Argentina Needs New Biofuels Law for Agro-Industrial Revolution, Experts Say

Argentine export leaders are calling for a new biofuels law, framing it as a crucial agro-industrial policy rather than solely an energy matter. Javier Preciado Patiño, a consultant for RIA, argues that the debate in Congress over biofuels significantly impacts Argentina's capacity to industrialize soybeans, add value to the crop, and maintain competitiveness against global players like Brazil and the United States.

Gustavo Idígoras, president of the Chamber of the Oilseed Industry and Cereal Exporters (Ciara-CEC), emphasized the global "agro-industrial revolution" in bioenergy production. He stated that a new bioenergy law is essential for Argentina to participate effectively in this transformation. Patiño underscored the importance of domestic industry, explaining that soybean processing enables factories to offer higher prices to producers by generating added value from oil, meal, and pellets.

Idígoras added that a robust domestic industry provides producers with consistent demand throughout the year, regardless of grain quality. He noted that factories guarantee purchases of any soybean quality year-round. To illustrate the impact of industrial processing, Patiño presented data from June 17, 2026. On that day, the FOB price for soybeans was $419 per ton, while producers received $326. Including 24% export duties ($101), the total reached $427, exceeding the FOB price by $8. Patiño explained this was possible because the industry, through oil, meal, and pellets, could afford to pay that value.

The price difference between regions also highlights the industrial demand's effect. In the Gran Rosario, where most of the country's processing capacity is concentrated, soybeans traded between $322 and $324 per ton. In Bahía Blanca, lacking similar industrial demand, prices ranged from $305 to $310. Idígoras pointed out that this gap is directly related to sustained industrial demand. Patiño further noted that the theoretical margin for exporting soybeans as raw beans was negative for much of the analyzed period, averaging -$7 per ton, underscoring that industrial processing is what makes higher producer prices feasible.

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no da lo mismo que haya industria o que no haya industria.