Paraguay Soy, Beef and River Barges — 2026-09-08
Paraguay’s private sector is escalating its dispute with Argentina over Hidrovía tolls, formally requesting the activation of arbitration mechanisms under the Fluvial Transport Agreement. Simultaneously, the country launched its 2026/27 soy campaign with projections of 12 million tons, while Uruguay proposed increasing barge convoy lengths to improve regional logistics efficiency.
Paraguay Soy, Beef and River Barges — 2026-09-08
Top developments
Paraguay Private Sector Demands Arbitration on Hidrovía Tolls
On September 5 and 6, Paraguayan industry guilds and exporters intensified pressure on the government to activate the arbitration mechanism contained in the Agreement on Fluvial Transport regarding Argentina’s toll collection on the Paraguay-Paraná Waterway. The private sector argues that the current US$1.30 per net ton toll for lighting and maintenance absorbs agricultural export margins, threatening competitiveness against other global suppliers
Uruguay Proposes Longer Barge Convoys
On September 7, Uruguay announced plans to request an increase in the maximum length of barge convoys navigating the Hidrovía. The proposal, directed at the four other countries governing the waterway (including Paraguay and Argentina), aims to allow higher cargo volumes per trip, potentially reducing per-ton logistics costs and mitigating some of the economic pressures caused by current navigational restrictions
Paraguay Launches 2026/27 Soy Campaign with Record Projections
Paraguay officially launched its 2026/27 soybean campaign in early September, following a record harvest of 11.5 million tons in the previous cycle. The Association of Soybean and Oilseed Producers (APS) projects a production target of 12 million tons for the new campaign, with planted area estimated between 3.5 and 3.7 million hectares. Despite favorable yield expectations, producers warn that rising input costs are squeezing margins
Local view
Local media outlets such as Prensa Mercosur and La Razón highlight the growing frustration among Paraguayan exporters, who feel that bilateral negotiations with Argentina have stalled. The ABC Color rural section notes that while the APS is optimistic about acreage expansion to 3.7 million hectares, the "cost squeeze" remains a primary concern for farmers entering the new zafra (harvest season)
Context & numbers
- Soy Production: The 2025/26 season closed with a record 11.5 million tons; the 2026/27 target is 12 million tons.
- Hidrovía Toll: The current toll charged by Argentina for the waterway is US$1.30 per net ton. Paraguay has previously sought a 50% reduction but faces resistance.
- Beef Exports: USDA forecasts for 2026 estimate Paraguayan beef exports at 490,000 tons carcass weight equivalent, a 6% decline due to smaller slaughter volumes. Chile remains the leading destination.
On the radar
- Mercosur Foreign Ministers Meeting: The issue of Hidrovía tolls is expected to be raised in upcoming Mercosur foreign ministers' meetings, where Paraguay aims to secure regional support against Argentina's unilateral toll structure.
- Arbitration Timeline: Watch for formal submission of arbitration requests under the Agreement on Fluvial Transport by the Paraguayan government, following the private sector's mandate.
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