Argentina looking to absorb the million tons of bio-diesel Spain no longer will import
Almost a million tons of bio-diesel which was exported to Spain will now have to be absorbed by Argentina’s domestic market following on Madrid’s decision to cut all imports because of the seizure of oil corporation YPF from Repsol by the administration of President Cristina Fernandez.
Spain was Argentina’s main bio-diesel client having imported 995.599 tons in 2011 equivalent to 1.2 billion dollars, which is almost half the total revenue for the item, 2.3 billion.
“Loosing overnight your main client is a problem, but hopefully there will be alternatives that could make the issue less painful”, said an industry source.
Agriculture consultant Gustavo Lopez said that the immediate options are domestic consumption or exporting to other countries. “Since Spain will have to buy bio-diesel in other markets, probably France or Germany, Argentine exports could then be addressed to those markets” speculates Lopez.
However the president of the Bio-fuels Chamber, Fernando Pelaez revealed that the sector was preparing for such an event since Spain had threatened on previous occasions to cut bio-diesel imports. “Looking for potential customers overseas is an idea but the strongest option is to elevate the domestic gas-oil content from 7% to 10%”.
Pelaez estimates that a 10% bio-diesel content could see cars absorb 380.000 tons; buses, trucks and farm machinery another 400.000 tons and thermal electricity generating units, 300.000 tons.
Argentina is the world’s fourth producer of bio-diesel and the main world exporter, which is also crucial for the soybean industry which has an annual turnover of 20.7 billion dollars, made up of 3.3 billion dollars in beans; 11 billion in soy flour; 4.2 in soy oil and bio-fuels, 2.3 billion dollars. Last year Argentina exported 1.9 million tons of bio-diesel.
Likewise capturing new markets is not easy, because Argentina could also face a solidarity gesture from the European Union with Spain and the EU absorbs 82% of Argentina’s bio-diesel production. “Bio-diesel is more expensive than oil and only countries with an environmental commitment are interested in the product”.
Furthermore the US, the world’s main consumer demands strict environment certification such as that the soybeans were not planted in de-forested areas nor slave or infant labour is involved. “We are working on those protocols”, said the president of the bio-diesel chamber.
Another option is turning all that soybeans into cooking oil but that industry is strongly established with several global corporations in the business, points out Pelaez.
“Currently at 1.300 dollars the ton, the bio-diesel business is attractive, and on occasions it soared to 1.800 but also to 500 dollars” added Pelaez who indicated that at least 20 plants, each demanding an investment in the range of 80 to 100 million dollars are involved in the industry in spit of the “volatility”.
Finally leaving aside Spain, the industry is facing more challenges: customers are demanding a far more refined bio-diesel with less impurities which increases costs by at least 30 dollars a ton, “which erodes profits”.
Meantime from Spain the government of President Mariano Rajoy has toned down its attacks on Argentina because of the seizure of YPF and states that there is no intention of “implementing reprisals”.
“The economic interests of Spain in Argentina are not limited to Repsol and the strategic relation between both countries go beyond the misunderstandings between the two governments”, said Industry, Energy and Tourism minister Jose Manuel Soria, one of the most combative officials from the Rajoy government.
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LOL.
The other EU countries can source bio-fuels from elsewhere in South American and Africa, and these countries will put their own needs before Argentina, 'cos after all what has Argentina ever done for them except impose unfair trade restrictions and attempt to bully and pressurise them.
But as the article says, the fuel could be processed as cooking oil, no doubt Maximo would buy lots of it to cook his burgers in.
Either way, the sort-sightedness of Argentina's illegal seizure of YPF will have economic repercussions that will affect the ordinary Argentinians, not that CFK and her government give a damn about them.
Why are they looking to other markets that don't want to get shafted by Argentina like Germany and France, who don't want to get shafted by Argentina. Do they not get the point that no one wants to get shafted by Argentina, and the risk of getting shafted by Argentina makes your oil worth less.
I'm sure they must be able to sell it somewhere else and make money rather than selling it for bargain basement prices internally?
Possibly not a solidarity gesture, more likely a demonstration of having learnt by other peoples (in this case Spain's) mistakes.
As flaky and prone to nationalizing other people's stuff as Argentina is would you plan your national energy and transportation systems around it?
Besides, solidarity has become when left-wing semidictators back each other, if France and Germany adopt the ten-foot-pole approach to Argentine bio-diesel then it'll be a European neo-colonialist conspiracy instead (at least in the Argentine press).
The price wil be anyones guess.
CFK and her cronies have neatly backed Argentina into a corner, cutting off lifelines to their former allies and to the international community. They have made themselves look pathetic to international bodies, such as the UN and the OAS. Oh yes, a masterstroke by CFK.
Argentina is desperate, and is trying to firmly plant their flag on Chinese hopes. However, China doesn't need Argentina as much as Argentina needs them, so China will be able to dictate terms to them, not just about bio-fuels, but about oil and gas, and any other product that Argentina will want to try and export.
All China had to do was throw CFK a bone by saying, 'China supports your claims to the Falklands,' and she was all over them, licking their boots. Argentina take note, China will, like some other countries have done, verbally support you, but when it comes to putting their money where their mouth is, you'll get nothing.
Amen, Hopefully the people will wise up sooner rather than later, while there still is an Argentina left to fight for.
Argentina will end up using this themselves and losing the much needed U$.
BTW a home made bomb went off in front of the EU HQ in Recoleta.
Anyone else see similarities to 1930s Germany?.
#9 “Money follows the best price - somebody will buy it regardless of the politics.”
Only in a logical, rational and sane world. Argentine political leaders will be drawn to trade the biodiesel where they can obtain the highest kickbacks in return. The problem with this product is that it has a very small market willing to pay a premium market price and those customers don't pay under the table. Cream puffs to the Argentine masses may therefore be the most practical answer.
RGs are very proud to have a US EU branded store available in BA, it makes them feel like they are as good as NYC, London, Paris. I wonder what they will feel when all they can get are RG brands? Since good fabrics are not made in Arg I wonder if they'll all start looking like people in Delhi everyone wearing 70/80 USA hand me downs.
How does this help unemployment or the economy again?
The real objective is: How does this help fill the pockets of CFK's ruling mafia?
Does RL have a shop in Punta del Este?
I heard Apple is leaving too...
In Santiago, we have almost all the trendy brands and they're doing a boming business with Mercosur tourists. Saying that, it's still cheaper to take a vacation in Argentina, although certainly more expensive than years past.
Mmmm , the Jewish cemetery in BA keeps getting vandalised.
Off duty police suspected .
Tomorrow , there will be an RG version of Kristallnacht when the drilling companies' deadline expires , for sure .
Is Apple leaving Uruguay??? That's.... GREAT news!!! Please tell me they are taking.... what's their name.... those making burgers out of rat-meat.... McDouglas, was it?
Have you ever been to Uruguay? People from Avellaneda usually don't go there.
Tell him why you go to Avellaneda Fred, did Casa Lopez move there?
Why don't you go home to your blessed land of opportunities, I can assure you no one wants you here :) Regarding the fact that you don't like us either, you being here makes no sense whatsoever.... Not that I would expect you to make sense...
Justicialist Party May Day Celebrated
Buenos Aires, May 1 (Buenos Aires Herald) -- The dear respected Maximo Fernández made a congratulatory speech at the Justicialist Party parade celebrating the brave workers of Argentina on the May Day holiday. His speech has enjoyed great public response as it was vibrant with superb intelligence and iron will and gives clear-cut answers to questions arising in building a thriving nation.
In particular, his statement that “Our party and the government of the Justicialist Party will join hands with anyone who sincerely wishes the reunification of the country and peace and prosperity of the nation, and make responsible and persevering efforts to realize the historic cause of national reunification with our brothers held captive in the Malvinas Islands” instills in the minds of all Argentinians the conviction of sure victory in national reunification with them.
Maximo Fernández was evidently making a reminder of the tireless work of his mother, Dear Leader, Cristina Fernández de Kirchner, who has called for national unity before anything else and led all patriotic-minded Argentinians to the efforts for national reunification with the Islas Malvinas.
This statement also made people recall the bold and fearless leadership, of his father, the late Great Leader President Néstor Kirchner as well who declared that Argentina would join hands under the banner of great national unity with government authorities or ruling and opposition party officials, politicians and Argentine workers, if they value the common interests of the nation and want national reunification with the illegally held rightful territory of Argentina.
The idea of on great national unity and their lofty personalities and patriotism of Presidents Cristina Fernández and the great leader President Néstor Kirchner, have served as a source of strength enabling all Argentinians to turn out in the drive for national unity and reunification.
Does anyone know how many Pataconoes you get for a Peso?
hahahha
So many words you can spell!!! I almost read them all :)
HMS Dauntless should return from Malvinas to protect Hague from further ambushes :-)))
GoGirlGo!
01 May 2012
“William Hague 'ambushed' by Argentina ambassador”
www.telegraph.co.uk/news/worldnews/southamerica/falklandislands/9237955/William-Hague-ambushed-by-Argentina-ambassador-over-Falkland-Islands.html
I bet she isn't going to be invited to any other events.
It will be just like here in the USA, blacklisted from State and White House.
Gizz - Are pussy cat impressions a form of legal tender in Argentina now?
Not really, Hague got his butt kicked today.
Crashing a state dinner at the White House is easy Fred..
www.huffingtonpost.com/2009/11/25/tareq-and-michaele-salahi_n_371336.html
Still 10 out of 10 for effort.
Poor Mr Beef , he's a drowning man searching desperately for a life jacket.
Enjoy the double-dip recession Beef.
Looking forward to the toothless Argie legal action. Will provide good entertainment while nature takes its course.
Hear that? someone in the crowd is saying something...
Hey Beef, orders for Britain’s manufacturers have collapsed, do you need any Pesos?
A flustered Hague attempted to interrupt her several times, before cutting her off with ”Thank you. That's enough. Stop.”:-))))))))))))))))))))))))))
www.huffingtonpost.co.uk/2012/05/01/hague-falklands-argentina-ambassador_n_1466745.html
George Galloway is one of the few people who will meet, and actually speak, with Ms Castro, and they truly deserve each other, a match made in heaven.
With any luck they will set up home in Gaza, and go on hungerstrike.
I shouldn't really be surprised when you are clearly of low intelligence and obviously a zero social life given the time you spend on here replying to every ones posts.
Never mind....
Mylady :) If there ever were 10 reasons to be gay, you'd be 8 of them :)
George Galloway pretending to be a cat alongside Rula Lenska has been named Celebrity Big Brother fans' 'Most Memorable Moment'.
www.digitalspy.co.uk/tv/s150/celebrity-big-brother/news/a335815/big-brother-pussycat-george-galloway-named-most-memorable-moment.html
The conclusion that's he's extremely self-centered narcissist still remains valid, but there is obviously even a darker and more disturbing aspect of his insecure and adolescent personality disorder that goes far beyond being extremely sensitive to rejection.
Thankfully there is the WWW providing a safety buffer from when he reacts with physical temper tantrums. His recent comments attacking you are clear symptoms of a sexually confused and frustrated adolescent.
If you are allowed to abuse, then lets all have fun :)
Otherwise, stop being clever
(By the way, now I have to apologize to the economist guy, he
s right, your debt is NOT 9.8 Trillions, it's “only” 1.7 Trillions USD... That's coming right back at me :) )
Stop doing your amateur profiling and I'll stop doing mine, or lets just have a go at eachother, you pick
“I'd love to uphold a normal conversation”
Brilliant........
And 2 days ago you were trying to take the higher ground saying you'd not stoop to that level.
That says an awful lot about your integrity or lack of.
I remember posting that if you ever heard me making remarks like that it's because you got to me, and well, they did :)
I didn't set the standards here, I merely downed myself to the standards of the amateur profiling of miss Elaine and Chicureo...
Then we'll have to talk as soon as you grow up.... Let me know
Where is that Argie ambassador with my Vodka Martini and Godiva chocolates.
They don't make any sense.
Btw, have you told your new-found friends that your hero Pinochet was a friend of the scumbags that invaded the Malvinas? Don't you think they should know?
Guzz: “Lies lies lies lies I'm not an argentinian in la campora lies lies lies lies” *lying on a bed of lies*
It's that easy.
You would have thought the folks in tel aviv could have thrown in a few dog-tags with the landmines and missiles flown on civilian aircraft.
Yes, Galtieri was the scumbags name, working towards the same ends as Pinochet in Chile, Bordaberry in Uruguay, “can't remember his name” in Brazil, Paraguay, Bolivia... All over our continent, the USA with its ”Plan Condor (Operation Condor)”, installed puppet leaders to get rid of socialists and socialist regimes. For over a decade they killed, tortured and disappeared people all over the continent. 60000 deaths are prooved, actual number is much higher.
If you guys had removed Galtieri from office, you would've seen the true celebration, not only in Plaza de Mayo, but all over the country...
We have done similar things to help other nations, Serbia is an example. We led the operation to defeat another dictator and he was soon booted out of power. Now Serbia is democratic and looking to join the EUROPE and the Kosovans have been able to determine their own future.
A difficult, but not impossible problem to solve,
As we say,
We drink lots of teas,
The Americans drink lots of coffee,
And the Argentineans, will have to learn to drink lots of bio-diesel//
We hear it tastes, mmm interesting .
.
At least she is good at that.
UK would have helped with other actions, not a war.
Argentina has passed through this before too, and it did its way.
And the militar junta was not been murdered or assessinated, there was a transition, there was dialogue, and then they were judged.
UK victory in the Falklands is an accepted factor that hastened the removal of the dictatorship.
No you didn't lead that war, how many Vodka Martini you had already?
@82 Face facts, the junta fell when they lost the war. That's a fact. Your issue with facts is nothing to do with us, and more to do with your failed schooling.
Wake up Forest.
Wake up Forest.
#76 Agreed, but let's not forget the French.
#78 & 79 Very agreed.
You still want to base your arguments on mudcasting and personal offences? That's all you got, isn't it?
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