Overview of Paraguay's Dairy Industry

Paraguay is rapidly establishing itself as a key player in the South American dairy industry. The country boasts approximately 600,000 dairy cattle, contributing to an annual production of about 700 million liters of milk. Of this, around 450 million liters are processed domestically, underscoring the robust nature of the processing sector.

Production and Processing

The dairy production in Paraguay is diverse, producing an estimated 10,000 tons of cheese annually. Additionally, milk powder and whey production reach around 5,000 tons, highlighting the sector's capabilities.

Key Enterprises

Prominent players in the Paraguayan dairy market include dairy plants such as Lactolanda, COOPROLE, and La Pradera. Notable dairy farms include Agropecuaria Guarani S.A., Granja Avicola la Blanca, and Agropecuaria Asumrona.

Trade Insights

Paraguay actively participates in the international dairy market, exporting approximately 50 million liters of milk and dairy products annually, primarily to neighboring countries. Imports account for about 35 million liters of milk products each year, mainly sourced from Argentina and Brazil.

Market Events and Developments

The completion of the EU-Mercosur trade agreement is a landmark development expected to enhance market access for Paraguayan dairy producers and attract investments, thereby boosting industry growth. Leading dairy brand Lactolanda plans to introduce new products and leverage technological advancements by 2025 to strengthen its market presence. Despite positive developments, challenges such as the risk of stagnant production and declining exports need to be addressed for sustained growth.

Artisanal Production

Artisanal cheese production, primarily using raw milk, is a key aspect of family livestock farming in Ñeembucú. This tradition not only provides 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 as a key player in the regional dairy industry by enhancing its production and export facilities in Villarica. The Villarica plant exports to markets such as Bolivia, Chile, Uruguay, and Peru.

Emerging Sectors

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

Challenges and Opportunities

Paraguay's dairy sector is experiencing a paradox: despite climate challenges, the industry and producers remain optimistic. The Paraguayan dairy market is facing a decline in milk production volumes due to adverse weather, with lack of rains and adverse conditions affecting pastures. However, the market remains favorable with stable prices and strong domestic demand, allowing the industry to compensate for lower production and ensuring farm profitability.

Modified: 2025/09/12