Paraguay positions itself as a valuable supplier of beef to Chile

Although total Paraguayan beef exports to the Chilean market fell by about 14% in the first five months of the year, domestic supplies improved due to increased volumes and a higher average EXPORT price for chilled cuts.

Paraguay's global sales reached just over 42,000 tonnes, some 6,500 tonnes less than Brazil, which increased shipments by 32%.

However, according to Chilean customs data, Paraguay improved its position in the chilled beef segment and received an average export value of US $6,513 per tonne, slightly more than US$400 per tonne compared to Brazil, which sent beef at an average value of US$6,111 per tonne.

Ramiro Maluff, president of the Paraguayan Association of MEAT Producers and Exporters (APPEC), told the Valor Agregado program on Radio Asunción 1250 AM that the data for the first five months of the year “does not indicate a loss of leadership compared to Brazil,” but rather that “Paraguay is occupying niches in Chile that allow it to obtain more premium income.”

He added: "We are entering higher value markets, including Chile."

He explained that if Paraguay were to draw the line at US$6,000 per ton, it would improve its position in Taiwan, increasing its share from 20% of total exports in 2024 to a higher level, and reaching 50% in 2025. In the United States, it would rise from 13% to 36%, and in CANADA, it would exceed 40%.

Malouff said the numbers reflect what the meat industry is looking for: higher-value markets with closer relationships with buying countries and the opening of new ones: "We recognize that at some point these price and quality improvements will trickle down to producers."

Finally, Malouff said the international market outlook for the second half of the year is “very good” and believes it should also be good for producers: “We hope to find fairer prices, share the benefits that the industry currently enjoys, and that this can stimulate production and prevent further herd declines.”