Mar 21, 2022

Argentina Increases Export Taxes on Meal and Oil 2% to 33%

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The Argentina government confirmed over the weekend what everyone had suspected, export taxes on soybean meal and soybean oil were increased 2% from 31% to 33% until the end of the year. The government said it was part of their "war" against domestic inflation which is running over 50%. The export tax on meal and oil is now the same as for raw soybeans, but that may change.

When export taxes were introduced in Argentina, the taxes on meal and oil were 2-3% less than on raw soybeans as a way to incentivize crushers to process soybeans instead of just exporting raw soybeans. It worked as designed and now Argentina is the world's leading exporter of soybean meal and soybean oil. To stay the leading exporter of meal and oil, the government may increase the export on raw soybeans from 33% to 35%. I would not be surprised in coming weeks if the government closes export registrations for raw soybeans so the tax increase can be implemented.