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Argentine Ethanol Sector Projected to Continue Growth

09 July 2013
USDA Foreign Agricultural Service

ARGENTINA - The Argentine ethanol sector is projected to continue to grow in 2014 as new plants based on cereals go on line and the recently inaugurated plants produce at full throttle.

Both production and consumption are projected at a record 600 million liters, representing a national estimated average blend of 7.6 per cent. Production capacity is forecast up at 840 million liters, as result of the inauguration of the largest bioethanol plant in Argentina with a total capacity of 120 million liters using grains as feedstock. No ethanol exports are expected.

Argentine biodiesel production is forecast to rebound in 2014 to 2.6 billion liters. The biodiesel sector is going through a period of great uncertainty as there are many issues which will be defined in the near future and will affect production and trade.

One of the main issues is the complicated trade situation with the EU, Argentina’s main market by far. There are antidumping and antisubsidy cases, as from 2014 Argentina will no longer be eligible to the GSP, and Argentina’s accusation to some EU members of treating Argentine biodiesel unfairly vis-à-vis European product.

Despite this situation, local traders are confident they will be able to ship product to the EU and look forward to the opening of the US market if the EPA determines if Argentine product is eligible to meet RFS environmental requirements. Domestic consumption for 2014 is forecast at 1.35 billion liters, the highest ever as a result of increased fuel consumption and a growing blending mix which would reach 9.4 per cent.

Further Reading

You can view the USDA GAIN: Argentine Biofuels Annual 2013 report by clicking here.

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