January 2, 2015

Paraguay meat exports hit a record $1.6 billion in 2014

Paraguay's meat and meat products exports over the past 12 months reached a record US$1.6 billion, up 20% from $1.3 billion in 2013, the country's National Quality and Health Animal Services, or Senacasa, said.

"It's a historic record, we could never imagine these numbers only a couple of years ago" said Senacasa head Hugo Idoyaga, adding the stable sanitary situation played a key role in reaching the record amount.

Most of the meat exports consisted of beef, worth $1.25 billion, whereas pork exports amounted to only $10 million.

Idoyaga, however, said that despite the "brilliant" year, Paraguay's meat industry still faced challenges. He pointed out the need for market diversification including meeting the need for premium cuts for the European Union market. He also said that the country's main market, Russia, is facing hard times due to the steep fall in oil prices and EU-US trade sanctions.

Moreover, the ruble has devalued by 40% since September and "now instead of paying $4,800 a tonne of beef, they are offering $3,300 which does not fit into our costs", Idoyaga said.

"But hopefully we can balance that drop with sales to Venezuela, the European Union and Arab countries", he added.

Idoyaga said "we have done all the paperwork demanded by the EU, and we are waiting for the EU commission in charge of the issue to meet and decide".

He also said Paraguay has shipped some of the first meat exports to Venezuela and "we are waiting for the Saudis to confirm a possible opening of that market".