How to Increase the Competitiveness of Small Soy Farmers in Paraguay

Soybean is today the most traded commodity in the global market. Soy is a plant of great importance to human nutrition, animal feed and industries. Based on research efforts conducted in the main soy producing region in Paraguay, the study aimed to characterize the agents involved in the national soy industry and present an overview of the relations between them, particularly between business companies and farmers, with emphasis on small farmers. Emphasis will be given to contractual relations and how they impact the activity. The results indicate that contractual arrangements, formal or not, are tools that contribute to stable relations between the parties, especially in a business so dependent on exogenous factors, as is the case of agriculture. Therefore, it is crucial that the public and/or private organizations encourage the use of contracts to reduce costs and keep the agents in the productive activity.