Paraguay: Livestock farming is limited in markets and with a debt equivalent to US$126 per head on the national herd

Published Nov 8, 2022

Tridge summary

The article outlines the economic benefits that Paraguay could reap by opening its beef market to China, with estimates suggesting an annual injection of US$700 million. Current average beef export prices are US$5,195 per ton. However, the country faces challenges in its livestock sector, including limited market access and significant debt. The sector's financial struggles are exacerbated by the need to sell more cattle due to low prices and high production costs, with farmers taking preventive measures by keeping more pregnant cows. There are concerns about the potential negative impact of these challenges on Paraguay's grain feeding system, a key part of its meat production process.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The opening of the Chinese market for beef from Paraguay would generate an extra injection into the country's economy of approximately US$700 million per year, according to what was stated by the former Minister of Finance and director of the consulting firm MF Economía, Manuel Ferreira. In communication with Valor Added on radio Pa'i Puku 720 AM, the economist mentioned that, so far this year, Paraguay is exporting meat at an average price of US$ 5,195 per ton, some 1,500 dollars less than the average it sells Uruguay, a country that does export bovine meat with and without bone to the Asian giant. He explained that China is the most important market in the world, since in addition to acquiring large volumes and paying good prices, it demands a high percentage of the animal, simplifying the work of the industry. “Currently we are very limited in terms of markets to be able to place all the merchandise we produce. And unlike what happens in Argentina and Brazil, Paraguay has to ...

Source: Elagro