November 25, 2003

Brazil Paranagua Port Investment Insufficient For Next Soy Harvest

Soy exporters will suffer serious tailbacks and delays at Brazil's Paranagua port because of a lack of investment there, Agriculture Ministry Roberto Rodrigues said Monday, according to the local Agencia Estado newswire.

The port is the main export route for soy and grains but insufficient work has been done this year to cope with a projected 5% growth in grain, oilseed and cereal production to 128 million metric tons in 2003-04, he said on the sidelines of an agribusiness conference in Rio de Janeiro.

Brazilian soy production has exploded in the last five years and it is expected surpass the U.S. to become the No. 1 exporter.

This year, soy exporters have the additional headache of the ban on genetically modified soy in the state of Parana, home to the port. Over 20% of Brazil's production could be GMO this season and, should current rules still stand in February, exporters will have to certify all soy going to Paranagua as non-GMO.

Rodrigues said the Agriculture Ministry is in the process of mapping the major transport bottlenecks for commodity exports.

"We will need the involvement of private investors to avoid more serious problems during the next harvest," he said.