September 12, 2008

Paraguay is closing off soy production in some areas to prevent further damage from intensive soy production.

The plan is part of the agricultural reconstructions that have been announced earlier by President Fernando Lugo.

The government will create zones where only small-scale farmers can grow crops - but not soy, Bloomberg reported the Agricultural Minister Candido Vera Bejarano as saying.

Paraguay has doubled its oilseed production since 2000. Last year, 6.8 million tonnes was harvested, according to the Paraguayan Chamber of Grain and Oilseed Exporters (Capeco).

Vera Bejerano said the measure was to stop the disappearance of rural communities as small scale farms are increasingly swept up by large grain companies hoping to swoop in on their lands to profit from high grain prices.