August 25, 2011

 

Paraguayan beef exports challenged by higher prices

 

 

Paraguyan beef exports are experiencing deterred growth amid a rise in domestic cattle prices and an appreciation in the guraini currency.

 

For the first seven months of 2011, Paraguayan beef exports were back 13% on-year, at 110,516 tonnes swt.

 

While Paraguayan beef production has experienced a rise in recent years, exports have grown at a faster rate than domestic consumption, with exports now accounting for 54% of total production (compared to 25% in early 2000).

 

The export growth led to a rapid increase in local cattle prices, with the steer indicator increasing 33% year-on-year, to average 202US¢/kg lwt during the first seven months of 2011.

 

Even though Russia remained Paraguay's main export market (accounting for 36% of total shipments), exports for January to July 2011 declined 13% on-year, to 39,492 tonnes swt. Similarly, exports to Chile fell 25% over the same period, to 38,705 tonnes swt.

 

In contrast, exports to Venezuela grew 61% on-year, to 9,126 tonnes swt, while shipments to Israel increased 104%, to 6,155 tonnes.

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