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^'CULTURE LIBRARy
aize
I Production and Marketing
* -gentina
ell D. Hill
iarvin R. Paulsen
Q
XL
Maize
Production and Marketing
in Argentina
Lowell D. Hill
Marvin R. Paulsen
Agricultural Experiment Station
College of Agriculture
University of Illinois
at Urbana-Champaign
Bulletin 785
Abstract
Key Words: Corn, Maize, Argentina, Corn Quality, Grading Standards, Exports
The maize production, marketing, exporting, and quality control practices in
Argentina are compared with those in the United States. Technology of production,
marketing, and grading were found to be similar in both countries. Quality
deterioration due to high-temperature drying and mechanical handling was also
similar. Incentives for blending diverse qualities and moisture levels were found
to be less under the Argentine pricing and grading systems. Moisture content in
the market channel was lower in Argentina as a result of setting the base moisture
at 14.5 percent. There are some differences in chemical and physical properties
of U.S. and Argentine maize, but no evidence that either source was consistently
superior for all uses.
Lowell D. Hill is Professor, Department of Agricultural Economics, and Marvin R.
Paulsen is Professor, Department of Agricultural Engineering, University of Illinois
at Urbana-Champaign.
Acknowledgments
The data in this report were obtained
with the assistance of many people and
agencies. Funds were provided by a
State-Federal matching grant from the
Illinois Department of Agriculture and
Agricultural Marketing Service, USDA.
Additional funds were provided by the
College of Agriculture and Illinois Ag-
ricultural Experiment Station, University
of Illinois at Urbana-Champaign. The
research is a contribution to the North
Central Regional Research Project NC-
151, entitled "Marketing and Delivery
of Quality Cereals and Oilseeds in Do-
mestic and Foreign Markets."
The authors express their appre-
ciation for the cooperation of many
employees of La Plata Cereal Company,
Buenos Aires, several country elevator
personnel in the Pergamino area, and
the Junta Nacional de Granos for their
advice, data, assistance, and hospitality.
A special thanks to Dr. James McGrann,
Texas A & M University, whose assis-
tance extended far beyond his fluency
in Spanish. His communication skills
were a major factor in the success of
this research. Dr. Adolfo Coscia pro-
vided valuable assistance and advice
through his published work and per-
sonal correspondence. Betty E. Hill pro-
vided the photographic description of
the Argentine production and market-
ing system.
Numerous research assistants have
contributed to the study through their
analysis of samples, library research,
and statistical analyses. These individ-
uals include Beth Mullens, Jeanne Bai-
ley, Gabriela Serrano Aguero, and Rod-
erick Bunge. We also express our
appreciation to the many friends we
made in the Argentine production and
marketing sector of the Pergamino re-
gion for their assistance and hospitality.
Finally, we wish to acknowledge the
assistance of Dee Lambert and Mar-
garet Pepper for their patience in typing
the many versions of the manuscript
and Carolyn Evans and Robert Heister
for their artistic and editorial expertise.
Contents
Introduction 1
Research Objectives 1
Production and Utilization of Maize in Argentina 3
Production 3
Utilization 5
Exports 6
Organization of the Argentine Markets 7
Market Channel 7
The Role of Cooperatives in Grain Marketing 9
Pricing Policies and Practices for Argentine Maize 10
Pricing at the Country Elevator 10
Price Competition in Argentina 11
Quality Control in Argentine Maize 12
Grade-Determining Factors 12
Inspection Procedures 13
Quality Changes from Farm to Export Vessel in Argentina 14
Location of Samples 14
Analysis of Samples 17
Results of the Sample Analysis 18
Physical Properties of Argentine Maize 18
Quality at the Farm 18
Quality at the Country Elevator 19
Quality in the Export Vessel 21
Chemical Properties of Argentine Maize 22
Quality Incentives in the Argentine Market 23
Comparison of U.S. and Argentine Quality 24
Summary 25
Conclusions 26
References 26
Tables . . .28
Urbana, Illinois 8M Grouse rah July 1987
The Illinois Agricultural Experiment Station provides equal opportunities in programs and
employment.
The Junta Nacional de Granos owns storage and export facilities at several ports.
Introduction
Argentina has always been an impor-
tant force in world grain trade, but
recent increases in production and
changes in government policies place
it as the number one competitor with
the United States for feed grain sales
in international markets. The impor-
tance of grain exports to the Argentine
economy, policy changes encouraging
farmers to use more fertilizers, and
responsiveness of Argentine farmers to
profit incentives all guarantee that Ar-
gentina will continue to provide a sig-
nificant share of the world's feed grain
needs, especially maize.
Information about the Argentine
maize industry, its current and potential
production, marketing practices, and
maize quality is important not only for
planning marketing strategies and iden-
tifying market opportunities for the
United States, but also as an aid to
Argentina in developing production and
marketing strategies to meet policy goals
and better serve their markets. Maize
production and marketing practices are
similar in the United States and Argen-
tina but there are also important differ-
ences in maize quality characteristics.
Understanding these relationships will
enable each country to develop its pro-
duction and marketing strategies more
efficiently and to seek those markets
where their grain has the greatest com-
parative advantage.
Research
Objectives
The objectives of the research reported
in this publication are (1) to describe
the production and marketing system
of Argentina with some comparisons
to that of the United States; (2) to
measure quality characteristics of Ar-
gentine maize at each point in the
market channel from farm to export
elevator and ocean vessel; and (3) to
compare the incentives in the two coun-
tries for changes in marketing and pro-
duction practices that could influence
quality.
Maize Production and Marketing
in Argentina
Production
and Utilization
of Maize
in Argentina
Production
The production of maize in Argentina
during the past four decades has ranged
from a low of 836,000 metric tons in
1949 [10, p. 43] to a high of 12.9 million
metric tons (mmt) during the record
crop of 1981/82. ' Crop size has in-
creased from the 2-mmt to 5-mmt range
in the 1950s to a 6-mmt to 10-mmt
range in the 1970s (Table 1). Generally,
there has been an upward trend in
production but with extreme year-to-
year variability as a result of weather
conditions. The 1980/81 production of
only 6.4 mmt was followed by a record
crop of 12.9 mmt in 1981/82. Produc-
1 In this discussion, references to literature
cited will be indicated within brackets. The
first number within brackets refers to the
source as numbered in the reference list.
References to specific pages within the source
will be preceded by the letter "p" followed
by the page number(s) in question. For pur-
poses of clarifying measurements, "tons"
refers to metric tons and "mmt" to million
metric tons.
tion returned to more normal levels
during the next three years, with an
average production of 9.37 mmt for the
three years 1982/83, 1983/84, and
1984/85 (Table 1).
In comparison with production in
the United States, Argentina has had
greater year-to-year variation and a
slower, overall rate of growth, but Ar-
gentina's share of total world production
of maize has remained relatively stable,
representing 1.98 percent of world pro-
duction in 1951 and 2.11 percent in 1984
[10, pp. 42, 51; 9, p. 116]. During this
same period, the United States' share of
world production fluctuated from a high
of 58.7 percent in 1952 to a low of 30.5
percent in 1983. The historical pattern
for the U.S. has been one of slow but
steady growth between 1951 and 1974,
followed by rapid growth until 1982,
when the U.S. harvested a record crop
of 209 mmt. In 1983, production was cut
almost in half by the government's Pay-
ment-in-Kind program (PIK). Production
returned to normal levels of 194 mmt in
1984 [32, 33, 34].
The area of maize harvested in
Argentina has fluctuated around the
1975/76 to 1984/85 ten-year average
of 2.9 million hectares (7.2 million
acres).2 Between 1965/66 and 1984/85
the greatest change in any two consec-
utive years was a 36.3 percent increase
from 2.5 million hectares (6.2 million
acres) in 1980/81 to 3.4 million hec-
2 These are FAS marketing years, which lag
one year behind the production years used
in Argentine publications.
Figure 1. Production density for maize
in Argentina. The production of maize
is concentrated in the provinces of San-
ta Fe and Buenos Aires. (Adapted from:
[14, p. 9])
tares (8.4 million acres) in 1981/82 [32].
In contrast to the relatively stable area
that was harvested, the average pro-
duction of 8.8 million metric tons be-
tween 1975/76 and 1984/85 comprises
annual changes as great as 102 percent
from one year to the next (Table 1).
Harvesting maize in Argentina is a fully mechanized operation, as shown by this Vassalli
combine with a 5-row Manerio header.
Maize production in Argentina is
concentrated in a relatively small pro-
portion of the total geographical area
because of climate, topography, and soil
conditions. The Maize Belt consists of
the five provinces: Buenos Aires, Santa
Fe, Cordoba, La Pampa, and Entre Rios
(Figure 1). In 1980/81, Buenos Aires,
alone, accounted for 37.5 percent of the
area planted to maize and 47.1 percent
of total production in Argentina. Dur-
ing the five-year period from 1980/81
through 1984/85 the three provinces
of Buenos Aires, Santa Fe, and Cordoba
Only a few Argentine farmers use dryers, usually a batch type.
accounted for 84.6 percent of the total
production and 72.3 percent of the area
planted to maize (Table 2).
Production technology in both the
United States and Argentina has de-
veloped in a somewhat parallel man-
ner. The use of maize combines has
grown rapidly in both countries: as in
the U.S., the maize combine is used on
nearly all of the commercial acreage in
Argentina. Harvesting by combines at
moisture levels above 14.5 percent in
Argentina requires artificial drying in
order to meet the base moisture for
pricing. Some drying may be done at
the farm, but a large proportion is done
at the country elevator.
One distinction between harvest-
ing technology in Argentina and the
United States is that on the large farms
in Argentina, maize is often harvested
by custom operators who move from
north to south as harvest progresses,
much as custom harvesters move
through the wheat country of North
America from Texas to Canada. It is
not unusual to see three to five com-
bines in the same field or as many as
sixteen or more combines on one farm
where they can be efficiently distrib-
uted among several fields. The smaller
Argentine farms, less than 200 hectares
of maize (about 500 acres), often own
their combines, just like their U.S.
counterparts.
Inadequate moisture during the
growing and pollination periods often
limits yields regardless of fertilizer use,
and under stress, yield response to ni-
trogen applications on flint varieties is
uncertain. Combined with high prices
on imported fertilizer, these factors have
discouraged application of fertilizer by
maize producers. Soil fertility has been
maintained through crop rotations with
legumes such as soybeans and alfalfa,
which have been major sources of ni-
trogen for maize production. Because
moisture is often a limiting factor during
the growing season, herbicides used to
control weeds would conserve moisture
and increase yields; but the lack of
domestic supplies, import restrictions,
and high prices have reduced the eco-
nomic incentives for the use of herbi-
cides as well as fertilizers in Argentina.
Before 1977, import taxes in the
form of ad valorem tariffs were 60 per-
cent for fertilizer and 65 percent for
agricultural chemicals [15]. In 1977/78,
the government began a gradual re-
duction in the tariff schedule, and in
1983/84, the new government encour-
aged the use of fertilizer through an
exchange system where credit ad-
vanced for fertilizer purchases can be
repaid with a portion of the harvest.
The effectiveness of this strategy is
demonstrated in fertilizer consumption
data. Nitrogen consumption increased
from 48 mmt in 1982 to 91 mmt in
1984 [20]. Although this program has
been quite popular with wheat pro-
ducers, the Junta is extending the pro-
gram to other crops, and it holds prom-
ise for increasing maize yields.
Genetic improvements in maize
have generated many new varieties in
Argentina. Most major seed companies
are represented in Argentina and have
provided significant improvement in
yields through the introduction of new
genetic traits. An emphasis upon higher-
yielding varieties and higher response
to nitrogen largely dictates the produc-
ers' choice of variety. These same fac-
tors also influence the choice of genetic
material by plant breeders. The seed
industry is relatively concentrated with
two international companies providing
over 50 percent of the seed maize sold
in 1983 [13]. Although Argentina has
been recognized for many years as the
primary source of flint corn (also called
Duro Colorado or Plate Maize) plant
breeders have introduced dent genetic
classes, resulting in semident or pure
dent varieties in some local areas.3
Most country elevators use oil-fired dryers
to lower the moisture level in freshly har-
vested maize.
1 For information on farmers' preferences for
flint varieties, see "Porque Argentina Pro-
duce Maiz Flint" [6].
Producers with large farms often use custom harvesters who operate several combines in
the same field.
Utilization
The Argentine maize crop is distributed
among several industries including wet
milling, dry milling, livestock feed, and
exports. The primary industrial use of
maize is in the wet milling industry for
the production of starch, although small
quantities are also used by dry millers
who grind maize along with other grains
for human consumption. Industrial use
of maize has shown a steady increase
from 233,500 tons in 1960/61 to
1,543,000 tons in 1983/84 (Table 3).
This represents an increase from a 4.8
percentage of production in 1960/61
to a 16.2 percentage in 1983/84 — not
much different from the U.S. percent-
age of production used by wet and dry
milling industries. The use of maize for
livestock feed in Argentina is much less
than in the United States — approxi-
mately 33.7 percent of 1982/83 total
utilization in Argentina [7, p. 2], com-
pared with 62.0 percent in the United
States [31, p. 22]. Although maize is
an important ingredient for the rela-
tively large Argentine broiler industry
and the increasingly important swine
industry, these livestock classes con-
sume only a small percentage of the
total volume. It is important to recog-
nize that industrial use in the Argentine
statistics includes some maize used by
processing firms in the production of
complete feeds for broilers and hogs.
In addition, very little maize is fed to
beef cattle even though cattle are used
to glean maize fields after harvest. The
majority of Argentine maize production
moves into the export market. The five-
year average for the period from
1980/81 to 1984/85 is 62.5 percent.
Argentine beef cattle receive little grain,
except when gleaning fields after harvest.
Exports
World markets were important to Ar-
gentine maize producers as early as the
beginning of the twentieth century. Av-
erage annual maize exports from Ar-
gentina in the 1911/12 to 1913/14
period were 4.82 mmt, accounting for
54.9 percent of the world trade (Table
4). The United States' exports were
small by comparison, with an annual
average during this period of 1.21 mmt
or 13.8 percent of world trade.
During the next forty years, how-
ever, the trade balance began to shift.
Between the 1951 to 1955 period and
the 1976 to 1980 period, average Ar-
gentine maize exports increased from
0.92 mmt to 6.4 mmt, while the average
U.S. maize exports increased from 2.6
mmt to 53.6 mmt. During the next
thirty-year period, Argentina's export
market share decreased by 50 percent,
dropping from 17.8 percent in the 1951
to 1956 period to 8.9 percent in the
1977 to 1980 period. In contrast, the
U.S. export market share increased by
50 percent, growing from 50.6 percent
in 1951 to 1955 to 74.5 percent in 1977
to 1981 (Table 4).
Production and exports increased
rapidly in both countries, but the United
States continued to gain its market share
at the expense of Argentina. Through-
out the decade of the 1970s, the U.S.
market share increased steadily 'from
40.9 percent in 1970/71 to 78.8
percent in 1979/80. In contrast, Argen-
tina's share dropped from 20.5 percent
in 1970/71 to 7.6 percent in 1979/80.
However, Argentine market shares re-
bounded to 10.9 percent after the United
States suspended grain sales to the USSR
in January 1980. The U.S. market share
dropped to 71.5 percent in 1980/81 and
to 69.5 percent in 1981/82. Both Ar-
gentina and the United States lost mar-
ket shares in 1981/82 as a result of
increased production and exports by both
Thailand and South Africa [25, p. 23].
The major Argentine ports for ex-
porting maize are Buenos Aires, Rosario,
Villa Constitucion, Bahia Blanca, and
San Nicolas (Figure 2). Two ports han-
dled 71.8 percent of the total exports in
1980/81: Buenos Aires handled 27.4
percent, and Rosario handled 44.4 per-
cent (Table 5). Both ports have generally
lost their market share since 1970, de-
clining from 80.0 percent in 1970/71 to
60.2 percent in 1984/85. Most other
ports showed relative gains during this
period, with especially dramatic in-
creases in Bahia Blanca and San Nicolas.
Years of large exports from Argentina
tend to benefit the minor ports, as ca-
Figure 2. Major Argentine ports expor-
ting grain. The major Argentine ports
for exporting grain are Buenos Aires,
Rosario, Villa Constitucion, Bahia Blan-
ca, and San Nicholas. (Adapted from:
(3, p. 2])
pacity constraints limit volume at Bue-
nos Aires and Rosario during high-vol-
ume periods.
A major explosion at the export
elevator in Bahia Blanca in 1985 caused
a drop in its market share from nearly
8 percent in 1984/85 to only 0.5 per-
cent in the first six months of 1986.
Proposals by Italy, the Soviet Union,
and the World Bank to remodel and
expand the Bahia Blanca port are being
considered, but as of 1987, no construc-
tion has been initiated. The higher vol-
ume accompanying expansion would
also require the reorganization of rail
facilities and the modernization of as-
sembly and discharging operations,
which may shift the relative shares
among the ports as well as alter the
relative profitability and production of
maize in the hinterland serving the
Bahia Blanca port [19, p. 24B].
The destination of Argentine ex-
ports has shifted over time in response
to economic incentives and government
policies affecting international trade. In
1973/74 Italy and Spain received 65.9
percent of all maize exported from Ar-
gentina (Table 6). The Netherlands,
United Kingdom, People's Republic of
China, and USSR were also important
destinations, each receiving from 2.3 to
4.9 percent of Argentine exports.
Major shifts in destinations oc-
curred between 1973/74 and 1974/75.
The percentage going to the USSR in-
creased to 19.7 percent, Mexico entered
the market taking 12.4 percent, and the
People's Republic of China purchased
473,000 tons for 8.1 percent of the mar-
ket. Over the next two years the USSR
dropped to 4.2 percent, Mexico to 0.1
percent, and the People's Republic of
China to zero. Spain increased its share,
receiving more than one-fourth of Ar-
gentina's exports of maize in 1976/77.
From 1974/75 to 1979/80 there
was a general downtrend in the share
of Argentine maize exports delivered
to Mexico, Spain, and Italy. The Italian
preference for Argentine Plate maize
appeared to be weakening throughout
this period, as evidenced by their de-
clining share in every year except
1975/76, when Italy maintained pur-
chases of 1.5 mmt in the face of a major
decline in Argentine exports: from 5.8
mmt in 1974/75 to only 2.6 mmt in
1975/76 (Table 6). In contrast, the USSR's
share grew erratically, fluctuating from a
low of 4.2 percent in 1976/77 to 60.6
percent in 1979/80. The rapid growth of
the USSR's share in the late 1970s pre-
pared the stage for the near Soviet dom-
inance of Argentine exports in the early
1980s.
In late 1980 and early 1981, polit-
ical events dramatically altered the des-
tinations of Argentine maize exports.
After the 1980 invasion of Afghanistan
by the USSR, the United States re-
sponded by suspending American grain
sales to the Soviet Union. Conse-
quently, Argentine shipments to the
USSR increased to 2.97 mmt in 1980
and jumped to 8.0 mmt in 1981 (84.1
and 87.7 percent of Argentine exports,
respectively). Shipments to the United
Kingdom had already dropped to nearly
zero in calendar years 1980 and 1981
as a result of the price premium being
paid by the USSR, but the Falkland
Islands incident, starting April 2, 1982,
resulted in a "total ban on imports from
Argentina" on April 10, 1982, [1, p. 1]
and the United Kingdom's share of
Argentine maize exports remained at
zero through 1984. Shipments to Spain
and Italy continued to drop, with es-
pecially dramatic decreases in 1980 and
1981 (Table 6) as the price premiums
offered by the USSR directed the export
flow away from Western Europe. Re-
sumption of normal grain trade be-
tween the United States and the Soviet
Union reduced Argentine exports to the
USSR in 1982, 1983, and 1984, but
price relationships shifted the flow back
to the USSR in 1985. Spain and Italy
also regained some of their former rel-
ative importance in 1985.
Maize Production and Marketing
in Argentina
Organization
of the Argentine
Markets4
The handling and transportation system
for Argentine maize is organized around
the export market, with facilities designed
to move maize as needed from the pro-
duction areas into the major ports in
order to meet export demand.
Market Channel
Country elevators provide the market-
ing services of transporting, storing,
drying, cleaning, and fumigating, as
well as the merchandising functions of
pricing, buying, and selling.
Most of the storage and drying ser-
vices are provided by commercial facili-
ties. Chiang and Blaich reported that the
total country elevator storage capacity in
Argentina in 1976 was 9.8 mmt, of which
5.3 mmt were located in the Buenos Aires
province [4, p. 6]. Approximately 90 per-
cent of the 5.3-mmt storage capacity was
4 Much of the information in this section
was derived from Coscia [5], Country ele-
vators also serve the exporters and proces-
sors by storing supplies at harvest and de-
livering maize into the market as prices and
consumption require.
owned by private and cooperative firms.
The remainder was owned by the Junta.
Total storage capacity at the country el-
evator had increased to 11.6 mmt by
1981; 9.5 percent was owned by the
Junta Nacional de Granos [4, p. 6]. The
average storage capacity of the 62 ele-
vators owned by the Junta Nacional de
Granos was only 5,500 mt (about 200,000
bushels); privately owned facilities were
similar in size.
Very little farm storage was re-
ported in the 1960 and 1969 studies
summarized by Chiang and Blaich.
Their estimate for 1980 was 5 mmt, up
from 1.4 mmt in 1960 [4, p. 3]. Esti-
mates for 1986 show a slow upward
trend to 6.3 mmt on farms; over two-
thirds are located in the province of
Buenos Aires [14].
Throughout the marketing year,
grain is transported by truck and rail
from storage locations in the country
to the port elevators. The rail system
in Argentina is often reputed to be
inefficient and poorly coordinated: for
A unit train of hopper cars carries Argentine maize to one of several port elevators along
the Parana River.
The manager of a country elevator in Per-
gamino weighs and records deliveries of
maize from local farmers.
A sample of maize is weighed carefully as
part of the grading process at the country
elevator.
High-temperature dryers and metal storage bins provide drying and storage services for
Argentine farmers.
Trained inspectors check samples for dam-
aged kernels at the inspection department
of the Junta Nacional de Granos in Buenos
Aires.
example, there are three different gauges
of track. However, modern covered
hopper cars are in common use and
often move in units of 10 to 50 cars
between several origins and the major
ports. Barges are also used to move
maize from river elevators to the ports,
usually to be unloaded directly onto
ocean vessels. Barges are particularly
important in completing the loading of
vessels at Buenos Aires that, when fully
loaded, cannot cross the silt and bed-
rock bar at the mouth of the Parana
River. During periods of heavy volume,
trucks may also be unloaded directly
into vessels.
Port elevators are primarily load-
out facilities, but they also provide some
storage capacity. Total storage capacity
at the 14 major port elevators was 1.155
mmt in 1980. More than half of this
storage was located at the two ports of
Rosario and Bahia Blanca (Table 7).
Buenos Aires was a distant third in the
1980 list but has since added additional
space.
Ownership of port elevator storage
space is divided among private firms
and the Junta Nacional de Granos. De-
livery to the ports from country ele-
vators is about equally divided between
truck and rail, with barge transportation
appearing only in the data for Buenos
Aires. Buenos Aires is heavily depen-
dent upon rail services (62 percent of
the 1979 deliveries were by rail). Ad-
ditionally, the rails carry the majority
of grain coming to Bahia Blanca (Table
7). Based upon the volume of all grains
handled, the port of Bahia Blanca is
nearly tied with Rosario for first place.
However, these data reflect large vol-
umes of wheat moving into Bahia
Blanca, a port which is a distant sixth
in relative volume of maize exports
(Table 5). Rail share, when considering
transport to all ports, has generally
declined from 55.7 percent in 1974, to
28.6 percent in 1985 and an estimated
20 percent in 1986 [2, p. 17].
The services, procedures, and
equipment of the country elevators in
Argentina are quite similar to those of
the country elevators in the United
States. As trucks and tractors pulling
wagons arrive from the farm, they are
weighed and a sample is taken to es-
tablish any quality grade discounts.
Samples are tested for moisture, foreign
material, broken maize, and damaged
kernels. Not all of the elevators test for
all of the factors all of the time. Many
elevators keep a file sample from each
farmer's deliveries to enable an appeal
of grade by the farmer to the official
inspection service — The Junta Nacional
de Granos inspection department.
Because nearly all of the maize in
Argentina is harvested at moisture lev-
els above the 14.5 percent maximum
established as the base for pricing,
heated air dryers are used at most
country elevators. These grain dryers
are generally fuel-oil fired. They are
similar in design (sometimes identical)
to the cross-flow type dryers operating
in the United States. The use of both
low-temperature drying methods and
dryeration techniques will increase in
importance as Argentine elevator op-
erators become more sensitive to the
breakage problems that occur during
handling. Because of the price incentive
to deliver No. 1 maize into the market
system, elevators operate cleaners and
aspirators both before and after the
dryer. These screenings are generally
returned to local feeders. There is little
incentive for returning any of the fine
material back into the grain itself be-
cause increasing the broken kernels or
foreign material would lower the grade
and therefore lower the price.
The Role
of Cooperatives
in Grain Marketing
The marketing channel for maize in
Argentina is focused upon the export
destinations. The structure of the in-
dustry is a mixture of private firms,
cooperatives, and governmentally
owned facilities. At the port elevators,
the multinationals provide most of the
facilities, although the Junta Nacional
de Granos owns facilities in all major
ports, including one of the largest port
elevators located at the port of Buenos
Aires.
Cooperatives serve an important
function in the Argentine grain mar-
keting system. A major characteristic
of Argentine grain production is that
very few farmers have grain storage
and drying facilities. Therefore, the
farmer sends his maize to country el-
evators for drying, storage, and mar-
keting. In Argentina, approximately 48
to 50 percent of all grain harvested
goes to cooperatives, with the rest being
handled by private firms. Although Ar-
gentine cooperatives provide many dif-
ferent services for the farmer, including
drying, storing, exporting, and process-
ing grain, the cooperative's most im-
portant function is marketing the farm-
er's grain. Cooperatives also offer the
farmer agricultural production inputs,
credits, household goods, and food
items at wholesale prices.
The first Argentine agricultural co-
operatives were formed by European
immigrants in the 1900s. Primitive
transport systems, combined with the
unfair trade practices of country ele-
vators, provided incentives for farmers
to support the cooperative movement.
Although Argentine cooperatives, to-
day, provide many services as well as
exert political influence on behalf of
agriculture, the early cooperative
movement was intended to help farm-
The premiums paid for No. 1 maize generate
the incentive for removing broken kernels
and foreign material.
ers both market their grain more effi-
ciently and obtain supplies at lower
prices.
Since the 1960s, Argentine coop-
eratives have accounted for 15 to 20
percent of the annual grain exports.
Although most cooperatives export on
a FOB basis, they are working towards
exporting under CIF conditions, which
would allow cooperatives to participate
in the shipping business. In 1984, a
change in Argentine law allowed farm-
ers to create export consortia or coop-
eratives for facilitating exports. This
important transition in Argentina's grain
marketing structure provides Argenti-
na's producers with a larger role in
grain exports.
High-speed harvest and lack of on-farm storage put pressure on the receiving capacity of
country elevators. Trucks wait their turn at the scales.
Maize Production and Marketing
in Argentina
Pricing Policies
and Practices
for Argentine
Maize
Since the majority of Argentine maize
moves to export, prices are closely tied
to world markets. Prices at each of three
major ports are established daily at the
Bolsa — the grain exchange located at
Buenos Aires, Rosario, and Bahia Blanca.
Members of the exchange establish both
cash and futures prices through the
interaction of buyers and sellers in an
open bidding process similar to the
procedures at the Chicago Board of
Trade. The cash and futures prices are
not fixed but are a reflection of demand
and supply conditions both locally and
worldwide.
Pricing
at the Country
Elevator
Following the close of the market, a
committee representing the various
participants in the market meets to
evaluate the day's trading and to agree
upon a representative price for maize
and other grains that were traded. Prior
to the opening of the market the fol-
lowing morning, this price, which rep-
resents the market price for maize
delivered to each port, is circulated by
radio and becomes the base price for
the industry for that day. The price
differs among the three port cities, in
part owing to transportation differences
among the geographical locations but
also in response to the market forces
in the national and local areas. Export
elevators use this price as a base for
bidding on maize delivered to their
plants. The actual price may differ
slightly among buyers as well as among
sellers. Most of the maize delivered to
the export elevator is purchased from
country elevators and is delivered to
the port by trucks or railcars.
The elevator pays the freight to
the port and generally selects the mode
of transport, based upon freight rates
and the availability of railcars. From
most locations, rail freight is generally
cheaper than trucks, but railcars for
grain are in short supply and often
unavailable during the required time
schedule. Price quotations to producers
are the prices established by the Bolsa
at the closest port area. The Bolsa price
functions as a base for bid price much
as the Chicago cash market might func-
tion as a base price for No. 2 maize in
the United States.
Prices to producers are quoted on
the basis of No. 2 yellow maize (see
Table 8 for a description of No. 2 grade
factors). However, actual payment to
the producer is determined by subtract-
ing the necessary charges and discounts
from this base price. These charges
include freight from the farm to the
elevator, freight from the elevator to
the port, a charge for loading and un-
loading, a drying charge for any grain
above 14.5 percent moisture, and
charges for fumigation and storage. If
any noxious weed seeds are present,
farmers are also charged for cleaning.
Most of these charges are established
for the season and remain fairly con-
stant regardless of variations in daily
market prices. In addition, there is a
commission charge which is usually
calculated as a percentage of the base
price.
Transportation from the farm is
often arranged by the elevator manager,
and the cost is included as a marketing
charge to be deducted from the pay-
ment to the farmer. A few farmers have
their own trucks, and farmers located
near the elevator may use tractors and
wagons.
The transportation charge from the
elevator to the port is also included as
a marketing charge to farmers, regard-
less of the eventual destination and
disposition of the maize. The freight
charge varies among elevators, de-
pending upon the distance from the
port, the port selected for delivery, and
whether or not the manager uses a rail
rate or a truck rate for calculating the
cost.
The unloading charge at the ele-
vator represents operating costs asso-
ciated with grain handling. Storage rates
are generally a fixed charge for an initial
10
period plus a monthly rate thereafter.
The farmer also pays for fumigation
and cleaning when insects and weed
seeds are present. The drying charge is
frequently based upon a fixed rate plus
an additional charge per point of mois-
ture above 14.5 percent. In addition to
the drying charge, the industry uses
standard shrink tables for adjusting the
weight of grain to equivalent weight
when dried to the base moisture of 14.5
percent. Although shrink tables pro-
vided by the Junta Nacional de Granos
are calculated from the standard formula
for calculating weight loss during drying,
the values in the official table are equal
to the actual water loss when drying to
13.5 percent — not 14.5 percent. Be-
cause the official base moisture is 14.5
percent, using the table of shrink factors
results in a graduated scale on a per
point basis. For example, the table shows
a shrink factor of 2.31 percent for one
percentage point of moisture when ad-
justing the weight of 15.5 percent maize
to the equivalent weight at 14.5 percent.
At 23 percent moisture, the table value
of 10.98 percent is equivalent to a shrink
factor of 1.29 percent for each percent-
age point above 14.5 percent [12]. In
addition to water shrink, an additional
0.2 to 0.25 percent shrink is allowed for
handling losses, and 0.3 percent is per-
mitted for weight loss incurred during
screening. These additional shrink fac-
tors are approximately equal to the 0.5
percent "invisible" shrink shown in the
Minary Charts, commonly used by U.S.
elevators.
A truck driver uses a grain probe to sample
each load.
Price Competition
in Argentina
Although prices to producers are uni-
formly quoted on the basis of prices at
the major ports, elevators compete for
farmers' grain through their charges for
services. This can be illustrated by com-
paring the prices and charges of four
elevators located in the province of
Buenos Aires. These elevators provided
prices and charges for the same quan-
tity and quality on a given day. As
shown in Table 9, charges for cleaning,
transportation, and commission differ
among firms. Freight charges from the
farm to the elevator varied depending
upon distance. Local transportation rates
quoted by the elevator were often those
established by local trucking firms, but
in many cases farmers provided their
own tractors and wagons, thus avoiding
the commercial trucking charge. Freight
charges to the port elevator also varied,
depending upon the distance and the
mode of transport. On the day of the
Each sample is emptied onto the
by elevator employees.
canvas, and then mixed and bagged for quality analysis
interview, Elevator A was subtracting
a charge of 27,878 pesos/100 kilos from
each farmer's payment based upon the
rail rate to Rosario.5 Elevator C, a co-
operative, was delivering maize to the
port area of San Nicolas by truck and
used a freight charge of 23,000 pesos/
100 kilos.
Loading and unloading charges
among the 4 elevators varied from 7,500
pesos/ 100 kilos at Elevator A to 10,000
pesos/100 kilos at Elevator B. Differences
in elevator design, handling efficiency,
and volume influenced costs, and these
cost differences influenced charges. Fu-
migation charges also varied among
elevators. Published shrinkage tables rec-
ommended 1.3 percent shrink for screen-
ing when weed seeds were present at a
level that necessitated screening. All el-
evators reported the same factor for cal-
culating screening losses. Charges in ad-
dition to shrinkage varied from 4,000
pesos to 7,000 pesos/ 100 kilos. Elevator
C reported no charge for cleaning, but
had the highest fumigation charge. Drying
charges for 18.5 percent moisture maize
varied from 10,500 pesos for Elevator C
to 14,250 pesos at Elevator B. All ele-
vators reported using standard shrink
tables including 0.25 percent per point
of moisture for handling losses.
All of the elevators that were in-
terviewed reported commission charges
calculated as a percentage of the base
price. This commission, varying from
2.5 percent to 5.5 percent, could be
considered similar to the merchandis-
ing charge common in the U.S. grain
trade. Elevators B and D each included
a 1 percent capitalization charge in their
commission, to be retained by the el-
evator for future growth and invest-
ments. Although all of the elevators
quoted identical prices, the net pay-
ments to farmers differed significantly
among elevators. These differences re-
sulted from differences in charges for
services. The effects of these differences
depend, in part, upon the quality of
the maize delivered by the farmer.
In addition to the differences in
charges, there are also several addi-
tional factors that influence the farmer's
choice of market. These include waiver
of drying charges or shrink at process-
ing plants where the wet maize does
not present a problem in storage and
processing, and differences in waiting
time for delivery and unloading at dif-
ferent elevators.
5 Prices are given in 1983 pesos-. The ex-
change rate in March of 1983 was 70,000
pesos per U.S. dollar. Inflation and deval-
uations since 1983 make the absolute values
of little significance.
11
Maize Production and Marketing
in Argentina
Quality Control
in Argentine
Maize
Grade-Determining
Factors
Argentine maize is purchased on the
basis of numerical grades, with price
discounts for quality below No. 2 on
any of the three grade factors included
in official standards. There are three
numerical grades for both dent and flint
types — grade Nos. 1, 2, and 3. The
limits for each grade (Table 8) are based
on three factors -- damage, broken
grain, and foreign material [16]. Dam-
aged grain is defined as those grains
or pieces of maize grain that exhibit a
significant alteration in their appear-
ance. Types of damage include kernels
or pieces of kernels that are fermented,
sprouted, or moldy. Broken grain is
defined as those pieces of maize that
pass through a screen, excluding pieces
of damaged maize. The screen specified
by the Junta is to be constructed of
hard aluminum with circular holes that
are 4.76 mm (12/64 inch) in diameter.
This is the same specification as used
for the Broken Corn-Foreign Material
sieve in USDA standards. Foreign ma-
terial is defined as those grains or
pieces of grain that are not maize as
well as all other inert material. The
standards further specify that 14.5 per-
cent shall be the maximum moisture
content. The grading tolerance for live
insects is zero. Punctured grains re-
sulting from insect infestation must be
less than 3 percent, and the sample
must not contain more than 2 seeds of
the weed Datura Ferox (Jimsonweed)
per 100 grams. A sample that exceeds
any of the preceding tolerances is con-
sidered to be outside of the standard.
Moisture is not a grade-determin-
ing factor, but 14.5 percent is set as the
maximum value for any grade. This
moisture limit establishes the base for
adjusting the quantity of maize con-
taining excess moisture to the equiva-
lent number of bushels at 14.5 percent,
and this limit is specified as the maxi-
mum allowable on an export certificate.
In addition to the three numerical
grades, the Junta has established a
fourth grade for those years when har-
vesting and storage conditions result in
Modern export facilities using high-speed belts and bucket elevators provide efficient loading
and inspection.
12
maize with damage beyond the limit
for No. 3 (8 percent). Grade No. 4 has,
in the past, been identical to grade No.
3 except that the maximum limit for
damaged kernels was increased to 12
percent.
Inspection Procedures
When maize is delivered by farmers to
the elevator, it is priced on the basis of
its quality characteristics. Quality is de-
termined by obtaining samples from
each truck through the use of grain
probes or from the equivalent of an
end-gate sample during unloading. In
addition to recording truck weights,
elevator employees determine the
moisture content and the percentage of
broken kernels, foreign material, and
damage. The sample is also inspected
for Crotalaria (Rattlebox) seeds, Datura
Ferox seeds (Jimsonweed), and insect
damage. Duplicate samples of produc-
ers' grain are available for appeal to
the Junta inspection laboratory in case
of disputes. The Junta requires that all
inspectors be trained and licensed, in-
cluding those at the country elevator.
The thoroughness of the sampling and
analysis differs among elevator man-
agers, and not all of the factors are
always examined for each truck. How-
ever, because the selling price of the
maize is determined by quality, with
premiums paid for No. 1 maize, the
elevator manager has an incentive to
determine the quality and to assign
appropriate discounts to all maize being
delivered.
The grain is also priced according
to quality as it is received at the port
elevator or processing plants. Inbound
trucks and railcars are sampled by probe,
and those port facilities with sufficient
bin space will do some segregation by
quality factors. Outbound shipments
from the port elevator are inspected by
representatives of the Junta and by the
representative of the seller. Inspections
within the vessel may also be made by
representatives of the buyer. Outbound
maize may be sampled from the grain
stream on the belt or from the down-
spouts in the export elevator. The Junta
Nacional de Granos records the quality
on the export certificate. When export
volume exceeds the loading capacity of
the export house, the Junta permits
direct transfer from truck to vessel. In
this case, the grade is established from
truck samples and is determined at the
original shipping point or by probe
sample at the port. The direct truck-to-
Samples are drawn at frequent intervals from a downspout in the export elevator. Composites
of these samples are used to determine the numerical grade for the export certificate issued
by the Junta Nacional de Granos.
vessel technology is also used for spe-
cial contract sales requiring identity
preservation from the origin elevator
to the vessel.
The Junta Nacional de Granos in-
spection laboratory provides official
grading services for all export purchases
and sales. A modern laboratory in Bue-
nos Aires contains equipment for all
quality measurements and standardiza-
tion of the various tests. The laboratory
also serves as an appeal board for of-
ficial grades upon request of buyers or
sellers throughout the market channel.
The Board provides educational pro-
grams for the training and licensing of
official inspectors. The training includes
practical experience in grading and lab-
oratory analysis.
Samples of maize taken from farm trucks
and wagons during unloading averaged 57.6
pounds per bushel, 94.3% whole kernels,
and 13% stress-cracked kernels prior to
drying.
The Junta Nacional de Granos provides
classroom instruction and laboratory facili-
ties for training grain inspectors.
Samples of flint maize taken from farmers'
fields, combines, and trucks were air-dried
immediately to prevent deterioration and
minimize the development of stress cracks.
13
Maize Production and Marketing
in Argentina
Quality Changes
from Farm
to Export Vessel
in Argentina
In order to determine the quality char-
acteristics of Argentine maize and the
factors that alter its quality, a study was
organized to identify quality at repre-
sentative points in the market channel.
These points included a random selec-
tion of farms in the Pergamino area of
the Buenos Aires Province, a random
sample of cooperative and private firms
from the area, and samples taken from
an ocean vessel being loaded with old-
crop maize at Buenos Aires. The Per-
gamino area was selected because it is
representative of the province of Bue-
nos Aires, the largest maize-producing
province in Argentina.
Location of Samples
Maize samples were collected from
either combines or trailers at each of
five farms. At five country elevators,
samples of incoming maize were also
collected with probes or by cutting the
grain stream during the unloading of
trucks and trailers. Dry maize was sam-
pled either at the dryer discharge, from
storage bins, or by probing at truck
load-out points. All of the grain was
new-crop (1983) maize, representing
the average quality found at the five
different locations during the harvest.
Samples of old-crop (1982) maize were
taken by probe in the hold of an ocean
vessel at Buenos Aires. Any samples
above 15 percent moisture were al-
lowed to air-dry naturally in open con-
tainers before shipment to the United
States for analysis.
Farm 1 was a 700-hectare (1,730-
acre) family farm located 18 km north-
west of Pergamino. About 240 hectares
Samples requiring official grades (including
appeals from the country elevators) are ana-
lyzed by technicians at the Junta Nacional
de Granos inspection laboratory in Buenos
Aires.
^••••i^^^^HHHHM^^^^^^^^MM^^^^^^ - •
Samples of maize taken from elevator storage bins after drying showed stress cracks in 24
to 82 percent of the kernels.
14
High prices for herbicides make grass control uneconomical in maize fields.
(593 acres) were in maize, with no com-
mercial fertilizers being used. The maize
was being harvested by custom opera-
tors using two Vassalli Ideal 3-166 com-
bines with 5-row Manerio maize heads
spaced on 70-cm rows. The maize va-
riety was Morgan 400, which was esti-
mated to yield about 6,000 kg/ha (96
bu/acre) on this farm. This was the only
farm that was visited which had drying
and storage facilities. The grain-han-
dling facilities consisted of four storage
bins, each with a 150-t capacity, a short
bucket elevator to elevate maize for
overhead cleaning before drying, and a
second taller bucket elevator to elevate
maize to a holding bin above a Margaria
batch-type dryer. After drying, the maize
was screened to remove the broken
kernels before storage.
Farm 2 was a tenant farm located
19 km northwest of Pergamino. The
maize was a Continental variety and,
on this farm, was estimated to yield 80
bu/acre. The need for herbicide weed
control was more evident here than on
some of the other farms. No commer-
cial fertilizer had been applied. Custom
operators were harvesting with three
Daniel D66 combines. Maize moisture
was about 22 percent.7 The maize was
6 Trade names are used in this publication
solely for the purpose of providing specific
information. Mention of a trade name, pro-
prietary product, or specific equipment does
not constitute a guarantee or warranty and
does not imply approval of the named prod-
uct to the exclusion of other products.
7 All moisture contents in this study are
expressed in percent wet basis.
hauled by wagon to a Tamequa portable
grain bin for temporary storage until
trucks could return from the local ele-
vator. The truck loading time was min-
imized by simultaneously unloading
from the holding bin and from wagons.
Farm 3 was a 220-hectare (544-
acre) family farm near Alfonso. The
variety was Continental 77, which ap-
peared to have both dent and flint
characteristics. Differences in maize
color, kernel crown indentation, and
red and white cobs on adjacent plants
indicated the varied genetic makeup.
No commercial fertilizer had been used.
The farmer owned a Guiberge combine
with a 5-row Manerio maize head.
Maize from the combines was delivered by
truck to a Tamequa portable grain bin until
the commerical hauler returned from the
elevator for the next load.
The commercial trucker empties the maize
from the temporary bin for transport to the
drying and storage facilities at the country
elevator.
Farm wagons were unloaded by auger into
commercial trucks while keeping ahead of
the two combines operating in the field.
The genetic diversity in ears from the same field shows a gradual shift in emphasis of plant
breeders from flint to dent varieties.
15
Argentine gauchos at Sol de Mayo separate calves from the breeding herd at weaning time.
Maize was hauled by wagon to the
farmstead where it was transferred by
auger from wagon to commercial truck
and then hauled to a cooperative ele-
vator for sale.
Farm 4 was another family farm
near Alfonso. No commercial fertilizer
had been used here, but fertility was
enhanced by a crop rotation that in-
cluded alfalfa. Weed control methods
included the use of 2-4D. The maize
was DeKalb 4F34 and was being har-
vested by custom operators who used
both a Vassalli Ideal 3-16 combine and
a Bernadine combine.
Farm 5 was a 3,200-hectare (7,907-
acre) farm located southwest of Rojas
which was operated by a farm manager
for an absentee owner. About 1,200
hectares (2,965 acres) were in maize.
The rest were in alfalfa and permanent
pasture that supported both a cattle
Many of the smaller elevators did not have truck hoists so trucks were unloaded by hand.
feeding and a cow-calf operation. The
maize ground had been fertilized with
ammonium phosphate, and 2-4D had
been applied for weed control. Several
different varieties of maize had been
planted, but samples were obtained
from only two fields: one planted with
Cargill 155 and the other with DeKalb
4F34. The estimated yield from these
fields was 8,000 kg/ha or 128 bu/acre.
The maize was quite high in moisture,
and the combines were harvesting
quickly to reduce potential field losses
due to stalk lodging, which were esti-
mated at 10 bu/acre. The manager was
anxious to complete the harvest be-
cause of these potential losses. As many
as 16 custom operators were harvesting
simultaneously. The number varied
from day to day, and combines were
sometimes idled because of truck short-
ages or delays at the elevator. The
combines that were operating included
a New Holland TR85 with an 8-row
Manerio head, a Vassalli, a John Deere
975 with a 6-row 642 head, and a
Senor. The farm had neither drying nor
storage facilities.
Five country elevators provided
samples of inbound and outbound
maize. Two of the elevators were owned
by international grain firms and three
were cooperative firms.
Elevator 1 was a cooperative with
350 members. The elevator had a
22,000-t storage capacity and received
900 to 1,000 t/day during harvest. Typ-
ically, maize came in on trucks or wa-
gons from a 10-km radius. The coop-
erative had three dryers, each with a
capacity of 20 t/hr when drying maize
from 19 percent to 14.5 percent mois-
ture. The temperature of the drying air
was 125°C. The cooperative had several
bucket elevators but no truck hoists.
Trucks with numerous openings were
unloaded by hand. Typically, grain from
this elevator was transported by truck
or rail to San Nicolas or Villa Consti-
tucion for export shipment on the Parana
River.
Elevator 2 was a cooperative with
a 30,000-t storage capacity. They had
five dryers, each with a drying capacity
of 20 t/hr. The dryers were Iradi and
Eureka brands, which were manufac-
tured in Argentina, and were cross-
flow types that burned fuel oil.
Elevator 3 was a cooperative with
600 members. The storage capacity was
20,000 tons. The elevators had two dryers:
an 80 t/hr Eureka and another dryer of
unknown brand with a 40-t/hr capacity.
16
The elevator did not have truck hoists,
but handling and cleaning operations
were highly mechanized, with bucket
elevators and mechanical cleaners.
Elevator 4 was privately owned
and had a total storage capacity of
17,000 t. A typical storage bin had a
1,750-t capacity, with four 7.5 kw axial
flow fans for aeration. Their Iradi dryer
burned fuel oil and had a capacity of
70 t/hr. Maize was received direct from
the field at moisture levels as high as
29 percent, but 22 percent was more
typical in this area at the beginning of
harvest. The Iradi dryer reduced mois-
ture to approximately 16.5 percent with
air temperatures of 110°C. At 16.5 per-
cent moisture, maize was aspirated to
remove beeswings and placed in stor-
age, where additional moisture was re-
moved by aeration. Before load out the
dry maize was screened on a 4.76-mm
sieve to remove broken kernels. The
elevator was well equipped with bucket
elevators having capacities ranging from
40 t/hr to 150 t/hr. Maize could be
loaded on trucks or railcars for ship-
ment to the port.
Elevator 5 was owned by a multi-
national grain company. Its 8,000-t stor-
age capacity consisted of six 1,500-t bins,
each equipped with three 7.5 kw fans at
the bottom of each bin and three 3 kw
fans on top of the bins. Their Iradi dryer
had a capacity of 50 t/hr. The screenings
were removed before the loading of rail-
cars or trucks for export destinations and
were returned to local feeders.
All elevators that were visited used
cross-flow dryers heated by fuel oil.
Many elevators were using multiple-
pass drying if the maize was extremely
wet. At some elevators, maize was re-
moved from the dryer at about 16.5
percent moisture content, and aeration
was used to cool and remove an ad-
ditional two percentage points of mois-
ture to meet the 14.5 percent maximum.
It would have been desirable to
trace maize from the country elevators
through each point in the market chan-
nel to export ship loading. However,
this was not possible for numerous
reasons. Nonetheless, systematic probe
samples were taken in three layers from
an export vessel being "topped off" in
Buenos Aires. Probe samples from the
first layer represented maize that was
loaded onto the vessel at Rosario, the
major export location. The two upper
layers represented maize from a Buenos
Aires port elevator used to top off the
partially loaded vessel. Owing to the
shallow draft at the mouth of the Par-
ana River, most ocean vessels are par-
tially loaded at upriver ports and then
brought to the deeper port of Buenos
Aires for topping off. The hold of each
ship was divided into four quadrants:
in this way, one sample could be taken
from each quadrant, for each hold, and
for each layer. Each sample consisted
of three probes randomly spaced in the
quadrant (Figure 3).
Analysis of Samples
The maize samples were returned to
the Agricultural Engineering Grain
Quality Laboratory at the University of
Illinois for the following analyses.
Test weight was performed in du-
plicate. A pint cup was used because
of the limited sample size.
Percent of broken maize was de-
termined on one-half of the original
sample through the use of 30 cycles on
a Garnet sieve shaker with 4.76-mm
and 6.35-mm sieves. The other half of
the divided sample was used for physi-
cal separations.
Whole kernels were determined
by sorting whole kernels from a 50-g
sample taken from the maize that was
retained on top of the 6.35-mm sieve.
Stress cracks were determined by
candling 100 kernels from the whole
kernel sample and sorting them into
categories of none, one, or multiple
stress cracks.
Vitreous endosperm thickness
was determined by sanding off about
one-third of the crown end of the kernel
and sorting the samples into categories
of thick, thin, or negligible vitreous
endosperm.
Breakage susceptibility was deter-
mined with a Wisconsin-type breakage
tester [21]. Samples were equilibrated to
approximately 13.7 percent moisture
content before testing. A 200-g sample
was selected from the maize retained on
a 6.35-mm sieve. After the kernels were
impacted in the breakage tester, they
were resieved on the 6.35-mm sieve. The
sample portion retained by the sieve was
weighed and divided by the -original
sample weight to calculate the percentage
of breakage.
Moisture Content at the time the
breakage test was run was determined
with a 100-g sample that was oven-
dried at 103°C for 72 hours. The sam-
ples had been previously equilibrated
to approximately 13.7 percent moisture
to minimize the effect of moisture on
the test for breakage susceptibility.
FLINT
DENT
Cross-sections of Argentine flint and U.S.
dent show a contrast, with the flint having
a higher proportion of hard vitreous endo-
sperm.
One hundred-kernel weights were
determined by weighing two samples of
100 kernels each. Kernel weights were
adjusted to oven-dried weights, and the
two observations were averaged.
Floaters test is an indication of
kernel hardness and was determined
by placing 100 kernels into a solution
of tetrachlorethylene and deodorized
kerosene that was adjusted to a specific
gravity of 1.275. The number of lower
density kernels that floated was des-
ignated as the percentage of floaters.
Ethanol column test was used to
indicate true density. One hundred pre-
weighed kernels were placed in a grad-
uated cylinder containing ethanol, and
the density of the kernels was calculated
by measuring the displaced volume.
Physical separations were per-
formed to sort the samples into the
following categories: maize, grains other
than maize, weed seeds, and inert ma-
terial such as cobs, husks, insects, dust,
and miscellaneous material less than
1.4 mm in diameter.
17
Maize Production and Marketing
in Argentina
Results
of the Sample
Analysis
Physical Properties
of Argentine Maize
The analysis of the samples at the
University of Illinois Agricultural En-
gineering Grain Quality Laboratory
provided a description of the physical
properties of the samples obtained at
each point in the market channel.
Quality at the Farm. The sam-
ples had an average test weight of
773 kg/m3 (60.1 Ib/bu), indicating a
high density (Table 10). Density was
also measured by the ethanol column
test, which gave an average value of
1.29 g/cm3, and by the floaters test,
which averaged only 16 percent floaters
for farm-level samples. These results
confirm that flint maize is very hard
and very dense with a high proportion
of vitreous endosperm. One hundred-
kernel dry weights on samples from
the five farms averaged 24.5 g. The
high density of flint kernels was offset
by the small kernel size. Since this
maize had not been artificially dried,
stress cracks (combinations of one or
more cracks) were only 13 percent, and
the test for breakage susceptibility gen-
erated only 11.7 percent breakage when
samples were equilibrated to 13.7 ±
0.6 percent moisture content. The per-
cent of whole kernels was relatively
high — 94.3 percent. The percentage
of broken corn and foreign material
(BCFM) as determined with a standard
USDA 4.76-mm sieve was relatively
low — only 0.7 percent. Only 2.9 per-
cent of the sample passed through a
6.35-mm screen. Thus, maize breakage
and breakage susceptibility at the farm
level were quite low and were com-
parable to values found in similar stud-
ies of U.S. maize [11].
Several samples of the flint vari-
eties grown in Argentina were rated
visually for thickness of vitreous en-
dosperm. Because all of these samples
rated very high in vitreous endosperm
thickness, the test was discontinued,
and it was concluded that Argentine
flint and semident maize have a very
thick layer of vitreous endosperm. Based
upon previous experience [23], maize
with a high test weight generally has
a thick layer of vitreous endosperm.
Additional samples of freshly har-
vested maize were obtained from farm
trucks and wagons as they arrived at
five country elevators. Three composite
samples were also obtained from all of
the trucks delivered during a 12-hour
period at selected elevators. These sam-
ples were representative of the maize
delivered from farms in the area sur-
rounding each of the elevators. The
results of the tests are quite similar to
the information obtained from the sam-
ples on the farms. For example, stress
cracks were only 11.1 percent and
breakage susceptibility was 13.6 per-
cent (Table 11), quite close to the values
of the on-farm samples. The percentage
of whole maize was 95.1 percent, and
screenings through the 4.76-mm sieve
were 1.1 percent, which was slightly
higher than the value obtained from
combines and wagons at the farm. Many
of the trucks that were sampled had
been loaded at the farm with augers
and temporary storage bins. This extra
handling probably explains the in-
creased BCFM relative to the samples
at the farm.
One 'hundred-kernel dry weights
indicate size and density values ranging
from a low of 19.8 g to a high of 30.6 g,
compared with a range of values from
24.8 g to 30.7 g found in an analysis
of 359 samples of maize taken from a
midwest milling facility [22].
The presence of other grains in the
maize was extremely low — 0.002 per-
cent at the elevators and 0.0 percent at
the farms. The percentages of weed
seeds at the farms (0.012 percent) and
on inbound trucks at the country ele-
vators (0.015 percent) were also low
but higher than at any other place in
the market channel. Cobs, husks, in-
sects, dust, and fine material passing
through a 1.4-mm sieve were 0.173
and 0.183 percent at the farm and on
inbound trucks, respectively.
18
Quality at the Country Eleva-
tor. Most high-moisture maize in Ar-
gentina is dried artificially in cross-flow
dryers at the country elevator. The
drying techniques ranged from gentle
to severe, with several elevators using
some form of multiple-pass drying fol-
lowed by dryeration techniques to re-
duce breakage and stress cracks during
drying. Despite these efforts, stress
cracks in the vitreous endosperm of the
kernels were present in all samples of
maize that were artificially dried. The
percentage of stress cracks from indi-
vidual dryers ranged from 24 to 82
percent with an average of 52 percent
for all samples (Table 12). Because
breakage susceptibility is influenced by
the percentage of stress cracks, it was
not surprising to find breakage suscep-
tibility values averaging 46 percent on
samples of maize with more than 50
percent of the kernels showing stress
cracks.
Breakage susceptibility values for
commercial U.S. dent maize can be
predicted with the equation: BS =
1392.5e-(:87)1MC), where BS is the break-
Directly under the spouting, breakage (as measured by USDA-BCFM sieves) reached 12.1
percent. Samples from the vessel clearly showed extensive breakage during loading.
Loading of the ocean vessel caused breakage when stress-cracked kernels impacted the spouting.
19
age susceptibility value determined by
the Wisconsin Breakage tester using a
6.35-mm sieve and where MC is the
wet basis moisture in percent [22]. Us-
ing this equation, the predicted break-
age susceptibility for samples of U.S.
dent maize obtained from over 1,000
trucks across 2 crop years was 31.5
percent when adjusted to a comparable
moisture level of 13.2 percent. This
average value for U.S. dent is slightly
below the average breakage suscepti-
bility value of the maize obtained from
the dryers at the Argentine elevators.
Given the small number of samples,
this difference is not statistically sig-
nificant. The importance of the com-
parison is to illustrate that the effect of
high-temperature drying is similar for
dent- and flint-type corn. The impor-
The premium paid for No. 1 clean corn is an incentive for using extra cleaners on the
combine.
The screenings are collected and bagged for feeding or disposal, rather than including the
foreign material in the maize delivered to the market.
tance of drying temperature and tech-
nology in determining breakage is ev-
ident in a comparison of breakage
susceptibility and stress cracks for the
various dryers that were tested (Table
12). The data did not permit an analysis
of drying methodology on these dryers,
but it is evident that there exists a wide
range in the severity of drying at the
different elevators.
An analysis of all samples taken
from the elevators after drying and
cleaning for storage showed only a slight
decline in quality when compared with
the samples taken from the farmers. The
percentage of floaters after drying was
28.3 percent (Table 13): a significantly
higher percentage than in the farm-level
samples, which indicates reduced den-
sity as a result of high-temperature
drying. The test weight of 765.2 kg/m3
(59.4 Ib/bu) was slightly lower than in
the farm samples, but based upon a
two-tailed "t" test, this was not a sig-
nificant difference at the 95 percent level
of probability. The percentage of screen-
ings passing through a 4.76-mm sieve
increased to 1 .6 percent, compared with
1.1 percent in farm truck receipts. Based
upon physical separations, the percent-
age of cobs, husks, insects, dust, and
fine materials passing through a 1.4-mm
sieve increased to 0.3 percent. Weed
seeds were insignificant in these sam-
ples. The range in BCFM (as defined in
U.S. standards) indicated significant dif-
ferences between elevators and the ways
in which they were handling their maize.
One elevator showed an average BCFM
value of 0.5 percent while another
showed a high of 3.1 percent.
Nearly all of the elevators that
were interviewed used cleaners both
before and after drying in order to
reduce the amount of broken maize
and foreign material in outbound ship-
ments. There was no evidence of blend-
ing once the material had been re-
moved, although larger elevators were
able to separate quality in different bins
and then commingle them by drawing
from more than one bin during load
out. The screenings removed before
and after drying were generally sold
back to local feeders at a price of ap-
proximately 70 percent of the value of
maize purchased from the farmer.
Samples of inbound and outbound
maize from one elevator were used to
indicate the changes in quality. Samples
taken from 13 inbound trucks were
compared with samples taken with grain
probes from eight outbound trucks. The
most significant differences were in
those factors related to breakage and
drying. Broken maize through the
20
6.35-mm (16/64-inch) and 4.76-mm
(12/64-inch) sieves were 6.02 percent
and 2.55 percent, respectively, com-
pared with 3.73 and 1.14 percent in
the inbound samples (Table 14). The
percentage of whole kernels was 94.3
percent in the outbound samples com-
pared with 96.1 percent in the inbound.
Foreign materials (material other than
maize) were quite low in both inbound
and outbound samples, but there was
a significant increase in the percentage
of dust and inert materials, ranging
from 0.21 percent inbound to 0.55 per-
cent outbound. The percentage of ker-
nels showing stress cracks increased
from 10.2 to 60.5 as a result of high-
temperature drying. The percentage of
floaters increased, whereas one
hundred-kernel weight and true den-
sity decreased, also the result of drying.
Quality in the Export Vessel. A
vessel of Argentine maize destined for
Singapore was loaded with 19,124 mt
at Rosario and topped off with an ad-
ditional 4,953 tons in Buenos Aires.
Samples were taken in holds 1, 3, and
5 when the vessel arrived in Buenos
Aires.
The sampling procedure was to
combine three probe samples from each
quadrant into a single composite sam-
ple for each quadrant of holds 1, 3,
and 5 (Figure 3). The probes were 52
inches long so samples were obtained
in fairly shallow layers. Only the top
1
36
8
7110
11
12
ill
IV
Figure 3. Sampling pattern for the
ocean vessel in Buenos Aires. The
numbers in each quadrant represent the
placement of the three probes. These
probes, in turn, were combined to
produce a sample of approximately
1,000 grams.
Flint maize that was subjected to high temperatures during drying showed internal frac-
tures . .
. . as does U.S. dent corn.
52 inches could be sampled from the
Rosario maize. As the 4,000 tons of
maize were being loaded into the three
holds at Buenos Aires, samples were
taken from three layers in hold 1, two
layers in hold 3, and three layers in
hold 5. These samples represented ap-
proximately 1,500 tons in hold 1, 1,000
tons in hold 3, and 2,500 tons in hold
5. All of the maize that was loaded was
from the 1982 crop, and the official
certificate reported that the maize in
the bottom layer was graded as No. 1
and the top-off maize was graded as
No. 2. The top-off maize was of lower
quality with respect to all quality factors
with the exception of measures of den-
sity (Table 15). Test weight was slightly
higher in the Buenos Aires top-off maize
than in the maize loaded at Rosario.
One hundred-kernel weights and true
densities were essentially the same.
However, other measures of quality
related to breakage and foreign material
were significantly worse in the top-off
maize.
21
Because it was not possible to ob-
tain samples from the export house
during loading at the two locations, the
reason for the difference could not be
established. Whether or not the maize
being delivered to the Buenos Aires
port was of lower quality than that
delivered to Rosario or the handling
practices and blending procedures at
Buenos Aires resulted in increased
damage could not be ascertained.
Broken maize (material passing
through a 6.35-mm sieve) was 5.1 per-
cent in the maize loaded at Rosario but
9.9 percent in the maize loaded at
Buenos Aires. BCFM (through the
12/64-inch sieve) also was significantly
higher in Buenos Aires maize than in
the Rosario maize (5.0 compared with
1.7 percent). The percentage of whole
kernels was lower, and the percentages
of stress cracks, breakage susceptibility,
and floaters were higher in the Buenos
Aires maize. The Buenos Aires maize
also contained a higher percentage of
other grains (0.29 percent compared
with 0.05 percent) and inert materials
(0.66 percent compared with 0.31 per-
cent) than the Rosario maize.
The loading procedure was such
that breakage increased during loading,
and fine materials were segregated
within the hold. Much of the loading
was accomplished with the use of de-
flector spouts rigged with ropes to di-
rect the grain stream into the corners
and under the deck. In many cases,
this meant that maize from the elevator
loading spout hit the metal deflector
surface at nearly a 90° angle. Breakage
was evident in the dust arising from
the holds as well as in the samples
being taken. A special sample taken
under the deflector spout (not included
in the analysis because it was not in
the probing pattern) contained 12.1
percent BCFM as measured with the
4.76-mm sieve. Much of the loading
procedure resulted in pockets of fines
beneath the spout that were in the
range of 6 to 12 percent BCFM.
Although University of Illinois per-
sonnel were not allowed to take sam-
ples inside the export elevator, the cer-
tificate issued by the Junta Nacional de
Granos based on samples from the
outbound belt showed an average of
0.8 percent broken kernels through the
4.76-mm sieve in the elevator com-
pared with the average of 5.0 percent
for the top-off maize in the vessel (Table
16). Assuming that both sets of samples
were representative, there was an in-
crease of 4.2 percentage points in bro-
ken maize during the loading process
between the export elevator and the
ocean vessel.
Other quality factors (test weight
and damage) were similar for both sets
of samples, indicating that the samples
taken without university supervision
were at least representative on these
factors. It would appear that loading
procedures in Argentina create addi-
tional breakage much as they do in
loading ocean vessels in the United
States. The sampling variability in the
vessel indicated that some segregation
had taken place during loading, al-
though the sampling pattern did not
permit a systematic analysis of segre-
gation.
Broken maize through the 4.76-mm
sieve ranged from 2.4 percent to 8.9
percent among samples taken in the
top-off maize. Similar variation was
found in other factors related to break-
age and breakage susceptibility. The
range and standard deviation on the
factor of breakage susceptibility were
higher than those found in similar sam-
pling programs on U.S. maize, indicat-
ing that the blending procedures in the
U.S. market channel may generate a
more uniform load with respect to fac-
tors other than particle size. Segregation
problems caused by spout lines and fines
appear to be similar.
Chemical Properties
of Argentine Maize
A chemical analysis of 17 samples of
the Argentine flint maize provided a
limited comparison with average values
for U.S. dent (Table 17). The analysis
included eight samples selected at ran-
dom, representing four different vari-
eties from six different fields. Six
samples from elevators were also ana-
lyzed. Three additional samples ana-
lyzed were composites from the ocean
vessel. Two samples of U.S. yellow
dent were composites from trucks re-
ceived at a central Illinois processing
plant in the fall of 1983. Even from
this limited number of samples, it is
evident that the protein content of flint
maize varies with the variety (Table
17). The percentage of protein ranged
from 8.65 to 11.74 in the Argentine
samples, but in general, it was slightly
higher than in the U.S. dent varieties.
Two composite samples from an
Argentine export silo and from truck
deliveries to an Illinois maize processor
provide a broader base for comparison
(Table 18). A comparison of sample 3
(Argentina) with sample 4 (Illinois)
shows Argentine maize to have a higher
content of fat, protein, and ash than
U.S. maize, but a lower content of fiber
and nitrogen-free extract. Samples 1
and 2 from individual varieties grown
in Argentina show the range of varia-
bility. Any comparison of chemical
properties between U.S. and Argentine
maize requires recognition of a signif-
icant degree of variability within the
varieties and geographical regions of
both countries.
22
Maize Production and Marketing
in Argentina
Quality Incentives
in the Argentine
Market
Argentine farmers and grain handlers
respond to the economic incentives
present in their system. These incen-
tives include the price level and price
differentials associated with grade fac-
tors. The incentive of world market
prices has clearly stimulated increased
acreage and production of maize as well
as increased exports by Argentine farms
and marketing firms. Higher prices and
the adoption of lower cost technology
have increased the profitability of maize
production. However, opportunities for
double cropping with soybeans and
wheat have shifted some land into soy-
bean production that would have been
used for maize. Reduction of import
tariffs and increased domestic produc-
tion of fertilizer and herbicides may
increase production in the future.
A base moisture of 14.5 percent
for pricing maize and as a grade re-
quirement for exporting maize provides
an incentive to dry maize to a safe
storage level. Most elevators were tar-
geting their final moisture content near
14.5 percent either through direct drying
or through partial drying followed by
aeration and sometimes dryeration in
storage. No evidence was found that
high moisture maize was being blended
with overly dried maize. Targeting final
moisture at the base moisture of 14.5
percent provided little opportunity for
an economic benefit from blending. Ap-
parently, overdrying in storage occurs
frequently, and delivery to the export
elevator of maize with moistures below
12 percent is not uncommon. Although
export elevators draw maize from sev-
eral bins during the loading of vessels,
there was no evidence of a supply of
high-moisture maize to use in blending
with maize at moisture levels below
14.5 percent.
Processors who offer relatively
higher prices for high-moisture maize
(that is, low discounts or a low shrink
factor) provide an incentive to farmers
for delivering maize a greater distance.
Farmers often passed several country
elevators in order to reach a processor
offering to purchase wet maize without
a drying charge.
A price differential is also estab-
lished for No. 1 maize over No. 2 and
for No. 3 below No. 2. No. 1 maize
normally receives a 1.0 percent increase
in price and No. 3 maize a 1.5 percent
decrease in price, relative to the No. 2
base [12, p. 126]. These price differ-
entials are an incentive for farmers to
set their combines to reduce the amount
of weed seeds and foreign material in
the maize. Some of the combines that
were observed had separate cleaners,
with baggers on the combine to collect
weed seeds and small pieces of maize
that would be counted as foreign ma-
terial in the grades at the country ele-
vator. This same incentive is present at
the country elevator, encouraging the
removal of foreign material, fine ma-
terial, and small broken pieces before
shipment. Most elevators were using
aspirators and cleaners. The No. 1 price
premium is a deterrent to blending
foreign material and screenings to re-
duce No. 1 maize to the No. 2 base.
Because only three grade factors
are used to determine the numerical
grade (that is, damage, broken kernels,
and foreign material), it is relatively
easy for both the farmer and the ele-
vator to control the numerical grade of
freshly harvested maize. Because farm
deliveries seldom have high damage
levels, only routine cleaning is required
to produce No. 1 maize and generate
the higher price. Incentives for drying
to 14.5 percent moisture reduce the
incidence of mold damage relative to
the 15.5 percent base established by
the grade for No. 2 maize in the United
States.8
8 Moisture was removed from U.S. grades
in September 1985, and many elevators
changed their base to 15.0 percent.
23
Maize Production and Marketing
in Argentina
Comparison of
U.S. and Argentine
Quality
The production and marketing tech-
nology in Argentina and the United
States are, in fact, quite similar with
respect to combines, grain dryers, stor-
age bins, and weighing and grading
equipment. Pricing strategies are some-
what different, particularly in terms of
charges for services and commission
charges at Argentine elevators in lieu
of elevator handling margins. In the
United States, the elevator covers op-
erating costs through a variable margin
determined by the difference between
the selling price and the bid price of-
fered to the farmer. This margin is
supplemented by charges for specific
services such as drying or storage. The
country elevator in Argentina gives the
farmer a price bid equal to the prices
established by their Board of Trade
(Bolsa), reflecting prices in the export
market. In both countries the cost for
services, the elevator's cost of opera-
tion, and the transportation costs are
then assessed as charges against the
farmer. Competition among Argentine
elevators is not based upon the bid
price to producers but upon the charges
for services and the elevator merchan-
dising commission.
Shrink factors for adjusting maize
to base moisture quantities are similar
in both the United States and Argen-
tina. The actual water loss calculated
mathematically is used in constructing
tables, and either a rule-of-thumb shrink
factor or a table has been instituted
that does not correspond exactly to the
actual water loss. In both countries, the
factors and tables used at various mois-
ture levels often exceed the actual
weight loss due to evaporation of water.
In Argentina, the adjustment factor for
drying from 15.5 percent to 14.5 per-
cent moisture is equivalent to the loss
when drying to 13.5 percent. In the
United States, many elevators use a
shrink factor of 1.3 percent to cover
actual losses of 1.18 percent. These
higher factors provide income to cover
handling losses. "Invisible shrink" is
explicitly recognized in both countries.
The grading standards of the two
countries are similar with respect to the
use of numerical grades and the
identification of some of the important
factors. For example, both countries
identify damaged kernels, although the
United States has a subset for this
identification called heat damage. Both
countries identify broken maize and
foreign material as grade-determining
factors, but the United States combines
both into one measurement, whereas
Argentina keeps them separate. Argen-
tina does not use moisture as a grade-
determining factor but sets a base of
14.5 percent as the maximum moisture
for all grades. The United States has
recently removed moisture as a grade
factor, but 15.0 or 15.5 percent was
commonly used as the base for estab-
lishing price until 1986. A comparison
of grade standards in the two countries
(Table 8) shows the differences in grade
factors and factor limits. With some
adjustment one can determine the sim-
ilarity or differences between the effec-
tive quality generated by the two sets
of standards.
The use of high-temperature dryers
has resulted in breakage and stress
cracks in both countries, despite some
worldwide belief that Argentine maize
neither experiences breakage nor con-
tains stress cracks. The results of this
study indicate that this is not true.
High-temperature drying of flint vari-
eties resulted in stress cracks and break-
age just as it does in dent varieties.
Argentina has moved rapidly toward
combine harvesting at high-moisture
levels, and the high-temperature dryers
that must accompany this technology
have generated an increasingly serious
problem of breakage. The tests con-
ducted in this research indicate that the
percentage of stress cracks in Argentine
flint varies with variety and drying
temperature. Similar results have been
found when testing U.S. maize [23].
The high-density, vitreous endosperm
found in the flint varieties in Argentina
is highly susceptible to stress cracks
during drying. Both U.S. and Argentine
producers and government agencies
may need to focus on practices and
incentives for reducing the problems
associated with high-temperature
drying.
24
Density and thickness of vitreous
endosperm is much greater for flint
varieties than in most commercial va-
rieties of U.S. dent maize. The value
of this for dry milling purposes is offset
by the smaller size of kernels. There-
fore, the yield of large flaking grits may
not be much greater in Argentine maize
that is free of stress cracks than in some
varieties of dent maize that are free of
stress cracks.
Chemical analysis of the Argentine
samples indicates a slightly higher pro-
tein content than in average U.S. dent
varieties but with significant variability.
For wet milling purposes the hardness
and the high density actually lengthen
steeping time and may decrease the
yield of starch relative to dent varieties
of similar characteristics. Thus, it is not
clear that flint has a unique advantage
over U.S. dent maize for wet milling:
its unique advantage has been the high
content of carotene which produces
dark yellow-skinned broilers and dark
yellow egg yolks. The introduction of
dent genetic material into Argentine
commercial seed maize varieties may
Flint-type maize is distinguished from dent-type by kernel shape and dark red color.
reduce the advantages of flintiness,
density, and carotene content that have
generated premiums in the past. The
gradual shift from Spain and Italy as
primary markets for Argentina to a
wider range of geographical destina-
tions suggests that customers may be
reducing the importance that they have
previously attached to these high caro-
tene factors.
Summary
The research reported in this publica-
tion has been based upon a limited
number of samples with restricted ac-
cess to data and sampling locations.
The research covers a relatively small
number of locations and sampling
points and should, therefore, be con-
sidered as a case study rather than as
a complete representation of the entire
Argentine maize industry. However, the
data provide the basis for several con-
clusions about the chemical and phys-
ical characteristics of Argentine maize
with comparison to U.S. maize. The
following points summarize the more
important characteristics:
1. The test weight of Argentine maize
was higher than that of U.S. dent va-
rieties, ranging from 778 to 797 kg/m3
(60.5 to 61.9 pounds per bushel) on
the samples collected from the vessel
in Buenos Aires. True kernel density
was also high, ranging from 1.24 to
1.31 g/m3. The test weight for U.S.
dent corn inspected for exports in 1985
ranged from 664 to 761 kg/m3 (51.6 to
59.1 pounds per bushel).
2. The percentage of kernels floating in
a 1.275 specific gravity solution indi-
cates that Argentine maize is very hard
and dense, and the endosperm thick-
ness test indicates a very thick layer of
vitreous endosperm in true flint vari-
eties. Dent varieties contain a higher
proportion of soft starch.
3. The number of kernels with stress
cracks on freshly harvested maize av-
eraged 13 percent. After artificial drying
this increased to 52 percent. Breakage
susceptibility values on a 6.35-mm
(16/64-inch) sieve after artificial drying
to approximately 13.7 percent moisture
averaged 32 to 40 percent. With natural
air-drying, breakage susceptibility val-
ues averaged 12 to 14 percent. These
values are very similar to those found
in dent corn subjected to similar stress.
4. One hundred-kernel weights indi-
cated Argentine maize was of higher
density on the average but with a wider
range among samples than U.S. maize,
owing to the difference in kernel size.
5. Throughout the market channel,
whole-kernel percentages remained
quite high, from 93 to 95 percent. The
effects of additional handling during
the discharge of maize from the ocean
vessel have not been established. Sim-
ilar studies of U.S. marketing showed
similar results, with the percentage of
whole kernels decreasing during the
discharge of the vessel.
6. BCFM increases through the market
channel, averaging 0.7 percent at the
first point of measurement on the farm.
At the incoming elevators, the average
was 1 . 1 percent. After drying and clean-
ing, BCFM had increased to 1.6 percent,
and after loading on one ocean vessel
using old crop maize, the hold averages
for BCFM were 5.0 percent. Weed seeds
are highest at the farm and incoming
country elevator level. The proportion
of weed seeds in the total sample was
near zero at the export elevator. Other
grains, inert materials, and fines less
than 1.4 mm are highest in the export
elevator and were higher in the top-off
maize at Buenos Aires than in the maize
loaded at Rosario. These results are
similar to those found in studies of U.S.
exports.
7. Nearly all Argentine maize is har-
vested by combine and artificially dried.
Most of it is trucked directly to country
elevators at harvest because there is
little on-farm storage. Typically, maize
is artificially dried from moistures of
22 percent or greater to 14.5 percent.
Dryeration or tempering techniques are
frequently used in an attempt to reduce
stress cracks, breakage susceptibility,
and breakage. U.S. technology and
practices are similar except that about
50 percent of drying and storage takes
place on the farm.
25
Conclusions
1. Argentine and U.S. producers are
competing for a world market with
maize that exhibits similar quality char-
acteristics. The genetic differences are
becoming less pronounced as plant
breeders strive for higher yields.
2. The technology of production, har-
vesting, and drying is similar for Ar-
gentine and U.S. maize. The quality
problems (especially breakage) associ-
ated with this technology present a
similar challenge to both countries.
3. As the quality distinctions between
U.S. and Argentine maize decrease, the
extent of overlap between importing
customers will increase, and the shifts
among trading partners will become
more frequent, responding primarily to
the delivered price.
4. The quality differentiation within
either Argentina or the United States
can provide new market opportunities
to specific industries or firms, but only
if a more discriminating grading and
marketing system is developed to allow
price differentials to direct each quality
to its highest valued use and to provide
the necessary incentives to producers.
References
1. Apple, R. W. 1982. "Europeans Ending Argentine Imports" in The Neiv York
Times, April 11: 1, 12.
2. Bolsa de Cereales de Buenos Aires. 1986. Numero Estadistico: 17.
3. Bolsa de Cereales de Buenos Aires. 1982. Unpublished tables.
4. Chiang, S. W. and Blaich, O. P. 1983. Argentina's Grain Marketing System. ERS
Staff Report No. AGE 5830916. USDA-ERS, International Economics Division.
Washington, D.C.: November.
5. Coscia, Adolfo A. 1980. Comercializacion de Granos. Buenos Aires: Editorial
Hemisferio Sur S.A.
6. Coscia, Adolfo A. 1980. Porque Argentina Produce Maiz Flint. INTA. Estacion
Experimental Regional Agropecuaria Pergamino. Boletin de Divulgation Tecnica
50. September.
7. Doane-Western. 1982. World Agriculture Profile Alert. May 28: 2.
8. Duval, L. 1916. "The Production and Handling of Grain in Argentina." In:
USDA, Yearbook of the Department of Agriculture 1915. Washington, D.C.:
Government Printing Office; 281-298.
9. FAO. 1985. 2984 FAO Production Yearbook. Vol. 38. Rome.
10. FAO. 1966. World Crop Statistics. Area, production, and yield, 1948-64. Rome.
11. Hill, L. D., Paulsen, M. R., and Early, M. 1979. Corn Quality: Changes During
Export. Agr. Exp. Sta. College of Agr. Univ. of Illinois, Sp. Publ. 58.
12. INTA (Institute Nacional de Technologia Agropecuaria). 1980. El cultivo del
maiz. Buenos Aires: September.
26
13. Jacobs, Eduardo, and Gutierrez, Marta. 1986. La Industria De Semillas En La
Argentina, Centra De Investigaciones Sociales Sobre El Estado Y La Administration,
Proyecto Organization De La Investigation Agropecuaria (Proagro), Documento
CISEA N°85, Marzo de 1986. Buenos Aires: 43, Table 2.
14. Junta Nacional de Granos. 1986. Capacidad de Almacenaje. Buenos Aires.
15. Mielke, Myles F. 1984. Argentine Agricultural Policies in the Grain and Oilseed
Sectors. Foreign Agricultural Economic Report No. 206. USDA-ERS, Interna-
tional Economics Division. Washington, D.C.: September.
16. Ministerio de Agricultura y Ganaderia. Junta Nacional de Granos. 1982. Nuevas
Normas Para la Clasificacion de Sorgo y Mais. Buenos Aires.
17. Ministerio .... N.D. Anuario 1982. Buenos Aires.
18. Ministerio .... N.D. Anuario 1981. Buenos Aires.
19. Morgan, J. 1985. "USSR, Italy Back Plan for Argentine Port." Journal of
Commerce, October 16: 24B.
20. Office of the Agricultural Counselor, Argentina. 1987. Annual Agricultural
Situation Report. AR-7020, CERP 0400. Buenos Aires: February 27; Table 27.
21. Paulsen, M. R. 1983. Corn Breakage Susceptibility as a Function of Moisture
Content. ASAE Paper No. 83-3078. St. Joseph, Michigan: American Society of
Agricultural Engineers.
22. Paulsen, M. R. and Hill, L. D. 1985. "Corn Quality Factors Affecting Dry
Milling Performance." /. Ag. Engr. Res., 31:255-263.
23. Paulsen, M. R., Hill, L. D., White, D. G., and Sprague, G. F. 1983. "Breakage
Susceptibility of Corn-Belt Genotypes." Transactions of ASAE, 26(6): 1830- 1836,
1841.
24. Secretary of State, Agriculture, Livestock and Fishery. 1985. Buenos Aires.
Unpublished data.
25. South Africa Maize Board. 1985. Report on Maize, 1935-1985. Pretoria: October.
26. U.S. Agricultural Attache in Buenos Aires. Grain and Pulses Data Sheet.
December 15, 1982.
27. USDA. Agricultural Statistics. Washington, D.C.
28. USDA-ERS. 1984. Corn Background for 1985 Farm Legislation. Washington, D.C.
29. USDA-ERS. 1983. Feed Outlook and Situation Report. Washington, D.C.:
May; 18.
30. USDA-ERS. 1968. World Trade in Selected Agricultural Commodities 1951-65.
Volume II: Food and Feed Grains: Wheat, Rice, Maize, Barley, and other
cereals. Foreign Agricultural Economic Report No. 45. Washington, D.C.
31. USDA-FAS. 1985. Grains, World Grain Situation, and Outlook. FG-1-85. Wash-
ington, D.C.: January.
32. USDA-FAS. 1985. Grains. Foreign Agriculture Circular. Washington, D.C.:
February.
33. USDA-FAS. 1982. Grain Exports by Selected Exporters. Foreign Agriculture
Circular. Washington, D.C.: March.
34. USDA-FAS. 1978. Grain Exports by Selected Exporters. Foreign Agriculture
Circular. Washington, D.C.: March.
35. USDA-FAS. 1970. Grain Production and Marketing in Argentina. FAS-M222.
Washington, D.C.: December.
36. USDA. FGIS. 1985. Official United States Standards for Grain. Revised May 25,
1985. Revised pages, effective September 9, 1985.
27
Tables
Table 1. Area Harvested, Production, and Exports of Argentine Maize, 1951/52 to 1984/85
Area
harvested Production Exports
Year1 (1,000 hectares) (1,000 metric tons) (1,000 metric tons)
1951/52 (50) 1,714 2,670 480
1952/53 (51) 1,431 2,040 633
1953/54 (52) 2,856 3,550 1,150
1954/55 (53) 2,414 4,450 2,050
1955/56 (54) 1,863 2,546 268
1956/57 (55) 2,240 3,870 1,206
1957/58 (56) 1,957 2,698 793
1958/59 (57) 2,448 4,806 2,093
1959/60 (58) 2,361 4,932 2,728
1960/61 (59) 2,415 4,108 2,068
1961/62 (60) 2,744 4,850 1,838
1962/63 (61) 2,757 5,220 2,889
1963/64 (62) 2,645 4,360 2,590
1964/65 (63) 2,971 5,350 3,442
1965/66 (64) 3,062 5,140 2,667
1966/67 (65) 3,274 7,040 3,855
1967/68 (66) 3,450 8,000 4,117
1968/69 (67) 3,378 6,560 3,229
1969/70 (68) 3,556 6,860 3,765
1970/71 (69) 4,017 9,360 5,559
1971/72 (70) 4,066 9,930 6,441
1972/73 (71) 3,147 5,860 2,537
1973/74 (72) 3,565 9,000 4,702
1974/75 (73) 3,486 9,900 5,716
1975/76 (74) 3,070 7,700 3,485
1976/77 (75) 2,766 5,855 3,238
1977/78 (76) 2,532 8,300 5,231
1978/79 (77) 2,660 9,700 5,916
1979/80 (78) 2,899 9,000 5,965
1980/81 (79) 2,490 6,400 3,417
1981/82 (80) 3,394 12,900 9,098
1982/83 (81) 3,170 9,600 5,765
1983/84 (82) 2,970 9,000 6,056
1984/85 (83) 3,025 9,500 ' 5,800
•' Years in parentheses denote production years used for aggregating world crops. Split years (e.g., 1982/83) are Foreign Agricultural Service
marketing years which are lagged 1 year behind the production years used in Argentine publications.
Source: Data from 1951/52 to 1959/60 are taken from [35, p. 35]; data from 1960/61 to 1984/85 are taken from [32, p. 6).
28
Table 2.
Area Planted and Production of Maize in Argentine Provinces, 1978/79 to
1984/85
Buenos
Aires
Santa
Fe
Cordoba
La
Pampa
Entre
Rios
Other
provinces
Total
1978/79. . .
(1,000 hectares)
220
(6.7)
300
(9.1)
338
(8.5)
290.8
(7.9)
280
(8.1)
276
(7.9)
310
(8.2)
i nnn k „,-*,..,-.,-» .
1,330
519
(15.7)
460
(13.9)
541
(13.5)
530
(14.3)
523
(15.2)
465
(13.3)
440
(11.6)
700
(21.2)
700
(21.1)
855
(21.4)
874.8
(23.7)
820
(23.8)
848
(24.3)
1,060
(27.9)
148
(4.5)
135
(4.1)
246.9
(6.2)
169.1
(4.6)
195.5
(5.7)
121
(3.5)
NA
(0)
383
(11.6)
473
(14.3)
519.1
(13.0)
549.3
(14.9)
546.5
(15.9)
579
(16.6)
690
(18.1)
3,300
3,310
4,000
3,695
3,440
3,484
3,800
1979/80...
(40.3)"
1,242
1980/81...
(37.5)
1,500
1981/82...
(37.5)
1,281
1982/83...
(34.7)
1,075
1983/84...
(31.3)
1,195
1984/85...
(34.3)
1,300
1978/79...
(34.2)
3 670
2,100
(24.1)
1,515
(23.7)
2,505
(19.4)
2,000
(20.8)
1,630
(18.1)
1,270
(13.4)
1,680
(13.2)
1,918 310
(22.0) (3.6)
1,220 221
(19.1) (3.5)
2,723 259
(21.1) (2.0)
1,900 185
(19.8) (1.9)
2,650 180
(29.4) (2.0)
2,540 270
(26.7) (2.8)
4,110 390
(32.3) (3.1)
126
(1.4)
104
(1.6)
570
(4.4)
299
(3.1)
232.6
(2.6)
127
(1.3)
NA
(0)
576
(6.6)
820
(12.8)
770
(6.0)
1,056
(11.0)
1.027.4
(11.4)
1,163
(12.3)
1,720
(13.5)
8,700
6,400
12,900
9,600
9,000
9,500
12,720
1979/80...
(42.2)a
2 520
1980/81....
(39.4)
6,073
1981/82....
(47.1)
4,160
1982/83....
(43.3)
3,280
1983/84....
(36.5)
4,130
1984/85....
(43.5)
4,820
(37.9)
' Number in parentheses represent each province
Sources: The data for 1978/79 and 1979/80 are
Note: Table 3 appears on page 33.
's percentage of the total,
from [17, p. 8]. Data for 1980/81 to 1984/85 are from [3, 24].
29
Table 4. Annual Maize Exports for the United States, Argentina, and the World, and Comparison of
Market Shares, 1911 through 1983/84
Export volume, mmt
Market share, %
Year1
World"
Argentina
U.S.
Argentina
U.S.
1911-13 average
8.78
4.82
. 1.21 ..
54.9
13.8
.62.0
477
1951/52
4.478
. . . . 0.480
. 2.776 ..
. 2.224 ..
10.7
13.6
1952/53
4.666
0.633
1953/54
5.609
1.150
. 3.603 ..
. 1.701 ..
20.5
40.0
.64.2
.33.0
1954/55
5.148
. . . . 2.050
1955/56
5.817
. . . . 0.268
. 2.718 ..
4.6
.46.7
1951-55 average
5.144
0.916
. 2.604 ..
17.8
506
1956/57
6.643
. . . . 1.206
. 2.885 ..
. 4.233 ..
18.2
10.8
.43.4
.57.7
1957/58
7.338
0.793
1958/59
9.511
2.093
. 4.409 ..
. 5.288 ..
22.0
27.4
.46.4
.53.1
1959/60
9.960
. . . . 2.728
1960/61
12.083
. . . . 2.068
. 5.142 ..
17.1
.42.6
1956-60 average
9.107
1.778
. 4.391 ..
19.5
.48.2
1961/62
1962/63
19.900
20.001
. . . . 2.914
.10.481 ..
14.7
.52.7
2.614
.10.069 ..
13.1
.50.3
1963/64
21.800
3.422
.12.068 ..
15.7
.55.4
1964/65
23.900
2.667
.14.240 ..
.16.737 ..
.12.719 ..
11.2
23.1
15.9
.59.6
.60.2
.56.1
1965/66
27.800
. . . . 6.421
1961-65 average
1966/67
1967/68
22.680
26.300
29.000
. . . . 3.610
.... 4.118
. . . . 3.229
.12.137 ..
.15.546 ..
.13.300 ..
.15.548 ..
15.7
11.1
14.3
18.0
.46.1
.53.6
.50.6
.50.3
1968/69
26.300
. . . . 3.764
1969/70
30.900
5.558
1970/71
31.401
6.442
.12.853 ..
.13.877 ..
20.5
16.1
.40.9
.48.2
1966-70 average
1971/72
28.780
34.899
4.622
2.538
.19.869 ..
7.3
.56.9
1972/73
44.501
4.702
.31.536 ..
.31.241 ..
.29.186 ..
.43.459 ..
10.6
10.7
7.5
5.3
.70.8
.58.4
.63.0
.71.7
1973/74
53.500
5.715
1974/75
46.299
3.485
1975/76
1971-75 average
60.599
47 960
. . . . 3.239
3 936 . . .
.31.058 ..
.42.773 ..
.49.479 ..
.54.181 ..
.61.801 ..
.59.820 ..
.53.611 ..
.49.964 ..
.47.501 ..
8.2
8.6
9.0
8.4
7.6
10.9
8.9
8.0
9.1
.64.8
.70.6
.74.9
.76.2
.78.8
.71.5
.74.5
.69.5
.71.0
1976/77
1977/78
60.599
66.099
. . . . 5.230
. ... 5.916
1978/79
71.101
5.964
1979/80
78.399
5.957
1980/81
83.700
9.099
1976-80 average
1981/82
71.980
71.901
. . . . 6.433
5.766
1982/83
66.899
6.056
1983/84C
66 099
. . 5.999
.48.260 ..
.48.575 ..
9.1
8.7
.73.0
.71.1
1981-83 average
68.300
. . . . 5.940
0 Argentine crop years have been shifted forward one
is recorded as 1957/58 marketing year).
'' Includes intra-EC trade.
' Forecast as of August 13, 1984.
Sources: 1911 to 1913 data from [8, p. 289]. 1951/52
[35, p. 35]. 1961/62 to 1982/83 data from [28, pp. 48
year to correspond with U.S.
to 1960/61 data: World and
50]: 1961/62 to 1978/79 are
marketing years (i.e., 1956/57 crop year for Argentina
^-
U.S. data from [30, pp. 125-134]. Argentine data from
July/June years, thereafter October/September.
30
Table 5.
Volume
of Maize Exported from Argentina by Port of Origin, 1970-1985,
in Thousand Tons
Calendar
year
Buenos
Aires
Villa
Rosario Constitucion
Bahia
Blanca
San
Nicolas
Quequen
Other
ports
Total
1970
. . 1 956 7
2,236.3
(42.7)
2,524.5
(41.3)
1,373.3
(45.2)
1,757.1
(40.6)
1,808.7
(32.2)
1,311.5
(32.8)
880.3
(28.8)
1,990.4
(36.4)
1,908.2
(31.9)
1,885.7
(31.6)
1,564.2
(44.4)
2,907.8
(31.9)
1,599.4
(30.7)
2,468.3
(38.1)
1,708.7
(30.7)
2,123.0
(42.5)
339.8
(6.5)
492.1
(8.0)
279.7
(9.2)
404.6
(9.4)
544.7
(9.7)
338.1
(8.4)
302.0
(9.9)
683.4
(12.5)
960.8
(16.1)
936.2
(15.7)
483.0
(13.7)
934.6
(10.3)
585.8
(11.2)
596.9
(9.2)
562.8
(10.1)
357.7
(7.2)
64.3
(1.2)
66.0
(1.1)
1.5
(0.05)
118.5
(2.7)
376.0
(6.7)
207.6
(5.2)
191.5
(6.3)
249.5
(4.6)
331.3
(5.5)
368.4
(6.2)
141.7
(4.0)
961.5
(10.6)
354.9
(6.8)
435.5
(6.7)
431.8
(7.8)
26.8
(0.5)
140.5
(2.7)
152.5
(2.5)
96.0
(3.2)
99.3
(2.3)
209.6
(3.7)
197.8
(4.9)
137.3
(4.5)
67.0
(1.2)
289.9
(4.8)
598.2
(10.0)
225.7
(6.4)
716.4
(7.9)
382.7
(7.3)
579.8
(9.0)
711.9
(12.8)
565.2
(11.3)
67.9
(1.3)
28.1
(0.46)
0.2
(0.01)
0.0
(0.0)
44.9
(0.80)
14.1
(0.40)
10.0
(0.30)
49.1
(0.90)
58.1
(1.0)
20.5
(0.34)
0.01
(0.0)
102.2
(1.1)
0.0
(0.0)
21.0
(0.3)
109.4
(2.0)
43.0
(0.9)
436.2
(8.3)
471.8
(7.7)
124.4
(4.1)
186.0
(4.3)
644.5
(11.5)
291.4
(7.3)
162.8
(5.3)
344.0
(6.3)
309.3
(5.2)
412.7
(7.0)
144.0
(4.1)
1,515.6
(16.6)
988.7
(19.0)
672.7
(10.4)
722.3
(13.0)
998.7
(20.0)
5,241.7
(100)
6,113.3
(100)
3,039.2
(100)
4,325.6
(100)
5,613.9
(100)
4,001.4
(100)
3,058.6
(100)
5,474.0
(100)
5,984.5
(100)
5,964.1
(100)
3,524.6
(100)
9,112.1
(100)
5,214.2
(100)
6,476.5
(100)
5,558.4
(100)
4,997.5
(100)
1971
(37.3)a
.. 2,378.3
1972
(38.9)
.. 1,164.1
1973
(38.3)
.. 1,760.1
1974
(40.7)
. . 1 985 5
1975
(35.4)
.. 1,640.5
1976
(41.0)
.. 1,374.7
1977
(44.9)
. . 2 090 5
1978
(38.2)
.. 2,127.0
1979
(35.5)
. . 1 742 4
1980
(29.2)
. . 966.1
1981
(27.4)
. . 1 973 9
1982
(21.7)
.. 1,302.8
1983
(25.0)
.. 1,702.2
1984
(26.3)
.. 1 311 5
1985b ....
(23.6)
. . 883.1
(17.7)
J Numbers in parentheses represent individual port's percentage of total export
b 1985 data includes data for January through July.
Sources: 1970 to 1981 data from [17, p. 74]; 1982 to 1985 data from [3, 24].
volume.
31
Table 6. Export Volume in 1,000 metric tons and Market
Destination, 1973/74 through 1985'
Shares of
Argentine Maize by Country of
Peoples
Total
Nether-
United
Republic Argentine
Year
Italy
Spain
USSR
lands
Kingdom
Mexico
of China
exports
1973/74
2,772
600
246
115
120
1
252
5,111
(54.2)
(11.7)
(4.8)
(2.3)
(2.3)
(0.02)
(4.9)
1974/75
2,056
556
1,148
59
5
723
473
5,831
(35.3)
(9.5)
(19.7)
(1.0)
(0.09)
(12.4)
(8.1)
1975/76
1,520
225
213
68
1
289
2,595
(58.6)
(8.7)
(8.2)
(2.6)
(0.04)
(11.1)
(0)
1976/77
1,893 1
,109
184
126
133
25
4,384
(43.2)
/**'•'
(25.3)
(4.2)
(2.9)
(3.0)
(0.6)
(0)
1977/78
1,381 1
,069
1,608
142
94
48
59
5,997
(23.0)
(17.8)
(26.8)
(2.4)
(1.6)
(0.8)
(1.0)
1978/79
1,838 1
,573
1,387
147
53
21
131
6,664
(27.6)
(23.6)
(20.8)
(2.2)
(0.8)
(0.3)
(2.0)
1979/80
709
314
2,461
55
21
4,060
(17.5)
(7.7)
(60.6)
(1.4)
(0.51)
(0)
(0)
1980b
328
1
2,965
74
3,525
(9.3)
(0.4)
(84.1)
(2.1)
(0)
(0)
(0)
1981
300
225
7,989
98
3,525
(3.3)
(2.5)
(87.7)
(1.1)
(0)
(0)
(0)
1982
227
397
3,301
92
132
5,214
(4.4)
(7.6)
(63.3)
(1.8)
(0)
(0)
(2.5)
1983
395
697
2,002
102
49
6,477
(6.1)
(10.8)
(30.9)
(1.6)
(0)
(0)
(0.8)
1984
335
591
1,090
62
5,558
(6.0)
(10.6)
(19.6)
(1.1)
(0)
(0)
(0)
1985
502
956.4
2,038.7
107.4
197.4
3,238.2
(7.1)
(13.6)
(29.0)
(1.5)
(0)
(2.7)
(0)
7,040.8
' Market
shares are in parentheses
and indicate a
volume less
than 1,000 mt.
b 1980 to
1985 reporting period has been shifted
to a calendar
year.
Sources:
1973/74 to 1979/80 data
from [33, 34]
Data for 1980 to 1985 are from government
publications [24].
Estimates vary
by source;
so do the time periods used for crop years, marketing years, and calendar years
No consistent
sources were found that covered
the entire
period.
—-
32
Table 3. Industrial Use of Argentine Maize 1960/61 to
1983/84
Production
YearJ (1,000 mt)
Industrial use
(1,000 mt)
(Percent)
1960/61 4 850
. ... 234
4.8
1961/62 5 220
231
4.4
1962/63 4,360
209
4.8
1963/64 5 350
206
3.9
1964/65 5 140
284
5.5
1965/66 7 040
422
6.0
1966/67 8510 ...
379
4.5
1967/68 6 560
452
6.9
1968/69 6,860
559
8.1
1969/70 9 360
623
6.7
1970/71 9 930
749
7.5
1971/72 5 860
1 016
17.3
1972/73 . 9700
1,181
12.2
1973/74 9,900
1,145
11.6
1974/75 7,700
1,603
20.8
1975/76 5,855
1,378
23.5
1976/77 8,300
1,372
16.5
1977/78 9 700
1,169
12.1
1978/79 8 700
1,035
11.9
1979/80 6,400
1,350
21.1
1980/81 12 900
1,299
10.1
1981/82 9600
1,366
14.2
1982/83 9,000
1,496
16.6
1983/84 9,500
. 1,543 .
. 16.2
•' Argentine crop year March 1 through February 28.
Source: 1960/61 to 1978/79 from [17, 18]; 1979/80 to 1983/84 from [24].
Table 7. Grain Storage Capacity
Argentine Ports
and Volume of Grain
Handled at
Storage T
capacity, 1980
Port (1,000 tons)
7nl,,mP nf grain* Transport
share, 1979, %'
handled, 1979 Rail
(1,000 tons) (%)
Truck Barge
(%) (%)
Rosario 391
4,009 57
3,984 48
2,381 62
778 6
1,028 1
801 22
1,527 29
770
43 0
52 0
36 1
94 0
99 0
78 0
71 0
Bahia Blanca 206.1
Buenos Aires 170
San Nicolas 67.5
Queouen 93
Santa Fe 64
Villa Constitution 55
Others 110.5
Total 1 157.1
15,278 42
58 2
" Figures do not always add up to 100% due
Source: [4, pp. 10-15].
to rounding.
33
Table 8. Comparison of U.S. and Argentine Grading Standards for Maize
Test
% Total weight % Heat
% Moisture % BCFM11 % Brokens % FMC damage (Ib/bu) damage
Grade U.S.' Arg. U.S. Arg. Arg. U.S. Arg. U.S. Arg. U.S. Arg.
1 14.0 14.5 2.0 2.0 1.0 3.0
3.0 56.0 nfe 0.1 nf
5.0 54.0 nf 0.2 nf
8.0 52.0 nf 0.5 nf
12.0 49.0 nf 1.0 nf
46.0 nf 3.0 nf
2 15.5 14.5 3.0 3.0 1.5 5.0
3 17.5 14.5 4.0 5.0 2.0 7.0
4d 20.0 14.5 5.0 5.0 2.0 10.0
5 23.0 ... 7.0 ... ... 15.0
a Moisture as a grade-determining factor was removed from U.S. standards effective September 9, 1985.
b Broken corn and foreign material.
c Foreign material.
d Grade No. 4 is established by Junta Nacional de Granos in those seasons where high damage levels make it impossible to reach Grade
No. 3 for export contracts. It differs from Grade No. 3 only in the percent of total damage.
' Not a factor.
Source: [12, p. 122; 36].
Table 9. Comparison of Charges in Pesos for Maize Delivered by
Argentine Farmers to Four Elevators in the Pergamino Area3
Elevator codeh
Services A B C D
Commission 15000 33,000 24,000 27,000
Drying 14,000 14,250 10,500 12,750
Loading and unloading 7,500 10,000 9,000 9,000
Screening 4 000 6 000 0 7,000
Freight to nearest port 27 878 21 558 23 000 21 558
Fumigation 5,000 6,000 9,000 7,000
73,378 90,808 75,500 84,308
Price/Quintal.. /^n ttn ttn (.(.n
bbO bbU bbU bbU
a Charges are given in 1983 pesos. As a result of inflation and devaluation, actual numbers
have little significance except to show the relative difference at a point in time. All charges
were provided for the same day for a truck sale of 100 kg of No. 2 flint corn at 18.5 percent
moisture containing sufficient weed seeds to require screening.
b Elevator A was privately owned. Elevators B, C, and D were cooperatives.
Source: Personal interviews with four managers at four country elevators, 1983.
34
Table 10. Quality Characteristics for Six Samples of Argentine Maize
Collected from Combines on Five Farms
Quality measure
Mean
deviation
Low
High
Test weight, kg/m3 773.0 21.0 736.0 793.0
lb/bu 57.6 1.6 54.9 59.1
Broken corn < 16/64" sieve, % 2.9 0.7 2.0 3.9
BCFM < 12/64" sieve, % 0.7 0.4 0.3 1.3
Whole kernels in 50 g, % 94.3 3.1 90.4 98.2
Stress cracks, % 13.0 8.7 4.0 24.0
Breakage susceptibility, % 11.7 3.1 9.7 17.8
Floaters, % 16.0 14.4 2.0 41.0
100-kernel dry weight, g 24.5 1.9 21.1 26.1
Density, g/cm3 1.29 0.03 1.23 1.33
Physical separations
Other grains, % 0 0 0 0
Weed seeds, % 0.012 0.018 0 0.046
Cobs, husks, insects, dust,
and material < 1.4 mm, % 0.173 0.080 0.096 0.311
Table 11. Quality Characteristics for Twenty-Six Samples of Argen-
tine Maize Collected from Incoming Trucks and Trailers
at Five Country Elevators
Quality measure Mean deviation Low High
Test weight, kg/m3 769.0 15.8 719.4 789.5
lb/bu 59.7 1.2 55.9 61.3
Broken corn < 16/64" sieve, % 3.6 1.0 2.4 5.8
BCFM < 12/64"' sieve, % 1.1 0.6 0.4 2.5
Whole kernels in 50 g, % 95.1 2.4 87.6 98.2
Stress cracks, % 11.1 4.0 4.0 20.0
Breakage susceptibility, % 13.6 3.2 8.6 21.6
Floaters, % 12.5 8.0 2.0 37.0
100-kernel dry weight, g 24.4 1.9 19.8 30.6
Density, g/cm3 1.29 0.02 1.25 1.33
Physical separations
Other grains, % 0.002 0.009 0 0.045
Weed seeds, % 0.015 0.042 0 0.210
Cobs, husks, insects, dust,
and material < 1.4 mm, % 0.183 0.180 0.025 0.809
35
Table 12. Breakage Characteristics
of Argentine Maize after Drying
Sample Dryer
no. identification
% BCFM
% Stress
cracks
% Breakage
susceptibility
035 A
1.47
1.04
1.34
0.88
0.88
1.11
1.11
1.67
0.59
0.65
1.55
2.15
0.85
1.18
82
82
70
24
70
26
46
78
36
40
36
32
50
52
43.30
46.80
49.40
13.25
44.90
22.85
48.05
45.25
25.15
25.50
29.20
26.45
29.75
34.60
036 A
037 A
065 B
069 C
070 C
071 D
072 E
074 F
078 G
079 H
081 I
082 I
Average
Table 13. Quality Characteristics for Twenty-three Samples of Artifi-
cially Dried Argentine Maize Loaded Out of Five Country
Elevators
Quality measure
Mean
Standard
deviation
Range
Low High
Test weight, kg/m3
765.2
10.0
0.8
1.1
0.8
1.9
17.0
9.5
13.5
0.86
0.02
0.152
0.012
0.295
744.5 786.7
57.8 61.1
3.2 7.1
0.5 3.1
91.0 98.2
24.0 82.0
13.3 49.4
2.0 57.0
21.2 25.3
1.24 1.30
0 0.583
0 0.056
0.033 1.118
Ib/bu
59.4
Broken corn 16/64" sieve, %
Bro'ken corn 12/64" sieve, %
Whole kernels in 50 g, % ...
.. . 49
1.6
94.6
Stress cracks, %
554
Breakage susceptibility, %. . .
37.2
Floaters, %
28.3
100-kernel dry weight, g . . . .
23.4
Density, g/cm3
1.28
Physical separations
Other grains, %
0.085
Weed seeds, %
0.008
Cobs, husks, insects, dust,
and material < 1.4mm, % 0.298
36
Table 14. Quality Characteristics of Receipts and Shipments of Maize at an Argentine Elevator, 1983
Quality measure
No. of
samples
Mean
Standard
deviation
Range
Low
High
Outbound truck shipments'
Test weight, kg/m3 8
Ib/bu 8
Broken corn < 16/64" sieve % 8
BCFM < 12/64" sieve, % 8
Whole kernels in 50 g, % 8
Stress cracks, % 8
Breakage Susceptibility, % 8
Floaters, % 8
100-kernel dry weight, g 8
Density, g/cm3 8
Physical separations
Other grains, % 8
Weed seeds, % 8
Dust and inert material,' % 8
Inbound truck receipts'"
Test weight, kg/m3 13
Ib/bu 13
Broken corn < 16/64" sieve, % 13
BCFM < 12/64" sieve, % 13
Whole kernels in 50 g, % 13
Stress cracks, % 13
Breakage susceptibility, % 13
Floaters, % 13
100-kernel dry weight, g 13
Density, g/cm3 13
Physical separations
Other grains, % 13
Weed seeds, % 13
Dust and inert materials, % 13
767.06
59.59
6.02
2.55
94.25
60.50
39.82
31.13
23.50
1.27
0.09
0.01
0.55
766.34
59.54
3.73
1.14
96.09
10.15
14.68
11.15
24.51
1.29
0
0.01
0.21
5.59
0.43
0.71
0.43
1.53
6.02
1.49
9.14
0.65
0.01
0.05
0.02
0.36
9.96
0.77
1.02
0.55
1.75
4.20
2.14
5.96
2.48
0.02
0
0.02
0.16
758.62
58.94
5.26
2.01
92.40
54.00
38.05
13.00
22.19
1.25
0
0
0.16
747.54
58.08
2.42
0.41
92.80
4.00
10.00
2.00
19.85
1.26
0
0
0.08
744.05
60.14
7.08
3.10
97.20
72.00
42.90
42.00
24.33
1.28
0.15
0.06
1.12
779.87
60.59
5.39
2.10
98.20
20.00
18.20
24.00
30.60
1.33
0
0.06
0.63
•' After drying, the maize was loaded on eight trucks for shipment to the port. Representative samples were taken from each truck.
'" Representative samples were taken from each of 13 trucks delivering corn from farms.
37
Table 15. Comparison of Quality Characteristics of
Rosario and Buenos Aires
Maize Loaded at
Mean
Quality measure Rosario
Buenos Aires
Test weight kg/m3 778.0
785.0
58.5
9.9
5.0
92.7
53.3
40.4
22.7
24.8
1.29
0.29
0.01
0.66
Ib/bu 58.0
Broken corn: 16/64" sieve, % 5.1
Broken corn: 12/64" sieve, % 1.7
Whole kernels in 50 g % 94.7
Stress cracks, % 42.8
Breakage susceptibility, % 31.7
Floaters %. 16.1
100-kernel dry weight, g 24.1
Density, g/cm3 1.29
Physical separations
Other grains, % 0.05
Weed seeds, % 0.01
Cobs, husks, insects, dust,
and material < 1.4 mm, % 0.31
Table 16. Variability of Quality Characteristics for
of Export Vessel Loaded at Buenos Aires
Sixteen Samples of Argentine Maize from Top
Layers
Quality measure Mean
Standa
deviati
ra RanSe
on Low
High
Test weight, kg/m3 785.0
4.7 778.0
0.4 58.0
3.0 6.0
2.0 2.4
2.2 87.8
11.8 28.0
5.3 31.1
7.0 16.0
0.72 23.4
0.02 1.24
G>
0.368 0.012
0.005 0
0.391 0.257
797.0
59.4
15.0
8.9
95.6
76.0
49.7
39.0
26.6
1.31
1.431
0.017
1.864
Ib/bu 58.5
Broken corn < 16/64" sieve, % 9.9
BCFM < 12/64" sieve, % 5.0
Whole kernels in 50 g, % . 92.7
Stress cracks, % 53.3
Breakage susceptibility, % 40.4
Floaters, % 22.7
100-kernel dry weight, g 24.8
Density, g/cm3 1.29
Physical separations
Other grains, % 0.291
Weed seeds, % 0.009
Cobs, husks, insects, dust,
and material < 1.4 mm, % 0.659
38
Table 17. Chemical Properties of Maize From Argentine and United States Origins, by Percent'
Origin
Sample no.b
Moisture
Fat
Fiber
Ash
Protein
NFEC
Argentine farm .
Argentine elevator.
Argentine export elevator
U.S. processor
U.S. exporter
. 1
2
3
4
5
6
7
8
. 9
10
11
12
13
14
.15
16
17
.18
19
20
.21
11.01
11.28
14.23
13.54
13.16
12.60
13.60
12.60
16.87
14.22
14.43
15.81
12.56
14.77
12.53
12.54
13.06
14.41
14.00
13.95
12.67
5.41
5.48
5.04
4.96
6.30
5.77
4.76
5.33
5.28
6.17
6.01
5.59
4.96
5.48
5.75
5.18
5.27
3.60
4.42
4.96
6.11
1.75
1.93
2.03
1.86
1.84
1.81
2.09
1.84
2.01
1.75
1.87
1.91
2.06
1.95
1.97
1.94
2.02
2.09
2.00
1.85
1.60
1.67
1.68
1.75
1.58
1.68
1.52
1.55
1.65
1.54
1.52
1.45
1.52
1.51
1.55
1.44
1.37
1.51
1.34
1.43
1.48
1.55
9.05
8.65
8.65
11.15
11.09
11.74
10.22
11.45
10.65
10.55
10.37
10.74
10.14
10.72
9.61
9.25
9.62
8.95
8.48
9.05
10.05
82.12
82.27
82.53
80.44
79.09
79.16
81.38
79.72
80.52
80.02
80.31
80.24
81.32
80.30
81.23
82.25
81.59
84.02
83.67
82.66
80.68
' Samples were analyzed by Analytical Bio-Chemistry Laboratories, Missouri. All analyses are on a dry matter basis.
b Samples 1 to 8 were from Argentine farms. Samples 9 to 14 were from Argentine elevators during 1983 harvest. Samples 15 to 17 were from
Argentine export elevators. Samples 18 to 20 were randomly selected from truck deliveries at an Illinois processing plant during 1983 and 1984.
Sample 21 was a composite obtained by diverter sampler at a U.S. export elevator.
c Nitrogen free extract.
Table 18. Chemical Analysis of U.S. and Argentine Composite
Samples
Argentine
field samples
Characteristic (No. 1) (No. 2)
Argentine composite,
export house
(No. 3)
Illinois composite,
mill receipts
(No. 4)
Moisture, %'... 12.60 11.28
Fat, % 5.77 5.48
Fiber, % 1.81 1.93
Protein, % 11.74 8.65
Ash, % 1.52 1.68
NFE, o/o" 79.16 82.27
12.67
6.11
1.60
10.05
1.55
80.68
13.95
4.96
1.85
9.05
1.48
82.66
" All data have been converted to a percent of dry matter in the sample.
h NFE = nitrogen free extract.
39
UNIVERSITY OF ILLINOIS-URBANA