YERBA MATE (ILEX PARAGUARIENSIS) PRODUCTION, AGRICULTURAL CHANGE, AND LIVELIHOOD SECURITY IN SOUTHEASTERN PARAGUAY

Abstract

Smallholders in Southeastern Paraguay are threatened by the advance of mechanized farming, environmental degradation, and limited access to credit and inputs. Agroforestry initiatives have been proposed as a way to increase smallholder livelihood security in the face of such vulnerability. Yerba mate (Ilex paraguariensis) is a tree crop native to Paraguay that may be grown in agroforestry systems. While prices paid to farmers for yerba mate have increased in recent years, spurring interest and adoption of yerba mate production among some farmers, to this date, there have been no analyses of the effects that yerba mate production may have on livelihoods. This study, which was conducted April-July 2013 in the community of Libertad del Sur in Southeastern Paraguay, addresses this lack of research on yerba mate and livelihoods. Interviews were conducted with 23 households interested in cultivating yerba mate and six key informants on current livelihood strategies in Libertad del Sur and the potential effects of yerba mate production. Yerba mate production was found to be a profitable option for reducing certain sources of vulnerability, but the ability of households to invest in it was limited by several factors including high initial costs and lack of credit

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