South America Calling
Alastair Stewart South America Correspondent

Wednesday 06/11/14

Argentine Biodiesel Exports to Recover in 2014

Argentina's biodiesel industry had a terrible year in 2013 after the European Union hiked tariffs on shipments amid claims of dumping.

Exports of the soybean-derived fuel slumped last year and Argentina lost the crown as world's No. 1 supplier to Indonesia.

But things are looking up in 2014.

In late May, Argentina's government cut biodiesel export tariffs from 21% to 11% in a move that will cause shipments to surge 30% to 1.5 million metric tons (mmt), according to the Argentine Biofuels Association.

In a separate boost to production, Congress suspended taxes on local biodiesel use, which was levied at 22% on electricity generation and 19% on vehicle fuel.

Argentina has approximately 33 biodiesel processing plants, which were operating at 40% capacity in the first half of the year following the EU decision to tax imports.

Argentina has requested a panel at the World Trade Organization look at the EU claims. The South American country says it is being penalized for the low cost of soybean production.

The overwhelming majority of Argentine biodiesel is produced from soyoil. Argentina is the world's No. 3 producer of soybeans and is in the later stage of harvesting the 2013-14 crop, which exports peg at a record 55 mmt to 56 mmt.

Higher biodiesel shipments will reduce the availability of soybeans and soyoil for export.


Posted at 2:46PM CDT 06/11/14 by Alastair Stewart
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
October  2015
            1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Subscribe to South America Calling RSS
Recent Blog Posts
  • Brazilian Soy Forward Sales Strong in September
  • Reading Brazilian Grain Export Numbers
  • Mato Grosso Stamps Down on Second-Crop Soy
  • Brazilian Customs Strike Enters 12th Day
  • Brazil Soy Planting Gets Underway
  • Brazilian 2015 Wheat Imports Seen Down, For Now
  • Brazilian Farm Custom Inspectors Strike
  • Brazilian Ethanol Exports Surge, Window Closes
  • Brazilian Fertilizers Sales Continue To Perk In August
  • Brazil's Asian Rust Alert
  • Brazil Debt Rated Junk; Grain Industry Benefits For Now
  • Estimates Reaffirm Larger Brazilian Soybean Area
  • Brazilian Soy Market Slows
  • Argentine Wheat Gets Rest From Rains
  • Brazilian Crop Chemicals Market to Remain Firm
  • Brazil GMO Planting On The Rise
  • Upturn in Brazilian Fertilizer Demand
  • Brazilian Fertilizer Sales Stable in July
  • Floods Threaten Argentine Wheat Crop
  • Argentine Farmers Plant Defensively