Paraguay school food providers report 90-day payment delays

The Chamber of School Feeding of Paraguay (CAEPY) has expressed deep concern regarding significant payment delays from departmental governments and the state. Providers for the ‘Hambre Cero’ program report that payments are overdue by between 90 and 120 days, totaling an estimated debt of approximately USD 90 million.

These delays are reportedly threatening the financial sustainability of contracted companies, forcing them to take out loans to cover salaries and raw material costs. The situation impacts a broad economic chain, including 26,000 kitchen staff and cleaning personnel, 327 family farming communities, and 721 micro, small, and medium-sized enterprises (MSMEs).

CAEPY is calling on the Ministry of Economy to release funds and establish a clear disbursement schedule. The organization emphasizes that predictability is essential to ensure the continuous provision of nutritional services to students without interruption.