As previously mentioned, we have agreed with our partner to add soybean cultivation to our mix for diversification purpose. Our objective is to develop 1,100 ha of soybean cultivation at the farm over the next 3 years.

On April 9, we have started land preparation work for soybean cultivation in block H. All the soybean area which is going to be developed was till now a complete virgin land.

Soybean land preparation typically involves plowing to “till” or dig-up, mix, and overturn the soil. It also requires harrowing to break the soil clods into smaller mass and incorporate plant residue, and leveling the field.

Positive outlooks for soybean cultivation: The change in eating habits in the higher income population is expected to increase demand for protein as well as the replenishment of Chinese pig herd should keep the demand for soybean high for the next years. World demand for soy is expected to grow by 1.5% per year until 2028.

Argentina, Brazil and USA Soybean carryout Vs Consumption/Use (Source: USDA/Wasde)

On the other side, stocks are predicted to tighten on falls in key exporters and China which pushes prices up. Soybean prices have strongly recovered in 2020 coming back to 2014 levels.

International 6-year soybean prices (USD/Bu)

Source: Bloomberg

Soybean production in Paraguay is forecasted to increase by 20% over the current decade, and we are pleased to be part of this grow.