Livestock transport costs in Paraguay to rise by 25% amid higher diesel prices

Livestock transport operators in Paraguay have announced plans to raise animal transportation rates by 22–25% following a sharp increase in diesel prices. Fuel prices have risen six consecutive times recently, with the cost of regular diesel approaching 10 thsd Paraguayan guaranies per liter. Higher transportation costs are putting additional pressure on the country’s livestock sector, particularly cattle producers and meat processing companies.

The National Association of Livestock Transporters of Paraguay (ANTG) announced plans to increase freight rates from the current 16–18 thsd to 20–22 thsd guaranies. According to association president Silvio Mareco, fuel accounts for approximately 70% of transport companies’ operating costs, making rising diesel prices a major threat to profitability. Current revenues are barely sufficient to cover personnel, maintenance and day-to-day operating expenses.

The association has already begun notifying livestock farms, meat processing plants and other industry participants about the planned tariff adjustments. Independent transport operators have also been advised to revise their rates in line with rising costs. ANTG currently represents around 50 members operating a combined fleet of approximately 500–600 specialized livestock trucks.

Another factor putting pressure on the market is the depreciation of the US dollar against the Paraguayan guarani. A significant share of revenues earned by livestock producers and meat processors is linked to the US currency, while most operating expenses are paid in local currency. As a result, the strengthening guarani reduces profitability for export-oriented businesses and makes it harder to absorb higher transportation costs.

The situation is further complicated by declining livestock transportation volumes, forcing transport companies to spread their fixed costs over fewer trips. Despite lower activity, operators must continue covering fleet maintenance, wages and vehicle repair expenses. Future freight rate movements will depend on diesel prices, exchange rates and a recovery in demand for livestock transportation. Meanwhile, higher logistics costs could increase cattle marketing expenses and put additional pressure on the profitability of Paraguay’s meat industry.

Tags: cattle, Paraguay, diesel, live livestock