Portuguese 
Corn Has Become Central to Santa Catarina’s Strategy to Reduce Logistics Costs: The State Produces 2 Million Tons, Consumes 8 Million, Relies on Another 6 Million, and Wants to Increase Purchases from Paraguay, Closer than the Midwest, With the Potential to Cut Annual Expenses by About 15%.
Santa Catarina produces about 2 million tons of corn per year, but consumes approximately 8 million tons, creating a gap of 6 million that must be filled through external purchases. Currently, much of this volume comes primarily from Brazil’s Midwest, over 1,500 kilometers away, while the state government is seeking to increase imports of corn produced in Paraguay, located about 300 kilometers from the state.
The information was published by NSC Total on August 11, 2026, following a mission by the Santa Catarina government to Paraguay on August 6 and 7 to discuss commercial and logistical partnerships. Among the main topics was the creation of the so-called Corn Route initiative aimed at connecting Paraguayan producers to the Santa Catarina market and reducing transportation costs for supply chains such as meats and dairy.
Santa Catarina Consumes Four Times More Corn Than It Produces
The difference between production and consumption helps explain why sourcing the grain has become a strategic issue. While state production hovers around 2 million tons a year, demand reaches about 8 million, driven largely by the strength of animal protein supply chains.
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This means Santa Catarina needs to source around 6 million tons of corn from outside the state every year. This structural deficit does not necessarily indicate a lack of product in the country, but it creates significant logistical dependence, as much of the additional supply needs to travel long distances to reach consuming regions in Santa Catarina.
The Midwest is Over 1,500 Kilometers Away
According to information released by the Santa Catarina government, a significant portion of the corn arriving in the state comes from the Brazilian Midwest. The issue lies precisely in the distance: some sources are over 1,500 kilometers from Santa Catarina, considerably increasing the burden of freight costs.
When transportation accounts for a high percentage of the total cost, the final price of corn can rise significantly even when the product at the origin is competitive. For industries consuming large volumes daily, even small price differences per ton can lead to significant impacts over the year.
Paraguay Emerges as an Alternative About 300 Kilometers Away
Geographic proximity is the main argument in favor of increasing Paraguayan purchases. The Santa Catarina government estimates that certain producing regions in the neighboring country are approximately 300 kilometers from Santa Catarina, a significant difference compared to the Brazilian Midwest.
This shorter distance can reduce transportation costs and make Paraguayan corn more competitive for certain buyers. The estimate from Governor Jorginho Mello suggests a reduction of about 15% in costs if the new commercial route can operate under the expected conditions.
Corn Route Became a Priority During Mission to Paraguay
The so-called Corn Route was one of the main topics discussed during the Santa Catarina mission to the neighboring country. The aim is to create commercial and logistical conditions that facilitate the entry of Paraguayan products into the Santa Catarina market.
The discussion involved representatives from the state government, the Federation of Industries of Santa Catarina, and Paraguayan authorities. This engagement seeks to enhance an existing commercial flow that could still scale up given the high demand from the Santa Catarina industry.
Corn is Already the Main Paraguayan Product Purchased by SC
The proposal does not start from scratch. According to Fiesc, corn is already the main product purchased by Santa Catarina from Paraguay, indicating that a commercial relationship is already established between the two markets.
In 2025, the grain accounted for 15.2% of Santa Catarina’s imports from Paraguay, amounting to US$ 70.5 million. This volume helps explain why the state government sees potential to further increase Paraguayan participation in Santa Catarina’s supply.
Imports from Paraguay Grew 390.5% in Ten Years
The commercial relationship between Santa Catarina and Paraguay has also grown significantly over a longer horizon. Between 2015 and 2025, Santa Catarina’s imports of Paraguayan products increased by 390.5%, according to data presented in the report.
In 2025, these purchases reached approximately US$ 464 million. The growth indicates that economic integration had already been intensifying prior to the current discussions about a specific route for corn.
Freight Can Cost More Than the Product Itself
One of the strongest points presented by the Santa Catarina government is the impact of transportation on the price of the grain. According to a statement from the governor reported by NSC Total, in certain situations, freight can cost more than the corn being transported.
This relationship helps explain why the distance between origin and destination has become so important. If the product bought in the Midwest needs to cover more than 1,500 kilometers, while a Paraguayan source might be around 300 kilometers away, the logistical difference can directly affect the competitiveness of the supply.
Corn Is Essential for Meat Production
Corn plays a central role in livestock feed, directly influencing economic chains in which Santa Catarina has a strong presence. Swine and poultry, for instance, depend on large volumes of feed throughout their production cycles.
When grain prices rise, the cost of feeding the animals also increases, putting pressure on producers, cooperatives, processors, and other participants in the chain. Thus, a reduction in logistical costs can have effects that extend beyond the corn market itself.
Milk Can Also Feel the Effects of Cost Reductions
Dairy farming is another activity reliant on animal feed. Corn and its derivatives are included in the diets used in various production systems, meaning significant changes in grain prices can also affect the cost of milk production.
The Santa Catarina government believes that cheaper corn could enhance the competitiveness of various chains. The expectation is that the reduction in input costs will help make meat and milk more competitive, although the final prices of these products depend on numerous other factors.
A 15% Reduction Does Not Automatically Mean Food is 15% Cheaper
The estimate of approximately 15% presented by the government is related to the potential for reducing costs through changes in source and supply route. This does not mean that consumers will necessarily see a drop of the same proportion in the price of meat or milk.
The prices paid by consumers also depend on energy, labor, processing, taxes, profit margins, final transport, and other raw materials. Corn is just one part of the cost structure, even though it is one of the most significant for livestock production.
Santa Catarina Ports Were Also Included in the Negotiation
The mission did not only discuss corn imports. Among the themes presented was the potential to expand the use of Santa Catarina ports by Paraguay, creating a broader logistical relationship between the Brazilian state and the neighboring country.
Technology transfers for agriculture and possible Paraguayan investments in Santa Catarina’s coastline were also discussed. Therefore, the strategy aims to transform geographical proximity into a commercial integration that goes beyond a single product.
Seven Partnership Proposals Were Presented
In total, the mission addressed seven partnership proposals between Santa Catarina and Paraguay. In addition to the Corn Route and the use of Santa Catarina ports, topics related to agribusiness, infrastructure, and economic integration were discussed.
Among the proposals were agricultural technology sharing, the installation of a submarine cable that could serve Paraguay, and hosting meetings focused on real estate business. New ways to connect the neighboring country to international markets were also discussed.
A New Road Connection is Also Being Studied
Another project mentioned involves a future road connection between Santa Catarina, the Argentine province of Misiones, and Paraguay. The aim is to reduce physical barriers and make circulation between the three territories more efficient.
A meeting is scheduled for November in Florianópolis with Santa Catarina, Paraguayan, and Misiones government representatives. The intention is to develop a strategic integration plan, although the proposal is still in the discussion phase.
Corn Demonstrates How Distance Influences Competitiveness
The case highlights how geography can be as important as the price of the product at its origin. Santa Catarina has a livestock industry that demands large amounts of corn, but it does not produce enough to meet its own consumption.
Therefore, reducing hundreds of kilometers in the corn transport route can represent a significant economic advantage, especially when millions of tons need to be transported each year. The Corn Route emerges precisely as an attempt to tackle this structural cost.
Santa Catarina Aims to Turn Corn Deficit into Logistic Advantage
Santa Catarina will continue to need to purchase large volumes from outside its borders while producing approximately 2 million tons and consuming close to 8 million. The challenge lies in finding suppliers and routes that can meet this gap competitively and predictably.
The strategy with Paraguay stems from this logic: to replace part of a journey exceeding 1,500 kilometers with routes closer to 300 kilometers and attempt to reduce costs by about 15%.
