Paraguay’s beef production falls 20% as export prices rise

Cattle slaughter volumes in Paraguay have declined by approximately 20% compared with last year, although the negative impact on the meat industry has been partially offset by a similar increase in beef export prices. This was reported by Daniel Burt, CEO of the Paraguayan Meat Industry Chamber (CPC).

After four consecutive years of drought, the country’s livestock sector is gradually recovering. Improved pasture conditions allow farmers to retain cattle for longer, particularly breeding cows, to rebuild herds and increase animal weights. Meanwhile, reduced cattle availability for slaughter is limiting current meat production volumes.

Despite lower production, high international prices are supporting exporters’ revenues. Paraguay has access to more than 80 export markets, allowing it to sell various categories of meat products. Premium cuts are mainly shipped to Europe, while the United States remains one of the key buyers of beef for further processing.

Meanwhile, competition in international markets could intensify as Brazilian exports are redirected. According to Burt, trade restrictions imposed by China and the EU are pushing Brazilian suppliers to seek alternative markets more actively, including Chile, the United States, and Israel, where Paraguayan beef is already present. This could create additional price pressure on Paraguayan exporters.

The future profitability of the meat industry will also depend on exchange rate movements, as international transactions are predominantly conducted in US dollars. In addition, Paraguay is exploring opportunities to expand pork and poultry exports by leveraging its existing raw material base and processing infrastructure. To achieve this, the country plans to intensify efforts to open new export markets.

Tags: prices, Beef cattle, Paraguay