Paraguayan producers question EU regulation on soybean oil

Paraguayan agricultural leaders are sounding the alarm over a new European Union regulation that threatens to label soybean oil as an unsustainable biofuel. Representatives from major production guilds, including the Union of Agricultural Producers (UGP) and the Paraguayan Chamber of Exports and Traders of Cereals and Oilseeds (Capeco), met with Foreign Minister Rubén Ramírez Lezcano to convey their deep concern.

The regulation, currently under consideration within the EU, focuses on Indirect Land Use Change (ILUC). Its potential classification of soybean oil as unsustainable could have significant repercussions for Paraguay's agricultural sector, which heavily relies on soybean exports. Héctor Cristaldo, president of the UGP, stated that the measure could affect not only soybean oil but the entirety of the country's soybean production, its primary export commodity.

Producers are particularly worried about what they perceive as an arbitrary and unscientific disqualification of their products. "Without knowing the reality of Paraguay, they are labeling Paraguay as a high-risk country that does things wrong," Cristaldo lamented. This sentiment highlights a fear that the EU's decision could lead to an unfair and unfounded rejection of Paraguayan agricultural goods.

These concerns arise despite robust export figures. Capeco's latest report indicates that Paraguay exported over 3 million tons of soybeans in the first quarter, a significant increase from the previous year. This volume generated over $1.15 billion in foreign exchange, underscoring the economic importance of the sector to the nation.