Paraguayan livestock sector warns of exchange rate impact

The Asociación Rural del Paraguay (ARP) has warned that the continuous appreciation of the guaraní against the US dollar is severely impacting the competitiveness of the livestock sector. Technical analysis from the ARP estimates that between September 2025 and August 2026, the exchange rate shift resulted in a loss of approximately G. 2.06 trillion (USD 349 million) for livestock production when converting export earnings into local currency.

The ARP noted that while export revenues in dollars are yielding fewer guaraníes, operational costs—including fuel, labor, services, and inputs—remain high. This creates a profitability squeeze that discourages investment and hinders the recovery of cattle herds. The association highlighted a divergence from regional competitors: while the dollar fell roughly 25% against the guaraní, it rose 2.2% in Uruguay and fell only 6.7% in Brazil.

Separately, the Paraguayan cattle market is showing signs of price recovery despite a calm environment. Current references for export-grade cattle are around US$ 5.20 per kilo for males and heifers, and US$ 5.00 for cows. Industry experts suggest that limited supply and potential increases in slaughterhouse activity could drive further price increases in the short term.