Paraguay: packer firms to lose millions after FMD co - leatherbiz: Lea Leatherbiz

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Paraguay: packer firms to lose millions after FMD confirmation

21/09/2011
An outbreak of foot and mouth disease (FMD) in cattle in the San Pedro region in Paraguay, confirmed on September 15, has led to a ban on all beef exports from the South American country.

Immediately the Paraguayan meat industry association said the move would cost packer firms there between $300 million and $400 million. The beef industry there had managed to double its exports in the last six years and was expecting record figures for 2011 and 2012. Paraguayan packers exported a total of 170,000 tonnes of meat in 2010, but in the first quarter of 2011, the total reached 57,000 tonnes.

Slaughter numbers will be affected by the FMD outbreak. Brazilian packer and tanning group JBS, which has operations across the border in Paraguay, has already announced that slaughter activities at its Paraguayan facilities will cease until the situation becomes clearer.


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