On April 17, following fruitful negotiations between the Agricultural and Livestock Service (SAG), ChileCarne, and the Paraguayan health authority, SENACSA, Chile was authorized to export poultry to that country.
SAG’s National Director, José Guajardo Reyes, said: “I’d like to congratulate the amazing work carried out by SAG and Paraguay’s National Service for Animal Quality and Health (SENACSA), thanks to which we can now export poultry-based products to that country. This positions Chile as one of the main poultry exporters in the Americas, thanks to its outstanding health status. This milestone is the result of SAG’s extraordinary work in coordination with the private sector, which was key for the negotiations’ success.”
Paraguay is an attractive market for Chilean poultry exports, as consumption has been growing in recent years, reaching 25 kg per capita in 2022 according to the Paraguayan Poultry Farmers Association (AVIPAR). This goes in tandem with the country’s impressive economic growth. According to the World Bank, per capita GDP in current USD has gone from 1,728 USD in 2000 to 6,153 in 2022.
José Antonio Montalvo, Chile’s Commercial Attaché in Paraguay, explained: “The Paraguayan economy has seen several years of sustained growth, which translates into higher purchasing power, lower poverty rates, and new consumer behavior that adds new products to the basic food basket. Furthermore, buying imported products is a sign of status and wealth that makes a difference.” He added: “Overall, here in Paraguay, Chile is positioned as a dependable high-quality supplier of food, goods, and services.”
Montalvo also explained that: “According to the IMF (the International Monetary Fund), Paraguay has one of the highest growth rates in the region, with a 4% estimate.” And continued: “Paraguay’s total imports exceeded 15 billion USD in 2023, a 3% year-over-year growth. Chile is one of the market suppliers with the highest growth; Chilean imports grew by 12.2% in 2023.
Everything suggests that poultry still has significant growth potential in Paraguay, given the characteristics that position it as a healthy and affordable source of protein. For comparison purposes, poultry consumption is 37 kg per capita in Chile versus 25 kg in Paraguay.
It should be noted that Chile enjoys zero tariff to Paraguay, as established in the free trade agreement with Mercosur, and that it was already authorized to export pork and by-products to the country.
Rodrigo Castañón, ChileCarne’s Business Manager added that “the association appreciates the efforts of the Ministry of Agriculture and SAG to successfully open this new market for poultry exports from Chile.”
This milestone is a good example of economic complementarity, considering that Chile is the primary destination for Paraguay’s beef exports, according to SENACSA. Castañón highlighted: “The Paraguayan market considers Chilean poultry an affordable and high-quality product. Additionally, the country’s per capita income has gradually increased and people have diversified their meat consumption preferences, looking for products that are healthy, delicious, and affordable.
In fact, José Antonio Montalvo underscored that “Paraguay is one of the largest red meat consumers worldwide, with 30-35 kg per capita a year. According to figures from Paraguay’s Rural Association, Poultry Farmers Association, and Pork Producers Association, beef dominates the market with 32 kg per capita (46%), followed by poultry (26 kg, 37%), and then pork, with 12 kg and 17% of the yearly total.”
Regarding the poultry market, he added: “The sector is increasingly becoming a driver for local economy growth, creating new development opportunities for farmers and their supply chain. During the first quarter of 2024, for example, Paraguay’s poultry exports saw a 63.9% increase compared to the first quarter of the previous year.”
