Massive Sunseed Increase in Argentina
WASHINGTON - Apr 8/16 - SNS -- Sunflower seed plantings in Argentina are expected to jump 36% to 1.7 million hectares in 2016-17. Average yields would see the country harvest 3.2 million metric tons (MT), believes the U.S. agricultural attache for the country.
"The removal of export taxes (formally 32% for sunflower seed and 30% for its oil and meal) along with improved prices is encouraging a significant expansion of sunflower seed, particularly in provinces of La Pampa and west Buenos Aires," the agricultural attache said.
"Around this time last year, sunflower net returns for the area of southeast Buenos Aires province averaged $12 per hectare, today that same region with the same expected level of yields is expected to deliver net returns around $191 per hectare.
"As such, prospects are looking much better for sunflower seed producers after some difficult seasons. In fact, this expansion represents an important recovery for the sector with this seasons area moving closer toward 2.0 million hectares, the average for planting area during the 2000s. In 2011-2012 season, Argentine sunflower area and production began to decline as production swelled in Russia and Ukraine, leading to a weakening of world sunflower prices."
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