1. Technology for biosciences, energy
generation and supply,
environmental in Argentina
Thursday, 29th November 2012

2. Technology transfer in Argentina
• Argentina has few commercial ties to the UK compared
to other technologically advanced countries such as
China, Germany, Canada and the US (Exhibit 1)
• Export is key to Argentina, and concentrated in a few
large companies whose productivity could be improved
dramatically by technology (Exhibits 2-6)
• Focus on key native Argentine exporters best way to
improve technology transfer (Exhibit 7)

3. Argentine export destinations (2011)
7 countries, ½ exports:
#1 Brazil (12.5%)
#2 China (10.0%)
#3 Chile (7.3%)
#4 Germany (6%)
#5 Canada (5.8%)
#6 Spain (4.8%)
#7 USA (4.8%)
…
#? UK (not top 25)
Exhibit 1

4. Argentine exports (2011)
Only ONE industrial
product in top 10,
automotive, artificially
promoted through
matching Brazilian
exports)
Of top 25 export items
(95% of exports):
-42% cereals, oilseeds;
-23% mining;
-17% oil & gas;
-11% industrial goods
-2% shellfish, milk
Source: http://www.aiera.org/link/Losgrandesexportadoresen2011.pdf
Exhibit 2

5. Argentine exporters
Top 25 companies export 45% of total (top 273 85%)
Top 25 mostly
commodities:
12 grains, oil seeds;
6 oil & gas;
5 industrial goods (3
cars, 1 steel tubes & 1
aluminium);
2 mining
Exhibit 3

6. Energy generation & supply
• Energy subsidies (0.90 USD/litre mogas vs 2.30 USD/litre in
Chile) cost government so much they no longer report how
much they are importing. Increasing Argentine productivity
is essential.
• Large reserves of shale natural gas and oil, but falls 2007-
10 in proven reserves of crude (-15%) and gas (31%). YPF
needs to produce 1/3rd more by 2017, which requires
investment of 37.2BN USD.
• However, financing assets is going to be difficult
– Repsol is saying they will sue anyone who takes on the YPF
assets that Argentina nationalized without compensation.
Argentina is saying they will sue any oil & gas major exploring in
Falklands, which they consider part of their reserves
– Argentine physical assets are also not secure (e.g. workers
seized Cerro Dragon, single largest well in Argentina, and police
didn’t expel them)
Source: http://en.wikipedia.org/wiki/Gasoline_and_diesel_usage_and_pricing Exhibit 4

7. Environmental
• Waste water treatment for agriculture
(drought reduced farm yields 1/3rd last year,
2/3rd in North)
• Energy saving and renewable energy. Current
energy subsidies will have to change because
regime is running out of dollars. Sudden price
rise will be like US hitting oil crisis of 1970s.
Exhibit 5

8. Biosciences
• Genetically modified grains (“no till”
Monsanto soya with Roundup resistance has
increased yields from dry Northern land,
values have risen 5-10 fold)
• Enzymes for low energy processing and value
from “waste” e.g. Marmite from yeast, since
value add in Argentina low (62% of export low
value add, 25% agro process, 13% industrial)
Exhibit 6

9. Suggested next steps
• Develop business models that allow a win-win-win for UK innovators , Argentine
exporters and Argentine government
• Show how technology can improve productivity and margins of native Argentine
exporters (29.2% of 2011 exports):
– Minerals (7.3% of 2011 exports)
• Minera Alumbrera (5.8%)
• Aluar Aluminio (0.8%)
• Cerro Vanguardia (0.7%)
– Oil & Gas (9.2%)
• Pan American Energy /Sur(5.3%)
• Transportadora de Gas del Sur (1.3%)
• YPF (0.9%)
• Medanito (0.9%)
• Tecpetrol (0.8%)
– Agribusiness (12.7%)
• Aceitera General Deheza (2.7%)
• Vicentin (2.2%)
• Noble Argentina (2%)
• Molinos Rio de La Plata (1.9%)
• Nidera (1.6%)
• Oleaginosa Moreno (1.2%)
• Associacion de Cooperativas Argentinas (1.1%)
• Form collaborations with Argentine universities and research institutes to transfer
knowledge and build up local capabilities (c.f. 300M USD investment by Monsanto in
Cordoba to develop GM maize)
Exhibit 7