Paraguay: Soybean Area Expands

Posted by Matt Hopkins|10 June 2008

Paraguay has rapidly expanded its soybean area since the 1990s, and expects further increases. The country has approximately 8 million hectares (Ha) that are "highly suitable" for crop production, according to the country’s Ministry of Agriculture. Much more than that is being tilled, reports the US Dept. of Agriculture’s Foreign Agriculture Service (USDA-FAS).

The focus of expansion from the late 1980s until recently has been in the east within the main departments of Alto Parana, Itapua, and Canindeyu. As much as 80% of Paraguay’s soybean production and planted areas now reside in these three departments. This development has been a westward extension of agriculture from the Brazilian states of Rio Grande do Sul, Parana, and Santa Catarina.

Departments	1991	2005	Change
Alto Paraná	228,504	710,100	311%
Itapúa	210,523	479,225	228%
Canindeyú	49,030	329,740	673%
Caaguazú	21,799	158,020	725%
Caazapá	8,931	112,720	1,264%
San Pedro	17,367	75,850	437%
Total	536,154	1,865,655	340%
Source: Ministry of Agriculture

Westward soybean expansion continues into the departments of Caazapa, San Pedro, and Caaguazu, replacing forests and pastureland. Pressure to expand is causing soybeans to replace pastureland in the north-east, central, and south-eastern regions. Deforestation has virtually reached its conclusion in eastern Paraguay, where only about 7% of Paraguay’s Interior Atlantic Forest remains.

Agribusiness accounts for 20% of Paraguay’s GDP, and soybeans are almost 70% of its annual agricultural production. As of 2003, soy accounted for US $800 million of Paraguay’s $1.3 billion total exports, and is higher today.