Paraguay
Paraguay

Paraguay is a successful producer and exporter of soybeans and has congenital a small-scale wheat export trade, but its producers are under pressure from low world prices. Wheat flour is a growing function of the diet of the people of the country. Ethanol production is increasingly derived from sugarcane.

According to the International Grains Council (IGC), Paraguay'southward maize (corn) crop in 2016-17 will come to an unchanged iii.3 1000000 tonnes. It will consign 3.4 million tonnes, downwardly from 3.7 1000000 in 2015-16.

Paraguay's crop of soybeans in 2016-17 volition be eight.ix one thousand thousand tonnes, up from 8.eight million the year before. Information technology will export an unchanged 4.seven million tonnes of soybeans and an too unchanged 2.7 million of meal.

The USDA attaché forecasts a 2016-17 wheat crop of 1 meg tonnes, downwards from ane.ii million the year before, with exports at 500,000 tonnes in 2016-17, downward from 600,000 the prior year.

The attaché explained the fall in output: "This is a reduction from terminal year's volume primarily due to a pregnant drop in planted area as a result of expected low prices and profitability. Electric current projected net margins are slightly negative. Most contacts forecast a drop in planted expanse between ten% to forty%."

Many farmers volition instead increase the use of wintertime cover crops, such as oats, and institute summer soybeans immediately after, the report said.

"Paraguayan wheat is expected to suffer stiff pressure from a large export surplus from Argentina's 2016-17 wheat ingather. The main market for wheat for Argentina and Paraguay is Brazil. Wheat production in Paraguay takes identify primarily in the southeast, in the Departments of Misiones, Alto Parana and Itapua. Planting is normally washed in May, while harvest is in September to early October."

Paraguay, until the early 2000s, was a net wheat importer, but the research and development of local varieties made it possible to expand its wheat surface area to 500,000 to 600,000 hectares a year and become a wheat exporter, it said.

"Producers use proficient engineering science, good seed genetics and fertilization. Average yields usually range between two to 2.four tonnes per hectare. In general, the protein content of Paraguay's wheat is over 12%."

The attaché's forecast for the 2016-17 maize crop is three.5 million tonnes, downward from a figure of iii.75 meg the year before.

"As with wheat, an expected important increase in production in neighboring Argentina is expected to put a downwards pressure level on local farmers' expectations," the report said. "However, lower costs of production (particularly fertilizers and seed prices), and some changes in agronomic practices are expected to proceed the harvested area at 720,000 hectares."

Two Crops per year

The attaché explained how the season runs in Paraguay.

"After the harvest of the first soybean crop (chosen summer soybean) in January, some farmers plant in the same field either late soybeans (called soja zafrinia) or late corn (chosen maiz safrinia)," the study said. "There is currently a lot of word of whether soybeans subsequently soybeans is a good agricultural practise as it does non cut the wheel of diseases, weeds and insects. There are many technicians who advise against this practice, but many farmers continue to plant due to its economics."

Paraguay has 2 different maize seasons.

Paraguay

Source: U.Due south. Department of Agriculture

"The early corn is usually planted in September and harvested in February-March," the attaché explained. "The area planted with this corn normally ranges between 20,000 to forty,000 hectares, and yields on average 8 tonnes per hectare. The late corn is normally planted after the soybeans harvest in late Jan-Feb and harvested in July-August. Its surface area normally ranges between 650,000 to 750,000 hectares. Late corn typically yields between 4.five-5.5 tonnes per hectare."

Corn is planted throughout Paraguay, and there are many small-family farms which use it for their own use, the report said.

"Product is concentrated in the hands of the more than progressive producers, who utilize skillful technology, in the Departments of Alto Parana, Itapua and Canindeyu, in the eastern role of the country. This expanse represents over eighty% of production. Virtually farmers apply no-till drill, practiced volumes of fertilizers and biotech seeds. The risk for the tardily planted corn is the lack of rainfall in a period of more than two weeks during autumn."

Paraguay also produces rice. The attaché projected the 2016-17 crop at 700,000 tonnes, on a rough production basis. "Despite a lower harvested area, this is an increase from the previous year which was badly affected by excess rainfall due to El Niño," the report said. "The local rice sector is going through difficult times due to excess stocks and low export prices.

"The Departments of Misiones, Itapua and Caazapa concentrate near lxxx% of the country's rice product. Eight rice mills in the Itapua area account for more than eighty% of the demand."

Flour consumption rising

Wheat flour consumption is on a trend up equally Paraguayans shift from eating manioc to wheat flour and products based on wheat flour.

"Wheat flour consumption in Paraguay has been growing strongly in the past few years, primarily due to the growth of the country's economic system and to the fact that the distribution system for flour has improved significantly, particularly now reaching cities and towns in the interior of the country," the attaché said.

"The urban center of Juan Eulogio Estigarribia (also known as Campo 9), located between the main country's cities of Asuncion and Ciudad del Este, hosts the largest concentration of flour mills, followed by Asuncion. There are approximately 36 wheat flour mills in the country. They accept production chapters of ane.15 million tonnes of wheat and are currently running at 55% capacity."

Record Ethanol Production

Paraguay does have a big ethanol industry, which consumes corn, but it is not expected to expand this year, while the expanding feed lot business primarily uses silage.

"Paraguayan ethanol product is forecast to reach a record 215 meg liters in 2016," said an attaché report on the subject. "This is a result of expected larger sales of gasoline as the local economy continues to aggrandize.

"Contacts estimate that 65% of the ethanol produced in Paraguay in 2016 will be produced from sugarcane, while the remainder volition be from grains (mostly corn)," it said, noting that corn had been the majority feedstock for ethanol until recent government measures designed to support small sugarcane producers were enacted.

Soybean use limited

Paraguay

Source: U.S. Section of Agronomics

Although Paraguay is a fairly large producer of soybeans, domestic consumption of them and their products is minimal, co-ordinate to the attaché. "Soybeans and soybean meal are used in feed rations for the pork and poultry industries," a report on the sector said. "Use for cattle rations is very limited as near cattle are still fed on pasture."

The apply of soybean oil for biodiesel is limited because information technology is more expensive than fauna fat.

"Despite fiscal difficulties, soybean profitably continues to be fairly expert," the written report said.

"Paraguayan producers are quick adopters of new production technologies, specifically biotechnology," it said. "An estimated 95%-97% of Paraguay soybeans come from biotech varieties.

"Contacts land that producers could achieve price savings through more efficient applications of fertilizer. Withal, it is doubtful that producers modify such methods. Financing for inputs is all the same largely provided by input companies. Producers enter what local contacts draw a "barter-like" arrangement where providers will supply inputs to producers in exchange for a negotiated volume of soybeans. In addition, financing is also available through private banks where all transactions are made in dollars."

Key Facts

Capital: Asunción

Population: 6,783,272 (July 2015 est.)

Religions: Roman Catholic 89.vi%, Protestant half-dozen.two%, other Christian 1.1%, other or unspecified 1.9%, none 1.ane% (2002 census).

Location: Central Due south America, northeast of Argentina, southwest of Brazil.

Government: Presidential republic. Master of country and caput of authorities: President Horacio Cartes Jara (since Aug. 15, 2013).

Economy: Landlocked Paraguay has a marketplace economy distinguished past a large breezy sector, featuring re-export of imported consumer goods to neighboring countries, as well every bit the activities of thousands of microenterprises and urban street vendors. A large percent of the population, especially in rural areas, derives its living from agricultural activity, oftentimes on a subsistence ground. Because of the importance of the breezy sector, accurate economical measures are difficult to obtain. On a per capita footing, real income has stagnated at 1980 levels. The economy grew chop-chop between 2003 and 2008 as growing world demand for commodities combined with loftier prices and favorable atmospheric condition to support Paraguay's commodity-based export expansion. Paraguay is the sixth largest soy producer in the globe. Drought striking in 2008, reducing agronomical exports and slowing the economic system even before the onset of the global recession. The economy fell iii.8% in 2009, equally lower world demand and article prices acquired exports to contract. The government reacted by introducing financial and monetary stimulus packages. Growth resumed in 2010, and has been erratic, although positive, ever since. Astringent drought and outbreaks of pes-and-mouth disease led to a drop in beef and other agricultural exports. In addition to the agricultural challenges, political uncertainty, corruption, limited progress on structural reform, and deficient infrastructure are the main obstacles to long-term growth

GDP per capita: $8,800 (2015 est.); aggrandizement: 3.four% (2015 est.); unemployment: 5.5% (2015 est.).

Currency: Guarani (PYG): 5,613.45.guaranis equal 1 U.S. dollar (May nineteen, 2016).

Exports: $8.352 billion (2015 est.): soybeans, livestock feed, cotton, meat, edible oils, wood, leather.

Imports: $9.604 billion (2015 est.): road vehicles, consumer goods, tobacco, petroleum products, electrical machinery, tractors, chemicals, vehicle parts.

Major crops/agricultural products: Cotton, sugarcane, soybeans, corn, wheat, tobacco, cassava (manioc, tapioca), fruits, vegetables; beef, pork, eggs, milk; timber.

Agriculture: 18.nine% of GDP and 26.5% of the labor strength.

Internet: Code: .py; 1.9 million users.

Source: CIA World Factbook