Grains Market in Bolivia: Analysis of Production, Consumption, and Trade of Major Cereals, Pulses, and Oilseeds, Trends, and Forecast (2020 - 2025)

Market Insights

Bolivia has been one of the fastest growing economies in Latin America, over the last decade. The agricultural sector is one of the major economic drivers of the country, engaging over 30% of the labor population in Bolivia. Therefore, a large potential for the extension of agricultural production, in Bolivia, can be seen.

Soybean is a leading crop in Bolivia, which acts as a driver for the country’s economy. Around 20% of the total soybean production is sold in the local market; the rest is processed and exported as oil and oilcake. The large-scale global demand for soybeans ensures farmers of a relatively secure market. This factor has boosted the private investment and production area of soybean, significantly, over the last decade. Bolivia has positioned itself on the international soybean market, next to the mega-producers, which include countries like Brazil, Argentina, and Paraguay.

Since 2005, Bolivia has made the conversion from conventional soybean to transgenic soybean. Apart from soybean, other important oilseeds and pulses produced in Bolivia include dry beans, broad beans, green beans, sunflower, groundnuts, and linseeds.  

Wheat is considered to be strongly related to food security of Bolivia. The area of wheat production has increased, but yields are far below average when compared to other neighboring countries. Other important cereal crops include maize, sorghum, rice, and quinoa.

The export quantity of quinoa recorded a CAGR of 3.47%, during 2012-16, and is estimated to register the same growth rate in future. This growth can be attributed to the rising demand for quinoa in international markets, because of its nutritional value and gluten-free nature.

Market Dynamics

The factors driving the market include availability of natural resources, like favorable land and climate zones, and enhanced access to European market, under the preferential trade scheme of European Union. The factors limiting the market include lack of water management and irrigation systems, limited access to credit, and existence of quota system, which limits the export of agricultural commodities. 

Segmentation

The market has been segmented on the basis of the major cereals, pulses, and oilseeds. Further, each category is sub-segmented on the basis of market size, domestic production and consumption patterns, along with their export and imports, in terms of value and volume. Finally, trade and price scenario, of these major cereals, pulses, and oilseeds, are provided.

Trade Analysis

In 2016, the major exports of Bolivia were quinoa,  earning around USD 81.44 million; dried legumes ( mainly kidney beans and broad beans) USD 34.37 million, soybean USD 31.34 million, chia seeds USD 26.33 million, groundnut USD 9.17 million, sesame USD 8.59 million, and maize USD 8.74 million. The major exporting destinations include the United States, Canada, Peru, Chile, Brazil, Germany, the Netherlands, and Spain.

The export value of kidney beans recorded a CAGR of 15.96%, during 2014-16, and is estimated to register the same growth rate in future, due to the high demand for legumes in international markets.

In 2016, the major imports of Bolivia were wheat, worth USD 25.20 million, maize, worth USD 21.21 million, rice, worth USD 12.66 million, sorghum, worth USD 5.20 million, soybean, worth USD 4.89 million, and sunflower, worth USD 4.41 million. The import origins include the United States, Argentina, Brazil, Chile, and Canada.

The import value of maize recorded a CAGR of 9.72% during 2012-2016 and is estimated to register the same growth rate in future, due to low productivity of maize and cultivation of transgenic maize not being permitted in Bolivia.    

Recent Industry Insights

• Functional Products S.A. and Productos Funcionales DelAgro S.R.L. are facing a continuous strong growth in demand. Therefore, they decided to constitute a joint venture, in order to establish a dedicated chia seed processing facility, designed for the small chia seeds, which is expected to substantially reduce the handling losses.

At the same time, the production of chia seeds is anticipated to be increased 3-fold, by expanding the cultivation areas, from 1,500 to 4,200 hectare.

• Delphi Organic GmbH of Germany, an importing company specialized in certified organic commodities, and its trading partner in Bolivia, SINDAN Organic SRL are forming a joint venture, to improve the quality of the organic quinoa processing sector in Bolivia, by setting up a Fair Trade. The companies will train and advice around 200 farmers on organic production, good agricultural practices and help them obtain organic and Fair Trade certification for their quinoa products.

Key Deliverables in the Study

• The study identifies the situation of Bolivia, and predicts the growth of its cereal, pulses and oilseeds market.
• Report highlights agriculture production, consumption rates, import and export of major cereals, pulses and oilseeds, market trends, government regulations, major companies, upcoming companies, etc.
• The report identifies new products, launched by market leaders, along with recent projects and R&D activities in Bolivia.
• The report offers PESTLE, Porters, and supply chain analysis and network, as well as retail sector analysis.
• Finally the report forecasts the best investment opportunities and the major growing areas in the sector.

The Report Holds Importance for the Following Stakeholders:

• Seed companies 
• Producers and manufacturers
• Enterprises operating in the industry
• Traders and stakeholders operating in horticulture sector
• Agricultural commodity traders

Customization Options:

• Seed sector analysis
• Region specific analysis
• Regulatory framework
• Inclusion of additional crop of interest