Limited cattle supply drives up prices and reduces slaughter schedules in Paraguay

The limited supply of fat cattle in Paraguay, caused by climatic factors and on-farm retention, is pushing prices upward and reducing slaughter schedules, intensifying competition among meatpacking plants amid external commercial pressure.

Limited cattle supply drives up prices and reduces slaughter schedules in Paraguay

The Paraguayan market for fattened cattle for export is facing strong upward price pressure due to the limited supply of finished animals. Slaughterhouses are maintaining reference prices, but finalized transactions frequently exceed these baselines, with the industry paying higher values to secure the necessary raw material.

According to a survey by Valor Agro, plants have a base price of US$5.00 per kilogram of carcass for steers and heifers, and US$4.80 for cows. However, bonuses of 3% for pasture-fed cattle and 5% for feedlot-finished animals are common, and specific transactions for feedlot steers have already reached values close to US$5.40 per kilogram of carcass.

Data from the Paraguayan Association of Meat Producers and Exporters (APPEC), updated on July 29, 2026, confirms the upward trend. Prices per kilogram of carcass registered weekly increases of US$0.15 across all five published categories, with steers and heifers at US$5.15, cows at US$4.95, European cuts at US$5.20, and Hilton cuts at US$5.25.

The supply shortage is attributed to factors such as recent rains, which hampered road transit, and good pasture conditions, which allow producers to hold onto cattle in the fields, strengthening their bargaining power.

For the industry, the situation is concerning. Slaughter schedules are significantly reduced, with some plants scheduling animal intake in less than a week, a clear sign of the rush to maintain operational rhythm. This internal competitive scenario occurs within a more demanding external context, where Brazil exerts commercial pressure in strategic markets like Chile and the United States, reducing the maneuvering room for Paraguayan exporters.

Sector operators assess that the gradual entry of new industrial players could further intensify the competition for ready cattle, generating a new push on prices in the coming weeks. As long as supply remains restricted, the market dynamics will continue to favor producers.

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Updated: Jul 30, 2026, 1:30 AM