Paraguay is one of the top 10 beef exporters in the world. The beef industry is very important to Paraguay's economy, accounting for 12.4% of GDP. The national cattle herd has grown 49% from 2000-2015 to 13.8 million head. Beef exports have increased significantly over this period as well, with exports growing 6 times in volume and 21 times in value. However, expansion of the cattle industry has also contributed to deforestation, with the native forest area decreasing by 4.5 million hectares between 2000-2015. Sustainable development of the beef industry is a national priority, to balance economic growth with environmental protection goals. The objective is for Paraguay to become the 5

1. MARCOS MEDINA-BRITOS
vganaderia@mag.gov.py
Addressing Deforestation at Country Level
PARAGUAY
Banff Springs, Canada
October 6th, 2016

2. Where is PARAGUAY?
Paraguay

3. Western
Eastern
Western Region
or CHACO (62%)
 ≈ Size New Zealand
 < 3% population
 Livestock (45%):
(Natural Beef)
Eastern Region (38%)
 ≈ Size United Kingdom
 97% population
 Agriculture (99%) +
Livestock (55%)
Surface Area: 406.752 km2
Population: 6.568.000
50%=15-49 year-old
37% <15 years old
MILLENIUM ASSETS:
FOOD+WATER+ENERGY

4. 10th Sesame
3er >Flota Barcazas Rio
10th Rice
PARAGUAY Produces Food
100 million People in the World
PARAGUAY as Top 10 World Exporter
1st Electric Energy
1st Organic Sugar
2nd Yuca 3th River Barge Fleet
3th
4th Soy Bean
4th Yuca Starch
4th Soy Bean Oil
5th Chia
6th Beef
7th Corn
10th Wheat
2nd

5. INTRODUCCION
BEEF INDUSTRY
in PARAGUAY

6. Snapshot of the Beef Industry in PARAGUAY
National Herd
13.8 Mill Head
153,084 producers
12.4% GDP
as Value Chain >350,000 jobs
(11% EAP)
Internal Market=
(38%)
Per capita
consumption =
36 kg/year
Exports (62%):
400,000 TON
(cwe)
17 Packing Plants
58 Markets
5 Continents
Grazing Area: 16.2 Mill Has
Stocking Rate: 1.2 Has/Head
Annual Slaughtering:
2.7 Mill Heads
Annual Production:
650,000 TON (CWE)

7. National Cattle Herd grew by 49%
Annual Slaughtering increased 4x
 Exports (TON/CWE) incremented 6x
Exports Value (US$) beef and by products
raised 21x
Fuente: ARP, CPC 2015
Beef Industry in Paraguay from 2000 – 2015:

8. Beef Export Growth in the MERCOSUR
Years 2003 vs 2014 (US$ Millions)
57
1547
379 577
1244
5570
1405
1049
PARAGUAY BRASIL URUGUAY ARGENTINA
21,2xGROWTH
TIMES (x) 3,6x 3,7x 1,8x
2014
2003
(Fuente: Senacsa, 2014, IPCVA 2014, INAC 2014; MAPA, 2014)

9. Top 10 World Beef Exporters
(‘000 TON CWE) 2016
0
200
400
600
800
1000
1200
1400
1600
(Source: USDA, 2016)
6

10. Deforestation Public Policy in PARAGUAY
Eastern Region
 Zero
Deforestation
Law (2005)
 2.5 Million Ha
Native Forest
Remaining
Western Region
(CHACO)
 Native Forest
Transformation
LEGAL
 14.2 Million Ha
Native Forest
Remaing
(Source: INFONA, 2015)

11. Evolution of National Cattle Herd, Country Forest Area and
Chaco Forest Area years 2000, 2011 and 2015 in Paraguay
2000
9.6
22.2
18.7
2011
12.4
18.4
15.5
2015
13.8
16.7
14.2
Year
National Herd
(Million Heads)
Country Forest Area
(Million Ha)
Chaco Forest Area
(Million Ha)
+ 4.2
(-) 4.5
(Source: INFONA, 2015)

12. 492 463
735
631
965 934
1078
1335
1680
1275
43.7 41.2 37.9 35.1 34.7 32.4 26.9 23.8 22.6 20.2
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Evolution of Beef Exports (US$ Million) and Poverty
Index (%) in Paraguay from 2006 to 2015
Valores Totales de Exportación de carne (Valores FOB en US$ Millones) Línea de Pobreza (%)
(Source: STP, Senacsa 2015)

13. Chaco Livestock Systems:
• By Law: 25% Native Forest Reserve
• + 20% of runners and islands of forest
• Use adapted pastures
• Appropriate stocking
• Do Not sacrifice biodiversity
• GHG Minimum contribution (climate change)
• Do Not utilize a lot of surface
• NO Not degrade soils
• REPRESENT Nature in Production
within a diverse landscape

14. Weight Gain of Steers with
cultivated Grasses in the Chaco
(Kg/Ha/year)
Grass Specie
Weight Gain
(KG/ha/Year)
Stocking
Rate
Pangola
(Digitaria
Decumbens)
2661 1.2 AU/Ha
Gatton Panic
(Panicum
Maximum cv
Gatton Panic)
2112 1.1 AU/Ha
Source: Glatzle (2006)

15. CONSOCIATION (KG/Ha/Year)
Stocking
Rate
Pangola +
Legumes
624 1 2.5
AU/Ha
Gatton +
Leucaena
476 2 1.7
AU/Ha
Weight Gain in Steers: Consociation
of Cultivated Grasses and Legumes
in the Chaco (Kg/Ha/year)
1 Buena Vista, Chaco Central; Legumes: Alysicarpus, Lotononis y Oxley Styloa
2 Estancia Buena Vista, Chaco
Source: Glatzle (2006)

16. Final considerations in the
context of deforestation

17. STRATEGIC OBJECTIVES NATIONAL
DEVELOPMENT PLAN PARAGUAY 2030:
Poverty
Reduccion &
Social
Development
Promote
Socially
Inclusive
Economy
Positionig
Paraguay in
the World

18. SUSTAINABLE PARAGUAYAN
BEEF INDUSTRY:
 Economically FEASIBLE
 Socially INCLUSIVE
 Enviromentally BALANCED

19. Become
5th Beef World Exporter
at least 600.000 TON
Exportable Balance
Paraguayan Beef
Industry 2030 Objective

20. Growth Trend of Paraguayan Bovine
National Herd 2016-2026
(‘000 Heads) [Source: MAG, 2016]
13,856
14,334
14,936
15,564
16,217
16,899
17,608
18,348
19,119
19,922
20,758
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

21. DEFORESTATION Perspective in the Chaco
 Current Native Forest
Area= 59.1%/Chaco Area
= Switzerland + Denmark
+ Holland
 Horizon Forest
Transformation ≈ up to 7
million Hectares next
Decade
 Must evaluate the
PARADOX of Social &
Economic Devolopment
versus Deforestation
Issues linked to markets
and consumers

22. Country commitment
(COP 21)
Green Commodity
Program (United Nations)
Alliance for Sustainable
Development (USAID/WWF)
Natural Beef Program
(Rural Association of
Paraguay/Solidaridad)
Sustainable Finance
Table (Private Banks)
Efforts Toward Beef Sustainibility

24. PARAGUAYAN BEEF
DELICIOUSLY NATURAL
A PLEASURE ON YOUR
TABLE!
The Best Beef
In The World

25. “IF you want to be happy for
an Hour: …Get Drunk
IF you want to be happy for a year…Get
Married
If you want to be happy for a Life…
Get a Cow…Produce Sustainable
Beef…”
Chinese Proverb (Adapted for GCSB)

26. Thanks!
Gracias!