Paraguay: Location & Chief Export (Soybeans)
Where Is Paraguay?
Landlocked in South America's heart, bordered by:
- Brazil — East/northeast (1,365 km border)
- Argentina — South/southwest (1,880 km)
- Bolivia — Northwest (750 km)
Area: 406,752 km² (157,048 sq mi) — slightly larger than California. Capital: Asunción (on Paraguay River).
Chief Export: Soybeans — By a Wide Margin
Soybeans and soy products account for ~40–45% of total export value (2022–23: ~$8–9B of $18–20B total).
Soybean Sector Snapshot
| Metric | Value (Recent) |
|---|
| Production | 10–11M metric tons/year (Top 6 globally) |
| Area planted | 3.6–3.8M hectares |
| Yield | ~2.8–3.0 t/ha (above world avg) |
| Export destinations | Brazil, Argentina, Russia, EU, Turkey, Chile |
| Crush capacity | ~5M tons/year (domestic processing growing) |
Value Chain
- Raw beans — ~60% of soy exports
- Soybean meal — ~30% (animal feed)
- Soybean oil — ~10% (food, biodiesel)
Other Significant Exports
- Beef — #2 export (~$1.5B); foot-and-mouth-free status (OIE) opens premium markets
- Corn — ~$800M; rotating with soy
- Wheat — ~$300M; growing
- Electricity — ~$500M; surplus from Itaipú & Yacyretá dams (binational with Brazil/Argentina)
- Cotton, stevia, sesame, timber — niche but growing
Economic Significance
Soy complex drives: 20%+ of GDP, ~30% of formal employment, major FX earner. Vulnerabilities: commodity price swings, climate (La Niña droughts), logistics bottlenecks (river/rail).
Paraguay = soybean superpower in a landlocked package.
Wanderlust World