Paraguay Soybean Production To Fall To Lowest Level in 20 Years

The cooperative's soybean production this year may be less than half what was initially expected as severe drought damages the soybean crop. Eduardo Dietzer estimated the loss of soybean production at 150,000 to 160,000 tons, representing a loss of about $100 million in revenue.

This agribusiness giant manages about 120,000 hectares of farms in the southern provinces of Itabua and Alto Parana. Due to hot and dry weather in December and early January, several agencies have lowered soybean production forecasts for Argentina, Brazil and Paraguay, pushing soybean prices up 12% since the end of November.

In good times, Paraguay produces just over 10 million tonnes of soybeans, with more than 90 percent of soybeans and manufactured products exported overseas, including Argentina and Brazil, according to the Paraguay Grains and Oilseeds Exporters' Chamber (Capeco). But this year's soybean crop will be lucky to reach two-thirds of its normal level of 9 million tonnes.

Dietzer said that while production may fall to the lowest level in 20 years, some of the cooperative's roughly 2,200 farmer members are hoping to boost earnings with second-season soybeans. Second crop soybeans will be sown at a later date.

The Paraguayan agricultural and animal husbandry cooperative is the largest growing group in Paraguay, and its soybean production value accounts for 39% of the 2020 revenue of 416 million US dollars. Dietzer said that although soybean acreage may decline, we hope to maintain soybean production at around 400,000 tons through improved farming. Cooperatives are also increasing grain, pork and dairy production and reducing their reliance on soybeans. The cooperative's plans include increasing corn production to 250,000 tons over the next five years.