Post on 05-Oct-2020
Panel III: PARAGUAY AS FOOD PRODUCTION PLATFORM
JUAN CARLOS BARUJA
Minister of Agriculture & Livestock – PARAGUAY
Berlin’s International Green Week
January 20th 2017
Minister of Agriculture & LivestockParaguay
¿Where is PARAGUAY?
Paraguay, in the center of South America, landlocked country.
Producer and exporter of agricultural production and
electric power
Surface Area: 406.752 km2
Population: 6.568.000�50%=15-49 year-old
�37% <15 years old
MILLENIUM ASSETS: FOOD+WATER+ENERGY
Eastern Region (38%)� ≈ Size United Kingdom
� 97% population� Agriculture (99%) + Livestock
(55%)
Western Regionor CHACO (62%)
� ≈ Size New Zealand
� < 3% population� Livestock (45%):
(Natural Beef)
PARAGUAY ON THE WORLD
4ºWORLD EXPORTER OF
CASSAVA STARCH
1ºRENEWABLE
ENERGY
4ºMOST EXPORTER
OF SOY OIL
4ºEXPORTER OF
SOY
3ºBARGE FLEET
3ºPRODUCTOR
AND EXPORTER
OF YERBA MATE
2ºPRODUCTOR OF
STEVIA
10ºMOST EXPORTER
OF WHEAST
6ºMOST
EXPORTER OF
SOY
6ºMOST EXPORTER
OF CORN
5ºMOST EXPORTER
OF BEEF
5ºMOST WORLD
EXPORTER OF SOY
EXPELLER
PARAGUAY Produces PARAGUAY Produces FoodFood forfor100 100 millionmillion PeoplePeople in in thethe WorldWorld
Paraguay GDP Share by sectors
Agriculture 28 %
Manufacturing 13 %
Construction 4%
Commerce & Services 56%
Agriculture Share in Total Country Exports
2010 2011 2012 2013 2014 2015
63,6%63,6% 63,8%63,8% 60,9%60,9% 69,1%69,1% 69,5%69,5% 58,7%58,7%
STRATEGIC OBJECTIVES NATIONAL DEVELOPMENT PLAN PARAGUAY 2030
Poverty Reduction & Social Development
Promote Socially Inclusive Economy
Positioning Paraguay in the World
�� EconomicallyEconomically FEASIBLEFEASIBLE�� SociallySocially INCLUSIVEINCLUSIVE�� EnviromentallyEnviromentally BALANCEDBALANCED
SUSTAINABLE PARAGUAYAN AGRICULTURE
Soy Complex
Control of
erosion
Wheat
Sunflower
CanolaRotación de
Cultivo
Green manures to
protect the soil
Floor mail
aplication
Soy Corn
Direct seeding
Control of the erosion
Soy Crop Wheat
Crop rotation
Soy Crop Wheat
Sunflower Canola
Crops Total Production
Paraguay 1995-2016
CropCrop19951995
(000, ton)(000, ton)
20162016
(000, ton)(000, ton)
GrowthGrowth
(x) (x)
SoySoy 2.7712.771 9.1109.110 3x3xSoySoy 2.7712.771 9.1109.110 3x3x
CornCorn 873873 5.4615.461 6,3x6,3x
WheatWheat 401401 1.3141.314 3,3x3,3x
CropCrop19951995
(000,(000, HaHa))
20162016
(000, Ha)(000, Ha)
GrowthGrowth
(x) (x)
Planting AreaParaguay 1995-2016
SoySoy 1.0501.050 3.2643.264 3,1x3,1x
CornCorn 335335 876876 2,6x2,6x
WheatWheat 201201 635635 3,1x3,1x
PARAGUAYAN BEEF
DELICIOUSLY NATURAL
¡A PLEASURE ON YOUR TABLE!
� National Cattle Herd grew by 49%
� Annual Slaughtering increased 4x
Beef Industry in Paraguay from2000 – 2015:
� Annual Slaughtering increased 4x
� Exports (TON/CWE) incremented 6x
� Exports Value (US$) beef and by products
raised 21x
Sour: MAG, 2016
Top 10 World Beef Exporters(‘000 TON CWE) 2016
1000
1200
1400
1600
0
200
400
600
800
1000
(Source: USDA, 2016)
6
Beef Export Growth in the MERCOSUR Years 2003 vs 2014 (US$ Millions)
5570
2014
2003
57
1547
379 577
1244 14051049
PARAGUAY BRASIL URUGUAY ARGENTINA
21,2xGROWTH
TIMES (x) 3,6x 3,7x 1,8x
2014
(Source: Senacsa, 2014, IPCVA 2014, INAC 2014; MAPA, 2014)
Agriculture Total Exports (US$) vs Poverty Index (%) –PARAGUAY 2006-2015
43,7 41,237,9
35,1 34,732,4 30
40
50
5.000.000.000
6.000.000.000
7.000.000.000
34,732,4
26,923,8 22,6 20,2
0
10
20
30
0
1.000.000.000
2.000.000.000
3.000.000.000
4.000.000.000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Exportacion Py Indice de la Pobreza
Source: BCP, STP, 2016
Paraguay Exportation Poverty Index
� PERSPECTIVES
PARAGUAY VISION:
National Development Plan Paraguay 2030December 2014
PARAGUAY VISION:
“GLOBAL
FOOD PRODUCTION PLATFORM ””
In a In a SustainableSustainable and and CompetitiveCompetitive WayWayCompetitiveCompetitive WayWay
GeneratingGenerating Social and Social and EconomicEconomic DevelopmentDevelopment forfor
thethe COUNTRYCOUNTRY
TRIBUTATE REGIME
++ ++
REGIME 10/10/10
0
%
0
Import tariff for capital
(Machines)
(IVA) Capital goods
LAW 60/90 OTHER
INCENTIVES
• MAQUILA LAW
• LAW OF
CERTIFICATE OF
ORIGIN
IMPUESTOS PY AR UR BR
Corporateincome tax(*)
≤10%
35%
25% 34%
Source: Ministerio de Hacienda (www.hacienda.gov.py
++ ++
(*) Obs: si se distribuye internacionalmente
puede ser hasta 27.5%
0
%
0
%
0
%
(IVA) Capital goods
(In and out of the country país)
DEBT: Tax applie to remittances
and capital payments, interest
and commissions
(For inversions> a USD 5MM)
EARNING: Divident tax and
investment income
(For inversions > a USD 5 MM by
10 años)
• LAW OF
INVESTMENT
GUARRANTY
• LAW APP / 5074
• LAW OF FISCAL
RESPONSABILITY
• LAW OF
INDUSTRIAL
PARKS
Personal income tax 10% 35
%25%
27,5%
Value –added tax(IVA)
≤10%
21%
23% 25%
BESIDES OF SGP+ / MAIN COMPETITIVES ADVANTAGES
OF PARAGUAY FOR THE COMPANIES
PRICE OF ENERGY – INDUSTRIAL SECTORAño 2014 (USD x MWH SIN IMPUESTOS)
124
308
6362
-50%-80%-2%
% Difference of Paraguay
LABOR COST 2014 (USD x HORA) – SOCIAL COST
12,94,2
21,9
6,0
-81%-30%-67%
Source: ANDE, Eurostat, CIER, U.S. Bureau of Labor Statistics, KPMG
statistics, Oanda y análisis Arthur D. Little.
VALUE – ADDED TAX(IVA) 2014
21,4%25%21%
10%
-53%-60%-52%
26,3%34%35%
10%
-62%-71 %-71%
INCOME TAX
2014
AGROINDUSTRIAL POWER TO FEED THE WORLD
Paraguay has potential to triple its
agricultural frontier with:
INCORPORATION INCORPORATION
IRRIGATION
SYSTEMS
IRRIGATION
SYSTEMSINCORPORATION
OF TECHNOLOGY
INCORPORATION
OF TECHNOLOGY
SYSTEMSSYSTEMS
TERRITORIAL
PLANNING
TERRITORIAL
PLANNING
Dr. MARCOS MEDINA-BRITOS
vganaderia@mag.gov.py
AGUYJE!AGUYJE!
GRACIAS!GRACIAS!
THANKSTHANKS
INTRODUCCION
THANKSTHANKS
DANKE!DANKE!