Overview of Paraguay's Dairy Industry

Paraguay is rapidly establishing itself as a key player in the South American dairy industry. With approximately 600,000 dairy cattle, the country produces about 700 million liters of milk annually. Of this, around 450 million liters are processed each year, highlighting the robust nature of the domestic processing sector.

Production and Processing

The dairy production in Paraguay includes an estimated 10,000 tons of cheese annually, with milk powder and whey production reaching around 5,000 tons. These figures underscore the diverse capabilities of the Paraguayan dairy sector.

Key Enterprises

Prominent players in the market include dairy plants such as Lactolanda, COOPROLE, and La Pradera, as well as notable dairy farms like 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. Paraguay's participation in the World Cup of Dulce de Leche showcases its rich dairy heritage.

In a strategic move, Granja Naturalia aims to expand its presence through partnerships, while Mastellone focuses on supporting international sales efforts, particularly powdered milk exports to Brazil and beyond. The Chortitzer Cooperative has begun processing milk from the Fernheim and Neuland cooperatives, capitalizing on favorable global market conditions.

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.

Modified: 2025/08/02


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