Paraguay’s Soybean Sales Soar in Second Third of 2023

By the end of August 2023, Paraguay’s soybean exports had soared by 130.2% compared to the same period in 2022.

A recent report says the country shipped 4.735 million tons of soybeans. Last year, the figure stood at 2.057 million tons.

This is an increase of 2.678 million tons.

Central Bank data shows these shipments brought in $2.559 billion. Last year, they made $1.103 billion during the same period.

That’s an extra $1.456 billion this year.

The report also highlighted a bump in soy derivative exports like oils and pellets. These added $3.457 billion to the economy.

This inflow of money has helped the entire country and related sectors.

Argentina remains the top buyer of Paraguay’s soybeans with a 91% share. Brazil follows with a 2% share.

Other markets like Chile and South Korea make up the remaining 7%.

Background

Soybeans have been a key crop in Paraguay for years. The country is a major player in the global soy market.

In the past, high export taxes limited soybean sales. But recent policy changes have sparked growth.

Paraguay’s climate and soil are well-suited for soy farming. Farmers also benefit from modern technology.

This boosts crop yields and quality. As a result, the country has seen steady gains in soy production.

Trade relations also play a role. Paraguay’s strong ties with Argentina and Brazil help its export numbers.

These nations are big consumers of soy and its byproducts. Local industries like oil and food processing also depend on soy.

This creates a strong demand, both domestically and abroad.