Paraguay: 97 percent of the investment in the meat chain is in production
This detailed study shows that approximately 96.7% of the total investment in the entire meat chain is in production. It also mentions an even more striking fact, which indicates that the primary sector generates 93.7% of jobs.
Total investment in the meat chain is US$ 42,513 million, of which US$ 41,130 million (96.7%) corresponds to production, US$ 918 million (2.2%) to industries and approximately US$ 465 million (1.1%) to the trade and services sector.
In terms of its involvement in job creation, the chain directly employs some 329,450 people, of which 308,587 (93.7%) are in production, some 12,788 people (3.8%) in the trade and services sector, and some 8,075 people (2.5%) in industry.
This study was prepared jointly by the Rural Association of Paraguay (ARP), the Consortium of Cattle Ranchers for Agricultural Experimentation (CEA) and the Paraguayan Association of Meat Producers and Exporters (APPEC).
As the material reveals, livestock farming has become an unattractive activity due to its low profitability and also low predictability. Today, livestock farming has negative financial flows. The complicated situation is reflected in a decrease in livestock numbers, the real loss of the producer in economic terms and debt in the financial system.
Paraguay exports 70% of its meat and is outside of 3 of the 4 main markets that account for 59% of all the world's imports.
The current situation of beef prices paid to producers is very complicated, well below the cash equilibrium price, and if this trend continues until 2028 there will be a decrease in the generation of jobs in the primary sector, the study states.
It should be noted that the price specified in the study is the value of beef as raw material paid to the producer by the industry and it does not follow the upward trend in international prices and prices to the final consumer, which are established by the industry and not by production.
As alternative solutions, the unions consider it essential to build broad consensus to strengthen the entire chain, seek greater demand, promote the image of Paraguayan meat and enable the export of live cattle.
The industry would aim to promote the technical, economic and commercial production, industrialization and marketing of beef, its offal and by-products, through the introduction of improvements throughout the Paraguayan meat chain, the development of the domestic market and the growth of exports.
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