In Paraguay, COVID-19 exposes the problems of land concentration: food imports and the limits of policies for peasant support

The government of Paraguay adopted preventive sanitary measures on March 10th, prohibiting activities that gather many people, and, later, on March 28th, adopted stronger measures for isolation. On March 13th, the government announced an increase in the value of the cash transfer programs to the vulnerable and senior population (Tekoporã and Adulto Mayor). There were discussions about how to provide food baskets for poor families and the government finally decided to offer the support in the form of a bonus (of around USD 1-1,50/day, per family, the amount also being a contested issue). Around 24% of the population lives below the poverty line and widespread informal workers are especially affected by the isolation measures.

Fresh food prices (tomatoes, potatoes, onions) have risen abusively in the country – rural unions spoke of 100-500% raise. The increase was a consequence of impacts of the pandemics on food imports from Argentina and by intermediaries’ bad practices, says the Ministry of Agriculture and Livestock (MAG). Officials claimed that both governments were working to solve the problem. The Ministry has announced a decrease in taxes, supervision over intermediaries, price controls and active search for other importers. 

In Paraguay, agribusiness controls 94% of agricultural land. The remaining 6% is in the hands of small farmers – some producing for self-consumption and many far from the capital Assunción and its outskirts that concentrate ⅓ of the countries’ population. One of the consequences of this level of land concentration, allied to a lack of support for indigenous, peasants and small farmers, is that Paraguay depends on food imports. Paraguay is self-sufficient in yucca and banana only (Base Is, 2000). 

The MAG announced support measures for family farming in late March – credit and support for food production. Debts of loans were postponed for 90 days, the government established a new line of credit with a lower interest rate (5%/year) for self-consumption production and technical assistance. The aim, according to the government, is to support 50,000 vegetable gardens in urban and peri-urban areas by donating seeds, inputs and providing technical assistance and increase to 100,000 small properties capable of food production (MAG, 2020). This, the Ministry stated, could lead to self-sufficiency over the following years. 

The official discourse, however, was received by peasant organizations with mistrust  that it would succeed in supporting small farmers. For Organización Nacional Campesina (ONAC- National Peasant Organization) and Unión Agrícola Nacional (UAN – National Agriculture Union) – MAG statement frustrated expectations that official plans would focus on the root of the problem by strengthening local food production and effectively supporting peasants due to the lack of bank access and resources for guarantees in rural areas and the historical weakness of technical assistance. Instead, MAGs main focus remained on restoring food imports (COPROFAM, 2020b, 2020c). By mid-April, some of the seeds for self-consumption vegetable gardens had been distributed – a set of 7 packages of 5-6g of seed, but there was still no sign of technical assistance, according to Gabino Medina, president of ONAC, a national union that is present in 11 (out of 17) provinces of the country (interview).

For the NGO Base Is “the current crisis makes clear the need for changing food systems by distributing and recovering ill-gotten lands and over 5 million hectares currently occupied by agribusiness” (Base Is, 2020).

The organization of collective meals – “ollas populares” (popular pans, literally) – is the most common strategy for overcoming periods of crisis iI Paraguay´s countryside, as well as in its poor neighbourhoods. People gather donations from neighbours, civil and religious support groups and offer collective meals. 

Collective meals – a local strategy against hunger. Source: COPROFAM (http://coprofam.org/2020/04/21/los-paraguayos-combaten-el-hambre-durante-la-cuarentena-total-con-olla-popular/)

Sesame export affected Another impact of COVID-19 is related to the decrease in demand for sesame. While Paraguay agribusiness exports mainly soybeans and meat, sesame has been an important export crop for family farmers and peasants in the 1990s and its production has been increasing over the last years. The production aims at Asian markets (China, Japan and South Korea). In 2019 around 20,000 families engaged in this production and planted 50,000 hectares expecting sale prices of around USD 1 per kg. They were encouraged by MAG officials who confirmed price expectations. However, as the Asian market was affected by the pandemic, farmers were having difficulties selling their 30 million tons of production (COPROFAM, 2020a).

References

BASE IS.Covid-19 evidencia la urgencia de cambiar el modelo productivo. Available at: http://www.baseis.org.py/covid-19-evidencia-la-urgencia-de-cambiar-el-modelo-productivo/

COPROFAM. 2020a. Agricultores familiares con dificultades para comercializar la producción por crisis del coronavirus. Available at: https://coprofam.org/2020/03/16/agricultores-familiares-con-dificultades-para-comercializar-el-sesamo-por-crisis-del-coronavirus/

COPROFAM, 2020b. Ejecutivo plantea préstamos de 1.600 millones de dólares para enfrentar crisis de coronavirus. http://coprofam.org/2020/03/24/ejecutivo-plantea-realizar-prestamos-por-1600-millones-de-dolares-para-enfrentar-crisis-de-coronavirus/

COPROFAM, 2020c. Ministro de Agricultura plantea importar más productos agrícolas, olvidó de agricultores nacionales y fue masacrado en las redes sociales. Available: https://coprofam.org/2020/03/24/ministro-de-agricultura-plantea-importar-mas-productos-agricolas-olvido-de-agricultores-nacionales-y-fue-masacrado-en-las-redes-sociales/

ABC Color, 2020. Para agricultores prevén creditos y apoyo tecnico. Available: https://www.abc.com.py/edicion-impresa/economia/2020/04/03/para-agricultores-preven-creditos-y-apoyo-tecnico/

EFE. Ollas populares y solidarias, el manual de resistencia del Paraguay pobre. Available: https://www.efe.com/efe/america/sociedad/ollas-populares-y-solidarias-el-manual-de-resistencia-del-paraguay-pobre/20000013-4218495Ministerio de Agricultura y Ganadería, 2020. Resumen Conferencia de Prensa MAG y CAH. Available:http://www.cah.gov.py/node/2068

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