London, December 2008 Rosario Board of Trade Investing in the Hidrovía Business opportunities in...
Transcript of London, December 2008 Rosario Board of Trade Investing in the Hidrovía Business opportunities in...
London, December 2008
Rosario Board of Trade
Investing in the Hidrovía Business opportunities in the waterway
system linking the heart of South America
with the Atlantic Ocean
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Summary of ContentsSummary of Contents
• Institutional presentation of the Rosario Board of Trade.
• Economic information of the Paraguay-Paraná waterway.
• Business opportunities.
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Rosario Board of Trade (BCR) Background
Non-profit organization founded in August 1884 More than 950 members. Main goals:
Promote and enhance the trading of grains, oilseeds, other agricultural products and by-products as well as bonds, stocks, certificates and several types of securities.To offer the ideal environment to meet the requirements of all trading markets. Provide the adequate framework to carry out legitimate, legal and safe transactions.
Chairman of the Board: Jorge E. Weskamp.
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BCR
ROFEXGrain spot
market
ArgentinaClearing
Rosario Valores S.B.
Rosario Fiduciaria
ROSGANStock
Exchange
Markets and related entities
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Rosario Grain Spot Market
Traded volumes
Soybean: 80% of the national productionCorn: 40% of the national productionWheat: 30% of the national productionSunflower seed: 20% of the national production
160 authorized traders
It is one of the most important spot markets in the world.
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ROFEX
The Mercado a Término de Rosario SA (ROFEX) was founded in 1909. It is the biggest futures market of Argentina in traded volume. New daily volume record of USD 440 millions in US dollar contract. Traded products
Agricultural: soybean, corn y wheat (ROSAFE Soybean Index, wheat, corn),
Financial Derivatives: US Dollar, Boden 2012, BADLAR, CER. 28° in the FIA futures world ranking The Rosario Board of Trade holds 18.50% of the ROFEX shares.
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Mercado de Valores de Rosario S.A.
Created in 1927, it is the oldest public limited corporation in the country. Traded products: stocks, government and corporate bonds, trust fund’s
securities, debentures, deferred payment checks, etc. It is the second most important stock market in the country. Shareholders: 50 companies and brokers.
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ROSGAN
The Mercado Ganadero S.A. (ROSGAN) was created in 2008.The auctions are broadcasted on TV for the whole country.The offers for the auctions can be made either at the trade floor or by
phone.All the traders watch the offered cattle lots on TV. Those traders who are
not present at the trade floor operate by phone following the auction process by TV.
The main advantage of this market is that there is not need to transport the animals until they are sold.
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Rosario Valores Sociedad de Bolsa S.A.
Its trading activities began in 1998. Main goal: that the transactions originated by the Mercado de Valores
de Rosario’s brokers can be negotiated also in the Mercado de Valores de Buenos Aires (MERVAL).
It is the fifth stock broker in the MERVAL traders ranking. The Rosario Board of Trade owns15% of this company.
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Rosario Fiduciaria S.A.
Trustee and funds’ administrator.
It started its commercial activities in 1993.
It currently holds the fifth place in the trust funds national ranking.
ShareholdersMercado de Valores de Rosario: 52,5%ROFEX: 42,5%Rosario Board of Trade: 5%
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Argentina Clearing SA
• Argentina Clearing SA was founded in 1999.• Its main goals are:
Registration, offsetting, settling and guarantee of futures and options contracts.
Administration of the margin calls.• The Rosario Board of Trade owns 48% of this company
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Arbitration Board and Arbitration Court
Court of General Arbitration
Arbitration Board on Vegetable Oils and
By-products
BCR
Grain Arbitration Board
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Grain Arbitration Board
Was founded in 1899 - the oldest of the country in this kind - with the purpose of solving disputes on cereals contracts.
The Grain Arbitration Board stands for the impartiality, criteria independence and capability in its role as an arbitration court.
This board acts as an arbitral arbitrator and as amiable peacemaker in an inquiry or litigation arousing between associates and third parties or between third parties performing a grain transaction and, finally, rules.
It rules on disputes over quality and condition, under consultation or comparison of grain samples.
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Court of General Arbitration
It was created in 1992.
It is a private arbitration court, able to intervene in any type of commercial dispute when required by the involved parties once the conflict has developed or when it is included in the terms of the agreement.
The parties do not to be members of the Rosario Board of Trade to appeal to this arbitration court and they are free to elect one or two arbitrators.
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Arbitration Board on Vegetable Oils
and By-products
It was founded in 1950.
Act as an arbitration court in disputes arousing from vegetable oils and by-products transactions.
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Laboratories
It is one of the most important laboratories in the country (400,000 samples / year)
Its main laboratories are:
Cereals and oilseeds commercial physical testing. Seeds physical and botanical testing and varieties identification. Chemical for products, by-products and vegetable oils. Molecular Genetics (GMO). Wheat quality. Soils, fertilizers and glifosate. Commercial analysis – cereals and oilseeds. Special analysis (water, microtoxines and others).
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Shipments at the Hidrovia Shipments at the Hidrovia Paraguay-ParanáParaguay-Paraná
(2007)(2007)Clinker; 3%
Vegetable oils; 3%
Grains; 5%
General cargo; 5%
Fuel; 17%
Minerals; 28%
Byproducts; 39%
Total in 2007 => Tonnes 14,800,000
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0
1
2
3
4
5
6
Byproducts Minerals Fuel Grains General cargo Clinker Vegetable oils
Tonn
es (M
)Shipments at the Hidrovia Shipments at the Hidrovia
Paraguay-ParanáParaguay-Paraná(2007)(2007)
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Why is Rosario so important for Why is Rosario so important for the Argentinian grain market?the Argentinian grain market?
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Because Rosario is in the centre of the crop area
Why is Rosario so important Why is Rosario so important for the Argentinian grain for the Argentinian grain
market?market?
Soybean Seeded AreaCrop year 2006/07
Seeded Area as a Percentage of de County Area
Source: Bolsa de Comercio de Rosario
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Why is Rosario so important Why is Rosario so important for the Argentinian grain for the Argentinian grain
market?market?• Because the main agroindustrial export complex of Argentina is
located in the metropolitan area of Rosario.
• Its fluvial front, with exit to the Atlantic Ocean, stretches for 60 kilometers and has a guaranteed dredging of 34 feet.
• 74% (115,000 tonnes a day) of the domestic crushing capacity is placed in Rosario and its surroundings.
• More than 75% of the national agroindustrial exports are shipped through the up river Paraná terminal ports. This year these exports will be around USD 18,000 million.
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Crushing capacity - Year 2007-Crushing capacity - Year 2007-
230
175155
130
0
50
100
150
200
250
Tonn
es (T
hous
ands
)
China USA Argentina Brasil
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Up River Terminal PortsUp River Terminal Ports(from(from Arroyo Seco to Timbúes) Arroyo Seco to Timbúes)
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Annual ship movementAnnual ship movement(Rosario and San Lorenzo Ports)(Rosario and San Lorenzo Ports)
0200400600800
1.0001.2001.4001.6001.8002.0002.2002.4002.600
2000 2001 2002 2003 2004 2005 2006 2007 2008E
San Lorenzo Rosario Total
+ 51%
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Grains, vegetable oils and Grains, vegetable oils and byproducts byproducts
shipments by terminal ports shipments by terminal ports (2007)(2007)
0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0 5,5 6,0 6,5 7,0 7,5 8,0 8,5 9,0 9,5 10,0
Planta Guide
Serv.Portuarios-Term.3
Tránsito - Toepfer
Arroyo Seco - Toepfer
Timbúes - Noble
Timbúes - Dreyfus
ACA
Serv.Portuarios-Term. 6 y 7
Villa Gob.Galvez - Cargill
Nidera
Dempa/Pampa - Bunge
Punta Alvear - Cargill
San Benito - Molinos
Vicentín
Gral.Lagos - Dreyfus
Quebracho - Cargill
Terminal 6
Tonnes (M)
Grains Oils Byproducts
Total: 58.3 million tonnes
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Shipments by terminal ports Shipments by terminal ports ( 9 months 2007 - 9 months 2008)( 9 months 2007 - 9 months 2008)
0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0 5,5 6,0 6,5 7,0 7,5 8,0 8,5 9,0
Planta GuideServ.Portuarios-Term.3
Noble -TimbúesToepfer - Tránsito
Topefer - Arroyo SecoACA
Dreyfus - TimbúesCargill - V.G.Galvez
Serv.Portuarios-Term. 6 y 7Nidera
Bunge - Dempa/PampaCargill - Punta Alvearl
VicentínMolinos Río de la Plata
Dreyfus - Gral.Lagos Cargill - Quebracho
Terminal 6
Tonnes (M)
up to 09/2007 up to 09/2008
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Production and transportationProduction and transportation
By truckBy truck72 million Tn72 million Tn
By trainBy train14 million Tn14 million Tn
By bargeBy barge1 million Tn1 million Tn
INTERNALINTERNALCONSUMPTIONCONSUMPTION
20 MILL TN
PRODUCTS CONSUMPTION
12 MILL TN
PRODUCTION +PRODUCTION +INITIAL STOCKINITIAL STOCK
95 MILL TN
EXPORTATIONEXPORTATION75 MILL TN
BYPRODUCTS37 MILL TN
GRAINS38 MILL TN
VEGETABLE OILS2 MILL TN
OTHERS10 MILL TNFARM FARM
CONSUMPTIONCONSUMPTION8 MILL TN
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Freight RatesFreight Rates(grains and byproducts)(grains and byproducts)
0,0000,0050,0100,0150,0200,0250,0300,0350,0400,0450,0500,0550,0600,0650,0700,0750,0800,0850,0900,095
Truck (300 km.) Train (500 km.) Barge (500 km.) Barge (1,200 km.)
USD
/Tn
/Km
USD0.090
USD0.045
USD0.035
USD0.017
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Maritime Freight RatesMaritime Freight Rates(from Rosario to China and (from Rosario to China and Rotterdam) Rotterdam)
0102030405060708090
100110120130
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(*)
USD /
Tn.
TO CHINA TO ROTTERDAM
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Argentina is ranked:Argentina is ranked:
• First as by-products and oil of soybean exporter.
• Second as corn exporter.
• Second as by-products and oil of sunflower seed exporter.
• Third as soybean exporter.
• Seventh as food exporter.
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ForecastsForecasts
2008 – 2009 Crop (million tonnes)• Soybean 48 / 50• Corn 15 / 16• Wheat 9 / 10 • Sorghum 3 • Sunflower seed 4• Total 79 / 83
2015 – 2016 Crop• Total production => 122 million tonnes • Exports => 95 million tonnes
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Reasons to invest in the Reasons to invest in the area area
Abundant natural resources.
A privileged geographic location.
An adequate infrastructure.
Developed and competitive port infrastructure.
Qualified human resources.
Great economic potential.
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Business OpportunitiesBusiness Opportunities
Agriculture and LivestockAgricultureLivestockBeef productionMilk productionApicultureOrganic products
IndustryAgri-food exporter complexOleaginous complexMilk and Meat complexIron and Steel Agricultural machinery cluster
TourismTransport equipmentScience, Technology and Innovation