September 21, 2015

Crop Production Cycle for Paraguay, Uruguay, and Bolivia

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Paraguay - I do not publish a month-by-month production cycle for Paraguay because it is very similar to the state of Parana in southern Brazil. The main soybean production region of Paraguay is along the eastern side of the country right across the Parana River from western Parana. The weather, soils, and cropping practices in Paraguay are very similar to that of western Parana.

In fact, the vast majority of soybean farmers in Paraguay are Brazilians who moved across the border starting in the 1970's in search of cheap land. This influx of Brazilian farmers has led to conflicts with many of the local population who do not recognize the legitimacy of the property titles held by the Brazilians. The local courts in Paraguay have confirmed that these titles are legitimate, but the opposition groups believe the government that issued the titles was illegitimate at the time so therefore, the titles they issued are illegitimate as well.

The entire land reform issue in Paraguay is not going to be resolved any time soon, if ever. The amount of Brazilians moving to Paraguay has dwindled to a trickle. They now prefer to move to northern Brazil, Bolivia or even to Mozambique in east Africa. Mozambique speaks Portuguese and the climate and soils are very similar to that of central Brazil. Land is extremely cheap in Mozambique and the country has sent trade missions to Brazil basically begging Brazilian farmers to move to the country and start farming, especially soybeans. The results thus far have been mixed.

Uruguay - The soybeans in Uruguay are grown in two locations. One area is along the western side of the country across the Uruguay River from Argentina and the cropping pattern there is very similar to that of eastern Argentina. The other area of soybean production is in the northern part of the country along the border with the state of Rio Grande do Sul in southern Brazil and the cropping pattern there is similar to southern Brazil.

Bolivia - The soybean production in Bolivia is in the eastern part of the country which borders on the state of Mato Grosso, so the cropping pattern there is similar to that of western Mato Grosso.