April 30, 2025

Paraguay to see big increase in soybean  production in MY 2025/26

According to the USDA (FAO) forecast, the crop could reach 10.9 million tonnes. Improved weather conditions and increased planting area are expected to have a positive impact on yields.

Paraguay grows two soybean crops per year: the main (zafra) and the second (zafrinha). FAO analysts forecast an increase in production volumes compared to 9.7 million tonnes in 2024-25, which was affected by unfavorable weather. Experts expect a return to normal rainfall, which will stabilise production.

Paraguay's soybean exports are forecast to increase to 7.2 million tonnes in 2025-26, a recovery from 6.5 million tonnes in the previous period.

Paraguay's crushing industry is closely linked to the situation in Argentina, a major buyer of Paraguayan soybeans. Increased availability of the Argentine crop is expected to allow Paraguayan processors to operate at 70-80% of capacity. Total processing volume is estimated at 4-4.5 million tonnes.

Domestic consumption of soybeans in Paraguay is low, so the country focuses on exporting soybean meal and oil, mainly to Southeast Asia, Chile, and Argentina.

- UkrAgroConsult