Paraguay Soybean Harvest Reaches 3.1 MMT

BUENOS AIRES - May 9/02 - STAT -- Soybean production is Paraguay was hurt by drought in December and is not likely to exceed 3.1 million metric tons (MT) this year, according to a recent report by the U.S. agricultural attache here.

However, production is expected to increase to 3.6 million MT in the 2003 harvest, with area expected to remain at the same level as this year and yields expected to return to a more normal level. Production of soybeans is concentrated in southeast Paraguay, primarily on mechanized larger farms.

Production of cottonseed this year is down due to a substantial cut in cotton area from 308,000 hectares to 180,000 hectares. Low world cotton prices were the main cause of the lower area. The industry was hoping area would climb to between 250,000 and 300,000 hectares.

Paraguay continues to ban commercial production of all biotech soybean and cotton due to environmental and commercial concerns. The continued ban on biotech crop varieties in Brazil is the main barrier, since Paraguay has been reluctant to approve biotech crops as long as they are not yet approved in the very important Brazilian market.

Paraguayan producers are anxious to plant biotech crops due to the potential cost savings (an estimated US$20 -$40 per hectare for soybeans) and Paraguay is expected to quickly approve biotech crop varieties as soon as they are approved in Brazil. As is the case in Brazil, there are widespread reports of unauthorized planting of biotech soybean varieties.

Domestic soybean crush is expected to come in at 900,000 MT this season, while advancing to 910,000 MT in the coming season. Exports are expected to rise from the current 2.11 million MT estimate to 2.6 million MT on account of projected improvements in next year's supply.