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Montevideo, November 13th 2018 - 02:39 UTC

Paraguay with record 2014 beef exports, but faces Russian situation next year

Wednesday, December 31st 2014 - 05:36 UTC
Full article 9 comments
“It's a historic record, we could never imagine these numbers only a couple of years ago” said Idoyaga, head of Senacsa “It's a historic record, we could never imagine these numbers only a couple of years ago” said Idoyaga, head of Senacsa
Russia is Paraguay's main market for beef and is only willing to pay 3.300 dollars per ton compared to an average 4.800 dollars until last September Russia is Paraguay's main market for beef and is only willing to pay 3.300 dollars per ton compared to an average 4.800 dollars until last September

Paraguay twelve-month accumulated meat and meat products exports (mostly beef) reached 1.6bn dollars according to primary information said the head of the country's National quality and health animal services, Senacasa, Hugo Idoyaga, which represents a 20% increase in value over the 1.3 bn. dollars of 2013.

 “It's a historic record, we could never imagine these numbers only a couple of years ago” said Idoyaga pointing out that the stable sanitary situation has played a key role in the event.

Beef exports in the twelve months of the year totaled 1.25bn dollars, other beef products, 150 million and pork, 10 million.

However despite a 'brilliant' year, there are challenges for Paraguay's meat industry, admitted Idoyaga and pointed out to the need of market diversification (premium cuts to the European Union for example) and the fact that the country's main client Russia, is facing hard times, because of the fall in oil prices and EU sanctions.

“We have done all the paperwork demanded by the EU, and we are waiting for the EU commission in charge of the issue to meet and decide”, said the Paraguayan official who also revealed that some first shipments to Venezuela have been accomplished and “we are waiting for the Saudis to confirm a possible opening of that market”.

However in the immediate what is pressing is the Russian situation, since their currency, the ruble has devalued 40% since last September and “now instead of paying 4.800 dollars a ton of beef ”they are offering 3.300 dollars which does not fit into our costs“, pointed out Idoyaga.

But hopefully ”we can balance that drop with sales to Venezuela, the European Union and Arab countries”.

During the first eleven months of this year, Paraguay shipped 118.768 tons of beef to Russia equivalent to 486.4 million dollars according to the official data from Senacsa.

Categories: Economy, International, Paraguay.

Top Comments

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  • Brasileiro

    No inputs that make up the production costs are pegged to the dollar, so why pegging the final price of beef to the dollar?
    The dollar should only serve as a parameter when the beef is sold to markets in North America and Europe. However, I find it hard that we get some beef to sell them because they are extremely protectionist.
    If Paraguay wants to be a global player in the beef market, it should start to look for alternatives to the dollar.

    We must calculate our costs in rubles and convert them into yuan. Trade with the countries of the third world should always be done taking into account local currencies, never the dollar or euro.

    Dec 31st, 2014 - 06:05 am 0
  • Britworker

    Amusing - happy to sell their beef to Russia in 2014, but now they can't afford it we will sell to wealthier countries who can afford it and Russia can look elsewhere for meat they can afford.

    I hope Russia wasn't relying on South America to get them through the hard times ahead.

    Dec 31st, 2014 - 11:14 am 0
  • Troy Tempest

    I'm hoping Paraguay isn't relying on Venezuela- I would be very worried about getting paid at this point, crashing economy and all.

    Here is wishing Paraguay well!
    Meanwhile, listen to jealous Brasso - not wanting them to succeed.

    And more from Brassiere @1

    “We must calculate our costs in rubles and convert them into yuan. Trade with the countries of the third world should always be done taking into account local currencies, never the dollar or euro.”

    There's a good chuckle,
    who would pin their currency exchange to currencies that are devaluing and falling into the toilet, like the Ruble??

    Other “local currencies”, Brasso??? Do you mean like Venezuela with 63% inflation, or Argentina who have 30% inflation and Defaulted on foreign debts?
    Both of these local Currencies are due for a major devaluation!

    Why should Paraguay allow themselves to be dragged down with them??

    Is that LATAM solidarity - everyone sinks to lowest common denominator???

    I guess that's the real reason we have Mercosur, right??

    ;-D

    Dec 31st, 2014 - 06:10 pm 0
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