February 21, 2022

 

Paraguay may import soybeans for the first time ever

 

 

The Paraguayan Chamber of Oilseed and Cereal Processors (Cappro) said they are in talks to import soybeans for the first time ever, as it expects the country to run out of beans to process by the middle of 2022 because of a drought affecting soybean production, Reuters reported.

 

Cappro, which represents major commodity firms like Archer-Daniels-Midland Co, Bunge Ltd, Cargill and Louis Dreyfus, said it has petitioned to the Paraguayan government's National Economic Team to approve a tax exemption to import soybeans for crushing. Current tax regulations make it uneconomical to import raw soybeans.

 

Cappro said the drought could result in 60% lower soybean production or worsen. The previous campaign saw a harvest of about 10 million tonnes of soybean.

 

The chamber said idle crushing capacity could vary between 60%-70% in the latter half of 2022.

 

The drought in Paraguay, which began late-2021, has badly damaged crop yields and caused navigation problems in the key Paraguay-Parana waterway which increased costs for processed grains for export.

 

Cappro, which represents major commodity firms like Archer-Daniels-Midland Co, Bunge Ltd, Cargill and Louis Dreyfus, said it has petitioned to the

 

Data from Cappro showed the country's soybean industrial complex processed some 2.8 million tonnes of the oilseed in 2021, the lowest since 2013 and 500,000 tonnes less compared to 2020.

 

Cappro said 2022 could be the toughest year on record, especially as crushing capacity has expanded from 1.5 million tonnes annually in 2013 to 4.5 million tonnes today.

 

Neighbouring Argentina, the biggest processed soy exporter, is also facing a drought affecting soy and corn harvests.

-      Reuters

Video >

Follow Us

FacebookTwitterLinkedIn