Argentina Eyes Chinese Wheat Market: New Protocol Opens Doors for Exports

Argentina and China established a phytosanitary protocol in October 2023, allowing Argentine wheat to be imported by China. In January 2024, China added several Argentine companies to its list of approved wheat exporters. Historically, Argentina exports wheat primarily to Latin American countries, but in years with surplus production, it expands to markets in Asia and Africa. The U.S. Department of Agriculture (USDA) forecasts Argentina's wheat exports at 10 million tonnes for the 2023-24 season, a significant increase from the previous year’s 4.68 million tonnes, due to a drought.

Argentina's entry into new markets like China is deemed important as Brazil aims for increased agricultural self-sufficiency. Argentina's opportunity to gain market share is also influenced by Australia's weaker crop production following years of bumper crops. China, Canada's top wheat customer, purchased 1.26 million tonnes of bulk wheat from Canada in the first five months of the 2023-24 crop year. Argentina's wheat, typically of mid- to low-quality and lower protein, differs from Canada’s high-quality, high-protein hard wheat.

China is expected to import 12 million tonnes of wheat this year due to domestic production issues, including overly wet conditions affecting yield and quality. The majority of China's wheat imports this year have come from Australia, Canada, and the United States. Argentina's wheat production for the year is forecasted by the USDA at 15.5 million tonnes, a 24 percent increase from the previous year. The majority of Argentina's wheat exports occur between December and March.