While soybean grain exports have decreased by 2.5% in the first half of 2018 compared to the first half of 2017 due to the drought, a 15% drop in international prices on the Chicago Stock Exchange and the reduction of shipments on the Paraná River, whose water level fell, rice exports have increased by 60% over the same period of time.

Over the past decade, Paraguay’s rice production has quadrupled. Paraguay’s recent dominance of the Brazil rice import market has caused Uruguay and Argentina to find new markets in Latin America, Africa, and the Middle East. Paraguay shipped nearly 80% of its exports to Brazil. It is interesting to note that among the major producers in South America, Brazil is the only country that not only exports but also imports rice.

Only 10 years ago, Uruguay and Argentina supplied more than 80% of Brazil’s rice imports. Last year as Paraguay’s share expanded, these 2 suppliers’ share declined to roughly 40%. However, these 2 countries have been able to capitalize on their port capacities to ship further distances and expand markets abroad (Iraq, West Africa). For instance, Peru is now the top export market for Uruguayan rice. They also have seen considerable growth in their exports to traditional U.S. markets such as Mexico and Costa Rica.

This season, we started very early with land preparation of the fields. Land preparation is important to ensure that the rice field is ready for planting. A well-prepared field controls weeds, recycles plant nutrients, and provides a suitable soil surface for direct seeding.

Land preparation covers a wide range of practices from zero-tillage or minimum tillage which minimizes soil disturbance through to a totally ‘puddled’ soil which actually destroys soil structure.

In order to optimise field-level management, we have adopted Real Time Kinematic (RTK) technology using GPS guidance systems to ensure we have the most accurate picture of the field and achieve the highest level of precision to create an accurate well balanced design. Basically, topographical data collected are then processed with a specific software to build optimal dig irrigation channels around the edges of the field with the tractors on autopilot. The system not only offer higher accuracy but also higher quality constructions while reducing the amount of time it takes to complete our land-leveling operations. All those information can also be reused for future seasons.

The use of the agricultural precision tool helps to ensure optimal water management by providing improvements in yields, water usage, and farm productivity. So far, 1,300 ha have been prepared and dig irrigation channels have been built over 650 ha, waiting for pre-sowing herbicides.

Conservative former senator Mario Abdo Benítez has been elected president of Paraguay on Sunday, April 24, 2018 and will beginning a five-year term on August 15. The Colorado Party has led Paraguay with only a few interruptions since 1947.

Mario Abdo Benítez, a 46-year-old marketing expert, campaigned on a promise to continue the business-friendly policies of outgoing President Horacio Cartes who won a Senate seat in Sunday’s vote. He promise in particular to retain low tax policies and boost agricultural exports.

Harvest: We now completed the harvest of all plots, dried and stored our production in our silos. Over 9,200 tonnes of paddy rice have been produced during this campaign, and meaning a year-on year  improvement in production results as as our average yield was above 7 t/ha (dry).

Sales: We have started to sell and deliver some of our production (limited quantity). However, local prices are depressed as most of Paraguayan rice production final market is Brazil, currently again affected by political tensions with the Lula’s case which translated in depreciation of the Brazilian Real against USD (reference currency for Paraguayan rice price).

Thanks to our silo facilities, we can continue to store our production and waiting for better market prices.  

Rice harvest has begun at the farm and so far, over 600 hectares have been harvested with a yield of 7.5 t/ha (dry).

Drying reduces grain moisture content to a safe level for storage. It is the most critical operation after harvesting the crop. When rice is harvested, it will contain up to 25% moisture. High moisture level during storage can lead to grain discoloration, encourage development of molds, and increase the likelihood of attack from pests.

Video: Cleaning, roughing, split and grain drying

Delays in drying, incomplete or ineffective process are reducing grain quality and result in losses. To this aim, we have dryers with a daily capacity of 600 tons to address our needs. After drying process is completed, our paddy rice is stored in our 3 silos by index of quality and awaiting for optimal conditions for best prices.

Meanwhile, we continue the harvest of our various plots as around 55% of the sown area for this cycle remains to be harvest.

Weather: October and November were very wet months. We registered respectively 441 mm of rain vs 255 mm as historical average for October and 427 mm vs 193 mm as historical average for November. For the calendar year 2017, we already registered 1,000 mm rain above the 12 months historical average, and December is forecasted to be humid.

Nevertheless, the World Meteorological Organization (WMO) is announcing for 2018 the likely arrival of the opposite phenomenon for the region with El Nina event.

Sowing: Over 1,000 hectares have been sowed so far and around 250 hectares are in progress, delayed by weather conditions. Our target for this campaign is to produce 9,000 tons of paddy rice.

The planted area is developing very well as you can see, thanks to the heavy rains which irrigate naturally the fields (ie less artificial irrigation via pumping is required). What helps the development of the crop on one hand is hurting the end of the sowing.

Optimization of the irrigation system: As previously mentioned, we are performing some adjustment in the irrigation system in order to have a more efficient and secure use of water. Part of them have been completed like the direct connection of the main pump station with the Master channel, short cuts in some connections and aerial filling system of key channels, generating future efficiencies in maintenance.

Remaining adjustments are going to be performed after the harvest will be completed in February as we want to connect the Master channel to the artificial lake (Reservoir).

Rice cultivation performed at Salitre Cue is a step-by-step production until harvest and post-production activities took place. From the moment land is being prepared until harvest is taking place 9 months elapse.

Pre-planting stage which take around 4 months, is now almost behind us, expect in one block. We are late there due to the accumulation of bad weather conditions. To illustrate, we register 145 mm of rain for the single day of 7 November with intense lightning and electricity cuts. Activities like pre-sowing fertilization, herbicide application, taipas nivelation as well as sowing are impossible under those conditions.

Meanwhile, the 1st blocks sowed which amount to 850 hectares are in irrigation stage until January (nutrients have been applied). So far, the plants grow and develop normally even if incremental work is currently required given weather conditions to management water in the fields. After this stage, plants are going to enter in the flowering period (high brightness is required for an optimal development of rice grains) before rice grain achieve is maturity, and harvest stage begun.

We have begun to irrigate the 1^st plots sowed in September to allow an optimal development and growth of the seeds.

To that end, water is pumped in from the river Tebicuary by the main station and redistributed to the master channel as you can see on the picture below. Secondary channels  are then supplied with water to each individual plots.

Meanwhile, we continue to sow other fields. As of today, 845 hectares have been sowed with rice.

We are please to inform you that we started to sow our first plots with rice on 09/05/17. 240 hectares are already well under way as you can see.

We have currently optimal sowing conditions and hope they will remain unchanged.