Guest article by Diego Castagnasso, a fresh produce and blueberry industry expert. Loud, opinionated, INFORMED! Diego, writes DC’s B-Side’s newsletter as he speaks and speaks as he writes. You can subscribe, under your own peril, to his newsletter here or visit his less fun (for now) website Drip Consulting.
That is the question in MANY blueberry importer’s minds right now…Some might be doing numbers late at night waiting for information from their procurement people in the field.
Others might be traveling themselves to visit the farms, some might be going to South Africa, Peru, Argentina, and some even Chile…
Isn’t it a bit too early to get fruit from Chile?
It is!! but there is no fruit out there…
…well, not enough anyways!
So, if you have been following last week’s recipe you would know that Peru is still behind their forecast volumes but in the same neighborhood as last year’s export volumes.
But, and this is more than 50% “but”, the difference is still big from 2022’s volume. The main issue here… there is a GAP between what the market needs and the fruit that is out there ready to be imported or bought at the “local” market.
The volumes in the northern hemisphere are getting down fast and the southern hemisphere is not moving up fast enough, so no one can close the GAP, for now.
Take Argentina for example…
A month ago I wrote about the the cold weather that affected the country…
Well, the weather got better so deals and programs were made, and fruit started flying…
Some pallets to the US, others to Europe, and a few to Israel too.But…
…MY GOD how many “buts” are you going to use?
As many as I need…
BUT, But, but the weather got cold again, and not only that, it got cloudy and rainy too.
And… that is making it difficult for the fruit to get its full color, delaying the shipments.
…Is that affecting all of Argentina’s production regions?
Yes! Although Concordia seems to be doing a bit better and has already shipped some volumes, while slowly getting speed.
….What can you tell us about the prices?
Let’s say that as the weather gets colder the prices get hotter.
….and if you want to know more you just need to Schedule a CALL
Have a Great Weekend!!!
And remember, if you liked what you read, send it to a friend!PS: You might be asking yourself, why not go to Australia or New Zealand?
Fair question… but although those countries are in the southern hemisphere and are producing countries, they don’t export that much volume and they go to other markets,
PS1: My congratulations to the new Proarandanos Peru Board, they seemed to be better at making forecasts than the previous board
Just a joke!! or not, we’ll see.
PS2: The gap is more like the Mariana Trench right now.
PS3: When I say cold is not as bad as last time but enough, with some days even below zero in Concordia. Tucuman is still recovering from the losses caused by the previous freezing temperatures.
TORONTO — Element Event Solutions has launched as Canada’s leading event solutions partner, bringing together the entire Chair-man Mills Corp. portfolio of companies. The brands that have united include Event Rental Group, Higgins Event Rentals, Contemporary Furniture Rentals, Regal Tent Productions, Advanced Tent Rental, A&B Partytime, Loungeworks, MacFarlands and Chair-man Mills. Building on a rich 110-year legacy of expertise, passion and trusted relationships, the launch represents innovation and investment in the hospitality industry, sets the gold standard for event solutions and positions the organization for accelerated growth.
“Our customers have expressed a desire for a unified, one-stop partner for their event-rental needs,” says Allison Freeman, CEO of Element Event Solutions. “Re-imagining our Chair-man Mills Corp. portfolio of brands as Element Event Solutions is a direct response to this feedback. We’re excited to leverage our scale, expertise, and assortment to create Canada’s first national event solutions platform.”
With the announcement, Element asserts itself as Canada’s only national event rental platform with the ability to offer integrated event solutions across tents, party rentals, furniture rentals, drapery and decor. The breadth and depth of the company’s product portfolio, supported by specialized team members offering a full suite of services including design, project management, installation and strike, enable Element to deliver innovative solutions for events of any scale.
The new brand includes the launch of a comprehensive and enhanced website, elementeventscanada.com, together with new uniforms, truck branding and signage. Digital assets and social-media accounts have also transitioned to Element. While the name and look are new, the expert teams, showroom locations and trusted customer relationships remain the same.
“For over 100 years we have been honoured to play a role in many of our country’s most storied moments and we are committed to continuing this legacy into the next century — now as Element Event Solutions,” says Freeman.
With a team of more than 500 people across the country and facilities in Vancouver, Burnaby, B.C., Toronto, Hamilton, Ont. and Dartmouth, N.S., the company will continue to invest in local talent, customer relationships and business infrastructure. Its operations have been structured by region, with Western, Central and Eastern Canada divisions, along with a national Tents and Structures team.
“While we’re now fully united in vision, values, and capabilities, our execution remains distinctly local,” says Freeman. “Each of our regions, driven by local teams, will harness our national resources to enhance the excellent service for which they are known. This unified new brand embodies our continued investment in our people, product and technology and will enhance our ability to deliver unparalleled service to clients in Canada and throughout North America.”
Element remains proudly Canadian owned and operated with a legacy built on family values and a commitment to investing locally to grow the economy, support local workers and contribute to better communities. Each year, Element proudly supports the local communities in which it operates through product donations to organizations like Habitat for Humanity and the Salvation Army and sponsorship of many of Canada’s philanthropic events.
China is a critical player in the global pork industry, consuming nearly half of the world’s pork supply. This massive demand fuels not only the pork sector but also associated industries, such as feed production, where soybean meal plays a pivotal role in the livestock diet. However, in 2024, the dynamics of China’s pork market are shifting due to economic challenges, reduced pork consumption, and significant changes in sow inventories. According to the latest report from the United States Department of Agriculture (USDA), the country’s pork consumption is expected to contract by 3%, a direct consequence of the ongoing economic slowdown.
The expected 3% reduction in pork consumption is a key indicator of the economic issues China is currently facing. For years, the country has been the largest consumer of pork globally, with pork being a staple in the Chinese diet. However, the economic slowdown, which has affected various sectors of the Chinese economy, is now taking its toll on pork consumption. Reduced consumer purchasing power and shifts in dietary habits are contributing to this decline.
Additionally, economic constraints are influencing both demand and prices in the pork market. When combined with other factors, such as oversupply and declining consumer confidence, the reduction in pork consumption is having a ripple effect across the industry, influencing everything from feed demand to international trade.
One of the most significant developments in China’s pork industry is the sharp reduction in sow inventories. After reaching record levels in previous years, the number of sows has been drastically cut in response to market conditions. In 2023, China had over 717 million head of swine, which led to ample pork supplies and consequently depressed prices throughout the production cycle. This oversupply resulted in significant financial losses for pork producers, marking the worst downturn since 2014.
The situation became even more dire with the resurgence of African swine fever, a disease that has devastated China’s pork industry in the past. In 2023, the disease returned with a vengeance, leading to widespread livestock liquidation. This trend continued through the first half of 2024, further exacerbating the challenges facing pork producers. The cumulative effect of these pressures is a significant contraction in the sow population, which is expected to decrease by 3% in 2024, according to the USDA.
The mass liquidation of livestock in China has reached unprecedented levels. Between January and June 2024, pig slaughter reached 160 million head, matching the liquidation rate of the first half of the previous year. This represents the most significant liquidation rate in at least fifteen years. The sharp reduction in pig numbers is partly a response to the economic pressures facing pork producers, as many farms are forced to cut their losses and reduce their herds.
This contraction is expected to have long-term implications for the industry. By the end of 2024, the number of sows is projected to fall to 695 million head, the lowest level since 2021. This reduction leaves China with the tightest pork stocks since 2019, raising concerns about future supply shortages and price volatility.
As the sow inventory decreases, so does the demand for feed, particularly soybean meal. Soybean meal is a critical component of livestock feed, and China is the world’s largest importer of soybeans. The reduced need for feed is a direct result of fewer pigs and sows requiring sustenance. The contraction in demand for soybean meal is expected to have a knock-on effect on the global soybean market, particularly in countries like the United States, Brazil, and Argentina, which are major exporters of soybeans to China.
In addition to the decline in demand, China is facing a surplus of soybean stocks in its main ports. These high inventory levels further dampen the need for additional imports, leading to a potential oversupply in global markets. This shift could affect soybean prices and trade flows, with exporters needing to seek alternative markets to offset the reduced demand from China.
The pork industry in China is undergoing a period of significant transformation. Economic pressures, reduced consumption, and the effects of African swine fever have created a perfect storm, leading to substantial reductions in the country’s sow and pig populations. These changes are expected to have far-reaching consequences for the global pork and soybean markets.
China’s Ministry of Agriculture and Rural Affairs (MARA) has acknowledged the challenges facing the industry, noting that pork producers have not faced such sustained losses since 2014. The combination of oversupply, disease outbreaks, and economic headwinds has created an uncertain outlook for the industry. By the end of 2024, pork supplies are likely to remain tight, with prices potentially rising due to reduced production levels.
For soybean producers, the outlook is similarly complex. The reduction in demand for soybean meal from China, coupled with high stock levels in Chinese ports, could lead to an oversupply in global markets. This may result in downward pressure on soybean prices, affecting the profitability of soybean farmers in key exporting countries.
China’s pork industry, which accounts for half of the world’s consumption, is facing significant challenges in 2024. A 3% contraction in local pork consumption, a sharp reduction in sow inventories, and the continuing effects of African swine fever are reshaping the industry. These developments are having a profound impact on the demand for soybean meal and could lead to long-term changes in global pork and feed markets. As China navigates these challenges, both domestic producers and international suppliers will need to adapt to the evolving market dynamics.
The road ahead for China’s pork industry is fraught with uncertainty. However, with strategic adjustments and careful management, the sector could stabilize in the coming years, ensuring the continued provision of pork to the world’s largest consumer market. Meanwhile, global markets will be watching closely, as the ripple effects of these changes spread across the pork and soybean industries worldwide.
“On Special” is a monthly look at evolving store categories with insights on how different grocers are capitalizing on top trends.
Pizza has long occupied a place of honor in the American diet, with consumers consistently dishing out billions of dollars per year on the cheesy food at retail locations, sit-down restaurants and fast food establishments.
As they look to improve their foodservice offerings, supermarket chains have invested in their pizza offerings to take advantage of shoppers’ desire for the food. From drawing attention to their in-store pizza ovens to partnering with local restaurateurs that specialize in the food, here’s how food retailers are looking to get a bigger slice of pizza sales.
Giant Food debuted a Ledo Pizza Corner Shoppe with take-and-bake and “order hot from the oven” pizza options at a store in Elkridge, Maryland in 2023.
Permission granted by Giant Food
Frozen pizzas have lately moved off grocery store shelves at a solid clip. Shoppers spent $7.4 billion on frozen pizza alone during the year that ended in July — up just under 1% year over year and more than on frozen breakfast foods, snacks or baked goods — according to data collected by Circana and published by 210 Analytics.
Frozen pizza commanded $549 million in sales during July, up just under 1% from the previous year, and the number of units sold grew by nearly 2%, the data shows. Consumer interest in frozen pizza was up in July even as sales of other types of frozen meals, including entrees and breakfast items, lost ground in sales.
Globally, frozen pizza sales jumped 11% in 2023, due in part to retailer promotions, according to figures from Market.us Media.
By comparison, consumers spent $85 million on deli prepared pizza in July, up about 4% year over year, according to Circana data cited by 210 Analytics. Spending on deli prepared pizzas came in at $1.3 billion for the year that ended in July, an increase of 6.7%, Circana found.
By the numbers
$549 million
Amount U.S. shoppers spent on frozen pizza in July, according to Circana data published by 210 Analytics
$7.4 billion
U.S. consumer spending on frozen pizza during the year that ended in July
$85 million
Spending by U.S. consumers on deli-prepared pizza in July
Pizza on display in a Harris Teeter store in Gaithersburg, Maryland, on Sept. 15, 2024.
Sam Silverstein/Grocery Dive
Dishing up pizza partnerships
In January, Giant Food struck a deal to sell pizzas from Maryland chain Ledo Pizza in some of the Mid-Atlantic supermarket chain’s stores. Shoppers have the option of taking the food home in a box to warm up in their own ovens or asking an employee to heat up a pizza to eat on the spot, a reflection of the Ahold Delhaize-owned chain’s efforts to dedicate more space in its new stores to ready-made meal choices.
In July, meanwhile, Mt. Gatti’s Pizza unveiled plans to bring 92 pizza shops to Walmart stores in Texas, Louisiana, Oklahoma and Kentucky, a move the Texas-based chain said would nearly double its footprint.
Destination pizza
Specialty grocer The Fresh Market has positioned its stores as prime pizza destinations, announcing in May that it has rolled out a new selection of “authentic Neapolitan-style pizza” that it said would make mealtime easier for customers. The retailer’s chefs designed the recipes, which include BelGioioso cheese, Italian tomatoes grown from “fertile volcanic soils” and crusts made from “highly esteemed Neapolitan flour.”
The Fresh Market’s focus on pizza comes as the chain looks to build ties with customers by highlighting its prepared food options. Several of the chain’s stores include “an expanded kitchen focus” on dinner items that includes a range of restaurant-quality options including hot and freshly prepared pizza.
Serving up a slice of deals
Harris Teeter put a spotlight on pizza when it announced in May that it would include pizza in its “$5 Meal Days” program, which it positioned as a way to attract budget-minded shoppers reeling from the rising cost of eating out. On Mondays, customers could get whole cheese and pepperoni pizzas — freshly baked and “take & bake” — as part of the program.
Grocers have looked to take advantage as people stock up on frozen pizzas. Last fall, Albertsons rolled out a premium wood-fired pizzas imported from Italy under its Signature Reserve private brand.
Also this year, Giant Eagle struck a deal with The 1870 Society, an organization that supports athletics at The Ohio State University, under which the chain said its Ohio stores would sell frozen pizzas featuring student athletes who play for the university.
In keeping with demand by shoppers for foods they can store at home easily and get on the table quickly, SpartanNash included frozen pizzas in its “Finest Reserve by Our Family” private label line, which launched in February. The brand centers on items that include “fresh and authentic ingredients,” according to SpartanNash.
The Glasgow-based coffee roaster has unveiled a major coffee facility upgrade featuring state-of-the-art automated production and packing lines
Founded in 1864, Matthew Algie is one of the UK and Ireland’s largest coffee suppliers, providing roasted coffee and coffee equipment to more than 7,500 businesses and employing 400 staff | Matthew Algie
Scotland’s Matthew Algie has unveiled a major coffee factory upgrade with a focus on efficiency and eco-friendly production as it works to boost capacity and achieve net zero carbon emissions by 2040.
Marking its 160th anniversary, the coffee group has introduced state-of-the art technology to its Glasgow factory, including a new green handling and blending system, upgraded automation, new conveying systems and packaging line.
The upgrade also features a new pallet-packing robot capable of packing coffee into carboard boxes, passing them through the production line and positioning them for delivery. In a bid to further increase capacity while cutting costs and emissions, Matthew Algie has replaced traditional hessian sacks with larger one-tonne transportation bags and now ships coffee in bulk containers.
The upgrades are the culmination of a multi-million-pound investment secured by Matthew Algie in 2023 to increase annual roasting capacity to 2,500 tons per year.
“After sixty rich years of roasting coffee at our beloved Glasgow site, we knew it was time for a fresh upgrade and we’re thrilled to share our exciting roastery transformation. This multi-million-pound investment isn’t just about enhancing our operations—it’s about brewing a brighter, more sustainable future,” said Paul Chadderton, Managing Director of Sales and Marketing, Matthew Algie.
Founded in 1864, Matthew Algie is one of the UK and Ireland’s largest coffee suppliers, providing roasted coffee and coffee equipment to more than 7,500 businesses and employing 400 staff.
The Glasgow-based coffee roaster was early proponent of ethical coffee sourcing, introducing the UK’s first Fairtrade espresso in 1997 and the world’s first triple-certified (Fairtrade, Organic and Rainforest Alliance) espresso in 2004.
In 2019, Matthew Algie became the world’s first carbon neutral coffee roastery after working to offset emissions through carbon credits projects in Uruguay and India. The business continues to work with Fairtrade to support farmers and producers around the world in countries including Rwanda, Ethiopia, Peru, and Honduras.
Part of Tchibo Group since 2016, in January 2024, Matthew Algie became the German coffee giant’s flagship coffee brand in the UK and Ireland following the strategic merger of Tchibo Coffee Services and Dublin-based Capitol foods.
Salvagers successfully towed a Greek-flagged oil tanker that had been ablaze for weeks following attacks by Yemen’s Houthi rebels to a secure area, preventing any oil spill, the European Union naval mission said yesterday.
The tanker was hit by multiple projectiles from the Houthis of Yemen on August 21, with the crew evacuating and the Houthis then boarding the Sounion and detonating a series of explosives.
Laden with 1.1m barrels of crude, the Delta Tankers ship risks becoming the fifth worst tanker spill of all time.
Fires were still visible from its deck as the delicate operation to tow it northwards started over the weekend.
The ship was escorted by three frigates, with helicopters overhead, while three tugs were engaged in the towage operation.
The Sounion’s destination is currently unknown with European naval forces merely stating a “safe location”.
Salvors are now likely to assess how to proceed with a ship-to-ship transfer to empty the Sounion’s cargo of Iraqi heavy crude.
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In October 2025, the UK will tighten its rules around the promotion of HFSS products, marking a key initiative in its strategy to combat childhood obesity and enhance public health. A watershed ban on television and online advertising will be introduced, fundamentally changing how these products reach consumers, particularly younger audiences.
Under the new regulation, TV advertisements for HFSS foods and beverages (scoring 4 points or more; and 1 point or more, respectively) will be prohibited before 9pm.
This measure is designed to reduce children’s exposure to ‘unhealthy’ food marketing during peak viewing hours in the afternoons and early evenings. The ban also extends to online platforms, limiting HFSS promotions via paid ads on social media, search engines and influencer marketing.
The rationale behind this is by limiting exposure to these ads, the UK government hopes to reduce the influence of HFSS food marketing on children’s food preferences and consumption habits.
There has been widespread weigh in around the restriction of ‘unhealthy’ food advertising, particularly targeting children.
Health experts, including the World Health Organization (WHO), have repeatedly emphasized the link between the exposure of children to HFSS advertising and the rise in childhood obesity. Studies show that marketing unhealthy foods increases children’s consumption of these products, influencing their food preferences and normalizing junk food in their diets.
Organizations like Cancer Research UK, the British Heart Foundation and Action on Sugar, too, strongly support the advertising ban. They argue this is a crucial step in reducing diet-related illnesses.
Campaigners have increasingly highlighted the role of digital advertising, with children spending more time online. Targeted ads on platforms like YouTube, Instagram and TikTok are seen as highly influential, with concerns about the effectiveness of online ad bans and the need for stricter regulation to prevent children from being targeted by unhealthy food brands.
The categorization of HFSS is determined using the Nutrient Profiling Model (NPM) developed by the Food Standards Agency (FSA) and Public Health England (PHE).
Foods accumulate points for calories, fats, sugars and sodium, which push them towards HFSS categorization. On the other hand, points are subtracted for beneficial nutrients like fibre, protein and fruit or vegetable content.
If a food scores 4 points or higher – or a drink hits 1 point – it’s classified as HFSS.
For example, a snack high in sugar and fat but low in fibre or protein will score high, while a product containing healthier elements can offset these scores, potentially avoiding the HFSS label.
The F&B industry – especially fast food and snack brands – has voiced concerns over the restrictions, citing potential negative impacts on revenue and marketing strategies. Some have argued the bans don’t fully address the root causes of obesity, such as lack of education and physical activity.
Countries like Chile, Canada and Mexico have already implemented strict advertising restrictions on HFSS products to children, with varying degrees of success. These measures, which often include warning labels and clear nutritional information alongside advertising bans, are seen as models for other nations considering similar actions.
While advertising restrictions are welcomed, health advocates emphasize these should be part of broader, multi-faceted strategies.
Along with bans, policies such as better food labeling, taxes on sugary drinks (already a successful initiative in the UK) and improved access to healthy foods are critical for fostering healthier dietary habits among children.
Along with reassessing marketing strategies to find creative ways to engage with consumers, many producers have also begun reformulating their products to avoid the HFSS tag by gradually altering ingredients to improve nutritional content, though this process is complex and demands technical expertise.
Reformulation is a quagmire – and undoubtedly comes with additional costs – but a concept that no producer can afford to ignore. We’re here to help. Watch out for Bakery&Snacks’ webinar on Reformulation going live on October 25.
Meanwhile, the Obesity Health Alliance (OHA) – which is supported by 88 health charities, medical groups and local advocates – has issued an open letter urging the Prime Minister to implement reforms to create healthier communities.
The OHA’s proposals focus on empowering local councils, especially in deprived areas, by prioritizing health in national planning guidance, restricting unhealthy food advertising, protecting councils from commercial pressure and restoring public health funding with a £1.5bn increase.
A recent YouGov poll reveals strong public backing for these measures, with 70% supporting a ban on ‘unhealthy’ food advertising near schools and 52% supporting restrictions on new fast-food outlets in such areas. However, 50% of respondents believe childhood obesity rates will remain unchanged under the current government, reflecting skepticism about its ability to drive meaningful change.
The government has initiated a consultation on how planning can address obesity, but campaigners stress the importance of fully implementing these reforms to empower local communities. The financial burden of obesity is significant, costing the NHS £6.5bn annually and the broader economy a whopping £98bn. Addressing diet-related ill health is crucial for economic growth and a sustainable NHS.
OHA director Katharine Jenner believes the UK’s high streets are dominated by unhealthy choices.
“Every child deserves access to affordable, convenient and nutritious food. However, high streets are flooded with unhealthy food and drink options, aggressively marketed in ways that limit free choice,” she said.
“Since 2016, the number of children and young adults diagnosed with Type 2 diabetes has increased by nearly 40%, fueled by rising levels of excess weight. Successfully implementing the government’s Child Health Action Plan would be a significant achievement, with the essential first step of giving local places the power to create healthier, active local communities for our children.”
Darrell Gale, spokesperson for the Association of Directors of Public Health, concurs, adding the prevalence of unhealthy food is not a result of personal choice, but circumstances.
“The reality is that people don’t have the freedom to choose. Instead, they are forced by circumstances to buy cheaper, less healthy alternatives, bombarded by advertising and marketing, and are unable to access active transport, open spaces, or affordable leisure options,” he said.
“Only by creating healthier environments, where people have better access to the things we need to live healthier lives for longer, can we hope to address this inequity.”
Most of Paraguay’s grain is exported via the Paraná Paraguay Hydroway. Photo: Cargill Paraguay
THE worsening drought in parts of South America, particularly Brazil, has resulted in record-low water levels in a number of the region’s major waterways, such as the Paraguay and Paraná rivers. This significant environmental issue is causing widespread disruptions to river navigation, crucial for the transportation of agricultural produce, with the impact affecting not only local industries but also the travel and tourism sectors.
The Paraguay River set a new record low on Monday of last week, with the water level dropping to 89cm below the “zero” benchmark on the meter at the main port in Asuncion, Paraguay’s capital. The National Meteorology and Hydrology Directorate confirmed that it was the lowest level recorded at the port in 120 years, breaking the previous record seasonal low, which occurred almost three years ago, in October 2021.
Originating in Brazil, the Paraguay-Paraná waterway system runs 3400km through Argentina, Bolivia, Brazil, Paraguay and Uruguay and into the Atlantic Ocean via the Rio de la Plata estuary. The system rises in the Brazilian highlands of Mato Grosso, Goiás and Minas Gerais and flows southward in two sections – the Paraguay and Paraná. The two rivers unite in the south of Brazil on the Argentina-Paraguay border to form the Paraná River proper.
Although landlocked, Paraguay’s location at the confluence of the Paraguay and Parana Rivers positions it quite strategically along several of the continent’s principal trade routes. Paraguay is one of the world’s leading exporters of agricultural commodities and relies on the system to move around 80 percent of its international trade. This includes grain exports such as corn and soybeans, the latter of which it is the world’s third biggest exporter.
The reduced water levels are hampering the navigation of river barges and small ships, causing significant delays and logistics challenges for commercial trade. This disruption in the marine transport sector, vital for the local economy, could impact global supply chains and international trade. The Paraguayan Oilseed and Grain Crushing Chamber reported the disruption was affecting grain-export logistics, although the full impact has been somewhat mitigated as this season’s peak export period has now passed. According to Paraguay’s fishing union, the low river flows have also left 1600 fishermen unemployed, with boats left stranded on dry riverbanks.
With no immediate relief in sight and long-range weather forecasts suggesting minimal run-off rainfall over the next few months, industry officials anticipate significant financial losses that could run into the hundreds of millions of dollars due to slower or lost trade, higher freight rates and elevated import costs. Lower than average precipitation is expected in the last quarter of the year due to the developing La Nina weather phenomenon, which normally brings drier and cooler conditions in Paraguay and Argentina, although it usually signals wetter weather in the north of Brazil.
The drying of the Paraguay River underscores the broader global trend of more frequent and intense drought cycles, exacerbated by factors such as widespread deforestation for agricultural production and poor water management and governance practices.
According to Paraguay’s main shipping association, river traffic disruptions have spread across neighbouring countries in the past 10 days, with over half the waterway’s shipping capacity halted or delayed. Limited cargo can be loaded on barges and ships to avoid the risk of grounding in shallow sections of the river. This has been costly for Brazil, which exports iron ore along the river, and Bolivia, which is now forced to reroute incoming fuel shipments overland. Paraguay also relies on the river for a significant proportion of its electricity supplies, with the probability of supply cuts increasing with every rainless day.
Brazil is currently enduring its worst drought since nationwide measurements began over seven decades ago. Almost 60pc of the country is under moderate, extreme or severe moisture stress, an area of roughly five million square kilometres, or twice the size of Western Australia. It is reportedly the most intense and widespread drought in Brazil’s history, and for the first time ever, stretches from the northernmost reaches to the country’s far south-east. Wildfires are raging in the Amazon basin and the forests along Paraguay’s northern border. The Madeira River, one of the Amazon River’s main tributaries, also registered a new record low last week at the north-western city of Tabatinga, which lies on the triple border with Peru and Columbia.
Meanwhile, on the lower Paraná River around Rosario in Argentina, the low water flows are also creating havoc for loaded vessels departing the huge agricultural export hub. Sailing along the Paraná Waterway was halted for 12 hours on Saturday week ago between San Nicolás and Ramallo when the Croatian-flagged bulk carrier AP Revelin ran aground, hindering traffic in both directions. When its trip was cut short, the 180m-long vessel was sailing downriver with 32,000 tonnes of soybeans bound for Turkiye. A navigation disaster was averted, with the stranded vessel eventually refloated just 12 hours later with tugboat assistance. However, the AP Revelin had sailed from its loadport with a draft of 9.54m, well above the 8.88m maximum set by the Argentinian Coast Guard due to the shallower shipping lane. At least half a dozen other vessels loaded with agricultural produce scheduled for departure early last week had sailing drafts exceeding 10m, rendering them powerless to navigate the waters to the Rio de la Plata until river flows improve.
Adding to the current navigation woes is a delay in the dredging activities along the Parana River downstream of Rosario. This essential to ensure efficient and uninterrupted, year-round flow of import and export traffic, especially when the water levels in the system are low. The company doing the work claims the Argentinian Government owes them millions of dollars for work already completed.
