Paraguay 

INVESTMENT PRESENTATION

THE PROPOSAL

The Hand-in-Hand Initiative is providing support for investments in the dairy and banana value chains of Paraguay. These economic activities have experienced significant growth at the national level and involve various stakeholders, including small, medium, and large-scale producers. 

The interventions in the dairy value chain aim to (i) improve the productive systems of family farmers and medium-sized dairy producers and (ii) optimize the operation throughout the value chain by increasing the production and improving the quality of milk in the family farming segment specifically. 

In the case of banana value chain, the objective of the interventions is to intensify and optimize banana production on the farms of family farmers to increase their incomes, promote exports to new international markets and enhance banana processing in the departments of Caaguazú, San Pedro and Cordillera. 

Poverty

Potential

Efficiency

COMMODITIES AND INTERVENTIONS

Dairy

The intervention is aimed at the comprehensive improvement of dairy production conditions for family farming and medium-sized producers with the capacity to optimize production (i.e., more efficient and profitable), which will allow an increase in their income and ensure a dignified life for the producers.

Another objective of this intervention is to achieve a more intense and sustained articulation, as well as a commercial link between family farmers and medium-sized producers with the dairy industries that acquire their production. This would be achievable by strengthening the organizations that will ensure not only higher volumes but also high levels of quality and safety.

The intervention aims to benefit 3,500 small-scale farmers in the Eastern and the Chaco region directly and 15,000 members of the community indirectly. It also focuses on increasing the agricultural productivity by 15% and the income by 20%, as well as renewing 800 milking and milk collection systems. The total cost of the investment is US$ 48 million with an Internal Rate Return of 29.2% and an increase of per capita income for a value of US$ 1,279.

Banana

The banana intervention seeks to enhance the overall conditions of banana production in the small-scale agriculture segment, with a focus on increasing farm productivity. The objectives also include intensifying banana production, increasing income for farmers, strengthening access to important international markets for banana production (i.e., Argentina and Uruguay) and enhancing and promoting processing technologies in targeted departments. Efforts will be made to improve post-harvest handling, packaging, and transportation to ensure the quality and freshness of the exported bananas.

The proposal seeks to directly benefit at least 2,300 small-scale farmers, 200 packinghouse workers and 70 transportation workers. Additionally, around 10,000 community members will be indirectly benefitted, and the productivity of 10,000 hectares of banana is expected to improve. The total cost of the investment is US$ 13.3 million with an Internal Rate Return of 31,6% and an increase of USD 860 per capita income is expected.

See the investment plan slide deck presentation from Paraguay for IF 2023 (Below).

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