Paraguay Expects Dairy Output to Exceed 1bn Litres in 2026
Paraguay is expected to surpass 1bn litres of milk production this year, according to Erno Becker, president of the Paraguayan Chamber of Dairy Industries, known as Capainlac. The figure is a projection for the end of 2026 rather than a completed result. Becker said that about 90% of national output is handled by the main dairy processors, with the remainder moving through smaller companies, cheese-makers and other sales channels.
Co-operatives have a substantial role in the sector. Becker estimates that roughly 84% of milk production is linked to large and small co-operatives. Capainlac says producers have historically had relatively stable channels for selling their milk, although prices and profitability are not identical across all farms. The organisation estimates that Paraguay has about 5,000 milk producers. Between 15,000 and 16,000 people work in dairy processing and sales, according to Becker.
Technology is being used both on farms and in factories. Paraguay has fully robotic dairy operations producing between 8,000 and 10,000 litres a day, or more, Becker said. Processors have also installed newer equipment for treatment and packaging. The industry is adding products including high-protein yoghurt, goods containing probiotics and prebiotics, protein-enriched milk and, in the near term, kefir.
Domestic demand does not absorb all additional supply. Surplus milk is often converted into milk powder, which can be stored and transported over long distances. Paraguay has expanded these exports over the past six or seven years, first reaching markets in Central America, the Dominican Republic and parts of the Middle East. Brazil has more recently become the main buyer. Becker said that selling milk powder abroad can generate only a small return above costs when international prices are weak, and that Capainlac is seeking markets with more favourable commercial conditions.
Brazil's proximity provides logistical advantages, while its domestic market is large. The sector is nevertheless pursuing a broader range of export destinations. At home, the Hambre Cero programme provides more than 1m children with a glass of milk each day, according to Becker, and represents an institutional source of demand for processors. Capainlac also highlights the central laboratory of the Federation of Production Co-operatives in Asunción, where milk is tested against quality parameters. The facility is available to private companies and co-operatives.
Becker said the price received by Paraguayan farmers is currently higher than that in several neighbouring countries, but the interview did not provide figures for a like-for-like comparison. Such comparisons can vary with exchange rates, milk solids, quality payments and contract terms. Becker also called for more flexible lending, arguing that dairy investments require several years to recover their capital. Capainlac says the country has producers, industrial capacity and technology to increase output; its stated focus is on expanding product value and finding export markets for milk beyond domestic consumption.
