Paraguay – officially the Republic of Paraguay - is a small Latin American country bordered by Argentina in the south and southwest, and Brazil to the east and northeast. With a population of less than 6 million it is not a very dense populated country. From agricultural standpoint, the soils are somewhat similar to those found in Brazil. Economically, Paraguay's largest economic activity is based on agriculture, agribusiness and cattle ranching. From financial standpoint, Paraguay has a much simpler tax code that allows businesses to operate more efficiently. Politically, the country does have some concerns as it has been a democracy less than twenty years. Governing takes place in the form of presidential representative democratic republic. It is also landlocked although it does have two navigable rivers; Paraguay Rivers as borders. Transportation is also an issue in the country. Although it had the first operating railroad in South America it no longer has an operating railroad. Generally, Paraguay has a limited amount of paved roads.
Paraguay was the destination for a group of Iowa investors and Kelvin Leibold, ISU Farm & Ag Business Management Specialist, Hardin County Extension Office, who viewed the country’s potential for agribusiness development opportunities. Whereas cattle ranching and agribusiness are the largest economic activities in Paraguay, Iowa investors’ purpose of the trip was to look at opportunities to purchase ranch land that is currently in pasture and to turn it into crop production.
The ranch that Iowa investors visited had 600 cows, 400 horses and 400 water buffalo; of which they were milking a few and making cheese. The capital city is very modern and the group had the opportunity to attend a celebration where Rabobank announced the purchase of 40% interest in one of the main banks in Paraguay indicating that they see a bright future for this country. The investors group also met with a lawyer to discuss some of the business law issues. The lawyer whose English was excellent, turned out to be a Harvard law school graduate. The group also met with banks to discuss the availability of financing for such a venture.
The country holds promise as the group also had breakfast with an individual who raises 45,000 acres of soybeans. The country is full of great people eager to accept others and very willing to help others bring investments and development to their country. With all the promising activities, discussions, and deals took place in the small beautiful country, Paraguay is definitely the agricultural fields look promising and encouraging destination for business development opportunities, particularly in agricultural activities.