Soybean wars of Paraguay

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In the recent years, the soybean industry has grown exponentially in South America, primarily in Brazil and Argentina (South America’s two largest countries) and Uruguay and Paraguay. For Paraguay especially, the results of this explosive growth have been considerably substantial. While the soybean industry has brought economic expansion to Paraguay, the issue of social justice arises as peasant farmers and campesinos are kicked off their land to make room for big soybean farms. The issue may be referred by some as the "Soybean Wars" of Paraguay.

1 Soybean demand
2 Government action
3 Other repercussions of the soybean phenomenon
4 See also
5 External links

[edit] Soybean demand

The demand for soybeans comes primarily from China, whose people have acquired a taste for soy-fed cattle. It is important to note that the US soy trade has had little influence on South America’s production because the US grows enough to meet its own demand. Nonetheless, the demand from the east has been vast enough to spur a 69% increase in Paraguay’s soy production over the past five years, making Paraguay the world’s 3rd largest exporter of soy.

As land value rises in Paraguay, Brazilian and Argentinean farmers with the funds and means to support large industry have been crossing the border into Paraguay. So while Brazilian and Argentinean farmers work to expand the soybean trade, they bring disastrous results as they clear land and extend production further and further and eventually across the border into eastern Paraguay. This influx of farmers has resulted in the displacement of tens of thousands of peasants and small farmers. These campensinos claim they have been unjustly uprooted by Brazilian and Argentinean landowners.

This pattern has resulted in an obvious and disastrous gap in wealth in Paraguay. For example, 74% of the land in Paraguay is owned by 2% of population, which is a dramatic display of the unbalanced distribution of benefits that have come to Paraguay with the growth of the soy market. This problem grows worse and worse as small farmers are forced off their land by highly mechanized soybean farms which need fewer laborers. The consequences for the native farmers are staggering, especially because now, of the current 600,000 soybean producers in Paraguay, only 24% are Paraguayan. So, while the industry is indeed bringing wealth and economic growth to an impoverished country, the livelihood of thousands of small farmers is threatened.

[edit] Government action

The Colorado party, which has ruled Paraguay for 62 years, has done little to aid these landless peasants. Little affirmative action has been taken and the government has mainly avoided the problem by using the military to squelch peasant riots. Reasons for the government's inaction may be due to the fact that democracy is only truly available to about 20% of the population.

[edit] Other repercussions of the soybean phenomenon

While Paraguay reaps economic benefits at the expense of thousands of peasants, even more negative consequences arise from the result of the soybean trade. For example, this rapid increase in soybean cultivation has contributed to the destruction of the rainforest. This is especially terrible because the Amazon is currently the biggest source of fresh water, and provides countless economic benefits such as carbon absorption. Another problematic issue is the increased use of toxic-agro chemicals used on the soy farms. Many of these chemicals are polluting the earth and water sources simply because they are being overused or because the farmers are ill-educated about their effects and proper usage.

In addition to the environmental issues, eastern Paraguay has seen an increase of 400% in land value. This drastic change has spurred 30,000 landless peasants to invade neighboring lands. Many more subsistence farmers have begun migrating from the rural areas into cities, which have poverty rates of about 40%.