April 16, 2013


Paraguay to supply grain to the world



Paraguay, with its highly favourable soil and climate, will provide to the world more than 8.5 million tonnes of grain.


The region has a great potential for growth and is currently demanding the establishment of additional ports in the Rio de la Plata region, in order to reduce the constant burdens caused from the lack of infrastructure logistics in the region.


Mercado Común del Sur (MERCOSUR), South America's largest trading block is emerging as the largest provider of grain in the world, and Paraguay is positioned as the third largest producer and exporter of grain and cereals in the World.


Although South American countries are becoming the world's breadbasket, many logistical problems arise, and that is not a coincidence for Paraguay, a land locked country in the heart of South America, where even MERCOSUR was founded in 1991.


With all transportation difficulties, Paraguay is emerging as the third largest producer of three agricultural crops, soy, corn, and wheat, together with Argentina, Brazil and Uruguay will generate 264.4 million tonnes of grain in the 2012-13 harvesting year.


According to reports published by the USDA it is expected that MERCOSUR countries will furnish grain and food products for one seventh part of the world's population, meaning more than a billion people.


From the available volume of grain production, over 101 million tonnes will be exported, which will supply food to more than 413 millions of people outside the MERCOSUR Region. The volume of more than 100 million tonnes, waiting to be exported, will cause many logistical difficulties and delay the shipping of many agricultural exporting companies.


According to Paraguayan Economist, Luis Enrique Cubilla, "At the end of 2010, in a world and a country overwhelmed by poverty and hunger, Paraguay's agricultural production totalled over 12.6 million tonnes of food, a quantity that can feed over 50 million people."


According to the Food and Agriculture Organisation (FAO), Paraguayan agricultural production is a great addition to the world which continues to face a population of over 852 million people facing malnutrition and constant hunger in the world's impoverished communities.


According to Oscar Sosa, the president of Paraguayan Chamber of Cereals and Oil Seed Processors (CAPPRO), the logistical problems did not happen as they were expected due to Argentina's inability to enter in the dense harvest season, therefore Paraguay and Uruguay have a great opportunity to supply the world even more with grain products.


Sosa expects the logistical problems to resurface again, even more so during the end of April, due to a large number of grain cargoes that will be loaded in Argentine and Brazilian Ports. Currently in the port of Paranaguá there is a reloading delay for more than 12 million tonnes of soy, and that means a delay of over 60 days in the port's cargo operations.


According to Sonia Tomassone, an International Commerce Specialist, Paraguayan farmers' Associations and Brazilian Industrialists have signed a bilateral agreement that will further increase Paraguay's wheat exports in the world, and stimulate Paraguayan economy.


Paraguay is expected to produce 104.9 million tonnes of corn, out of which 41.4 million tonnes are destined for international markets. Wheat production will reach another admirable level of 14.5 million tonnes, of which only 7.1 million tonnes will be exported.