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Corn exports in Argentina are reaching historic figures, record figures, which makes it an interesting business in which to put the magnifying glass.
During the first ten months of 2020, 34.5 million tons of corn were exported, according to the Cordoba Grain Exchange, which implies a 10% growth in the item.
Corn production in Argentina 2020 reached more than 17.5 billion dollars in the first four months of this year. In this period, corn reached 8.1 million tons sold abroad.
So, taking into account these tempting numbers, what are you waiting for to start exporting this cereal to the world? If you are looking for a corn producer, what are you waiting for to get in touch and make the business more profitable?
If you are a corn producer in Argentina looking to expand your business and reach the whole world with your production, or you are looking to import top quality corn grains from Argentina, this guide will help you a lot. Read to the end!
Main destinations where Argentine corn is exported to
Undoubtedly, Argentina is one of the countries that exports the largest corn market to the world with tons and tons, to supply the demand of different destinations.
The sale of corn abroad managed to generate an important difference with respect to the previous season between the months of May and October, making the main corn buyers point their cannons towards Argentina, as it is an important producer country of high quality grains.
Regarding the countries where Argentina exports corn, Vietnam occupies the central position in sales, currently accounting for 22% of what was traded from January to October 2020.
Then, Egypt and Algeria follow in order of importance, with 10% and 9% of the total exports.
On the other hand, it is important to highlight that Chile and the whole Mercosur are usual corn destinations where the best grains that Argentina produces are received.
Different types of corn-based products
Argentina generates and exports a wide variety of corn-based products to satisfy the demand of the main countries that buy this high quality cereal.
One of these products is pisingallo corn, a type of grain specially made for popcorn or pochoclo, used in sweet or savory cooking in many countries around the world.
There are several kinds of corn, but the hard kernel varieties only pop to make this delicious food. For this to happen, it is necessary that they have yellow starches, as is the case with the pisingallo.
This product is highly valued in the kitchen for containing high fiber values and few calories, being the ideal food for children and adults, at breakfast or snack.
On the other hand, corn flour is another powdered food that Argentina exports to several countries around the world. This input of Central American cuisine is obtained by processing the corn grain with various methods, to achieve this final product.
Some products such as corn tortillas are obtained from corn flour, as it is a flour that can be white or yellow in color, as it does not contain gluten in its manufacture.
Other export products are white or yellow corn kernels, which can be used to make cooked foods such as locro, mazamorra and other dishes that use corn to develop a nutritious and complete menu.
On the other hand, whole or broken corn for animal feed such as pigs and chickens is a high quality Argentine export product that is highly sought after for trade abroad.
Production process and immediate availability for export
Corn production was originally focused in the provinces closest to the port, which was called “core zone”, but in the last decades it expanded mainly to the central, northwestern and northeastern provinces of Argentina, to provide more and better quality cereals.
In Argentina five types of corn grains are consumed, which at commercial level can be classified depending on the hardness of each grain:
Hard or Flint,
High Value Corn.
Corn is part of the production scheme in the north because it is the most recommendable rotation option for soybean and bean crops, although it does not have the suggested adoption rate (40-50%) from the point of view of environmental sustainability, due to structural and economic reasons.
The corn grown for consumption or for industrial purposes, and which are the result of breeding, are produced in the plains areas, specifically to provide this type of grain.
How is the production process?
Optimal planting in large systems extends north to south between 900 to 500 mm, in the corn producing regions of Argentina:
Wetter (900 mm per year of precipitation),
Humid (900-700 mm per year),
Sub-humid (700-600 mm per year), and
Semiarid (600-500 mm per year).
As regions that represent these suitable growing and environmental conditions, we can mention the north of Chaco, which includes the Rivadavia department, and the center-east of the General San Martín and Orán departments; and Chaco Sur, which includes the Anta, Metán, Rosario de la Frontera and La Candelaria departments.
Córdoba is undoubtedly one of the provinces producing corn in Argentina, which is of high quality and for this reason it is in great demand in foreign countries, such as Chile and Mercosur in general.
The southern area of Oran and Rivadavia Banda Sur are also part of the central growing areas, which were evaluated from different aspects related to corn production and the best conditions for a quality final product.
In the province of Salta, the largest area currently planted with corn is the department of Anta, while in the departments that make up the south (Rosario de la Frontera, Metán and La Candelaria) reached 57 thousand hectares planted.
Remember that we have corn ready to export from Argentina to wherever you need. You can contact us for more information, logistic advice to take our grains to your country and more by clicking here.
Price per ton of corn
Corn is priced in both Argentine pesos and U.S. dollars for export.
Currently the price per ton of corn is approximately $199.00 and 16,040 Argentine pesos, according to official prices, considering DIF. $/tn +200.00 and DIF. % +1.23, as published by the Grain Exchange of the province of Córdoba.
The same entity affirms that corn exports in Argentina were successful and during 2020 an increase in the sale of this cereal was noted, which denotes the quality and commitment of local producers to market excellent grains to the world.
Corn exporter’s guide
In this section we will tell you the most important things you should know when exporting corn, to know all the requirements, forms and tariffs that you must cover at the time of starting the process.
The export duty is 12% without drawback applicable to exports to Intrazone or Extrazone.
- In the case of special treatments: the additional drawback is 0.5%. An extra 0.5% drawback is established for the following cases:
Those products that are ecological, biological or organic, duly certified and authorized by the competent body, under the terms of Law No. 25,127, on Ecological, Biological or Organic Production, and its regulatory and complementary rules. In order to prove this condition before the customs service, you must submit a Certificate of Certification for each export operation, issued by SENASA.
- Additional refund of 0.5%: an additional refund of 0.5% is established for the following cases:
Products that have the status of ecological, biological or organic, duly certified and authorized by the competent body, under the terms of Law No. 25,127, on Ecological, Biological or Organic Production, and its regulatory and complementary rules.
In order to prove this condition before the customs service, you must submit a Certificate for each export operation, issued by the National Service of Health and Agrifood Quality (SENASA).
- Organic Products: Decree No. 361/2016 determines an Export Duty of 0% for those products that have the condition of organic and that present the Certificate of Certifying Company, authorized by the National Service of Agri-Food Health and Quality.
One of the most important steps is to register in the registry, so that all the administrative processes and procedures can begin. This registration consists of three steps that we will tell you about below:
- Registration in the Registry of Importers and Exporters of the Argentine Republic at the General Directorate of Customs. It is important to clarify that this step must be taken if you are an importer, exporter, foreign trade auxiliary or customs service. To start the registration completely online, click here.
- Registration in the SENASA Exporters’ Registry: If as an exporter or importer of products you are going to commercialize animals, plants, reproductive material, products, by-products and/or derivatives of this type of inputs, you must be registered in SENASA.
- Registration in the RUCA Exporters Registry: Individuals or legal entities that are going to be involved in the trade of the agri-food chains of the grain market, cotton and its products, by-products and/or derivatives must be registered in this registry.
- Check income provisions in SENASA: before starting the whole process, as an exporter you have the obligation to verify that the goods you are about to take out of the country are authorized in the importing destination and to confirm which are the phytosanitary requirements established by the NPPO. As these requirements vary permanently, we recommend you to consult before each export in order not to run risks, this information can be given to you by your customs broker; Consult us!
- Merchandise subject to official price
- Authorize the entry of foreign currency into the country: in the foreign exchange market the term for the entry and settlement of foreign currency is 15 calendar days until 12/31/20 and for exports officialized as from 09/02/19, the foreign currency equivalent value of the export until the invoiced value is reached; depending on the sales condition agreed, it must be entered into the country and settled in the foreign exchange market within the following term to be calculated from the date of the shipping compliment granted by customs: in the case of exports of goods corresponding to these positions, it is 15 calendar days.
When the export declaration requires the payment of duties, taxes or fees established by the current Argentine regulations, you must pay the corresponding fees in one of the following two ways:
In advance: at the time of making the destination official and at the buying dollar exchange rate of the last previous business day.
With a waiting period: you have some time to pay them, but this is for companies that do not have tax debts.
Contact us for inquiries
For any doubt regarding prices, logistic procedures, how to export grains and all the advice you need, you can contact us, since we are at your disposal to solve any question and clear all your doubts.