Bolivian sugar export under distress!

Fernando Rojas reports for El Deber:


Lack of trucks complicates the export of sugar

Industrial attributed the lack of trucks has an impact in freight clearance to external markets. Carriers indicate that the prohibition of download goods in free-zones is the reason.

2013-10-02 07.47.22 amThe limited availability of heavy international cargo transport units and the more than eight million quintals of processed sugar, to date, by the Santa Cruz and Bermejo, Tarija sugar mills, complicate the sector, which is beginning to feel the effects in export logistics and warehouses with ‘white grain’ saturation.

At the Guabira sugar mill, President Carlos Rojas noticed that the limited supply of trucks of high international cargo tonnage is affecting export logistics. This factor, according to him, affected the dispatch of goods abroad and led to a rise in the price of freight, which in the present year went up from 55 to 80 dollars per ton.

According to him, right now there is a saturation of product in stores because the factory until September 30 processed 2,429,636 quintals of sugar. He warned that this aspect tends to generate greater supply in the domestic market and depressed the price of the ‘white grain’, what will be dangerous because it would discourage production.

Excluding the 5,000 tons of sugar that was exported to Venezuela through Insumos Bolivia, Guabira has a quota to export this year’s 39,120 tons. He said the sale of 10,000 to Colombia and negotiates for the rest to Venezuela and Peru.

Although the lack of trucks is not so suffocating in the sugar industry (Unagro) general manager, Marcelo Fraija, he said that during the grinding this problem is recurring because it coincides with the harvest of grains. In his view, this affects the availability of trucks.

However, Fraija said that Unagro is exporting normally and gradually. They have a green light to export 52,000 tons of sugar, 12,000 through Insumos Bolivia and the rest to negotiate with external markets.

Sources from the sugar-producing sector called public entities responsible for facilitating the clearance of cargo at border to streamline the processes and not put administrative burdens to truckers to have smooth exports.

For the President of the Chamber of transport from the East, Herlan Melgar, the deficit of international cargo transport unit is limited and will continue while the 0470 Supreme Decree is not corrected, which prohibits the discharge of import goods in free-zones of the country. This measure, according to him, keeps the trucks to remain idle, as physical deposits up to 13 days in the authorized State enclosures while the documentation is verified.

Grinding last until November

According to sources of the sugar sector, the five Santa Cruz sugar mills and Bermejo, Tarija, industrialized 8.4 million quintals of sugar, representing 4,262,000 tons of milled cane. The harvest reaches 79%, it is expected to conclude this process in November

Productive data

Cane ground until September

The five Santa Cruz factories have ground 4,262,000 tons representing a production of 7,870,000 quintals of sugar.

Projected production

According to the Federation of sugarcane, the six industries operating in the country estimated to produce 11 million quintals of sugar this year. Domestic demand is more than 7.5 million quintals.

Cost of export

The export cost that is covered by the mills exceeds $100 dollars per ton, including transportation, rentals in the port of export and other procedures.

Export markets

The main destinations are Colombia, Venezuela and Peru.

so… what is current ochlocratic government doing about this? they just spend too much time on their illegitimate re-re-election!

Published by Bolivian Thoughts

Senior managerial experience on sustainable development projects.

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