Beef Buzz News
Paraguay Becomes 8th Largest Beef Exporter
Wed, 15 Oct 2014 12:22:37 CDT
There are more than three or four countries selling beef into the global marketplace. Obvious the United States sells a lot of beef internationally along with Canada, Australia, New Zealand and Brazil. After that you have to think a little harder about other countries like Uruguay, Argentina, Chile, but also Paraguay. US Meat Export Federation (USMEF) Economist Erin Borror was in Paraguay earlier this month to conduct research on the country's growing beef industry. She found this country has a lot of potential in selling beef internationally.
"Paraguay has been a rising star in beef export trade," Borror said. "Their exports will be close to Uruguay's exports this year and will defiantly surpass Uruguay in the near future. Their exports have already surpassed Argentina, so kind of fascinating when you think of it historically when Argentina was a
real export power house."
Radio Oklahoma Network Farm News Director Ron Hays featured Borror on Wednesday's Beef Buzz. You can listen to the feature by Clicking on the LISTEN BAR below.
Paraguay has some where between 12 and 14 million head of cattle. Borror said since Paraguay has been some what an under dog that they have had to do things that much better to gain their place on the world stage.
"It's mostly a grassfed industry of course, but Paraguay typically has more crossbreeding than in Brazil," Borror said. "We see more Brahman influence and even more British breeds, so the cattle are bred for feedlotting if you will and there are some feedlots that are mostly used for captive supplies, generally owned by the packing plants, of which there are 11 currently selling for export."
In comparison to the other beef exporting countries in South America, like Brazil, Uruguay, Argentina, Chile, all have an advantage over Paraguay, because Paraguay is a landlocked country. That gives them some unique challenges in selling beef into the international market. Paraguayan exporters must rely on Montevideo, Uruguay, as their primary ocean port, moving containers of beef to Montevideo by river barge. Borror said exports to Chile are transported by truck, but that is also an expensive proposition.
"It can cost similar to go to Chile by truck as it does to go waterborne all the way to Russia," Borror said.
Paraguay's largest export market is Russia, which currently takes about 52 percent of its beef export volume. Paraguay's exports to Chile are also recovering rapidly from an FMD-related market closure that began in late 2011 and lasted through 2012. Other key destinations for Paraguayan beef include Hong Kong, Brazil and Israel.
Through the first three quarters of 2014, Paraguay's exports are up 16 percent from a year ago to 224,535 metric tons. Export value over the same period is up 26 percent to $993.1 million. Paraguay recently surpassed Argentina for eighth place among the world's largest beef exports, and Borror expects it to overtake Uruguay in the near future.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
Ron Hays Beef Buzzes with Erin Borror of USMEF
right-click to download mp3
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