Due To The Drought, Paraguay Cuts Up To 40% Its Projections For Soybean Production

The drought it also has a strong impact on neighboring countries. It is the case of Paraguay, where they calculate that there could be up to 40% less than the 10 million tons of soy that they had projected from the Ministry of Agriculture.

Now, according to official estimates, the South American nation would reach between 6 and 7 million tons. This news is relevant for the international market, since it is the fourth exporter of the oilseed.

The Paraguayan Minister of Agriculture, Moses Bertoni, explained: “The calculation of 10 million tons of soybean was made based on an average of 2,840 kilograms per hectare, but those yields will not be reached. It could reach 6 or 7 million depending on the chances of rain we have”.

Even in some Paraguayan towns, such as Santa Fe del Parana, some producers reported losses of 70% to 100% in some batches.

Contingency plan to help more than 20 thousand producers

Before him water deficit affecting crops, the official assured that they are preparing a “contingency plan” that will be applied in advance, unlike other similar crises that occurred in 2015 and 2019.

Among other things, the initiative seeks to help to more than 20,000 small producers. Establishes a cut in the corporate income tax for the first quarter and debt refinancing lines through the state National Development Bank, among other official bodies.

On the other hand, in Argentina, the Minister of Agriculture, Julian Dominguez, asked this Tuesday to the chief of staff, Juan Manzur, that the resources allocated to the National Emergency Fund to “respond to the claims that the producers have” in the face of the drought that plagues some areas of our country.

Soy numbers in Paraguay

It is worth clarifying that soybeans and their derived products, mean the Paraguay’s main export item. For this reason, this situation generates great concern for the Government, since it will hit the entire national economy beyond the agricultural sector, according to Bertoni.

Regarding this, the official assured: “Simply looking at the behavior of the agricultural GDP with the national, we see that they are two almost parallel lines that rise and fall according to the performance of agriculture. A bad agricultural year has effects for the entire country’s economy”.

It should be noted that, in recent years, Paraguay exports to Argentina some volumes to improve the protein level of the grain. Likewise, most of that cargo passes through the Paraná River, which during 2021 suffered the worst downspout in the last 50 years.

In the neighboring country, some 3.7 million hectares of soybeans are planted each year, of which 1,090,000 correspond to the early harvest planted between the end of August and early September, which is currently the most affected by water shortages.

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Tags: soybean, Paraguay