In early 2024, Paraguay’s corn exports fell sharply, with a 15% drop in volume and a 38% decline in revenue from the previous year.
Instead of the 557,130 tons previously exported, only 473,617 tons were shipped, indicating deeper economic and logistical challenges in agriculture.
Moreover, adverse weather conditions primarily caused a significant decline in maize production, reports Capeco.
As a result, the production shortfall was considerable, with about 1.4 million tons less than the previous year.
Additionally, international maize prices fell sharply, further reducing export revenue. Specifically, the average price per ton plunged from $243 to $183.
Furthermore, logistical obstacles compounded the issues. Low river levels and border delays from Brazilian agricultural strikes worsened export challenges.
These disruptions struck at a crucial time, worsening the impact of already reduced crop yields.
Subsequently, the reduction in maize exports severely affected the inflow of foreign currency, vital for Paraguay’s economy.
Initially, in 2024, maize export revenues dwindled to merely $53.2 million, marking a significant drop from past earnings.
Background
On the other hand, Paraguay’s soybean exports rose by 44.8% in the first half of 2024 compared to the same period in 2023.
This remarkable increase was reported by the Paraguayan Chamber of Exporters and Marketers of Cereals and Oilseeds (Capeco).
Between January and June, Paraguay exported 5,478.6 tonnes of soybeans, a significant rise from 3,782.7 tonnes in the first half of 2023. This uptick represents a positive change of 1,695.9 tonnes.
Financially, this growth translated into a 4.6% revenue increase, reaching $2,166.5 million, which is $94.8 million more than the $2,071.6 million earned by June 2023.
Capeco’s foreign trade advisor, Sonia Tomassone, credited the revenue boost to higher international soybean prices in June.
Key Facts
— Deep Dive
— For the complete picture, read our in-depth guide: Paraguay: Washington's Most Valued Ally in Latin America
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