This report is the result of a World Bank mission that visited Paraguay in June 2013 at the request of the Government of Paraguay. The mission’s objective was to identify, quantify, and prioritize agriculture risks that determine the volatility of agriculture gross domestic product (GDP), based on a methodology to assess sector risks developed by the World Bank. The methodology stipulates a two-phase process.

The present study is part of an effort by the World Bank and the State of Bahia to assess agriculture sector risks as a contribution to the strategic economic development and poverty reduction agenda of the state government. It is composed of two phases: an agricultural sector risk identification and prioritization (volume one) and a risk management strategy and action plan (volume two).