January 16, 2012

Paraguay's 2011 beef exports down 20%

A report released by the National Animal Quality and Health Agency (SENACSA) on Thursday (Jan 12) stated that Paraguayan beef exports dropped by about 20% in 2011.

As outlined by SENACSA, the value of beef exports in 2011 totalled approximately US$752 million, significantly down from the some US$930.5 million recorded for 2010. The sharp decline in exports comes as a possible consequence of an outbreak of foot-and-mouth disease (FMD) in northern Paraguay in September. On that occasion, major export markets including Russia imposed bans on importing Paraguayan beef. Neighbouring countries, including Brazil, Argentina, and Uruguay, also imposed border restrictions on Paraguayan meat products. These countries are not only major buyers of Paraguayan meat produce but also key transhipment points for Paraguay's exports overseas.

According to the SENACSA report, Russia and Chile remained the two most prominent international buyers of Paraguayan beef in 2011, importing 54,000 tonnes and 47,000 tonnes respectively.

The extent of this fall in beef exports will come as unwelcome news for that industry in Paraguay and could be potentially damaging for the country's economy, which relies heavily on beef exports. If indeed the decline in exports is a direct consequence of the FMD outbreak in September it will further encourage the authorities to intensify efforts to contain a subsequent outbreak that occurred in early January as well as step up checks to avoid future outbreaks. In the meantime, the government is anticipated to vigorously pursue confidence-building initiatives with key export markets to assure buyers of the quality of Paraguayan beef products.