According to the World Bank, agriculture contributes 16% of the country's GDP. Paraguay's agricultural sector can be broadly classified into two: one is the large scale agribusiness sector which is capital intensive and export-oriented and second is the small scale farming. Wheat, Rice, Maize, Sorghum are some of the grains which are produced in the region. Paraguay is a successful producer and exporter of soybean and has built a small wheat export trade. According to the International Grains Council (IGC), Paraguay’s maize crop production will come to an unchanged 3.3 million metric ton in 2017. In 2018, Paraguay produced 5344.65 Thousand MT of Maize and 107.879 Thousand MT of Sorghum. The coarse grain production accounted for 5452.529 Thousand MT the same year.
Key Market Trends
Increased Demand in Export Opportunity
According to OEC, the top export markets of Paraguay are Brazil, Argentina, Chile, Russia, and Italy with USD1.12 billion, USD 749 million, USD 648 million, USD 601 million and USD 293 million. The major grains that are exported from Paraguay to these markets are Maize, Rice, and Wheat accounting for 8% of the total export from the region. Brazil tops the import of all three grains from Paraguay. The export of Maize increased from 642008 Thousand MT to 739227.4 Thousand MT during 2017-2018. The export of Rice increased from 429940 Thousand MT to 462391.3 Thousand MT and wheat from 344181 Thousand MT to 362484.6 Thousand MT during 2017-18 to Brazil market alone.
Maize Dominates the Market
According to FAO, maize production has significantly increased during the forecast period 2016-2018 from 5152320 MT to 5344650 MT which is a 3.75% increase in the production rate. As per USDA FAS, the export of maize in 2018-19 summed to a total of 1.4 million tons and the domestic consumption for 2019/20 is projected at a record 1.65 million tons with the local grain ethanol industry expansion is one of the major drivers for the increase Maize production in the region. It is estimated that the country's local ethanol producers will consume approximately 1.22 million tons of Maize by 2020.
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Key Market Trends
Increased Demand in Export Opportunity
According to OEC, the top export markets of Paraguay are Brazil, Argentina, Chile, Russia, and Italy with USD1.12 billion, USD 749 million, USD 648 million, USD 601 million and USD 293 million. The major grains that are exported from Paraguay to these markets are Maize, Rice, and Wheat accounting for 8% of the total export from the region. Brazil tops the import of all three grains from Paraguay. The export of Maize increased from 642008 Thousand MT to 739227.4 Thousand MT during 2017-2018. The export of Rice increased from 429940 Thousand MT to 462391.3 Thousand MT and wheat from 344181 Thousand MT to 362484.6 Thousand MT during 2017-18 to Brazil market alone.
Maize Dominates the Market
According to FAO, maize production has significantly increased during the forecast period 2016-2018 from 5152320 MT to 5344650 MT which is a 3.75% increase in the production rate. As per USDA FAS, the export of maize in 2018-19 summed to a total of 1.4 million tons and the domestic consumption for 2019/20 is projected at a record 1.65 million tons with the local grain ethanol industry expansion is one of the major drivers for the increase Maize production in the region. It is estimated that the country's local ethanol producers will consume approximately 1.22 million tons of Maize by 2020.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
Methodology
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