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Paraguay has potential for more rice production

Although the growth in rice production has been substantial, it is still only 10% of what can be expected in the near future.  Eventually, over 1 million hectares could be planted. Paraguay has an unlimited water source, mainly from the Paraguay River, with enough water to secure a massive increase in grain production.

Paraguay is expected to show a large expansion of its sowing area within the next five years as almost one-fifth of the country’s total surface has proven to be suitable for agriculture and remains undeveloped.

Some other key points that make Paraguay a top option for investing are:

  • Low Taxes: Paraguay offers a special low-tax policy for foreign companies willing to invest in the country.
  • Low Labor Costs: Due to its tax policies, the labor cost in Paraguay is lower than most of the other countries in South America.
  • Low-cost Energy: Partnered with Brazil, Paraguay owns and manages the ITAIPU bi-national hydroelectric dam. It is the world’s largest generator of renewable clean energy. With all 20 generating units operating, generation levels may reach 100 billion kilowatt/hour. The country not only self-provides energy but also exports all excess to Brazil.  Its energy production is 8,700 megawatts, while current domestic demand is 2,300 megawatts.
  • Water Availability: Right beneath Paraguay runs the Guarani Aquifer, which is considered the largest reservoir of fresh water in the world.
  • Logistics: Located in the heart of South America, Paraguay is surrounded and crossed by some of the region’s most important rivers. This allows for an easy way in and out for products. Likewise, its geographic location facilitates access to neighboring countries.

In terms of agriculture, Paraguay is the third-largest producer of soybeans in South America and fourth in the world after the United States, Brazil and Argentina.

Likewise, Paraguay is the world’s second-largest producer of stevia ( used for sweetening food products ), sixth-largest exporter of maize, tenth-largest exporter of wheat and eighth-largest exporter of beef ( ahead of Argentina ).

For all these reasons and more, Paraguay appears as an excellent option for those keeping their eyes and ears open for new business opportunities in agriculture and pastoral farming.

Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours.


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Gateway to South America was established in 2006 as a single office in Buenos Aires. The company has since expanded into a vibrant regional network, servicing the Southern Cone clients in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay with professional real estate marketing services. If you enjoy reading our news site please share it on your social media below.

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