Promising sectors

Argentina is one of the most important net-exporters of commodities that can be used for the production of biofuels. Although the current market environment is still limited, Argentina is being seen as a potentially important player in the sector. The country is already an important exporter of the commodities that are required for the production of biofuels on global scale. It is the second biggest exporter of vegetable fats. This industry is on of the most efficient once of the world. The total grain production in the season 2005/2006 was 76,5 million tons, from which 88% off soy, corn and wheat. From soy it is possible to extract biodiesel and from corn ethanol.

There are clear and good chances for suppliers to the energy sector. The Dutch offer in regards to for example offshore constructions, gas turbines, maintenance and small-scale inducers can com in handy in the current growth of the Argentinian Oil- and gas- or electrical sector. Although the past years trend was negative, there have been signals that can create a more positive future. A slow governmental process of making the fairs more flexible is an important one. Dutch companies can profit from this; chances are arising in the energy sector.

Argentina has a several big environmental problems that recently had a lot of attention in the media, what makes it an important issue on the political agenda. Also air pollution, waste problems, coastal erosion and other consequences of climate chance are getting more attention.

The government seems to become more alert about the compliance of the environmental laws. In 2007 a special government agency for environment was created (UFIMA). It is to be expected that the upcoming years the investments in clean production, waste treatment and water purification will grow. Both from the government as well as the private sector.

Argentina is one of the most important supplier of food worldwide. A big part of the production is for the export. The food and beverages industry has exported for 14 billion US dollar in 2006, that was a growth of 4,1% to the previous year. Due to the lasting growth both national and internationally the food and beverages industry is expected to keep on growing for the upcoming years.

Soy is the most important agricultural export product, but also beef, corn, wheat, sunflower oil, wine, milk powder, chees, lemon, honey, pears, concentrated apple juice, olives and dried plums are important. Argentina is also developing in the field of bio- technology. Within the EU Spain and the Netherlands are the most important destination for the Argentinian agro-export. The Netherlands fulfills a role as a positive distribution Centre for the Northwest of Europe. A problem however is that the investments stay behind to the growing production. When this maintains bottlenecks will arise. Argentina is more and more focusing on the sustainability of the agriculture and the food chain.

The competing prices in combination with the high level of education make Argentina an attractable country to outsource IT-productions and services to. The IT infrastructure is well developed in Argentina. There is a run on automating in Argentina and the country is aiming to become a software developer and –exporter. The most potential areas for IT-outsourcing are software development and call center administration. An eventual risk could be that the competitive advantage reduced by wage increases.