New partnerships for Paraguay’s stevia

 
National stevia production took a big step forward this July as Paraguay Productivo signed two major agreements to develop the industry with ADM Paraguay and with Granular S.R.L. Paraguay.Worker tending to stevia

Stevia is a natural, no-calorie sweetener, native to Paraguay, and has always been widely consumed there. Japan and other markets have embraced in the last few decades as a healthy alternative to sugar and artificial sweeteners—in Japan, Diet Coke is made with stevia, rather than Nutrasweet or Splenda. It is gaining popularity in the American market, amidst concerns about health risks from artificial zero-calorie alternatives. In December 2008, the FDA approved stevia as safe for consumption after Coca-Cola and Cargill began considering stevia products. Market research leader Mintel expects the stevia market to exceed $2 billion in 2011.

In Paraguay, the project’s partnership with Archer Daniels Midland (ADM), a U.S.-based agribusiness multinational (and a Cargill competitor), will promote stevia production as a source of supplementary income for small farmers. ADM will buy their crop and help them obtain loans. Because stevia is a labor-intensive crop, this assistance will benefit large numbers of farmers.

Granular, a Swedish company, specializes in worldwide marketing of steviol glycoside (the compound that makes stevia sweet). Through their partnership with Paraguay Productivo, the company will mediate the export of steviol glycoside to the U.S. By launching themselves into the international stevia market, local producers will be able to diversify their crops and increase earnings.

Read the project's most recent newsletter (July 2010)

Published July 2010

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