The Emerging Liquid Biofuel Market in Argentina: Implications for Domestic Demand and International Trade

The emergence of markets for liquid biofuels in Argentina was evaluated. The data on the agricultural industry and the energy sectors were collected through a literature review and from the designated ministries and secretaries. The agricultural sector generated a significant income of foreign exchange for the country, which highlighted its importance. More than 50% of all Argentinean exports were of agricultural origin. Crop production in Argentina steadily increased in the past, with a significant rise during the last decade, mainly because of the increase in land devoted to soy. The big export market, suitable climate allowing two harvest per year, relatively easy cultivation of the herbicide resistant genetically modified soy, combined with low herbicide prices and the introduction of no tillage farming equipment in Argentina were believed to be the main drivers for the increase in soy production.