This page provides an overview of the corporate social responsibility (CSR) risks related to soy grown in Paraguay.
Paraguay produces 8-9 million tonnes of soy per year and is the world’s fourth largest soy exporter. It exported 4.6 million tonnes in 2015/16, generating an income of US$ 2.4 billion, or 45% of its agricultural exports.
There are approximately 30,000 soy producers in the country, of which:
- 21,000 are small land owners, with an average farm size of 10 hectares
- 8,000 are medium-sized producers, with an average farm size of 162 ha
- 1,000 are large producers, with an average farm size of 2,100 ha.
Major ecological threats associated with soy farming in Paraguay include deforestation, biodiversity loss, and carbon emissions resulting from land use change and forest fires. Land tenure conflicts and indigenous communities’ rights are an area of high concern, particularly in the eastern region. It is also reported there is a high level of informal labour used in soy farming and production among other business and legal risks. The biggest underlying threats are corruption, lack of effective laws and weak enforcement of existing laws.
A number of CSR risks are present in Paraguayan soy supply chains. The risks are wide ranging and appear across the business, social and environmental areas. If you are sourcing soy from Paraguay you should take care to ensure the extensive risks identified are not present in your supply chains, or have been sufficiently mitigated.
Score: 29 / 100 in 2018
Rank: 132 out of 180 countries in 2018
There are currently no armed conflicts in Paraguay according to the Council on Foreign Relations´ Global Conflict Tracker
Soy from Paraguay can be certified by the Round Table on Responsible Soy (RTRS). 5,325 ha is certified (2017)
Gather information on your supply chain
- Find out the different sources of soy
- Determine which source type your soy comes from
- Find out the main documents that can be used to indicate legality throughout the supply chain
Sources of soy
|Soy source types||Description of source type|
Soy from family-managed plots, usually from subsistence farming. The average farms are 10 hectares in size. As of 2008, there were 21,000 small land owners growing soy, covering approximately 200,000 ha of crops in total. This source of soy is not commonly found in export supply chains.
Medium sized holder
Soy from medium-sized, mechanised commercial farms. Farms are on average 162 hectares in size. As of 2008, there were approximately 8,000 medium-sized producers covering 1.3 million ha of land.
|Large holder||Soy from large industrialised commercial farms. Farms are on average of 2,100 hectares in size. As of 2008, there were approximately 1,000 large producers who farm around 1.7 million ha. Approximately 53% of the area under cultivation is in the hands of these 3.3% of land owners. This is the primary source of soy in Paraguay.|
Documents to indicate legality
Processing, trade and transport
Export and customs
Assess the risks in your supply chain.
- Find out the main environmental, social and legality risks
- Download the full risk assessment to see more detail
Main environmental, social and legality risks
Mitigate the risks in your supply chain
Learn which actions we recommended to mitigate the risks associated with soy sources from Paraguay
We have two tools to help you mitigate risks for Bolivian soy supply chains:
- The Supplier Evaluation Checklist for soy from Bolivia will help you identify and specify the risks in your supply chain.
- The Risk Mitigation Guide gives you a detailed overview of risks in Bolivia, and how to mitigate them.
The tools above give you the most information. Below is a summary of our recommended actions to mitigate the risks associated with the soy sources from Bolivia.
1. Fully map your supply chain
- Our supply chain mapping tool can help you do this.
2. Obtain and verify documents
- Land tenure and business documents
- Deed Title and/or Judicial Resolution (original or a certified copy)
- Proof of property tax payment for the current year or a certificate showing exemption from property tax, in the province in which the tax obligation originated.
- Land Registry certificate
- National Register of Family Farming (RENAF), for farms up to 20 hectares
- For land renters:
- Long term rental contract
- Record of rent payments
- Copy of the owner’s title of ownership
- Record of Free Prior Informed Consent and copies of negotiated agreements (if applicable)
- Tax-related documents
- Certificate of Unique Taxpayer Registration Number (Número del Registro Único del Contribuyente, RUC)
- An annual report (for companies and large-scale producers)
- Sworn declaration of payment of taxes.
- Employment-related documents
- List of employees
- Employer identity card (CI) and a sample of employee identity cards (Cédula de identidad, CI)
- Employees' national identity documents (DNI) show that they are registered with the employer (Registro Patronal):
- Employment contracts
- Evidence of insurance (Institute of Social Prevention, IPS)
- Salary payment receipts
- Certification of credits
- Registration of employees’ union or workers’ association
- Policies and procedures covering ILO Fundamental Conventions
- Health and safety related documents:
- Health and safety manager employee contract
- Evidence of health and safety committees, such as occupational hygiene, safety and wellbeing
- Report of survey of workplace risks
- Report of the Technical Inspection on Occupational Health and Safety
- Occupational health, hygiene and safety plan
- Evidence of health and safety events and training
- First aid manual
- Evidence of pre-work and annual medical exams
- Record of workplace accidents
- Environmental documents:
- Environmental Impact Assessment for large properties (> 500 hectares)
- Land use plan (Plan de Ordenamiento Predial) addressing the management of soils, forests, water, biodiversity and agrochemical products.
- Environmental monitoring and mitigation plan (Plan de monitoreo ambiental predial)
- Property fire protection plan
- Approved control burn permit
- Biodiversity surveys and High Conservation Value (HCV) assessments
- Conversation/High Conservation Value (HCV) management plans
- Historical remote sensing imagery evidence to confirm no conversion of primary forest, peatlands and HCVs post-November 2005.
- Trade and transport documents:
- Stamped invoices
- Book of purchases and sales (Invoices)
- Conocimiento de Transporte Terrestre
- Certificate of Origin
- Inspection Report
- Tax Certificate
- Bill of Lading
- Commercial Invoice
- Packing List
- Transit Document
- Phytosanitary Certificate
- Customs Export Declaration
- Inspection Report
- Transit Document
- Foreign Exchange Authorization
- Terminal Handling Receipts
3. Consult stakeholders
- Neighbours, local communities, landowners and other stakeholders (such as National Institute for Rural Development and Land (INDERT), Paraguayan Institute of Indigenous Affairs, Paraguayan Federation of Indigenous Peoples FAPI, WWF Paraguay) confirm whether there are any potential conflicts with indigenous and traditional peoples over land use. Ask your supplier for a map identifying the traditional communities close to its farms and/or cross reference the farm location with the location of indigenous lands
- Neighbours, local communities, landowners and other stakeholders (see above) confirm that land tenure rights are clear and, where applicable, the lease of the land has been agreed by all the landowners
- Neighbours, local communities, landowners and other stakeholders (see above) confirm that there are not any court orders or other legal decisions that mean that the company is not allowed to operate due to conflicts of land tenure.
- Stakeholders confirm that registration of farm has been granted following legally prescribed processes
- National Tax Administration confirms the farmer/producer/company is registered and has a valid Unique Taxpayer Registration Number Certificate (RUC)
- Ministry of Labour, Employment and Social Security (MTESS) confirms the validity of the Unique Taxpayer Registration Number Certificate (RUC)
- Employees confirm that they are insured and enrolled with Institute of Social Prevention (IPS)
- Employees confirm they have an Identity Card (Cédula de identidad, CI)
- Ministry of Labour, Employment and Social Security (MTESS) and registered unions (if applicable) confirm that there are not any registered complaints against the employer.
- Ministry of Labour, Employment and Social Security (MTESS) confirms that they have a copy of the Report of the Technical Inspection on Occupational Health and Safety
- National park officials and other stakeholders confirm the location of indigenous people and other local communities in the area
- National park officials and other stakeholders confirm the absence of potential HCV 5 and 6 values
- Authorities confirm that land was not prepared by unauthorized burning
- Determine if Genetically Modified seeds are used:
- Supplier confirms what type of seed was used and whether it is genetically modified. and provides relevant certificates
- The National Service of Plant and Seed Health and Safety (SENAVE) confirms that the seed is officially authorised in Paraguay, is not GM, and is in their register.
4. Carry out on-site verification
- Confirm farms are within the authorised boundaries in accordance with the relevant licenses
- Confirm that the company has an occupational safety and health management system and programme and that training, procedures and equipment are in place
- Confirm management plans for environmental issues, protected sites, species and High Conservation Values are implemented and monitored
- Confirm that maps/remote sensing images of deforestation reflect reality. Compare VS SHP satellite images of the property with maps from the Official National Forest Institute (INFONA), Global Forest Watch, WWF Paraguay and others
- Confirm that the farm is not located in a protected area
- Confirm that the farm does not threaten High Conservation Values by cross-checking a remote sensing or GIS map showing property limits against:
- Map of the nationally and regionally protected areas
- Distribution maps for species categorised as rare, endemic, threatened and endangered species in the IUCN list and the SEAM national lists
- High Conservation Data from the National Forest Inventory (Inventario Forestal Nacional, INFONA)
- High Conservation Value (HCV) assessments
- Forest areas that have been defined as protecting watercourses
- Confirm that all workers are employed according to the regulations and required contracts
- Confirm that employees:
- Are covered by mandatory insurance policies
- Hold certificates of competence required for the function that they perform
- Are paid a salary which is officially stated by the employer according to legal requirements
- Are above the minimum age for agricultural activities and hazardous work
- Are paid at least the legally established minimum wage
- Confirm that the company does not employ unregistered workers, either on probation, or who receive government benefits for the unemployed.
- Confirm that Free Prior and Informed Consent was obtained and/or there was an active consultation. Confirm that there is a dispute-resolution mechanism in place.