September 15, 2011

Paraguay may experience record soy output in 2011-12

A representative of Paraguay's grain exporters' chamber on Wednesday (Sep 14) said that the country's 2011/12 soy production should rise 7% to nine million tonnes.

Paraguay, being the world's number four soy exporter, ships far less of the oilseed than its giant neighbours Brazil and Argentina.

Although soy cultivation is expanding rapidly in the South American country, Paraguayan farmers are concerned that the La Nina weather anomaly may limit output growth next season.

"We are keeping a close eye on the weather and the La Nina," said an analyst with the country's grain exporters chamber (Capeco).

However, he said output should increase to nine million tonnes from 8.4 million last season.

Soy area should increase slightly to three million hectares from 2.8 million last season, Cubilla said.

Paraguay's government wants to put a 6% tax on the country's burgeoning soy exports, a measure that could aggravate already tense relations between left-leaning President Fernando Lugo and the farm sector.