Argentina’s Areco Semillas ships 4,000 tonnes of non-GMO soybeans to US buyer

Specialized cargo departs for Baltimore

Argentine family-owned company Areco Semillas shipped 4,000 tonnes of non-genetically modified soybeans to the United States in June, according to LA NACION. The cargo departed from the port of San Pedro in Buenos Aires province and is due to arrive at the port of Baltimore before continuing to its final destination within the country.

The shipment represents a small, specialized trade alongside Argentina’s predominantly genetically modified soybean industry. Depending on the season, the country plants between 16 million and 17 million hectares with soybeans, most of them using genetically modified varieties. Non-GMO production instead requires the grain’s identity to be preserved from the field through storage and transport to the final buyer.

Areco Semillas has operated in this segment for more than a decade. Company head Roberto Coronel told LA NACION that he has managed the supply chain for more than 15 years. The business also ships through the Campana terminal and sells its specialized grain entirely into export markets because there is no significant domestic market.

Segregation defines the supply chain

The company handles about 50,000 tonnes of non-GMO soybeans annually, along with 15,000 tonnes of high-oleic sunflower, 10,000 tonnes of canola and 5,000 tonnes of corn. Its soybean production covers approximately 20,000 hectares, although the area changes with conditions in each season and some output may ultimately enter the conventional market.

Dedicated infrastructure is central to the operation. Areco Semillas accepts only non-GMO grain at its storage facilities to reduce contamination risks. It selects fields without recent histories of genetically modified crops, checks that planters and harvesters are cleaned before entering fields and uses pre-cleaning processes during harvesting and storage.

The soybeans shipped by the company are used mainly in compound animal feed. Areco Semillas currently supplies two US customers, one connected to poultry production and another serving dairy farms. Although non-GMO soybeans can also be used for human food and oil production, those are not the destinations for the company’s shipments.

Premiums face higher operating costs

Buyers pay a premium over the commodity price for non-GMO soybeans, but Coronel said the differential has declined in recent years. Depending on market conditions, it can be around $15-$20 per tonne. Additional agronomic practices, crop rotations, segregation protocols and financial costs absorb much of that premium, even though the varieties produce yields similar to conventional soybeans.

Capital also remains tied up for longer. The grain may stay in storage for several months until scheduled shipments are completed throughout the year. While a conventional storage facility can turn its inventory four or five times annually, a facility dedicated to non-GMO grain commonly records only one movement per year.

The niche also relies on smaller vessels than conventional bulk trades. A typical shipment may carry about 10,000 tonnes of soybeans or 3,500 tonnes of sunflower. Areco Semillas remains in the market because of its accumulated technical knowledge and established customer relationships. INTA data cited by LA NACION show that about 16 companies currently participate in Argentina’s non-GMO variety development program, although not all export. Demand is concentrated in markets willing to pay for identity-preserved grain, including the United States, the European Union and parts of Asia.