Paraguay: A Top Destination For Food And Energy Security

When I first travelled to Paraguay, I was doing research for my clients. But after just a few weeks there, I realized that this landlocked country in the heart of South America was a solid Plan-B destination for expats. 

I’ve taken note of everything this country has to offer. From its favourable tax system to its low cost of living, there’s no shortage of reasons to make Paraguay your Plan-B. In particular, Paraguay’s food and energy independence is sure to give you peace of mind should things in your home country go wrong.

In this article, we’ll dive into how Paraguay excels in food and energy independence, making it an ideal destination for anyone looking to safeguard against uncertainty.

PARAGUAY’S PATH TO FOOD INDEPENDENCE

When considering food independence, you probably should first research how much food is produced in your target country. After all, who doesn’t want to go to the stores and have easy access to various types of food? Roughly speaking, Paraguay produces food for 60 million people with a population of under 7 million. This means the country’s food output is enough to feed 8.5 times its population! This massive surplus secures the domestic food supply and positions Paraguay as a leading food exporter.

Looking at other data, sectors like agriculture, forestry and fishing are the most relevant (apart from the service sector). In particular, agriculture employs around 25% of the population and represents over 10% of the national GDP. 

Among the various crops are maize, soybeans, sesame, cassava, and sugarcane. The country’s subtropical climate, supporting year-round farming, also favours growing fruits like mangoes, bananas, and melons, as well as vegetables like tomatoes, onions, and beans. Lastly, we cannot neglect the country’s status as one of the largest beef exporters in the world, usually making it to the top 10 in this category.

The creation of the Itaipu Hydroelectric Plant, a collaboration between Paraguay and Brazil, ensures a massive energy supply while keeping prices low for domestic consumers

PARAGUAY’S ENERGY INDEPENDENCE

Another key factor in choosing a Plan-B destination or full-time place of residence is energy. Whether you aim to do business or just live here, you want to make sure your energy costs are kept at a minimum. Low energy costs are correlated with lower consumer prices and increased productivity, helping both households and businesses thrive. In this regard, Paraguay’s energy sector is competitive and reliable. 

The country is a major hydroelectric power producer, leveraging the Itaipú dam shared with Brazil, and the Yacyretá dam shared with Argentina. These two dams provide huge amounts of energy not only for Paraguay but also for its neighbouring countries, making it a net energy exporter. Let’s further check them out:

THE ITAIPU DAM

The Itaipu Dam, located in the Paraná River, holds the record for annual electricity generation, producing over 70 million MWh annually. Back in the 60s, Brazil and Paraguay noticed the river's potential and signed the Act of Iguaçu and the Treaty of Itaipu to create Itaipu Binacional, sharing both benefits and costs between the two countries. 

This collaboration helps Paraguay get around 90% of its energy from Itaipu while exporting part of its energy to Brazil. The massive supply of hydroelectric energy keeps Paraguay’s energy prices low for domestic consumers while reducing reliance on other types of energy like biomass or oil. 

THE YACYCRETÁ DAM

The Yacycretá dam also explains why Paraguay energy prices are so affordable. This binational dam, shared with Argentina, produces over 15,000 GWh annually, further reinforcing Paraguay’s energy independence. Moreover, part of this energy is sold to Argentina, providing an additional income stream to the country. 

Like Itaipu, Yacycretá protects Paraguay’s energy from the volatility of oil and gas prices. Paraguay's natural resources and climate conditions make it a worthwhile Plan-B destination for expats, as well as a stable environment for both businesses and residents.

LOW ENERGY COSTS

As opposed to countries in Europe, which typically depend on Russian energy, Paraguay is self-sufficient, not only producing its own energy but also exporting it to other countries. The low-cost energy helps residents keep their homes cool during summers and warm during winters, adding to the comfort you can enjoy by living here. 

Additionally, affordable and reliable energy drives economic growth and provides job opportunities in the business sector. However, ordinary people can also massively benefit from inexpensive energy, as cooking, lighting and climate control don’t break the bank. 

Paraguay’s food independence ensures affordability, reliability, and investment opportunities, making it a haven for expats seeking stability

STRATEGIC BENEFITS FOR EXPATS

As you can tell, food and energy independence are key components of any solid Plan-B destination for expats. Let’s dig into how these factors benefit expats: 

BENEFITS OF FOOD INDEPENDENCE

• Reliable Supply: Paraguay’s massive food surplus provides a constant, secure supply. As such, expats can enjoy locally sourced produce without the fear of shortages. 

• Affordability: This consistent surplus drives down the price of basic goods like grains, fruits, and vegetables, helping expats stretch their incomes further. 

• Export Opportunities: Expats interested in agribusiness can find a wealth of opportunities in Paraguay. As a food exporter, Paraguay opens doors for investments in farming, livestock and food processing industries. 

• Resilience: Unlike other countries dependent on external supply chains, Paraguay’s self-sufficiency helps its residents thrive without relying heavily on imports. 

BENEFITS OF ENERGY INDEPENDENCE

• Low Energy Costs: Due to Paraguay’s low energy rates, both households and businesses can enjoy reduced utility costs, further driving down the overall cost of living. 

• Export Revenue: As a net energy exporter, Paraguay can maintain economic stability, which in turn benefits residents by keeping taxes low and improving infrastructure. 

• Business-Friendly Environment: Affordable and reliable energy is key for anyone who wants to start or expand a business. Low energy prices mean reduced operational costs, making Paraguay an attractive place for investment in sectors like tech. 

Due to its food and energy independence, Paraguay is a solid choice to rely on during times of economic turbulence

CONCLUSION

All in all, Paraguay is definitely worth looking into if you’re interested in a secure environment in which to settle or invest. Thanks to its food and energy independence, not only can you enjoy increased peace of mind but also a low cost of living without compromising on quality. In other words, Paraguay is a solid bet to resort to in times of economic turmoil.

Whether you want to protect yourself and your family against financial and political instability back home or simply live in a country where your basic needs won’t be threatened arbitrarily, Paraguay will welcome you with open arms.