Identification and formulation of an EU support programme concerning the development of the private sector in Paraguay

The Paraguayan economy is comparatively small, open and highly dependent on the agricultural sector, which accounted for 25% of GDP at constant prices in 2014 and for up to 43% if the agro-processing sector (production, processing, transport and related services) is included. The agricultural sector (i.e. mainly soy and beef) has been the most important engine of economic growth in the past decades for the country thanks to burgeoning exports and favourable international trading conditions.

Against this background, this project focused on a market assessment of non-traditional livestock items (aquaculture, beekeeping, cow's milk, poultry, pork and sheep meat), their competitiveness and the potential for diversification, their sustainability and the integration into international markets. The project aimed at strengthening the potential benefits in these areas, arising from the Generalised System of Preferences plus (GSP+) and trade negotiations between the EU and MERCOSUR.

The project has been divided into three components:

•      Strengthening the institutional framework (policy and strategic plans, legal framework adjustments, quality control systems and sanitary standards for export, approach towards a green economy that would facilitate its international integration);
•      Strengthening public-private dialogue to promote sectoral competitiveness and industrial representation;
•      Implementation of competitive sector models that focus on the integration of sector value chains in global markets and the dissemination of good practices for sustainable production.

The technical assistance focused on the following activities:

•      Evaluation of policy and programming framework;
•      Analysis and identification of stakeholders, including institutional capacity assessment;
•      Analysis of the problem tree, including the extent of cross-cutting issues (e.g. gender, vulnerable populations, environment);
•      Evaluation of ongoing projects and lessons learned;
•      Analysis of possible value chain development strategies for non-traditional livestock products;
•      Assessment of project management, coordination and funding;
•      Assessment of economic/financial, environmental, and social sustainability issues.

Expected results of the identified/formulated project:

•      Result 1: Strengthened capacities of the Ministry for Livestock in planning and implementation livestock policies, promoting the regulatory framework, and implementing tracking and health systems that facilitate the international market entry for local producers;
•      Result 2: A public-private dialogue forum that promotes sectoral competitiveness and industry representation;
•      Result 3: Diversification of livestock production through market-oriented models, elements of Aquaculture, Apiculture and other (regional) value chain approaches.