Sep 08, 2009
Paraguay To Produce 6.0 mt Of Soybeans In 2009-10
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
In addition to prices and weather, the soybean farmers in Paraguay have to also worry about the social/economic situation in the country. Last year there were violent conflicts between landless squatters and Brazilian soybean farmers in eastern Paraguay. Violence erupted as squatter groups tried to seize property and disrupt farming operations on land owned by Brazilians. These groups, which were encouraged on by the federal government, feel that the Brazilians purchased the land illegally and that they should be forced out. The situation has calmed down for the time being, but it remains to be seen if these groups resume their protest activities as the planting season approaches.
It is estimated that the soybean acreage in Paraguay will be unchanged from 2008-09 (2.3 million hectares), but I will be the first to admit that the situation could change very quickly if the landless squatters decide to resume their disruptive protests. Soybean acreage in Paraguay has been increasing steadily for a number of years; so holding the acreage unchanged would be going against the recent trend.
The total soybean production in Paraguay is estimated at 6.0 million tons, which would be a significant improvement over the 3.8 million tons produced last year. Last year's production was probably an aberration due the severe drought in the region and the social conflicts that disrupted the planting of the crop.