April 14, 2011

Paraguay forecasts record soy harvest

Paraguay's 2010/11 soy harvest was projected at a record 8.4 million tonnes, one million tonnes above the start-of-season estimate, the Agriculture Ministry said on Wednesday (Apr 13).

The forecasted harvest would put the small South American country's soy production 12.3% above last season's record output. Good weather and crop management contributed to the improved outlook, said Edgar Mayeregger, director of risk assessment for the Agriculture Ministry. "In areas we have seen yields above the historical average ... really very good production," Mayeregger said. He added he expected an average yield of about 2.8 tonnes per hectare.

The total area planted with soy is estimated as slightly above last year's 2.7 million hectares. Farmers are optimistic. "We'll definitely produce more than last year," Tranquilo Favero, head of Favero Group, the country's largest soy producer said. Favero said that farmers were using more advanced crop technology, including investing in new machinery and a greater variety of seeds.

Paraguay is the world's No. 4 soy exporter, though trailing behind neighbouring agricultural giants Brazil and Argentina. Soy is its biggest foreign currency earner.

The record soy crop last season helped the economy to grow 14.5% in 2010. It is expected to grow between 4-5% this year, according to official figures, but the central bank recently said it would increase its 2011 growth forecast in light of the positive agricultural outlook.

The Paraguayan Chamber of Cereals and Oilseeds Exporters (CAPECO), which is under discussion with the Congress over government-backed plans to increase soy export duties, said on Wednesday (Apr 13) it would release its own official estimate for the soy harvest at a future date.