In recent years, the soybean industry has grown exponentially in

South America South America is a continent entirely in the Western Hemisphere and mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere at the northern tip of the continent. It can also be described as the southe ...

, primarily in

Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...

and

Argentina Argentina (), officially the Argentine Republic ( es, link=no, República Argentina), is a country in the southern half of South America. Argentina covers an area of , making it the second-largest country in South America after Brazil, th ...

(South America’s two largest countries) and

Uruguay Uruguay (; ), officially the Oriental Republic of Uruguay ( es, República Oriental del Uruguay), is a country in South America. It shares borders with Argentina to its west and southwest and Brazil to its north and northeast; while bordering ...

and

Paraguay Paraguay (; ), officially the Republic of Paraguay ( es, República del Paraguay, links=no; gn, Tavakuairetã Paraguái, links=si), is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to th ...

. Paraguay has benefitted from the results of this explosive growth through economic expansion.

History of Soybeans in Paraguay

Soy was introduced in the country in 1921. The earliest known document to mention soybeans in Paraguay or the cultivation of soybeans in Paraguay was published in 1940. By the late 1970s, Paraguay was a major soybean power in the Americas. In 1978, R.C. Schroeder wrote that Paraguay and other Latin American nations were gaining market share in the international soybean market where the United States had enjoyed a virtual monopoly for decades.

Soybean Demand

The fastest growing import markets in soybeans for Paraguay between 2019 and 2020 were Brazil ($685k)and Argentina ($489k). The

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

soy trade has had little influence on South America’s production because the U.S. grows enough to meet its own demand. Nonetheless, the demand from the east has been vast enough to spur a 69% increase in Paraguay’s soy production over the past five years, making Paraguay the world’s third largest exporter of soy. As land value rises in Paraguay, Brazilian and Argentine farmers with the funds and means to support large industry have been crossing the border into Paraguay. While Brazilian and Argentine farmers work to expand the soybean trade, they bring disastrous results as they clear land and extend production farther and farther and eventually across the border into eastern Paraguay. This influx of farmers has resulted in the displacement of tens of thousands of peasants and small farmers. These campesinos claim they have been unjustly uprooted by Brazilian and Argentine landowners.

Soybean Production

In 2020, Paraguay exported $2.15B in Soybeans, making it the 4th largest exporter of soybeans in the world. Soybeans was the 1st most exported product in Paraguay. In 2019, Paraguay's main exporting competitors in soybeans were: Brazil ($28.6B), United States ($25.6B), and Argentina ($2.31B).

2020s Drought

Paraguay's production is expected barely reach 2.97 million tons in 2022, 68% less than in 2020/21. The average yield is only 900 kg/ha, the lowest figure in Paraguay's history, which leads to increased idling soybean oil processing plants.

References

{{DEFAULTSORT:Soybean Wars Of Paraguay Economy of Paraguay

Environment of Paraguay