Argentina needs five reforms to boost agro-industrial exports amid rising global demand

Argentina has a significant opportunity to boost its agro-industrial exports, driven by increasing global food demand. However, the country must implement five key reforms to capitalize on this potential. These include reducing the tax burden, enhancing infrastructure and logistics, increasing access to financing, promoting innovation, and securing new trade agreements.

Marcelo Elizondo of the International Chamber of Commerce highlighted this outlook, noting that global food demand is set to rise significantly by 2035. He pointed out that Argentina is the world's third-largest net exporter of food, trailing only the United States and the Netherlands. The country's agricultural products constitute 2.1% of global sector exports, a much higher share than its participation in energy, mining, industry, or services.

While Argentina ranks highly in exporting primary agricultural products and agro-industrial manufactures, it lags in processed foods. Elizondo stressed the need for Argentina to add more value through further processing and moving up the supply chain. The agro-industrial sector accounts for about 60% of Argentina's total exports. Despite past growth, its export performance has stabilized due to falling international prices and domestic issues related to regulations, economic organization, and incentives.