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.
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.
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.
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
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.
Key Deliverables in the Study
The Report Holds Importance for the Following Stakeholders:
1.1 Market Definition
1.2 Key Findings of the Study
2. Research Scope and Methodology
2.1 Study Deliverables
2.2 Market Segmentation
2.3 Study Assumptions
2.4 Research Design
3. Market Dynamics
3.1.1 Favorable Agro-climatic Conditions
3.1.2 Increasing International Trade Prospects and Preferential Tariffs for the EU Market
3.1.3 Good Trade Relations with Neighboring Nations
3.2.1 Domestic Quota System Limits the Export of Agri-food Businesses
3.2.2 Lack of Water Management Systems and Inefficient Irrigation Facilities
3.2.3 Limited Access to Agricultural Credit and High Interest Rates
4. Industry Analysis
4.1 Porter's Five Forces Analysis
4.1.1 Bargaining Power of Suppliers
4.1.2 Bargaining Power of Buyers
4.1.3 Threat of New Entrants
4.1.4 Threat of Substitute Products
4.1.5 Degree of Competition
5. Market Segmentation
5.1.1 Market Size (in USD million)
5.1.2 Domestic Production Overview
5.1.3 Domestic Consumption Overview
5.1.4 Import Value and Volume
5.1.5 Export Value and Volume
5.2.1 Market Size (in USD million)
5.2.2 Domestic Production Overview
5.2.3 Domestic Consumption Overview
5.2.4 Import Value and Volume
5.2.5 Export Value and Volume
5.3.1 Market Size (in USD million)
5.3.2 Domestic Production Overview
5.3.3 Domestic Consumption Overview
5.3.4 Import Value and Volume
5.3.5 Export Value and Volume
6. International Trade and Price Scenarios (Major Crops)
6.6 Dry Beans
6.7 Broad Beans
6.8 Chia Seeds
7. Regional Analysis
7.1 PESTLE Analysis
7.2 Supply Chain Analysis
7.3 Government Policies
8. Competitive Analysis
8.1 Distribution Network and Retail Analysis
8.2 List/Profile of Key Players