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Home > News > Food Industry News > Reduced herd Paraguay will fall out of the world's top 10 meat exporters

Reduced herd Paraguay will fall out of the world's top 10 meat exporters

foodmate 2023-01-10

According to a recent forecast by the U.S. Department of Agriculture's Foreign Trade Bureau, Paraguay's share of meat exports in international trade will decrease in 2023 due to a decline in the number of cattle, falling out of the top 10 of the world's largest meat exporters.

 
Paraguayan's "Latest Moment" reported on January 3 that according to the forecast of the US Department of Agriculture's Foreign Trade Agency, Brazil will still be in the leading position in the ranking of the world's largest meat exporters in 2023, and it is expected that the carcass equivalent (CWE) of meat exported throughout the year (CWE, The weight of meat and meat products converted into the weight equivalent to the weight of a peeled carcass) is 2.975 million tons; Australia is in second place, replacing the United States, which ranked second in 2022 (falling to fourth place in 2023), with an estimated export of 1.51 million tons, India is in third place, and Paraguay is expected to fall from tenth to eleventh place in 2022, and CWE is expected to fall from 435,000 tons in 2022 to 390,000 tons in 2023.
 
Regarding the outlook for meat exports, José Carlos Martin, head of the National Animal Health and Quality Service (Senacsa) in Paraguay, pointed out that the number of cattle due to dry weather will decrease, which in turn will lead to a decrease in meat exports. In 2023, cattle numbers are expected to decrease by up to 205,000 head year-on-year, and exports will decrease by about 10% year-on-year.
 
Pedro Galli, representative of the Paraguayan Rural Association (ARP), said that the current situation is worrying for beef cattle farmers, who are even forced to sell pregnant cows due to the reduction in the number of cattle, which will stifle future beef production capacity.
 
In addition to the drought, Gali referred to the excessive concentration of the domestic slaughtering market in Paraguay: the market is concentrated in 6 companies, two of which dominate more than 60% of the market, thus resulting in weak competition between slaughterhouses and affecting beef prices.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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