The Proposal

Paraguay will present an updated Investment Note to the Investment Forum 2023, including a new proposal in aquaculture.

The prioritized investment seeks to increase banana and dairy production, while favoring integration between the levels of the investment area, ensuring improved efficiency and product quality. The new aquaculture investment seeks to strengthen the sector's productivity and efficiency and ensure its sustainability.

The total cost of Paraguay's investment proposals is approximately USD 110.7 million, with an estimated average internal rate of return (IRR) of 18.3%. Finally, it is estimated to support the livelihoods of 29.840 direct and 132.305 direct beneficiaries.

Paraguay Typologies

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Government of Paraguay: Investment cases in the Paraguay

Paraguay Investment Cases and Interventions

Dairy  47.9 Million USD 19,750 Beneficiaries

Dairy 

This investment case is aimed at increasing the productivity of dairy producers by 40% per cow, and integrating producers’ output more efficiently, directly and safely with domestic industries. In addition, it aims to cover the current supply shortage and underproduction, thus satisfying both domestic demand for consumption and export demand for powdered milk.

Targeting 3.950 small and medium farmers in the Chaco region, in the departments of Boquerón and Caaguazú, investments will focus on the incorporation of agricultural technologies to optimize cattle feed production (in particular, grain generation and silvo-pastoral pastures), as well as on various elements and inputs for the sanitization and genetic
improvement of cattle to ensure product safety and quality. 100 producer organizations will receive capacity-building support to improve their cooperative production management and commercialization practices.

In addition, investments are being sought to finance refrigeration systems, including the renovation of 800 milking and milk collection systems, and refrigerated transportation to industrial centers. These investments are expected to increase the sector's productivity and boost the production of value-added products (such as powdered milk and cheese).

Costing about USD 47.9 million, this investment case will create over 600 jobs in the industrial and commercial phases of the value chain and an increase in per capita income by USD 1,033. It's expected to indirectly benefit at least 15.800 people.

With a 10-year horizon, its IRR is estimated at 16.5% and its net present value (NPV) is approximately USD29.5 million.

Banana  12.7 Million USD 15,675 Beneficiaries

Banana

The investment proposal for the banana sector seeks to increase the volume produced by 2,850 family farmers, as well as improve product quality through investments in production systems (e.g., seedlings, fertilizers, and crop management) that include the implementation of new assisted irrigation systems for 1.500 hectares.

These interventions are expected to recover and improve the productivity of 5.500 hectares in two districts in the Department of San Pedro, one in the Department of Cordillera, and one in the Department of Caaguazú. By taking advantage of the comparative advantages of these areas, such as sunlight hours, the project is expected to increase productivity by 20% and the per capita income of smallholders by USD 1,033.

The project also seeks to invest in industrial processes (such as banana flour production and transportation equipment) to reduce waste and expand the range of value-added production by implementing one waste management plant and two flour mills. As a result, Paraguayan banana producers will expand into new regional markets (such as Uruguay and Chile) and meet higher phytosanitary and export documentation standards. In all, the project is expected to indirectly benefit 12,825 people.

This investment will cost approximately US$12.7 million over 10 years, with an estimated IRR of 20.6% and an NPV of over US$14.3 million.

Aquaculture 50.0 Million USD 126,720 Beneficiaries

The investment proposal seeks to increase the volume of Paraguay's primary and secondary fish production by delivering key productive infrastructure, expanding the labor participation of women and indigenous peoples, and integrating small-scale producers into the value chain. It will target eight districts across six departments in Southern Paraguay.

The initial investment of USD 50 million will include a feed production plant, 1,287 fish tanks for secondary production, storage and transportation infrastructure, and train beneficiaries on the implementation of quality control technology. These interventions are expected to boost the domestic aquaculture sector in the long-term, improving logistics and agro-industrial capacities.

The aim is to support 23,040 fish farmers and indirectly benefit 103,680 people. It is expected that new storage and transportation infrastructure, together with training in production management and marketing, will integrate small-scale producers into national markets, thereby increasing gross annual aquaculture production by 6,236 tons and per capita income by USD 1,056. Increased labor-market participation by women and Indigenous People adds to the project's intended sustainability benefits, and the value-chain's consolidation in the Paraguayan economy.

The project has an estimated IRR of 18% and an NPV of approximately USD 48.2 million, over a 10-year horizon.

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