Required Report - Public distribution

**Date:** 5/23/2007

**GAIN Report Number:** BL7001

BL7001

**Bolivia**

**Oilseeds and Products**

**Annual**

**2007**

**Approved by:**

![](media/image1.wmf)Eugene Philhower

U.S. Embassy

**Prepared by:**

Gaspar E. Nolte

**Report Highlights:**

Soybean production in MY 2007 (March/February) is expected to be 1.65
MMT. Heavy rains and severe floods damaged 110,000 hectares at the
beginning of CY 2007. Soybean meal exports for MY 2008 is forecast at
1.18 MMT.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Lima \[PE1\]

\[BL\]

######## Summary {#summary-1}

> Estimates of soybean production in Marketing Year 2007
> (March/February) have been significantly revised downward to 1.65
> Million Metric Tons (MMT) from the 2.15 MMT estimated previously. The
> severe flooding that affected the production area at the beginning of
> CY 2007 caused this reduction. Reportedly, 110,000 soybean hectares
> were destroyed in the first quarter of the year, reducing the summer
> crop by 15 percent. Landslides covered an estimated 20,000 hectares
> and it will be impossible to recover those areas in time for the
> winter crop. Total damage is estimated at \$45 million.
>
> Soybeans continue to be Bolivia's largest agricultural export, by far.
> Total soy exports in 2007 were \$362 million. Venezuela has increased
> its commercial purchases significantly, to the point that it is almost
> the sole market for Bolivia.
>
> The Bolivian government has begun to look for new trading partners and
> has apparently found prospective markets in some unexpected countries.
> Iran and North Korea have shown interest in importing "organic"
> (non-GMO) soy products only from small producers. Some rather relevant
> factors, such as pricing and transportation costs, are still to be
> worked out.

<table style="width:100%;">
<colgroup>
<col style="width: 18%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td><h6 id="psd-table">PSD Table</h6></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td><strong>Bolivia</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="3"><strong>Oilseed, Soybean</strong></td>
<td></td>
<td></td>
<td colspan="3">(1000 HA)(1000 MT)</td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>03/2006</td>
<td>03/2006</td>
<td></td>
<td>03/2007</td>
<td>03/2007</td>
<td></td>
<td>03/2008</td>
<td>03/2008</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>955</td>
<td>955</td>
<td>955</td>
<td>1030</td>
<td>1030</td>
<td>960</td>
<td>0</td>
<td>0</td>
<td>965</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>950</td>
<td>950</td>
<td>950</td>
<td>990</td>
<td>993</td>
<td>850</td>
<td>0</td>
<td>0</td>
<td>960</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>74</td>
<td>74</td>
<td>74</td>
<td>50</td>
<td>29</td>
<td>50</td>
<td>63</td>
<td>24</td>
<td>23</td>
</tr>
<tr class="even">
<td>Production</td>
<td>2060</td>
<td>2061</td>
<td>2060</td>
<td>2150</td>
<td>2155</td>
<td>1650</td>
<td>0</td>
<td>0</td>
<td>1900</td>
</tr>
<tr class="odd">
<td>MY Imports</td>
<td>180</td>
<td>0</td>
<td>180</td>
<td>225</td>
<td>0</td>
<td>175</td>
<td>0</td>
<td>0</td>
<td>150</td>
</tr>
<tr class="even">
<td>MY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>MY Imp. from EU</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>2314</td>
<td>2135</td>
<td>2314</td>
<td>2425</td>
<td>2184</td>
<td>1875</td>
<td>63</td>
<td>24</td>
<td>2073</td>
</tr>
<tr class="odd">
<td>MY Exports</td>
<td>180</td>
<td>140</td>
<td>180</td>
<td>200</td>
<td>140</td>
<td>85</td>
<td>0</td>
<td>0</td>
<td>100</td>
</tr>
<tr class="even">
<td>MY Exp. to EU</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Crush</td>
<td>1813</td>
<td>1654</td>
<td>1813</td>
<td>1890</td>
<td>1690</td>
<td>1545</td>
<td>0</td>
<td>0</td>
<td>1700</td>
</tr>
<tr class="even">
<td>Food Use Dom. Cons.</td>
<td>135</td>
<td>132</td>
<td>135</td>
<td>136</td>
<td>130</td>
<td>107</td>
<td>0</td>
<td>0</td>
<td>110</td>
</tr>
<tr class="odd">
<td>Feed Waste Dom. Cons.</td>
<td>136</td>
<td>180</td>
<td>136</td>
<td>136</td>
<td>200</td>
<td>115</td>
<td>0</td>
<td>0</td>
<td>115</td>
</tr>
<tr class="even">
<td>Total Dom. Cons.</td>
<td>2084</td>
<td>1966</td>
<td>2084</td>
<td>2162</td>
<td>2020</td>
<td>1767</td>
<td>0</td>
<td>0</td>
<td>1925</td>
</tr>
<tr class="odd">
<td>Ending Stocks</td>
<td>50</td>
<td>29</td>
<td>50</td>
<td>63</td>
<td>24</td>
<td>23</td>
<td>0</td>
<td>0</td>
<td>48</td>
</tr>
<tr class="even">
<td>Total Distribution</td>
<td>2314</td>
<td>2135</td>
<td>2314</td>
<td>2425</td>
<td>2184</td>
<td>1875</td>
<td>0</td>
<td>0</td>
<td>2073</td>
</tr>
<tr class="odd">
<td>CY Imports</td>
<td>219</td>
<td>0</td>
<td>219</td>
<td>240</td>
<td>0</td>
<td>150</td>
<td>0</td>
<td>0</td>
<td>150</td>
</tr>
<tr class="even">
<td>CY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>CY Exports</td>
<td>219</td>
<td>143</td>
<td>219</td>
<td>225</td>
<td>135</td>
<td>70</td>
<td>0</td>
<td>0</td>
<td>100</td>
</tr>
<tr class="even">
<td>CY Exp. to U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
</tbody>
</table>

<table>
<colgroup>
<col style="width: 15%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 6%" />
<col style="width: 8%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td><strong>PSD Table</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td><p id="country-1" class="heading">Country</p></td>
<td><strong>Bolivia</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="2"><strong>Meal, Soybean</strong></td>
<td></td>
<td></td>
<td colspan="3">(1000 MT)(PERCENT)</td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>03/2006</td>
<td>03/2006</td>
<td></td>
<td>03/2007</td>
<td>03/2007</td>
<td></td>
<td>03/2008</td>
<td>03/2008</td>
</tr>
<tr class="odd">
<td>Crush</td>
<td>1813</td>
<td>1654</td>
<td>1813</td>
<td>1890</td>
<td>1690</td>
<td>1545</td>
<td>0</td>
<td>0</td>
<td>1700</td>
</tr>
<tr class="even">
<td>Extr. Rate, 999.9999</td>
<td>0.7722007</td>
<td>0.7829504</td>
<td>0.7722007</td>
<td>0.7724867</td>
<td>0.7840236</td>
<td>0.7831715</td>
<td>0</td>
<td>0</td>
<td>0.7823529</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>30</td>
<td>10</td>
<td>30</td>
<td>30</td>
<td>20</td>
<td>30</td>
<td>30</td>
<td>25</td>
<td>25</td>
</tr>
<tr class="even">
<td>Production</td>
<td>1400</td>
<td>1295</td>
<td>1400</td>
<td>1460</td>
<td>1325</td>
<td>1210</td>
<td>0</td>
<td>0</td>
<td>1330</td>
</tr>
<tr class="odd">
<td>MY Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>MY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>MY Imp. from EU</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>1430</td>
<td>1305</td>
<td>1430</td>
<td>1490</td>
<td>1345</td>
<td>1240</td>
<td>30</td>
<td>25</td>
<td>1355</td>
</tr>
<tr class="odd">
<td>MY Exports</td>
<td>990</td>
<td>1110</td>
<td>990</td>
<td>1035</td>
<td>1150</td>
<td>1120</td>
<td>0</td>
<td>0</td>
<td>1175</td>
</tr>
<tr class="even">
<td>MY Exp. to EU</td>
<td>3</td>
<td>1</td>
<td>3</td>
<td>0</td>
<td>1</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Industrial Dom. Cons.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Food Use Dom. Cons.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Feed Waste Dom. Cons.</td>
<td>410</td>
<td>175</td>
<td>410</td>
<td>425</td>
<td>170</td>
<td>95</td>
<td>0</td>
<td>0</td>
<td>100</td>
</tr>
<tr class="even">
<td>Total Dom. Cons.</td>
<td>410</td>
<td>175</td>
<td>410</td>
<td>425</td>
<td>170</td>
<td>95</td>
<td>0</td>
<td>0</td>
<td>100</td>
</tr>
<tr class="odd">
<td>Ending Stocks</td>
<td>30</td>
<td>20</td>
<td>30</td>
<td>30</td>
<td>25</td>
<td>25</td>
<td>0</td>
<td>0</td>
<td>80</td>
</tr>
<tr class="even">
<td>Total Distribution</td>
<td>1430</td>
<td>1305</td>
<td>1430</td>
<td>1490</td>
<td>1345</td>
<td>1240</td>
<td>0</td>
<td>0</td>
<td>1355</td>
</tr>
<tr class="odd">
<td>CY Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>CY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>CY Exports</td>
<td>982</td>
<td>1036</td>
<td>1099</td>
<td>1035</td>
<td>1100</td>
<td>1035</td>
<td>0</td>
<td>0</td>
<td>1100</td>
</tr>
<tr class="even">
<td>CY Exp. to U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>SME</td>
<td>410</td>
<td>175</td>
<td>410</td>
<td>425</td>
<td>170</td>
<td>95</td>
<td>0</td>
<td>0</td>
<td>100</td>
</tr>
</tbody>
</table>

+--------------------------------------------+-------------------------+
| ###### Export Trade Matrix                 |                         |
+--------------------------------------------+-------------------------+
| **Country**                                | Bolivia                 |
+--------------------------------------------+-------------------------+
| **Commodity**                              | Meal, Soybean           |
+--------------------------------------------+-------------------------+
| Time Period                                | CY 2006                 |
+--------------------------------------------+-------------------------+
| Exports for:                               |                         |
+--------------------------------------------+-------------------------+
| U.S.                                       |                         |
+--------------------------------------------+-------------------------+
| Others                                     |                         |
+--------------------------------------------+-------------------------+
| Venezuela                                  | 694696                  |
+--------------------------------------------+-------------------------+
| Colombia                                   | 274003                  |
+--------------------------------------------+-------------------------+
| Peru                                       | 70356                   |
+--------------------------------------------+-------------------------+
| Chile                                      | 39315                   |
+--------------------------------------------+-------------------------+
| Ecuador                                    | 21273                   |
+--------------------------------------------+-------------------------+
|                                            |                         |
+--------------------------------------------+-------------------------+
| Total for Others                           | 1099643                 |
+--------------------------------------------+-------------------------+
| Others not Listed                          |                         |
+--------------------------------------------+-------------------------+
| Grand Total                                | 1099643                 |
+--------------------------------------------+-------------------------+

Units: Metric Tons

<table>
<colgroup>
<col style="width: 15%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 6%" />
<col style="width: 8%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td><strong>PSD Table</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td><strong>Bolivia</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="2"><strong>Oil, Soybean</strong></td>
<td></td>
<td></td>
<td colspan="3">(1000 MT)(PERCENT)</td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>03/2006</td>
<td>03/2006</td>
<td></td>
<td>03/2007</td>
<td>03/2007</td>
<td></td>
<td>03/2008</td>
<td>03/2008</td>
</tr>
<tr class="odd">
<td>Crush</td>
<td>1813</td>
<td>1654</td>
<td>1813</td>
<td>1890</td>
<td>1690</td>
<td>1545</td>
<td>0</td>
<td>0</td>
<td>1700</td>
</tr>
<tr class="even">
<td>Extr. Rate, 999.9999</td>
<td>0.1781577</td>
<td>0.1813784</td>
<td>0.1781577</td>
<td>0.1772486</td>
<td>0.1804733</td>
<td>0.2168284</td>
<td>0</td>
<td>0</td>
<td>0.2176470</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>5</td>
<td>5</td>
<td>5</td>
<td>5</td>
<td>8</td>
<td>5</td>
<td>5</td>
<td>6</td>
<td>5</td>
</tr>
<tr class="even">
<td>Production</td>
<td>323</td>
<td>300</td>
<td>323</td>
<td>335</td>
<td>305</td>
<td>335</td>
<td>0</td>
<td>0</td>
<td>370</td>
</tr>
<tr class="odd">
<td>MY Imports</td>
<td>4</td>
<td>0</td>
<td>4</td>
<td>4</td>
<td>0</td>
<td>2</td>
<td>0</td>
<td>0</td>
<td>1</td>
</tr>
<tr class="even">
<td>MY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>MY Imp. from EU</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>332</td>
<td>305</td>
<td>332</td>
<td>344</td>
<td>313</td>
<td>342</td>
<td>5</td>
<td>6</td>
<td>376</td>
</tr>
<tr class="odd">
<td>MY Exports</td>
<td>210</td>
<td>252</td>
<td>210</td>
<td>210</td>
<td>262</td>
<td>212</td>
<td>0</td>
<td>0</td>
<td>240</td>
</tr>
<tr class="even">
<td>MY Exp. to EU</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>0</td>
<td>0</td>
<td>1</td>
</tr>
<tr class="odd">
<td>Industrial Dom. Cons.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Food Use Dom. Cons.</td>
<td>117</td>
<td>45</td>
<td>117</td>
<td>129</td>
<td>45</td>
<td>125</td>
<td>0</td>
<td>0</td>
<td>130</td>
</tr>
<tr class="odd">
<td>Feed Waste Dom. Cons.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Dom. Cons.</td>
<td>117</td>
<td>45</td>
<td>117</td>
<td>129</td>
<td>45</td>
<td>125</td>
<td>0</td>
<td>0</td>
<td>130</td>
</tr>
<tr class="odd">
<td>Ending Stocks</td>
<td>5</td>
<td>8</td>
<td>5</td>
<td>5</td>
<td>6</td>
<td>5</td>
<td>0</td>
<td>0</td>
<td>6</td>
</tr>
<tr class="even">
<td>Total Distribution</td>
<td>332</td>
<td>305</td>
<td>332</td>
<td>344</td>
<td>313</td>
<td>342</td>
<td>0</td>
<td>0</td>
<td>376</td>
</tr>
<tr class="odd">
<td>CY Imports</td>
<td>3</td>
<td>0</td>
<td>3</td>
<td>4</td>
<td>0</td>
<td>2</td>
<td>0</td>
<td>0</td>
<td>1</td>
</tr>
<tr class="even">
<td>CY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>CY Exports</td>
<td>210</td>
<td>215</td>
<td>225</td>
<td>210</td>
<td>250</td>
<td>215</td>
<td>0</td>
<td>0</td>
<td>235</td>
</tr>
<tr class="even">
<td>CY Exp. to U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
</tbody>
</table>

  ------------------------------------ ----------------------------------
  **Export Trade Matrix**              

  **Country**                          Bolivia

  **Commodity**                        Oil, Soybean

  Time Period                          CY 2006

  Exports for:                         

  U.S.                                 

  Others                               

  Colombia                             123409

  Venezuela                            81890

                                       

                                       

  Total for Others                     205299

  Others not Listed                    19622

  Grand Total                          224921
  ------------------------------------ ----------------------------------

Units: Metric Tons

**Production**

Soybean production in Marketing Year 2007 (March/February) has been
revised to 1.65 Million Metric Tons (MMT), from the 2.15 estimated
previously. The severe floods that affected the production area at the
beginning of CY 2007 caused this significant reduction. Total damage is
estimated at \$45 million.

Soybeans are mostly produced in the Santa Cruz region, Bolivia's
economic and agricultural powerhouse. There are two annual crops:

-   Summer: planting in November-December and harvest in March-April, is
    the most important season accounting for about 70 percent of the
    annual crop. This crop will be severely affected by the strong rains
    during the beginning of CY 2007. Reportedly, 110,000 soybean
    hectares were destroyed in the first quarter of the year, reducing
    the summer crop by 15 percent.

-   Winter: planting in June-July and harvest in October-December. This
    crop will also be diminished this year. Landslides covered about
    20,000 hectares in the summer and it will be impossible to recover
    those areas in time for the new crop.

> Yields vary considerably, between 1.8 and 2.3 MT per hectare,
> depending on efficiency and technical know-how of producers. However,
> this year's average yield will be lower, at 1.9 MT/hectare, due to the
> heavy rains. Cost of production per hectare is about \$280, of which
> about \$110 are used for pesticides. Soybean prices are expected to be
> around \$195 per MT in CY 2007.
>
> Soybean is the most important crop in Bolivia, with the harvested area
> of soybeans in MY 2006 being 950,000 hectares, compared to about
> 110,000 hectares for corn, 70,000 hectares for sunflower, 115,000
> hectares for rice. Soybean production in Bolivia is in hands of small
> producers; there are about 14,000 soybean producers in Bolivia with
> the following structure:

-   77 percent own less than 50 hectares

-   21 percent own between 50 and 1,000 hectares

-   2 percent own more than 1,000 hectares

> Producers in Bolivia face three main constraints: lack of technology,
> expensive credits (15 to 19 percent interest rates), and steep
> transportation costs.
>
> Total crushing capacity in Bolivia is 7,500 MT per day, enough to
> process its entire crop. The largest crushing companies are ADM-SAO
> with about 35 percent of the market, Fino and Rico with about 25
> percent of the market each, and several small companies share the
> other 15 percent of the market. About 80 percent of the country's
> storage capacity is owned by processing companies and 20 percent by
> independent intermediaries.
>
> One of the most influential organizations in Bolivia is the oilseeds
> producers association (ANAPO), which negotiates import duties for
> inputs or technical programs with the GOB and financial institutions,
> provides seeds and other inputs, and also assists producers with
> technical guidance.
>
> **Trade**
>
> Soybean exports continue to be Bolivia's largest agricultural export.
> Total soy exports in 2007 were \$362 million, second only to
> hydrocarbons. Accounting for about 26 percent of total exports,
> soybean products are by far the largest Bolivian agricultural export.

+------------------------+-------------------+------------------------+
| **Bolivian Soybean     |                   |                        |
| Product Exports**      |                   |                        |
|                        |                   |                        |
| **(CY 2006)**          |                   |                        |
+------------------------+-------------------+------------------------+
| **Product**            | **Volume**        | **Value**              |
|                        |                   |                        |
|                        | **(TMT)**         | **(Million \$)**       |
+------------------------+-------------------+------------------------+
| Meal                   | 1,100             | 209                    |
+------------------------+-------------------+------------------------+
| Crude oil              | 198               | 100                    |
+------------------------+-------------------+------------------------+
| Beans                  | 70                | 15                     |
+------------------------+-------------------+------------------------+
| Full fat meal          | 79                | 20                     |
+------------------------+-------------------+------------------------+
| Refined oil            | 26                | 18                     |
+------------------------+-------------------+------------------------+
| Total                  | 1,473             | 362                    |
+------------------------+-------------------+------------------------+

> The Andean countries (Colombia, Ecuador, Peru and Venezuela) are the
> most important, and almost exclusive, market for Bolivian soybean
> products. Exports to these countries in CY 2006 were as follows:

+---------------------+-----------------------+-----------------------+
| **Distribution of   |                       |                       |
| Bolivian Exports**  |                       |                       |
|                     |                       |                       |
| **(CY 2006)**       |                       |                       |
+---------------------+-----------------------+-----------------------+
| **Soybeans**        | **Soybean Meal**      | > **Crude Oil**       |
|                     |                       |                       |
| **(Percentage)**    | **(Percentage)**      | **(Percentage)**      |
+---------------------+-----------------------+-----------------------+
| Colombia 31         | Venezuela 63          | Colombia 59 Venezuela |
|                     |                       | 41                    |
| Argentina 42        | Colombia 25           |                       |
|                     |                       |                       |
| Peru 15             | Peru 6                |                       |
|                     |                       |                       |
| Venezuela 12        |                       |                       |
+---------------------+-----------------------+-----------------------+

> Since Bolivia is a landlocked country, the cost of transportation is
> expensive and one of the main concerns of Bolivian exporters; it cost
> less to ship product from the Gulf of Mexico to any Andean country.
> For example, freight costs from the Gulf of Mexico to Colombia is \$45
> per MT, compared to \$113 per MT from Bolivia. Brazil and Argentina
> also have more competitive transportation costs, with freight from
> these countries to Colombia costing around \$59 per MT.
>
> **Policy**
>
> Under the People's Trade Agreement (Cuba, Venezuela and Bolivia), the
> Venezuelan government promised to import the entire Bolivian soybean
> production annually. However the GOV only purchased 12,000 MT in CY
> 2006, disrupting the market by paying up to \$30 more per MT. This soy
> meal, which is still stored in warehouses in Santa Cruz, was purchased
> from small producers who supported President Morales' administration.
>
> Nevertheless, Venezuela has increased its commercial purchases
> significantly, to the point that most of the Bolivian soy crop now is
> dependant on only one market. Taking into account Venezuela's
> non-tariff trade barriers (import licensing and foreign currency
> control), Bolivian soybean producers fear that their dependency on
> Venezuela could be used as political leverage to push President
> Chavez's agenda in the region.
>
> Bolivia is rapidly losing its tariff preferences granted under the
> Andean Community of Nations (CAN) trade agreement. In 2006, Peru
> eliminated import duties for soybean meal from all sources. Moreover,
> the CAN is undergoing one of its longest and most serious crises due
> to the U.S.-Andean Trade Promotion Agreement. Venezuela has withdrawn
> from the CAN and Bolivia has threatened to do so if Colombia and Peru
> do not back out of the FTA with the United States. In May 2007,
> Ecuador requested withdrawal from the CAN's common external tariff to
> implement its own tariff schedule in order to "protect local
> production".
>
> Bolivia is concerned that its soybean exports to these countries,
> mainly to Colombia, will lose their market share to U.S. products.
> Bolivian soybean meal is imported into Colombia and Peru duty free,
> whereas soybean meal from other origins is assessed 15 and 4 percent
> duties, respectively. Under the U.S.-Andean FTA, U.S. soybean products
> will go to zero immediately.
>
> The Andean -- MERCOSUR trade agreement is also a major concern for the
> Bolivian soybean industry. Paraguay has already taken a significant
> share of the Peruvian and Colombian soybean meal markets from Bolivia,
> and Bolivia's trade advantage is expected to be lost as this agreement
> is implemented.
>
> The Bolivian administration has begun to look for new trading partners
> and has apparently found a couple in very far lands. Iran and North
> Korea have shown interest in importing "organic" (non-GMO) soy
> products only from small producers. Some rather relevant factors such
> as pricing and transportation costs are still to be worked out.
>
> *Biotech*
>
> About 70 percent of the Bolivian soy crop is genetically modified.
> Nevertheless, as with other issues in Bolivia, biotechnology has
> divided the country in two. On the one hand civil society from the
> highlands, mainly La Paz, are opposed to the use, trade, production
> and research of biotechnology due to the strong influence from
> non-government organizations (NGOs) that are financing public
> campaigns to prevent the use of biotechnology. These people are not
> producers. On the other hand, Santa Cruz (producers) wishes to use
> biotechnology to increase its efficiency and competitiveness.
>
> Though the GOB has not decided which way to go yet, many producers are
> using genetically modified soybean seeds. According to Bolivian
> producers, Paraguay is much more efficient in producing soybean due to
> the extensive use of biotechnology. Due to strong influence from
> Brazil and higher levels of efficiency, most of the Bolivian soybeans
> will probably be genetically modified in the upcoming years.