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TRANSPORT & LOGISTICS
Rising to the challenge Landlocked Paraguay is overcoming logistical obstacles to become an increasingly important player in the soyabean export sector alongside its South American neighbours Argentina and Brazil Gill Langham
20 OFI – SEPTEMBER/OCTOBER 2021
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Paraguay is emerging as a modest but key player in the soyabean export sector, according to analysts. The country’s soyabean production in 2021/22 is projected at 10.5M tonnes, according to an United States Department of Agriculture (USDA) report, with exports forecast at 6.5M tonnes. Soyabean production in 2020/21 was lowered to 9.9M tonnes due to a delayed harvest preventing farmers from planting second-crop soyabeans, according to the USDA’s Global Agricultural Information Network (GAIN) 8 April report, with exports projected at 6.75M tonnes. In terms of export volumes in a typical year, Paraguay has been moving closer to Argentina, says Darren Cooper, a senior economist at the International Grains Council (IGC). “While Brazil and the USA are the dominant soyabean exporters, a number of relatively modest exporters have seen their respective export volumes expand over the past decade or so as global trade has advanced, led primarily by growing demand in Asia,” he says. “While Argentina has traditionally been an important supplier within this grouping, Paraguay has emerged as a key seller to international markets.”
Shipping primarily to neighbouring Argentina, Paraguay also supplies markets further afield, but its landlocked position in South America creates extra costs compared to its competitors, according to an 8 February World Grain article on the country. Paraguay’s geographical position, sandwiched between Brazil and Argentina, also causes logistical problems. Other factors such as low water levels on the country’s key waterway, the Paraná River, have also impacted activity recently. Last year, Paraguayan exporters faced severe problems due to low water levels on the Paraná River and this has continued to affect the country’s soyabean shipments this year. Reports earlier in the year indicated that sizeable quantities of soyabeans – up to 600,000 tonnes – had been held up at ports in Paraguay, awaiting improved river conditions, Cooper explains. “Given that the bulk of Paraguayan shipments head to Argentina, port difficulties in Argentina will negatively impact the ability of exporters to dispatch fresh cargoes,” Cooper says. While March/April exports of soyabean meal and soyabean oil by Argentina were ahead of the previous year due to strong u
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13/09/2021 13:46:41
