Beef and buffalo meat market in Paraguay

Earlier Report Observations

Between 2018 and 2023, the domestic market volume for beef and buffalo meat in Paraguay contracted from 240.3 thousand tons to 137.9 thousand tons. This decline occurred alongside a consistently strong export orientation of the sector, where up to 91% of national slaughter was destined for foreign markets. The growing export volumes, which reached 337.3 thousand tons in 2022, drew supply away from the local market, reducing domestic availability.

The market structure, characterized by an oligopoly where three slaughterhouses controlled 70% of national output, influenced price formation and supply dynamics. Concurrently, regulatory and trade facilitation measures, such as the National Competition Commission's (CONACOM) study of the beef market and the National Animal Quality and Health Service's (Senacsa) validation of sanitary protocols for regional trade, strengthened Paraguay's export capacity. These efforts enabled access to new destinations, including seven new markets in 2022 and increased shipments to Asia and the Middle East.

The sector's deep integration into global markets meant domestic prices were largely set by international trends, constraining local consumption growth. Initiatives like the promotion of Paraguayan meat in Asia and the proposed creation of the Paraguayan Meat Institute aimed to enhance sector coordination and long-term competitiveness, supporting production value even as the physical volume of the domestic market shrank.

Production beef and buffalo meat in Paraguay

In kind, 2018-2021, K t

From 2018 to 2021, Paraguay ranked 27th globally in beef and buffalo meat production volume.

Top producers of beef and buffalo meat, 2018-2021

World map of production of beef and buffalo meat, 2018-2021

Paraguay's beef and buffalo meat production grew for the second year in a row. In 2021, the country produced 522.8 K t, up 1.4% year-over-year. Over the 2018-2021 period, production rose by 6.8%, with a compound annual growth rate of 2.2%. The lowest production was in 2019 at 481.7 K t, which saw the largest decline of 1.6%. In contrast, 2020 recorded the biggest increase at 7.0%.

Annual dynamics of production in Paraguay in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Paraguay's beef and buffalo meat production value also increased for the second consecutive year. In 2021, output was valued at 2 557 M $ US, a strong rise of 20.7% compared to the previous year. Between 2018 and 2021, production value grew by 23.6%, equating to an annualized rate of 7.3%. The minimum value was in 2019 at 1 986 M $ US, which experienced the largest decline of 4.0%.

Annual dynamics of production in Paraguay in value, 2018-2021, M $ US

Exports beef and buffalo meat from Paraguay

Exports in kind, K t

Paraguay's beef and buffalo meat export volumes rose for the second consecutive year. In 2021, exports totaled 319.3 K t, a 17.4% increase year-over-year. Over the 2018-2021 period, exports grew by 22.7%, with a compound annual growth rate of 7.1%. The lowest export volume was in 2019 at 248.2 K t, which saw the largest decline of 4.6%.

Annual dynamics of product's exports from Paraguay in kind, 2018-2021, K t

From 2018 to 2021, Chile, Russia, and Brazil were consistently the main destinations for Paraguay's beef and buffalo meat exports in kind. Chile accounted for 35.8% of exports, Russia for 31.2%, and Brazil for 7.2%, together making up 74.3% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Paraguay in kind, 2018-2021

Exports in value, M $ US

Paraguay's beef and buffalo meat export value also increased for the second year in a row. In 2021, exports amounted to 1 561 M $ US, a steep uptick of 39.7% year-over-year. Over the 2018-2021 period, export value rose by 42%, with a compound annual growth rate of 12.4%. The minimum value was in 2019 at 1 023 M $ US, which recorded the largest decline of 6.9%.

Annual dynamics of product's exports from Paraguay in value, 2018-2021, M $ US

From 2018 to 2021, Chile, Russia, and Brazil continued to lead as the top buyers of Paraguay's beef and buffalo meat in value terms. Chile accounted for 38.8% of exports, Russia for 25.5%, and Brazil for 7.8%, jointly representing 72.1% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Paraguay in value, 2018-2021

Imports beef and buffalo meat to Paraguay

Imports in kind, K t

Paraguay's beef and buffalo meat imports declined for the third consecutive year. In 2021, import volume was 0.6 K t, a strong decrease of 13.7% compared to 2020. Over the 2018-2021 period, imports fell by 94.8%, with a compound annual decline rate of 62.8%.

Annual dynamics of product's imports to Paraguay in kind, 2018-2021, K t

From 2018 to 2021, Paraguay's beef and buffalo meat imports were largely oriented towards Brazil, which accounted for 90.7% of total imports in kind.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Paraguay in kind, 2018-2021

Imports in value, M $ US

Paraguay's beef and buffalo meat import value showed noticeable fluctuations from 2018 to 2021. The value dropped to its minimum in 2019 at 3 M $ US, which saw the largest decline of 91.3%. In 2020, it increased by 18.0%, the largest rise during the period. By 2021, imports amounted to 3 M $ US, marking a reduction of 13.2% year-over-year. Overall, the value peaked in 2018 and fell to its lowest in 2019, a 11.5-fold shift.

Annual dynamics of product's imports to Paraguay in value, 2018-2021, M $ US

From 2018 to 2021, Brazil was the primary source for Paraguay's beef and buffalo meat imports in value terms, accounting for 84.7% of total flows. Other markets contributed smaller shares, forming a long tail of partners.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Paraguay in value, 2018-2021