January 11, 2022
Eugenia Campanelli is the director of KC Agribusiness, formerly KC World Trade. In an interview with Ana Krepp, she shares her experiences with and perspective on agribusiness in Argentina.
I have a degree in International Trade and I started working in the pulses/commodities business 10 years ago as an employee in a trading company. KC World Trade started 8 years ago with the main objective of finding new customers and markets for Argentinian food and feed products. We’ve now become KC Agribusiness and our main objective is to satisfy the needs of our customers in different parts of the world, not only in Argentina. We still focus on new markets and we mainly serve four continents; Oceania is next on our list for expansion!
Normally we work through the Port of Buenos Aires. I believe that 90% of pulses that move to the world pass through the port of Buenos Aires. Of course, the river impacts the trade of some commodities like corn and soybean that are mainly transported via the river. Last year, a vessel could load 40 thousand tons from Argentina; now, it’s more like 30 thousand and the vessel is full of Brazilian or Uruguayan cargo.
We would like to develop into other markets, such as some of the African countries that are becoming very attractive and competitive on the global stage. It’s actually a challenge for us to find new markets that we are not already serving! But the world is full of opportunities, especially if what you offer is something as healthy and sustainable as pulses.
We live in a world that is constantly changing, so we have to focus on being able to always adapt our business to any new reality that may arise. For example, now we have to figure out how to manage the logistics problem. I believe that being flexible and adaptable is key in business.
We are focused mostly on export and, as I mentioned, we sell our products in 4 continents. Our main destinations are Southeast Asian countries such as Vietnam, Thailand and Indonesia. Our main purpose is to feed the world so we work to serve and develop new customers, both in the countries in which we don’t have a presence as well as in those we do.
Although the three Presidents have had different impacts on Brazilian society, we haven’t seen much change in international trade from and into Brazil. Brazil is the main destination of many Argentinian products; it’s a very important market because of their huge population.
We mainly work with Argentinian products because we are based in Cordoba, however we do trade in products from other places, namely Brazil, Paraguay, Mexico, Venezuela, Tanzania and Kenya. Every market has its peculiarities, a fact which is mainly relevant to the buyer, who is looking for a specific product for a specific purpose. For example, Mexico has bigger calibres of chickpeas than Argentina, so if the customer is looking for 12mm varieties, we will source Mexican Kabuli that aren’t found in Argentina. Likewise, every product has quality parameters depending on the country of origin.
In the past, they mainly grew in Salta and Cordoba but now the production zone of mung beans in Argentina is increasing in provinces like Chaco, Santiago del Estero and some others in the central and northern areas of Argentina. I believe that Argentina is establishing a strong position in the international mung bean market, although our reputation is not as good as Australia, yet. Our challenges are mainly due to market demand. In some other mung bean producing countries, they have bigger sizes but, in Argentina, we mainly grow 3.5mm beans. Another challenge, from my experience, is developing good-quality sprouting mung beans.
Total exports of black beans during the first half of 2021 were almost 40 thousand tons, compared to 90 thousand during the same period in 2020 - I think the main reason for this decrease was Brazilian demand. Regarding alubia beans, in 2020, total exports were around 158 thousand ons and, in the first half of 2021, Argentina exported 71 thousand, which was almost the same as in the same period of 2020. Both years we’ve had problems with sizes - we mainly had only small beans to sell.
I think the first challenge is to be competitive. In Argentina, there are economic factors that can really hinder the growth of the export market, such as the exchange rate. Another challenge is to establish the quality of the products on the global market. We need an effort like that of Cordoban peanuts, which are now recognized around the world as premium quality after a great effort from farmers, exporters and others in the industry. Last year, some exporters and farmers started to carry out similar work for Argentinian chickpeas.
At the start of the pandemic, we faced some problems in adapting our work to the new reality and we struggled with delays in issuing documents; the bank was closed and there were also some restrictions on moving and checking cargo. Also, learning to work from home was a challenge! Now, we have adapted and gotten used to it, however we still have some travel restrictions which mean we can’t participate in trade shows. Luckily, some of them moved online.
The government is currently giving support to businesses so that they can participate in trade shows. They’re also organising official Presidential trips to other countries with the objective of connecting companies to new markets. Also, the National Bank is giving credit to finance exports. In my opinion, South American countries need the government to negotiate more free trade agreements (Chile is an example of this), with the objective of allowing companies to be more competitive in other markets.
The future of pulses depends on supply and demand. In terms of demand, we can look at consumption in China, as well as observing the development of some African countries that are starting to demand more quality products. For supply, the weather is a crucial factor. We need to adopt new technology in order to be more efficient in terms of production and sustainability.
All my funny experiences have happened when I was travelling to different countries where the culture and food are very different from Argentina! I remember in Hanoi, having to figure out how I was going to visit a customer who was 2 hours from the city in a taxi with a driver that didn't speak English. These kinds of experiences always stick in your mind! Luckily I managed to visit the customers and come back to my hotel.
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Eugenia Campanelli / KC Agribusiness / KC World Trade / Argentina / mung beans / black beans / white beans
Disclaimer: The opinions or views expressed in this publication are those of the authors or quoted persons. They do not purport to reflect the opinions or views of the Global Pulse Confederation or its members.