August 22, 2008

Paraguay's fresh and frozen beef exports in June increased 54 percent on-year with a record average price of US$3,948 per tonne, up 65 percent on-year.
 

Paraguay exported a total of 19,091 tonnes swt of beef in June. For fiscal 2007-08, beef exports totalled 164,166 tonnes swt, up 26 percent on-year, while average prices jumped 16 percent on-year to hit US$3,125 per tonne.

Chief buyer Russia imported 89,817 tonnes swt in 2007-08, accounting for 55 percent of Uruguay's total beef exports. Paraguay has been expanding its market share in the Russian market, from 42 percent in June 2007 to 58 percent in June 2008. Average export prices to Russia increased to US$3,097 per tonne in June 2008, up 55 percent on-year.

Beef prices also increased in Paraguay, with cattle now costing US158 cents per kg lwt in July 2008, up 173 percent from the previous year. This has decreased Paraguay's competitiveness in the global market and is the second largest live cattle price hike over the period among South American markets after Brazil.

In order to increase domestic beef supply and peg prices, Paraguay is currently considering beef imports from low-priced cattle producers such as Argentina.