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Country Briefs

  Paraguay

Reference Date: 21-June-2017

FOOD SECURITY SNAPSHOT

  1. Smaller cereal output expected in 2017

  2. Cereal exports to decline in 2016/17 marketing year but remain high

Smaller cereal output expected in 2017

Planting of the 2017 wheat crop concluded in early June. Official estimates are not yet available. However, preliminary estimates from producer organizations point to a decline in the area planted of 40 percent from last year’s level to 300 000 hectares; its lowest level in the past decade. The decline in sowings mainly reflects lower returns for wheat, pressured by the ample availabilities in regional and international markets. At this level of sowings, Paraguay will more than cover its domestic consumption needs. However, the country is likely to export smaller volumes of wheat during the upcoming marketing year which starts with the harvest in September. Maize output is also anticipated at a lower level than in previous years, also reflecting lower sowings. FAO anticipates that maize production in 2017 will not exceed 4 million tonnes, well below last year’s record level of 5 million tonnes, pressured by high availabilities and a potentially lower first season output. By contrast, the 2017 soybean crop is anticipated to reach over 10 million tonnes, a bumper level. The increase in production mainly reflects higher sowings of soybeans as farmers diversified away from maize.

Cereal exports to decline in the 2016/17 marketing year but remain high

Cereal exports in the 2016/17 marketing year (July/June) are forecast at 4.3 million tonnes, below last year’s record level but still above the five‑year average. The decline mainly reflects lower maize exports which are expected to decline by about 20 percent from last year’s high level reflecting lower domestic availabilities.