industries present lucrative opportunities for market growth. Despite these positive trends, challenges such as the high cost of agricultural machinery and potential restraints in regulatory frameworks may need to be addressed for sustained market expansion. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The burgeoning potential of agricultural exports stands out as a pivotal driver propelling the growth of the market in Argentina. The nation's agriculture sector, buoyed by staple crops like wheat and supplemented by the cultivation of coffee and soy-based crops, holds considerable promise. Furthermore, the influx of agricultural machinery and technology from exporting countries like the United States bolsters Argentina's domestic poultry industry. To further fortify this sector, the Argentine government has initiated measures such as subsidies for the procurement of new imported agricultural equipment. Despite challenges like limited resources hindering widespread adoption of advanced technologies like GPS, the market remains dynamic. With an emphasis on enhancing agricultural productivity through cost-effective solutions such as locally available fertilizers, the industry is poised for sustained growth during the forecast period.

Significant Market Trend

Robots in agriculture are the most important growth trend in the market. In recent years, it has been observed that the use of robots has increased in the agricultural market in Argentina. Robots are equipped with specialized tools, accessories, and hands and arms to perform tasks accurately. They harvest effectively and efficiently using an automatic harvesting system. Mobile robots help conserve moisture in soil and plants. Automated robot controls help farmers take care of their crops and protect them from insects.

Robots can operate efficiently for longer periods of time and provide accurate responses. They can help detect water status and monitor crop levels, crop development, and crop composition. They also allow precise control of sowing and harvesting in agricultural fields. Therefore, smart farms are increasingly using advanced robots to control multiple variables in the farming process, driving the growth of the focused market during the forecast period.

Major Market Challenge

The declining availability of farmland is a major challenge to the growth of the market. Arable land is defined as land that can be plowed for planting and growing crops. In recent decades, the amount of land used for growing crops in Argentina has decreased rapidly. Factors such as industrialization, urbanization, and energy demand have led to the reduction of agricultural land and its diversion to other uses such as construction.

In addition, soil erosion and soil pollution in recent decades have reduced the quality of agricultural land and the ability to grow crops, which has also contributed to land loss. Plowing is an important agricultural activity to ensure that fertile soil is applied. However, soil erosion and pollution have caused a decline in crop production, which ultimately reduces agricultural activity. This is expected to further challenge the growth of the agricultural market in Argentina during the forecast period.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Agriculture Market in Argentina Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Afimilk Ltd.- The company offers agricultural products such as cow monitoring equipment, parlor automation system, and herd management software. Also, they are involved in cow monitoring solutions that include software, monitoring, and automation management for dairy farms.

The report also includes detailed analyses of the competitive landscape of the market and information about 9 market vendors, including:

• Bayer AG
• Deere and Co.
• DeLaval International AB
• GEA Group AG
• Groupe Roullier
• Molinos agro SA
• Topcon Corp.
• Sumitomo Corp.
• Trimble Inc.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

 

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Crop Type (Soya bean, Maize, Wheat, and Others) and Type (Conventional and Organic).

• Crop Type Outlook (USD Billion, 2017 - 2027)
  • Soya bean
  • Maize
  • Wheat
  • Others

• Type Outlook (USD Billion, 2017 - 2027)
  • Conventional
  • Organic

Market Analyst Overview

The market is a diverse and dynamic sector encompassing a wide range of crops and practices. From staple crops like wheat to specialty fruits such as grapes and bananas, Argentina boasts a rich agricultural landscape. With a focus on climate-smart practices and green development, the industry is embracing sustainable techniques and genetically-modified seeds to enhance productivity and resilience. Despite challenges like post-harvest losses and natural disasters, the sector is witnessing rapid development, supported by government initiatives and loan facilities from institutions like the World Bank. Key players in the market are driving innovations in agricultural machinery and technology, catering to the growing demand for fruits, vegetables, and specialty crops. With a growing population and increasing globalization of trade, Argentina's agriculture market is poised for continued growth and innovation.

The Argentina Agricultural Market showcases a diverse array of crops, from staple grains like wheat and corn to fruits such as apples, limes, and lemons, alongside vegetables like onions, garlic, and potatoes. With a focus on climate-resilient infrastructure and off-season varieties, the nation's agri-food system thrives, catering to both domestic consumption and export demands. Despite challenges like export taxes and government policies, Argentina remains a leading South American producer, boasting record harvests in wheat and other crops. The sector benefits from advancements in agricultural machinery, including tractors and harvesting equipment, driving rapid development and ensuring food security. As the industry embraces precision farming and sustainable practices, supported by technologies like artificial intelligence and farm management software, Argentina's agriculture market continues to evolve to meet consumer demand for healthier, diverse diets while navigating global supply chains and trade restrictions.

The cultivation of wheat, pears, tomatoes, carrots, peppers, chilies, turnips, oranges, peaches, avocados, strawberries, and other crops underscores Argentina's agricultural diversity. Amidst rising demand for organic food and concerns regarding chronic diseases, citrus fruits, blueberries, broccoli, cauliflower, nuts, alfalfa, sorghum, and barley gain prominence.

To ensure soil sustainability and carbon fixation, practices like crop rotation, no-tillage farming, and the cultivation of sunflowers are employed. Recent record wheat harvests are facilitated by advanced harvesting and planting machinery, stored in silos for preservation. Challenges persist, including a lack of awareness, illiteracy, and limited resources, impacting agricultural machinery usage. Despite the availability of manual, semi-automatic, and automatic equipment, animals like birds and jute play vital roles in farming. Distribution channels encompass supermarkets, hypermarkets, convenience stores, and e-commerce platforms, offering a range of animal produce including honey, meat, wool, eggs, skins, hides, and live animals.

Various farming methods are employed, from grain and oilseed farming to fruit, nut, and vegetable farming, along with greenhouse and nursery cultivation. Forestry, fishing, hunting, trapping, and associated services contribute to rural development. Efforts toward sustainable agriculture include crop protection products, weather pattern monitoring, and rural development programs. Genetic engineering, organic farming, vertical farming, and digital platforms for agriculture are advancing food security and promoting healthier diets. Emerging technologies such as agriculture drones and horticulture and aquaculture practices further diversify the sector, fostering agribusiness expansion and sustainable growth.

Agriculture Market In Argentina Scope
Report Coverage	Details
Page number	114
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.2%
Market growth 2023-2027	USD 19.26 billion
Market structure	Concentrated
YoY growth 2022-2023(%)	4.75
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Afimilk Ltd., Bayer AG, Deere and Co., DeLaval International AB, GEA Group AG, Groupe Roullier, Molinos agro SA, Topcon Corp., Sumitomo Corp., and Trimble Inc.
Market dynamics	Parent market analysis, market research and growth, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Agriculture Market In Argentina In Country Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and market growth analysis and changes in consumer behavior
• Growth of the market industry across Argentina
• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior

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