Argentine Millers Plan Wheat Imports Amid Push for Flour Exports

Diego Cifarelli, President of the Argentine Federation of the Milling Industry (FAIM), announced at the A todo trigo congress that local millers are preparing to import wheat due to domestic shortages of high-quality grain. Despite this, the sector aims to significantly increase flour exports, currently operating at only 50% of its 13.2 million ton annual capacity. Cifarelli highlighted that structural inefficiencies, including excessive logistics, port, and tax costs, render Argentine products uncompetitive globally. He noted that exporting costs are triple those of Brazilian or Chilean competitors, limiting market access primarily to neighboring countries. The industry emphasizes the economic benefits of exporting value-added products like flour, pasta, and baked goods, which generate substantially higher revenue than raw wheat. To boost competitiveness and lower domestic prices through economies of scale, FAIM is calling for the removal of export withholdings on flour. Cifarelli argued that increasing production volume would reduce fixed costs and improve overall chain efficiency. While international demand for flour remains strong, high internal transport costs and regulatory burdens continue to hinder Argentina's potential to capture a larger share of the global market, causing significant frustration among industry leaders regarding idle industrial capacity.