Paraguay cattle feedlot sector expects increased profitability

The cattle feedlot business in Paraguay is experiencing attractive margins, with projections suggesting profitability could remain stable or improve through 2027. César Borba, director of Granusa, noted during the CEA Congress that the sector faces a shortage of meat and animals for slaughterhouses, coupled with extraordinary demand and rising international prices.

Economic analysis shows that producing one kilogram of carcass through the feedlot system currently costs between US$ 2.50 and US$ 3.50, depending on diet and efficiency. With finished cattle being sold at approximately US$ 5.60 per kilogram, producers can achieve a gross differential of between US$ 2.10 and US$ 3.10 per kilogram before accounting for animal purchase costs, financial expenses, and operations.

While the relationship between production costs and market value is currently favorable, high replacement costs for livestock remain a significant challenge for fattening producers.