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Social, Economic and Environmental Analysis of Soybean and Meat

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Social, Economic and Environmental Analysis of Soybean and Meat Social, economic and environmental analysis of soybean and meat production in Paraguay │ 1 SOCIAL, ECONOMIC AND ENVIRONMENTAL ANALYSIS OF SOYBEAN AND MEAT PRODUCTION IN PARAGUAY WWF-Paraguay WWF established an office in Paraguay in 2000 with the objective of carrying out programs for the recovery, conservation and sustainable management of the Atlantic Forest of Paraguay. Currently, WWF is working on implementing local environmental projects that involve community leaders, government Work team: representatives and producer unions. World Wildlife Fund – Paraguay and Germany WWF (World Wildlife Fund) is a private environmental organization that works Lucy Aquino globally and locally for conservation worldwide. It has offices in over 100 countries Luca Eufemia and has the support of millions of members. Its mission is to stop the degradation Marianne Hilders Karina Mansilla of the planet, with the idea that humans live in harmony with nature. Martina Fleckenstein Amanda Parker Published in 2016 by WWF-Paraguay in Asunción, Paraguay. Any full or partial María José López (Consultant) reproduction of this publication must mention the title and credit the previously mentioned editor as the holder of copyright. Desarrollo, Participación y Ciudadanía (Investigación para el Desarrollo): Carmiña Soto Recommended citation: World Wildlife Fund (2016). Social, economic and Rossana Scribano environmental analysis of soybean and meat production in Paraguay. Asunción, César Cabello Paraguay: WWF-Paraguay. Leticia González Jorge Garicoche Text 2016 WWF. Acknowledgements: All rights reserved. Elizabeth Schueler (WWF-US) Birgit Wilhelm (WWF-Germany) Reproduction of this publication for educational and non-commercial purposes Jacqueline Reyes (Peace Corps, Paraguay) Maria Olveira is authorized without prior written permission from the holder of copyright. Katherine McCutcheon (Youth Volunteer Internship However, WWF welcomes the prior written notification and appropriate Programme WWF International) acknowledgment. Reproduction of this publication for commercial purposes is prohibited without prior written permission of the owner of copyright. On December 15, 2015, WWF-Paraguay held a workshop with various partners in order to present and discuss the information included in this report. The designation of geographical entities in this report and the presentation of Participants included: the material do not imply the expression of any opinion whatsoever on the part of WWF concerning the legal status of any country, territory or area, or of its Federico Monte Domecq (WWF-Paraguay) authorities or the delineation of its boundaries or borders. Diane Espinoza (Advisor WWF-Paraguay) Luis E. Arréllaga (PAYCO S.A.) Gloria Helman (PAYCO S.A.) Original Research by Desarrollo, Participación y Ciudadanía (Investigación para el Shirely Zavala (U.S. Agency for International Desarrollo) Development) Enrique Molas (Round Table on Responsible Soy) Design by Brandon Víctor Vázquez (Federación de Cooperativas de Producción) Roberto Villalba (Investigación para el Desarrollo) Translation to English by Philip Hutsell Hugo Sanchez (Solidaridad Paraguay) Víctor Ibarrola (A Todo Pulmón) Cover photo: Aerial view of the landscape of the Indigenous Community Puerto Alberto Yanosky (Guyra Paraguay) Barra - Courtesy Guyra Paraguay Lorena Sforza (Guyra Paraguay) Oscar Rodas (WWF-Paraguay) Guillermo Terol Claudia Duarte (WWF-Paraguay) Fredy Jara (WWF-Paraguay) Francisco Pereira (WWF-Paraguay) Cristina Morales Calixto Saguier Cinthya Duarte (WWF-Paraguay) 2 │ Social, economic and environmental analysis of soybean and meat production in Paraguay INDEX PROLOGUE 7 Beef Production in Paraguay 52 MARKET TRANSFORMATION INITIATIVE 8 Beef Production and Consumption 54 ExECUTIVE SUMMARY 9 Processing and Sale of Beef 54 1. INTRODUCTION 1 3 Growth Dynamics of Production 56 2. SOY 14 Land surface area used for ranching 57 The Global Soybean Market 16 Economic Analysis 58 The Expansion of Soybean Farming in Paraguay 18 Gross Domestic Product 58 Foreign trade 58 Bringing to Market and Processing 23 Investment 60 Job creation 60 Impact on the Economy 26 Social and Environmental Aspects 62 Gross Domestic Product 26 Inverstment in the agricultural sector 28 Ranching and the risk of land degradation 62 Tax contribution 29 Ranching and indigenous peoples 63 Proyection of future expansion of soybean farming 30 4. INSTITUTIONAL AND LEGAL ASPECTS 64 Environmental Analysis 32 Administrative and Control Institutions 66 Loss of forests and biodiversity 32 Institutions Related to Production 67 Effects on water quality and quantity 35 Institutions for Logistical Support, Supplies and 68 Research Social Analysis 36 Civil Society Organizations 68 Displacement of rural communities, 36 internal migration Legal Aspects 69 Reduction of the land surface dedicated 5. BEST AGRICULTURAL/LIVESTOCK PRACTICES 72 to the production of food 38 Global Initiatives 74 Consequences of phytosanitary products 43 Best Agricultural/Livestock Practices in Paraguay 76 Use of labor and job creation 46 Challenges and Lessons Learned 77 3. BEEF 48 6. CONCLUSIONS AND RECOMMENDATIONS 80 The Global Beef Market 50 Annex 85 Bibliographic References 99 Social, economic and environmental analysis of soybean and meat production in Paraguay │ 3 INDEX OF FIGURES FIGURE 1 Principal soy producers for 2012/2013 harvest 17 FIGURE 2 Principle exporters of soy 2012/2013 harvest 17 FIGURE 3 Percentage of land used for agriculture in respect to total region (ha). Data inter-census 1991-2008 19 FIGURE 4 Percentage of soy cultivated in respect to agricultural land surface. Data inter-census 1991-2008 20 FIGURE 5 Evolution of area’s planting and production of soy 21 FIGURE 6 Value chain of produced grains in agricultural business 24 FIGURE 7 Exportation of soy and its derivatives in percentage 2013 26 FIGURE 8 Soy exports from Paraguay 27 FIGURE 9 Principal destination of soy exports 2013 27 FIGURE 10 Volume of soy exports to MERCOSUR 28 FIGURE 11 Surface area of observed and projected soy 30 FIGURE 12 Performance of observed and projected soy 30 FIGURE 13 Traditional Zone: land covered by forest or cultivated by soy. Inter-census period 1991-2008 33 FIGURE 14 Traditional Zone Minor: land covered by forest or cultivated by soy. Inter-census period 1991-2008 34 FIGURE 15 Zone of Expansion: land covered by forest or cultivated by soy. Inter-census period 1991-2008 34 FIGURE 16 Family Farming: quantity of farms according to size 36 FIGURE 17 Percentage of items grown by family farms in GVP in 1991 and 2008 39 FIGURE 18 Inter-census variation of area of subsistence items 41 FIGURE 19 Production of meat according to principal producers (in MT) 2012 51 FIGURE 20 Exported beef 2012 (in MT) 51 FIGURE 21 Structure of the cattle ranching chain in Paraguay 55 FIGURE 22 Institutional inter-relations between productive, environmental, and economic areas 66 FIGURE 23 Principle variables in Best Practices 79 4 │ Social, economic and environmental analysis of soybean and meat production in Paraguay INDEX OF TABLES TABLE 1 Surface area of planted soy 2009-2015 20 TABLE 2 Industrialization capacity of businesses associated with CAPPRO, 2014 25 TABLE 3 Import of new agricultural machinery (units) 29 TABLE 4 Soy projection and production by cultivated area 31 TABLE 5 Variation of privately owned land cultivated by soy and covered by forest 33 TABLE 6 Quantity of farms according to size 37 TABLE 7 Family Farming: Gross Value of Production (in thousands of guaraníes in 1994) 39 TABLE 8 Quantity of subsistence items according to surface area 40 TABLE 9 Area (ha) of subsistence items according to surface area 41 TABLE 10 Quantity and surface area size of seasonal crops 42 TABLE 11 Global production and commercialization of meat (in MT) 50 TABLE 12 Existence of cattle 53 TABLE 13 Production, consumption, and export of beef (in t) in Paraguay 54 TABLE 14 Inter-census variation of cattle 57 TABLE 15 Land used for cattle ranching in Eastern Region (ha). Inter-census period 1991-2008 57 TABLE 16 Land used for cattle ranching in Western Region (ha). Inter-census period 1991-2008 58 TABLE 17 Paraguay: national GDP and percentage from cattle ranching sector 58 TABLE 18 Volume and value of meat exports 59 TABLE 19 Destination of meat and offal exports 2013 59 TABLE 20 Aggregate investment of beef 60 TABLE 21 Estimated employment created by the dairy and meat chain 61 TABLE 22 Summary of laws and decrees that have influence over soy and meat production 69 TABLE 23 Explicit variables and their operative definition 88 TABLE 24 Evolution of soy: area sown and production 98 Social, economic and environmental analysis of soybean and meat production in Paraguay │ 5 ACRONYMS AF Atlantic Forest APS Association of Soybean, Grains and Oilseed Producers of Paraguay ARP Rural Association of Paraguay BAP Best Agricultural/Livestock Practices BCP Central Bank of Paraguay CADAM Chamber of Automotive and Machinery Distributors CADEP Center for Analysis and Dissemination of the Paraguayan Economy CAH Approved Agricultural Credit CAN National Agricultural/Livestock Census CAPECO Paraguayan Chamber of Grains and Oilseeds Exporters and Traders CAPPRO Paraguayan Chamber of Processors of Oilseeds and Grains CYTASA Colonization and Agrarian Reform S. A. DGEEC Department of Statistics, Surveys and Censuses EAP Economically Active Population FAO Food and Agriculture Organization of the United Nations FECOPROD Federation of Production Cooperatives FF Family Farming GDP Gross Domestic Product GVP Gross Value
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