July 30, 2012

Paraguay's beef exports decline 7.2% for first half of 2012

Paraguay's beef exports fall 7.2% on-year to 83,667 tonnes during the first half of 2012, following the detection of Foot-and-Mouth Disease (FMD) last September.

Chile, the second largest market for Paraguayan beef for the first six months of 2011, ceased imports after the detection of FMD - contributing to the fall in Paraguayan exports during the first six months of 2012. During January to June 2012, there was a 99% fall in shipments to Israel, to only 36 tonnes, followed by Venezuela with volumes back 96% on-year, to 221 tonnes.

Despite the overall contraction in the first half of 2012, exports to Russia increased significantly, up 107% on-year, to 32,413 tonnes. Sluggish demand from Russia during the first six months of 2012 resulted in importers looking for cheaper product, with Paraguayan exports reportedly cheaper than product from competing suppliers. During this period, Paraguayan export values averaged US$4.06 per kilogramme - 8.5% cheaper than Brazilian beef exports over the corresponding period.

The USDA forecasts Paraguayan beef exports to reach 300,000 tonnes in 2012.