Differences in Profitability by Producer Strata in the Argentine Pampas Region

Abstract

The evolution of the different processes studied in the agricultural territory reveals a latent conflict between actors based on their interests. The aim of this work is to identify the agents and characterize their traditional agricultural commercial schemes, including the variations re-flected in the gross margin of each agricultural activity. In 2021, semi-structured interviews were conducted with various agents located in central and southern Santa Fe and northwestern Buenos Aires, using a non-probabilistic intentional sample. The results allow for the division of the production sector into three strata with different commercial relationships among agents in the Pampas agricultural territory: a) small producers who trade with cooperatives and/or col- lection points (P); b) medium producers who trade 50% with cooperatives and 50% with brokers (M); and c) large producers who trade directly with exporters (G). For wheat, the difference in the gross margin between (P) and (M) is 26%, while the difference between (P) and (G) widens to 68%, equivalent to $66.31 per hectare. For second-crop soybeans, the difference in the gross margin between (P) and (M) is 10%, while comparing (P) with (G), the difference increases to 32%, equivalent to $56.47 per hectare. This results in a difference of $122.78 per hectare in double cropping. The difference in the values of inputs and services  confirms an impact on the gross margin in the analyzed strata.