Argentina’s tighter restrictions on logistics during pandemic may favor Brazilian soy exports

Mar, 26, 2020 Posted by datamarnews

Week 202014

According to Caramuru Alimentos, preventive measures adopted by Argentina against coronavirus that have restricted logistics, may affect its ability to export soybeans and their by-products, hence favoring Brazilian exports of soybean meal. “Argentina has much tighter restrictions than ours, and this can benefit us in exports (of soybean meal) because we are direct competitors and they are the largest exporters in the world in this sector”, said the commercial director from Caramuru, Fábio Vieira Júnior.

According to Argentina’s Exporter’s Chamber (CIARA-CEC) , which represents global companies including Bunge and Dreyfus, deliveries by truck of soybeans to processing plants have been severely disrupted as more than 70 municipalities across the country are taking measures against the coronavirus that involves controlling the movement of agricultural production according to their jurisdictions.  In addition, an Argentinian port workers association asked the government to suspend the nations port activities for 15 days on Thursday (26/03), to prevent the advance of the coronavirus.

Despite economic uncertainties, Caramuru’s vice president, César Borges, commented that the outlook for the company remains positive. Domestic demand for bran from the meat industry, and for biodiesel should remain firm and the appreciation of the dollar against the real, coupled with where commodity prices are at in Chicago, provide an even more favorable situation for the company than in 2019, explained Borges. “Last year we grew from 3% to 5% in revenue, reaching R$4 billion. Now we are projecting we will reach R$4.5 billion reais. ”

Caramuru processes soy, corn, sunflower and canola products.  It exports grains and its derivatives, and produces biodiesel.  It also operates port terminals in Santos (SP), Tubarão (SC), Itaituba (PA), Santana (AP), in addition to having a network of 67 warehouses. It has a daily soybean processing capacity of 6,500 tons and 1,600 tons for corn.  So far, the company is running all its operations with no short-term suspensions caused by the coronavirus pandemic.

Source: Reuters

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