The president of the Union of Production Guilds of Paraguay said that Paraguayan soybeans have “advantages” over those of the neighboring country.
Speaking to ABC Cardinal on Friday, Héctor Cristaldo, president of the Union of Production Guilds, commented on the recent announcement by the Argentine government of a reduction in tax withholdings on agricultural production, particularly for soybeans, which could have an impact on the Paraguayan productive economy.
The government of President Javier Milei announced this week that it will reduce taxes on Argentine agricultural products for several crops, including soybeans.
This measure could increase the competitiveness of Argentine soybeans compared to those produced by Paraguay, which exports the vast majority of its soybean production to the Argentine market.
PARAGUAYAN SOY "HAS ITS ADVANTAGES"
In this regard, Cristaldo said that it remains to be seen “how the tax measure implemented in Argentina works,” but he pointed out that Paraguayan soybeans “have their competitive advantages” and that “Argentines and multinationals benefit” from soybeans exported by Paraguay.
He pointed out that “our soybeans come out before the Argentine harvest,” which allows buyers to “move their factories earlier,” and added that Paraguayan soybeans “have a plus in high protein, above 44 percent” compared to Argentine soybeans, which “do not reach 40 percent.”
"WE CANNOT BE HANGING ON A SINGLE ROPE"
Regardless of the impact that the Argentine government's decision may have on the Paraguayan soybean market, Cristaldo said that Paraguay's "high dependence" on a single market, Argentina, for its soybean exports is worrying.
"We cannot be hanging on a single rope, we have to diversify the markets," he said.
He noted that the volumes of soybeans produced by Paraguay are not too large, so they should not be difficult to place in new markets in Latin America, the Middle East or even Taiwan.
"If Taiwan were to buy two million tons, it would already be helping to diversify," he said.
