“Argentina’s domestic chickpea demand is definitely growing”/
Matias Macera on the 2022 chickpea harvest

Matias Macera is Trade Manager at Desdelsur, Argentina’s leading chickpea exporter and a GPC Gold Partner.

As has been the case in the previous two growing seasons, dry conditions limited the number of chickpea hectares that were seeded this year. Additionally, in the northern growing area, frost events negatively impacted yields, resulting in lower-than-expected production.

Snapshot: Argentina’s 2022 Kabuli Chickpea Production

Source: Desdelsur

GPC: Matias, thank you for joining us once again to talk about Argentina’s kabuli chickpea harvest. To begin with, could you give us a sense of how far along the harvest is at this point and when you expect it to wrap up?

Matias Macera: Argentina has two major chickpea growing areas. There is the northern region, comprised mainly of the provinces of Salta, Tucuman, Santiago del Estero and Chaco, and there is the central region, which is mainly just the province of Cordoba. In the north, there are 35,000 hectares of chickpeas and harvest progress is at around 95%. In the central region, there are 16,000 hectares of chickpeas and the harvest progress there is presently around 15%. I expect the overall harvest to wrap up by mid-December.

GPC: Let’s talk about the weather. I understand conditions were dry this year. Could you discuss the impact that has had on the crop?

MM: Conditions were extremely dry. During the planting season, these conditions kept growers from fulfilling their initial planting intentions. As a result, fewer chickpeas went in the ground. At the same time, though, dry conditions usually translate into a healthy, high-quality crop. However, in the northern region, we had a few frost events at key moments that mainly impacted yields, but also resulted in some isolated lots with a percentage of immature crops and some smooth grains.  

GPC: Could you recap for us the number of hectares seeded, the yields you are seeing and the production volume you are expecting?

MM: All told, around 51,000 hectares were seeded to chickpeas this year, 68% of which was seeded in the northern region with the balance in the central region. Half of this year’s crop was grown under irrigation with average yields of 2.1 MT/ha. Yields in non-irrigated fields are averaging 1.3 MT/ha. This year, waste was a bit higher than last year, and we expect greater local consumption and a greater set-aside for seed as stocks are really low. If we have a wet winter, we may be able to see a return to normal volumes next year. 

GPC: How does this year’s crop compare to last year’s in terms of volume and quality?

MM: I would say we are going to end up with a slightly lower production volume than last year. In the 2021-22 marketing year, we ended up with 71,000 MT of chickpea exports, which means we had a crop of about 90,000 MT. This year, we are estimating a crop of 86,000 MT and we project that total chickpea exports in 2022-23 will be no more than 60,000 MT.

GPC: Could you give us a sense of the caliber-size distribution of this year’s crop?

MM: New varieties released in recent years are helping us produce larger calibers. Of the crop grown on irrigated land, we are seeing on average 50% 9 mm, 30% 8 mm and the remainder 7 mm. On non-irrigated land, we are seeing 15-20% 7 mm, 50% 8 mm and the balance 9 mm. 

GPC: One more question from me, Matias, and then we’ll turn it over to Navneet. In a previous interview, you mentioned the growing popularity of hummus in Argentina and just a little while ago you touched on Argentina’s growing domestic demand. Could you give us a sense of that demand and how you see it evolving over the next few years?

MM: Argentina’s domestic chickpea demand is definitely growing. We are seeing this in the demand from local canning and packaging companies and from the gourmet sector. There is growth in ready-made hummus products, in hummus products for people to prepare at home and in hummus retail brands. There is also growing demand for chickpea flour to make faina, which is a sort of chickpea tortilla that we traditionally eat with pizza here in Argentina.   

Global Garbanzo: Hello, Matias. It is good to see you again. My first question for you is about export expectations for 2022-23 and whether or not Argentina has old-crop carry-in to supplement this year’s production?

MM: There is practically no carry-in at all heading into 2022-23. There are a few organic chickpea stocks remaining, but nothing significant. As I mentioned earlier, exports will not exceed 60,000 MT this campaign. They will likely end up around 55-60,000 MT.  

GG: How do you see demand in Argentina’s major export markets? Are you seeing any surprises?

MM: In my opinion, 50% of Argentina’s chickpea crop has already been sold, meaning about 25,000 MT remain available. Farmers are reluctant to sell, the market remains firm and freight costs are coming down.

GG: You mentioned freight costs. This year, exporters around the world are dealing with high shipping rates, logistical challenges, currency exchange issues and food inflation. How might these or other factors affect Argentina’s ability to export chickpeas?

MM: The exchange rate and inflation are two variables that, unfortunately, Argentine exporters have gotten used to dealing with. The good news is that freight costs are dropping and I expect we will see them stabilize in the coming months. Hopefully, we won’t see them collapse because in our business we need predictability.

GG: Can you give us a sense of FOB prices per caliber size for Argentine chickpeas and also discuss how you see them evolving over the course of the marketing year?

MM: We see a firm market. The price for 7 mm product is $1,050 FOB. For 8 mm chickpeas, the price is $1,120 FOB. And 9 mm chickpeas are selling for $1,210 FOB.

If we look at the competition, Canada and the U.S. were aggressive sellers during their harvests and their prices are now higher as they have much lower stocks and strong local consumption. In Mexico, availability is down on limited water availability for irrigation and high local corn prices. Russia is moving product across the border through Turkey and through the UAE’s port of Jebel Ali. 

All this tells us European buyers have limited options. It is these fundamentals that will keep the market firm and bullish, despite the fact that we are already standing on good prices.

GG: Thank you, Matias. Is there anything else you would like to add?

MM: I would also like to mention what is happening with the global desi market because it contributes to the firmness of the kabuli market. Desi prices, which are well below kabuli prices, have begun to improve. In Australia, excessive rains have knocked down desi chickpea yields and impacted quality. As markets respond, desi chickpea sellers are holding onto product. This contributes to the overall firmness of chickpeas in general. Moving forward, the focus is now on India’s rabi season crop, which will be harvested in March.

In closing, I’d like to thank the GPC for providing this sort of information to the industry. At Desdelsur we have no doubt that the present is bright for pulses and that a bigger, even brighter future is to come.