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PARAGUAY – Review visit at Salitre Cue farm (December 2019).

Situation/weather: Hotter and dryer than normal conditions have been experienced during September to November. The irregular rains have resulted in low water levels on the Paraguay River and its tributaries, which have disrupted barge traffic and water pumping for rice producers. We had to face several restrictions periods of water pumping (either whole or partial) from the river imposed by the authorities.

However, thanks to our artificial lake of 480 ha we could mitigate the problem and continue to irrigate the fields for the rice plants under irrigation (stage sowing). Among all our neighbours, we are the only one having this water reserve as you can see on the aerial view of the area. Depending the level of our river, we could also secure an authorization to pump alternately (10 hours a day).

The rainfall in Paraguay has now increased a bit, but all crops farmers are still concerned about the irregular nature of the rains.

Market: The entire region is currently in crisis rather driven by the economic situation or political (Chile, Colombia, Peru, Argentina, Bolivia as well as Brazil). Brazil currency reached in November his historical lowest level against the US dollar. Knowing that around 90% of the Paraguayan rice production goes to Brazil, very low opening prices have to be expected for this season. Paraguayan producers are also worried about the change in administration in Argentina (exports are barged down the Parana Rive to ports in Argentina). The prior administration of Mrs. Kirchner leveed a tax on crops when they transited through Argentina and farmers are concerned that the tax will be reinstated once again under the new administration.

Production: 1,250 ha are under irrigation and the sowing of 350 ha more has been completed. The intense uniform green colour of the crop shows that water is well distributed, and that the nitrogen applied is being well used by the plants. The 1st plots sowed are now in blooming stage and you can see some aerial application of fertilizer performed in the latest plots sowed.

Rice fields under irrigation