Paraguay beef exports for 2018 are forecast at 380,000 tons
Paraguayan beef exports for 2018 are forecast at 380,000 tons cwe (carcass weight equivalent), unchanged from last year, as the USDA report shows. Although beef production is forecast to increase marginally, contacts expect that most of the growth will be demanded by the local market. The domestic market is forecast to remain steady, and in some cases, paying higher prices than the export market.
There are currently significant differences between the export data published by the Central Bank (the official statistics entity) and Senacsa, the animal health service. For the first semester of 2017 the Central Bank data shows a drop in exports, while Senacsa (corroborated by the local export industry) indicates shipments to be 1-2 percent higher than the same period a year ago. Post's export estimate for 2017 is based on Senacsa's current data. During the first semester of 2017, beef exports to the top three markets, Chile, the Russian Federation and Brazil accounted for 75 percent of total exports. The EU was the highest value market for chilled beef, with exports of premium cuts under the Hilton Quota. Brazil and Chile followed as the best average unit price per ton. Taiwan and Israel were the best-paying markets for frozen boneless beef exports.
The private sector is working with the local animal health service in creating a carcass grading system. Paraguay is the only country in Mercosur which does not have a system in place. Many believe this is will be very important to access higher demanding markets.
Paraguay beef can access to more than 90 markets, of which more than 10 were opened last year. The sector knows that it needs to focus on opening key markets which buy larger volumes at higher prices. These markets include the United States, China, the EU (including the 481 quotas), and the high-quality beef quota of the Russian Federation.
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