Paraguay loses US$3.5 billion due to very low grain harvest
RIO DE JANEIRO, BRAZIL – With 6 million tons less than originally estimated for the harvest, Paraguay stands to lose about US$3.5 billion this year.
Losses could be even higher if there continues to be no significant rainfall.
The Paraguayan Chamber of Grain and Oilseed Exporters and Traders (Capeco) expressed concern over the startling and historic drop in the estimated soybean harvest, as the figure fell to 4 million from 10.5 million tons three weeks ago.
Today, however, it could be even lower. “We expect even lower numbers; if we have a good harvest, we could approach the 4 million figure,” Capeco head César Jure told GEN.
In terms of foreign exchange, although the price of soybeans has improved, the loss will still be large due to the very low crop size.
In this regard, he confirmed the government’s willingness to make financial measures more flexible and allow refinancing of loans and maintain creditworthiness.
With a price of US$550 per ton and an estimated harvest of 6 million tons, the economic loss would be between US$3 and US$3.5 billion.
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