Paraguay Faces Dairy Production Stagnation and Potential Export Decline

Paraguay is experiencing a stagnation in its dairy production, with potential export declines looming on the horizon, according to Erno Becker, President of the Paraguayan Dairy Industry Chamber (Capainlac). After reviewing 2024 data, it became apparent that production levels have not increased, primarily due to unfavorable climatic conditions impacting the quality and quantity of cattle feed, particularly maize.

Currently, Paraguay produces around 1 billion liters of milk annually. However, Becker anticipates a further 5% reduction this year due to ongoing production challenges. Although Paraguay seeks to maintain its export commitments—particularly with the stable Brazilian market—other sales channels have been suspended due to the shortage of raw materials.

The National Animal Quality and Health Service reported that Paraguay exported 22,318 tonnes of dairy products in 2024, valued at over US$80 million—an increase over 2023 figures. Despite climatic challenges, it's noted that there is hope for production improvement with some producers opting for delayed insemination.

While the sector aims for growth in production and exports, emphasis is being placed on the local market for its profitability, even as international demand and prices rise. Efforts are underway to prioritize domestic sales and discuss options for market expansion beyond Brazil.