03 Sep 2011

Region Profile

IPNI Latin America Southern Cone Program
Overview of the agriculture of the Southern Cone region of Latin America

The Latin America Southern Cone Program (LASC) of IPNI includes five countries: Argentina, Bolivia, Chile, Paraguay, and Uruguay (Fig. 1). The total area of the region is of 5220 km2, and the total population is of 69.5 million.

Fig. 1. The Southern Cone region of Latin America.

The main crops in the region are shown in Fig. 2. Soybean is the most important field crop with over 22 million ha, followed by wheat, and maize. Other important field crops are sunflower, barley, and rice (Table 1). Soybean is the main crop for Argentina, Bolivia, Paraguay, and Uruguay.


Fig. 2. Distribution of main crops in the Southern Cone countries.

Table 1. Area (ha), production (ton) and average yield (kg/ha) of the main field crops at the five countries of the Southern Cone region for the 2008/09 growing season.
COUNTRY

(Source)

Soybean
Wheat
Maize
Sunflower
Sorghum
Barley
Rice
TOTAL
Argentina

(MIinAgri)

Area
18000000
4732000
3489000
1957000
806000
589000
205450
29778450
Production
31000000
8373000
13080000
2440000
1752000
1265660
1325000
59235660
Yield
1722
1769
3749
1247
2174
2149
6449
1989
Bolivia

(INE)

Area
835039
134795
408705
259218
134327
55202
178533
2005819
Production
1225885
161553
1000385
298642
436133
46936
435960
3605494
Yield
1468
1199
2448
1152
3247
850
2442
1798
Chile

(ODEPA)

Area
-
280644
128211
4355
-
18513
23680
455403
Production
-
1237861
1365472
7607
-
95869
121400
2828209
Yield
-
4411
10650
1747
-
5178
5127
6210
Paraguay

(CAPECO, INBIO & IICA)

Area
2644856
508954
634206
180536
23000
-
70000
4061552
Production
5969166
1063200
1400000
280000
27000
-
216650
8956016
Yield
2257
2089
2207
1551
1172
-
3095
2205
Uruguay

(DIEA)

Area
577800
475500
87500
55100
68100
129900
160700
1554600
Production
1028600
1356600
269800
50600
324200
409500
1287200
4726500
Yield
1780
2853
3083
918
4761
3152
8010
3040
TOTAL REGION
Area
22057695
6131893
4747622
2456209
1031427
792615
638363
37855824
Production
39223651
12192214
17115657
3076849
2539333
1817965
3386210
79351879
Yield
1778
1988
3605
1253
2462
2294
5305
2096
Fertilizer consumption at the region is estimated at 2.23 million ton of N+P2O5+K2O for 2007 and 2008 (Table 2). Argentina consumption sharply dropped in 2008 but it represents approximately 50% of the total consumption in the region, followed by Chile with approximately 22%, Uruguay with 14%, Paraguay with 13%, and Bolivia with less than 1%.

Table 2. Estimated nutrient consumption at the Southern Cone countries.

COUNTRY
YEAR
Consumption (thousand ton)
N
P2O5
K2O
TOTAL

N+P2O5+K2O

Argentina
2008
627
460
42
1129
Bolivia
2007
6
7
2
15
Chile
2008
306
148
33
487
Paraguay
2007
42
167
82
291
Uruguay
2008
114
146
44
304
TOTAL
1095
928
203
2226
Elaborated from data of Fertilizar AC; Fundacruz-APIA; ODEPA; Cargill; and MGAP-DF.

Situation at Argentina

Agricultural production, specifically grain production, has steadily increased in Argentina until 2010 (Fig. 3). Total grain production reached a record of almost 100 million t considering the main four grain crops: soybean, maize, wheat, and sunflower.




Fig. 3. Evolution of the production of the main four field crops in Argentina (1991-2010).

This increase largely came from increased soybean area, as well as from increases in maize, soybean and wheat yields (Fig 4 and 5). Large new areas in the Pampas and in non-Pampas regions (northeastern and northwestern) have been opened to soybean production.



Fig. 4. Evolution of the area cropped to the main four field crops in Argentina (1991-2010).

Fig. 5. Evolution of grain yields for the main four field crops in Argentina (1991-2010).


The fertilizer market accompanied the increase in grain production until 2007, growing from 0.3 million t in 1991 to almost 3.7 million t in 2007, a 12-fold growth in sixteen years (Fig. 5). International and national conditions in 2008 and 2009, highly affected fertilizer consumption which dropped from 3.7 million t in 2007 to 2.6 and 2.47 million t in 2008 and 2009, respectively. By 2010, fertilizer consumption recovered reaching 3.37 million ton of fertilizer products.



Fig. 5. Fertilizer consumption in Argentina from 1991 to 2010. Source: SAGPyA, Fertilizar AC , and IPNI.

Nutrient balances have improved for N, P, and S along the last 20 years (Fig. 6), however they are still negative with 38%. 54%, less than 23%, and 33% of the N, P, K, and S applied respect to the N, P, K, and S extracted by the main four grain crops (soybean, maize, wheat, and sunflower).


Fig. 6. Application/Removal ratios for N, P and S in field crops of Argentina. 1993-2010.

The need for higher productivity and efficiency plus the need of improving soil nutrient balances, result in excellent perspectives for the fertilizer market. World demand of food, energy, fiber, and feed is an important driver of this potential growth in grain production and fertilizer consumption. Productive and sustainable intensification of agriculture should be based on increased productivity per resource and input unit along time and space (i.e., more kg/ha/year), improved resource and inputs use efficiencies, and involving cropping systems not just annual crops. For the fertilizer industry, this growing scenario has shown in new projects and investments in fertilizer production plants and logistical operations at ports.

IPNI, Latin America-Southern Cone,has developed research and educational programs on balanced fertilization following the 4RS Nutrient Stewardshio, the right source at the right rate, time and place, in collaboration with national institutes of agriculture of the region, universities, farmer's organizations, agronomists associations, and others. Most of this work is shown at this website and in other activities such as our quareterly Informaciones Agronomicas, publications, presentations and training sessions, and field meetings.