Overview of Paraguay's Dairy Industry

Paraguay is emerging as a key player in the South American dairy market. The country is home to approximately 600,000 dairy cattle, contributing to an annual milk production of about 700 million liters. Of this production, approximately 450 million liters are processed domestically, highlighting the strength of the country's processing sector.

Production and Processing

Paraguay's dairy production is diverse, with an estimated annual output of 10,000 tons of cheese. The production of milk powder and whey also reaches around 5,000 tons, demonstrating the sector's capabilities and the variety of products available.

Key Enterprises

The Paraguayan dairy market features prominent enterprises such as Lactolanda, COOPROLE, and La Pradera. Noteworthy dairy farms include Agropecuaria Guarani S.A., Granja Avicola la Blanca, and Agropecuaria Asumrona, all contributing to the industry's growth and development.

Trade Insights

Paraguay actively engages in the international dairy market, exporting around 50 million liters of milk and dairy products annually, primarily to neighboring countries. The country also imports about 35 million liters of milk products each year, mainly from Argentina and Brazil.

Market Events and Developments

The completion of the EU-Mercosur trade agreement stands as a landmark development, expected to enhance market access for Paraguayan dairy producers and attract further investments. Leading brand Lactolanda plans to introduce new products and leverage technological advancements by 2025 to strengthen its market presence.

Artisanal Production

In Ñeembucú, artisanal cheese production using raw milk is a significant aspect of family livestock farming. This tradition not only offers unique flavors but also adds value and differentiation in the market, enhancing profitability for local dairy farms.

Regional Developments

Nestlé Paraguay is solidifying its role in the regional dairy industry by enhancing production and export facilities in Villarica, exporting to markets such as Bolivia, Chile, Uruguay, and Peru.

Emerging Sectors

The artisanal goat farming sector is gaining momentum in Paraguay, with increasing interest in goat milk production. Family-run projects like Agroganadera Don Diego exemplify this growth. Additionally, the introduction of genetic buffalo breeding is revolutionizing dairy production, carving out a niche market for premium products such as mozzarella and dulce de leche.

Challenges and Opportunities

Despite facing climate challenges, Paraguay's dairy sector remains optimistic. Adverse weather conditions have led to a decline in milk production volumes, but the industry benefits from stable prices and strong domestic demand. The EU-Mercosur agreement, set to be signed under Paraguay's Presidency, marks a new era of cooperation, potentially boosting agricultural exports significantly. The summer season has increased milk availability, which has led to price reductions as producers manage inventories.

Modified: 2026/02/05