US, Europe and China key to Paraguay becoming world’s 5th beef exporter

By Mauricio Savarese

- Last updated on GMT

Paraguay is looking to increase its standing from the 8th to the 5th largest beef exporter
Paraguay is looking to increase its standing from the 8th to the 5th largest beef exporter

Related tags International trade Brazil Export Paraguay Beef

Paraguay is now the world’s eighth top beef exporter, according to US government figures, ahead of meat superpowers such as Argentina (11th), but their aim is to be number five by 2020 and to have 20 million head of cattle available in that year alone.

In an interview with GlobalMeatNews, the vice-president of Paraguayan Rural Association (ARP), Carlos Pereira, said that the South American country will improve sanitation to reach that goal and hopes to supply jurisdictions that still block its exports: the US, Europe, China and Hong Kong.

Figures from the US Department of Agriculture show that Brazil currently tops the world’s beef exporting list, with over 2 million metric tonnes sold abroad. India is closing in, with 1.9 million (buffalo beef); Australia, 1.56 million tonnes; New Zealand 535,000 tonnes; Uruguay, 385,000 tonnes; Canada, 355,000 tonnes and Paraguay, 350,000 tonnes. Pereira said he expects the Paraguayan figure to double in the next six years. "We want those American, European and Asian consumers to help us get closer to the top,"​ APR’s vice-president said.

Pereira said predictions regarding extra production were reasonable because of "areas that are not being explored today, such as premium meat, and an increase in efficiency."​ He explained: "We are working with government to raise our productivity levels. That potential for expansion demands more processing plants and we are clearly on the way to that. We already have enough credit for producers so they can invest in new facilities,"​ he said.

Last year, Paraguay officials counted 14.5 million head of cattle in its territory. It is estimated that Paraguayan abattoirs will slaughter 4.2 million head of cattle this year - last year the figure was around 2.2 million, and 73% of their meat was shipped overseas as beef exports. Those exports were channeled into prominent markets, such as Brazil, Chile and Russia. But reaching the biggest ones is essential for Paraguay, Pereira said.

Even so, he believes the target for 2020 is possible even if there are no new deals to export Paraguayan beef. "The improvements depend on us. Of course there are risks in acting, but not doing so is riskier for our industry,"​ he said. Pereira said local consumers would also benefit from Paraguay becoming a top exporter. "Our national market is small, but if we export more we will get bone-in cuts with an even more accessible price to our population, which will be able to choose,"​ he said.

USDA didn’t comment on prospects for Paraguayan beef exports coming into the US and said "their status is still ineligible."​ Pereira said Paraguay’s sanitation agent "is working to comply with all American demands so they can export in the near future."​ He added: "We are on the way to get a certificate to export to the European Union, we are confident we will have it."

Paraguay’s impressive position in the ranking also comes at the expense of Argentina, which exported only 200,000 tonnes of beef last year. Part of the reason levels were so low is credited to protectionist government policies and taxes imposed by President Cristina Fernández de Kirchner.

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