MercoPress. South Atlantic News Agency

Argentine food exports face a drop in demand and prices

In 2019, Argentina was the largest exporter in the world of soy flour and soy bean oil, and third for corn. It's also a major exporter of meat and vegetables

The United Nations has warned of an impending food shortage due to the coronavirus pandemic as major exporters such as Argentina find it increasingly difficult to sell their produce.

Argentina is a land of plenty, producing cereals, vegetables, meat and fruit, all products that will always be in demand somewhere. And yet its export industry has been badly affected by the worldwide lockdown provoked by the virus, which the UN says could lead to global export restrictions.

In 2019, Argentina was the largest exporter in the world of soy flour and soy bean oil, and third for corn. It's also a major exporter of meat and vegetables. But those exports started to slump in January when the new coronavirus began spreading in China, a major trade partner.

Argentine exports in February were down 35% against the same month in 2019, the state statistics institute said.

The Argentine Chamber of Commerce said that for “food exporters the initial impact of COVID-19 was seen in the commercial relationship with China, mainly in the meat and oilseed sectors. ”This was seen not only in smaller quantities of exports but also lower prices.”

European markets also halted purchases, meaning farm produce was either being held in processing plants with nowhere to go, or sometimes being sent out but not necessarily reaching its final destination.