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GIEWS Country Brief: Paraguay 08-August-2019

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Paraguay
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FAO
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FOOD SECURITY SNAPSHOT

  • Cereal output in 2019 is forecast at above-average level

  • Cereal exports in 2019/20 anticipated at below-average level

Cereal output in 2019 is forecast at above-average level

Harvesting of the 2019 main “Zafriña” season maize crop is ongoing. Due to good rainfall amounts during the crop development stage, yields are estimated to be excellent. Further, reduced precipitation in June has favoured harvesting operations. Planting of the minor “Zafra” season maize crop will start in August and plantings are expected to increase, mainly reflecting the high level of prices and the sustained domestic demand of maize by the ethanol and feed industries. While an official production forecast is not yet available, the Chamber of Cereal Exporters and Traders (CAPECO) expects that the aggregate 2019 maize production will be well above the average.

Currently, the 2019 wheat crop is at development stage and will be harvested from late September. Favourable rainfall and temperature in early July across the major producing Itapúa,
Caaguazú y Alto Paraná regions have provided favourable conditions for the growth of crops. According to the Producer Union (UGP), the use of fertilizers and other agricultural inputs during the current season is estimated to be lower than usual. This is due to the fact that inputs of wheat crops are mainly financed by financial gains from previously harvested soybean crops, which this year were affected by dry conditions, and profits for farmers were substantially reduced. Assuming normal weather conditions for the reminder of the season, the 2019 wheat production is forecast at above-average level.

Harvesting of the 2018 soybean crop is completed and production is estimated to be at below average 8.8 million tonnes. According to CAPECO, plantings of soybeans were above average, but dry weather conditions between December 2018 and early February 2019 significantly affected yields, lowering the 2018 output to below-average level.

Cereal exports in 2019/20 anticipated at below-average level

Cereal exports in the 2019/20 marketing year (July/June) are anticipated to be at below average 3 million tonnes, reflecting higher demand of maize by domestic industries producing ethanol and feed.