Plagues,
Pestilences and Diseases
Continuing Outbreaks of foot-and-mouth disease have hit
Paraguay hard
by Staff Writers
Asuncion, Paraguay (UPI) Feb 2, 2012
Outbreaks of foot-and-mouth disease have hit Paraguay hard,
forcing a drop in beef exports that may top 30 percent this year,
latest trade data indicated.
Paraguay declared a partial emergency after the outbreaks began
last year. It launched extensive cattle vaccination campaigns and
organized relief handouts for affected communities but the problem
persists, the reports said.
Latin American beef exports are seeing a major downturn not only
because of the disease outbreak but also because of declining
output and rising domestic demand in some countries, international
competition and currency fluctuations.
Argentine and Brazil exports were also hit because of changes
unrelated to the Paraguayan outbreak. However, the disease
prompted most of Paraguay's neighbors to halt or limit beef
imports from the country.
Paraguay has admitted two separate outbreaks of the foot-and-mouth
disease, the second occurrence blamed by critics on the failure of
health officials to eliminate remnants of the first. Thousands of
cattle were destroyed during the last quarter of 2011, government
data indicated.
The Center for the Analysis of the Paraguayan Economy said the
outbreaks had cost Paraguay several markets where competitor
countries could be moving in. CADEP cited an anticipated 30
percent drop in exports in its latest estimates based on the
current outlook for livestock health and beef processing.
Paraguay's beef sales this year could be about $500 million, a
major drop from $725 million last year. Officials said they were
particularly worried over the next steps by Chile, one of the main
clients that stopped buying all Paraguayan beef, including meat
produced outside affected zones.
CADEP said Paraguay's export outlook could get worse unless Chile
resumed imports from Paraguay.
The response from Russia, another major customer for Paraguayan
beef, has been more lenient.
However, officials said much hinged on Paraguay being granted an
all-clear by the U.N. Food and Agriculture Organization. That
certification is unlikely before late 2012.
Beef exports to neighboring countries, including Venezuela, have
suffered in varying degrees, partly due to local economic
conditions. Venezuela is in the third year of a chronic recession
blamed by the government on weather vagaries, including drought in
2010.
Paraguay exported 141,000 tons of beef in 2011 and 170,000 tons in
2010.
Meanwhile, Brazilian beef exports declined 14 percent in 2011, but
the Middle East remained its largest market with Iran, Egypt,
Saudi Arabia and Israel as main customers. Brazilian beef
production is set to grow in 2012 but exports may not catch up on
losses last year because of rising domestic consumption.