Challenges

Paraguay is a traditional agricultural-based country with favourable climate, soil and topography and an economic structure centred on primary industries, such as agriculture and livestock farming. The country’s agriculture and livestock products account for more than 60 percent of total annual exports and more than 10 percent of GDP, playing an important role in Paraguay’s economy. Paraguay considers agricultural competitiveness an important contribution to its economic development. There are two categories of farmers who can have a direct role in leading agricultural competitiveness: large-scale, land-based corporate farmers, whose numbers are few, and poor family farms and small-scale farmers, who make up the great majority and who rely on narrow margins. Taking a long-term perspective, the country is aware that to ensure sustainable economic and social development it is necessary to strengthen capacities and self-reliance of family farms and small-scale farmers.

Toward a Solution

To meet this challenge, KOICA formed a triangular cooperation project with Argentina and Paraguay. This new project falls within an ongoing project, the Sustainable Agriculture and Rural Development in Paraguay project (2015-2023/US$ 7 million). 

Argentina is a suitable partner as its climate, environment, soil and major crops are similar to Paraguay and the two countries share the same language. Argentina also has accumulated knowledge and experience in increased efficiency and productivity and agricultural technology, making it competitive in the global market.

KOICA provides technology, human resources and financing for the project activities. The KOICA Paraguay Office facilitates management and provides financial support for Argentine experts dispatched to Paraguay. The General Directorate for International Cooperation of the Ministry of Foreign Affairs and Worship of Argentina (MOFA-Argentina) is an aid provider and pivotal partner of Paraguay, and for this project contributes material resources and finances. As the beneficiary partner, Paraguay, through its Ministry of Agriculture and Livestock (MAG-Paraguay), is responsible for providing the staff to be trained and ensuring they follow-up with farmers after completing their training, as well as monitoring and communication within the triangular cooperation.

Through this project, agricultural experts from Argentina are sharing cultivated crop management skills with MAG-Paraguay officials to improve the production scale of Paraguay’s small-scale farmers. Knowledge and skills being shared cover topics such as soil and rainwater management, post-harvest systems, organizational reform for value chains, transaction cost reduction, sustainable production methods and business model creation.

Five workshops are being held in 2022. A total of 128 officials from MAG-Paraguay have participated in workshops (as of time of writing) to be qualified extension officers. Participants are learning about improving agricultural systems, crop varieties, commercialization and added value of products and project cycle management skills. Next, the MAG-Paraguay officials are assigned to transfer those skills and capabilities to small-scale farmers and family-run farms within the country. 

The project aims to increase farm household incomes and decrease poverty, thereby improving the overall social-economic development in Paraguay’s rural areas. With improved capacities of small-scale farms and family farms, the country can become more competitive in the global agricultural market.

This project contributes to SDG2 (end hunger, achieve food security and improved nutrition and promote sustainable agriculture) through improving the skills of Paraguayan public officials who are expected to transfer those skills and knowledge to small-scale farmers and family farmers ensuring project sustainability. It contributes to SDG1 (end poverty), through strengthening crop production capabilities and self-reliance of small-scale farmers.

As rural development with a focus on agriculture is required in many Latin American countries, such triangular cooperation could be applied in other countries in the region or expanded as a regional project.