The Gran Chaco Pathways Towards a Sustainable Future 2025

Exports to EU countries raising bar for sustainability commitments Dynamics of livestock production and beef exports from the Gran Chaco regionBOX 5 BOX 6Data analysis highlights the European Union (EU) as an important export market, particularly for Argentina and Paraguay in the soybean sector. In Argentina, the EU is one of the largest buyers of soybean meal, with soybean meal exports valued at $1.4 billion, underscoring the bloc’s strategic importance. For Paraguay, while the EU plays a smaller role, it remains a significant destination, accounting for $242 million in soybean meal exports. In the beef sector, the EU’s involvement is more modest, buying $530 million of Argentina’s exports. However, given the higher prices the EU pays for beef, it remains an important export market. Meanwhile, China continues to dominate as the primary destination for beef exports from Argentina and Bolivia. Beyond its role as a key trading partner, the EU is a global trendsetter in sustainable trade practices. The European Union Deforestation Regulation (EUDR) – explored in later chapters – exemplifies this influence by setting high standards for traceability and zero-deforestation commodities. This regulation amplifies pressure on global supply chains to meet stricter environmental standards and highlights the urgency for producers to align with its requirements. While specific data on beef exports from the region is unavailable for all three countries, some export destinations include nations with a growing demand for beef and soy, such as China and India. This demand, driven by projected economic growth, could intensify pressure to expand production into new areas within the biome. Paraguay stands out as a unique case. Based on data from Trase, in 2019, 67.4% of the country’s beef exports originated from the Gran Chaco. The primary destinations for these exports coming from the Gran Chaco were Russia (24%) and Chile (21%), highlighting the biome’s strategic importance to Paraguay’s beef industry.In contrast, Argentina’s beef production is largely focused on domestic consumption. However, the Gran Chaco has gained increasing relevance over the past 30 years, hosting 33% of the national cattle stock, primarily distributed across the provinces of Chaco, Salta, Formosa and Santiago del Estero. The region is central to calf breeding and marketing, which represent the first stage of the livestock production cycle before cattle are transferred to provinces with better forage availability. In 2022, over 5 million calves from the Gran Chaco were marketed to provinces such as Buenos Aires, Córdoba, Santa Fe and Entre Ríos.Soy exports originating specifically from the Gran Chaco are relatively low. According to Trase data, in 2019, Argentina exported only 2.8% of its total soy production from the Gran Chaco, with the main destinations being China (21%) and Vietnam (10%). In the same year, Bolivia exported 2.5% of its total soy production from the region, primarily to Colombia (47%) and Chile (10%). Paraguay exported just 1.7% of its total soy production from the Gran Chaco, mainly destined for Chile (13%) and India (9%).25This limited export share is likely due to insufficient processing infrastructure in the provinces and departments within the Gran Chaco. As a result, soybeans produced in the region are often processed in other areas. For example, the Argentinian province of Santiago del Estero has limited soybean milling capacity, so most of its production is processed outside its territory. The Port of Rosario serves as the primary export hub for the province’s grain production, facilitating the flow of soy to international markets.26 67% of Paraguay’s beef exports originated from the Gran Chaco in 2019, with 24% headed to Russia and 21% to Chile. The Gran Chaco: Pathways Towards a Sustainable Future 20