Argentina Gets Its First Big Soy Plant in Twelve Years
A US$500 million plant in Timbues is the first big new soy crushing investment in twelve years, betting on Argentina's export tax cuts starting January 2027. The post Argentina Gets Its First Big Soy Plant in Twelve Years appeared first on The Rio Times .
A US$500 million soy crushing plant in Timbues, Santa Fe, marks Argentina's first significant investment in the sector in twelve years. Molinos Agro and ACA, a group of Argentine farm cooperatives, are building the facility, which is poised to crush 15,000 tons of soybeans daily, or roughly 5 million tons annually. The project hinges on upcoming tax cuts for soybean exports, set to begin in January 2027.
These export tax reductions, known as retenciones or DEX, will gradually decrease from 24% to 21% by the end of 2027 and further to 15% by December 2028. The lower tax rates are anticipated to boost profitability for the new crush plant, as the disparity between soy and maize export taxes—currently at 15.5 points—will narrow to 13.5 points in 2027 and approximately 9.5 points by late 2028.
The investment, exceeding US$500 million, includes a $500 million capital outlay. As the tax schedule progresses, the project's economics improve, making it a compelling bet on Argentina's long-term soybean export prospects.
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