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Panel III: PARAGUAY AS FOOD PRODUCTION PLATFORM
JUAN CARLOS BARUJA
Minister of Agriculture & Livestock – PARAGUAY
Berlin’s International Green Week January 20th 2017
JUAN CARLOS BARUJA Minister of Agriculture & Livestock - - PowerPoint PPT Presentation
JUAN CARLOS BARUJA Minister of Agriculture & Livestock - - PowerPoint PPT Presentation
Panel III: PARAGUAY AS FOOD PRODUCTION PLATFORM JUAN CARLOS BARUJA Minister of Agriculture & Livestock PARAGUAY Berlins International Green Week January 20 th 2017 Minister of Agriculture & Livestock Paraguay Where is
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¿Where is PARAGUAY?
Paraguay, in the center of South America, landlocked country. Producer and exporter of agricultural production and electric power
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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 Region
- r CHACO (62%)
- ≈ Size New Zealand
- < 3% population
- Livestock (45%):
(Natural Beef)
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PARAGUAY ON THE WORLD 4º
WORLD EXPORTER OF CASSAVA STARCH
1º
RENEWABLE ENERGY
4º
MOST EXPORTER OF SOY OIL
4º
EXPORTER OF SOY
3º
BARGE FLEET
3º
PRODUCTOR AND EXPORTER OF YERBA MATE
2º
PRODUCTOR OF STEVIA
10º
MOST EXPORTER OF WHEAST
6º
MOST EXPORTER OF SOY
6º
MOST EXPORTER OF CORN
5º
MOST EXPORTER OF BEEF
5º
MOST WORLD EXPORTER OF SOY EXPELLER
PARAGUAY Produces PARAGUAY Produces Food Food for for 100 100 million million People People in in the the World World
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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%
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STRATEGIC OBJECTIVES NATIONAL DEVELOPMENT PLAN PARAGUAY 2030
Poverty Reduction & Social Development Promote Socially Inclusive Economy Positioning Paraguay in the World
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Economically Economically FEASIBLE FEASIBLE Socially Socially INCLUSIVE INCLUSIVE Enviromentally Enviromentally BALANCED BALANCED SUSTAINABLE PARAGUAYAN AGRICULTURE
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Soy Complex
Control of erosion
Wheat Sunflower Canola
Rotación de Cultivo Green manures to protect the soil Floor mail aplication
Soy Corn
Direct seeding
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Control of the erosion
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Soy Crop Wheat Crop rotation Soy Crop Wheat Sunflower Canola
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Crops Total Production Paraguay 1995-2016
Crop Crop
1995 1995 (000, ton) (000, ton) 2016 2016 (000, ton) (000, ton) Growth Growth (x) (x)
Soy Soy 2.771 2.771 9.110 9.110 3x 3x Soy Soy 2.771 2.771 9.110 9.110 3x 3x Corn Corn 873 873 5.461 5.461 6,3x 6,3x Wheat Wheat 401 401 1.314 1.314 3,3x 3,3x
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Crop Crop
1995 1995 (000, (000, Ha Ha) ) 2016 2016 (000, Ha) (000, Ha) Growth Growth (x) (x) Planting Area Paraguay 1995-2016
Soy Soy 1.050 1.050 3.264 3.264 3,1x 3,1x Corn Corn 335 335 876 876 2,6x 2,6x Wheat Wheat 201 201 635 635 3,1x 3,1x
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PARAGUAYAN BEEF DELICIOUSLY NATURAL ¡A PLEASURE ON YOUR TABLE!
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National Cattle Herd grew by 49% Annual Slaughtering increased 4x
Beef Industry in Paraguay from 2000 – 2015:
Annual Slaughtering increased 4x Exports (TON/CWE) incremented 6x Exports Value (US$) beef and by products
raised 21x
Sour: MAG, 2016
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Top 10 World Beef Exporters (‘000 TON CWE) 2016
1000 1200 1400 1600 200 400 600 800 1000
(Source: USDA, 2016)
6
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Beef Export Growth in the MERCOSUR Years 2003 vs 2014 (US$ Millions)
5570
2014 2003
57 1547 379 577
1244 1405 1049
PARAGUAY BRASIL URUGUAY ARGENTINA
21,2x
GROWTH TIMES (x)
3,6x 3,7x 1,8x
2014
(Source: Senacsa, 2014, IPCVA 2014, INAC 2014; MAPA, 2014)
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Agriculture Total Exports (US$) vs Poverty Index (%) – PARAGUAY 2006-2015
43,7 41,2 37,9 35,1 34,7 32,4 30 40 50 5.000.000.000 6.000.000.000 7.000.000.000 34,7 32,4 26,9 23,8 22,6 20,2 10 20 30 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
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PERSPECTIVES
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PARAGUAY VISION:
National Development Plan Paraguay 2030
December 2014
PARAGUAY VISION: “GLOBAL FOOD PRODUCTION PLATFORM ”
”
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In a In a Sustainable Sustainable and and Competitive Competitive Way Way Competitive Competitive Way Way Generating Generating Social and Social and Economic Economic Development Development for for the the COUNTRY COUNTRY
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TRIBUTATE REGIME
+ +
REGIME 10/10/10
%
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
Corporate income tax (*)
≤10 %
35 % 25% 34%
Source: Ministerio de Hacienda (www.hacienda.gov.py
+ +
(*) Obs: si se distribuye internacionalmente puede ser hasta 27.5%
% % %
(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%
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BESIDES OF SGP+ / MAIN COMPETITIVES ADVANTAGES
OF PARAGUAY FOR THE COMPANIES
PRICE OF ENERGY – INDUSTRIAL SECTOR
Año 2014 (USD x MWH SIN IMPUESTOS)
124 308 63 62
- 50%
- 80%
- 2%
% Difference of Paraguay
LABOR COST 2014
(USD x HORA) – SOCIAL COST
12,9 4,2 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
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AGROINDUSTRIAL POWER TO FEED THE WORLD
Paraguay has potential to triple its agricultural frontier with: INCORPORATION INCORPORATION IRRIGATION SYSTEMS IRRIGATION SYSTEMS INCORPORATION OF TECHNOLOGY INCORPORATION OF TECHNOLOGY SYSTEMS SYSTEMS TERRITORIAL PLANNING TERRITORIAL PLANNING
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- Dr. MARCOS MEDINA-BRITOS
vganaderia@mag.gov.py
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