April 30, 2007

 

Paranagua GMO soybean storage rules slow exports

 

 

A public silo in Paranagua is said to be underutilised due to the storage restrictions on genetically modified soybean at the public silos, ship agents said on Friday (April 27).

 

This situation has slowed down shipments of soybeans amid the approaching export season in May, they said.

 

An agent said a public silo could store up 100,000 tonnes but the Paranagua silo could only store up 15,000 tonnes.

 

He added public silos do not allow GMO beans but most of the beans in Paranagua are GMO.

 

The issue of allowing transgenic soybeans in public silos and other facilities at the ports for the past few years has been an issue among authorities and in the industry.

 

According to port regulations, the storage and transfer of GMO soybeans must be separate from the conventional beans, a second agent said.

 

But the regulations are slowing the grain export and cause logistic problems, the agent said. He added most bean buyers do not care if the beans are conventional or GMO.

 

Paranagua expects to export 15 million tonnes of soybean, meal and corn this year, up 20 percent from 2006.

 

The National Confederation of Agriculture said Paranagua's failure to meet its forecast may overload bumper grain crops of Brazil's port capacity.

 

Brazil exported 31.2 million tonnes of soybeans, meal and corn in 2006, according to the National Grain Exporters Association (Anec).

 

The public silos are APPA Silo Vertical with a storage capacity of 100,000 tonnes and APPA Silo Horizontal with a 48,000-tonne capacity.

 

The vertical silo is used to store soybeans, while the horizontal silo is used for soymeal.

 

At the Export Corridor Complex, there are seven private grain terminals, with a total storage capacity of 800,000 tonnes.

 

The local port authority is building a new 107,000-tonne capacity public silo in the Export Corridor Complex. The new silo is expected to ready by the end of this year.

 

Outside the export corridor, Bunge owns a 80,000-tonne terminal, PASA 174,000 tonnes, Soceppar 180,000 tonnes.