Paraná’s Port Operations Witness Historic Spike in Soybean Exports to China

China is the main destination for the soybeans handled at the Port of Paranaguá, accounting for 91.8% of the oilseed exports. Federal government data (Comex Stat) reveals that between January and March of this year, 3,208,185 tonnes of soybeans departed from Paraná’s main port bound for the Asian economic superpower. This figure marks a remarkable 105% surge compared to the same period last year when 1,563,276 tons were shipped.

From 2023 to 2024, the Port of Paranaguá ascended from the third to the second position in the national soybean movement destined for China (20%), trailing only behind Santos (42.4%), with a cumulative value of $6.7 billion FOB.

“Despite Brazil’s domestic crop challenges, Paraná’s ports continue to operate with remarkable efficiency, meeting the insatiable demand from China. The first quarter witnessed a historical high in overall movement, underscoring the ports’ operational excellence,” emphasized Luiz Fernando Garcia, CEO of Portos do Paraná.

The following chart uses DataLiner data to illustrate Paranagua Port’s soy export volume between Jan 2021 and Feb 2024.

Paranagua Soy Exports to China | Jan 2021 – Feb 2024 | WTMT

Source: DataLiner (click here to request a demo)

Beyond the strategic prowess of Paraná’s ports, diminished harvests in other countries likely contributed to the uptick in soybean movements. In Argentina, reduced productivity during the 2022/2023 agricultural cycle possibly spurred China’s pivot towards Brazilian soy, further fueling demand in Paraná.

“Argentina ranks as the world’s third-largest soybean producer, trailing behind Brazil and the United States, and its production dynamics significantly influence the global market in terms of supply, availability, and pricing. During this period, Brazil witnessed an exceptional harvest, reaching a record-breaking 150 million tons in 2022/2023, effectively filling the void left by Argentina,” elucidated economics expert Giovani Ferreira.

Ferreira further forecasts Argentina’s soybean harvest to hover around 50 million tons this year. “Brazil’s soybean exports to China are poised for continued growth, with future expansion driven not solely by Argentina’s downturn but also by an organic surge in Chinese demand,” he underscored.

Highlighting Paraná’s pivotal role in the soybean complex exported via Paranaguá, Norberto Ortigara, Secretary of State for Agriculture and Supply, emphasized the state’s strides in diversifying its agricultural portfolio. “Soybeans remain our flagship crop, occupying 29% of arable land. Simultaneously, the state endeavors to enhance the value chain by transforming soybeans into animal feed, solidifying Paraná’s national leadership in protein production and bolstering export figures for poultry, pork, and fish,” he concluded.

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