International Trade and Competitiveness of Cattle Production in Paraguay

Abstract

Cattle production sector is one of the most dynamic within Paraguay’s international trade and has in early years increased its contribution to the Gross Domestic Product (GDP). Nonetheless, the sector still has a development potential in face of the increasing demand of meat worldwide. The objective of this work is to determine how solid the competitiveness of Paraguayan livestock production is, taking the international market into account. For this purpose, Michael Porter’s theory of competitiveness advantages is used, based in four determinants that in their systemic action mutually support themselves. As a result of the analysis, the following are proposed: strengthening of internal sanitation and related control mechanisms, the continuity of programs directed to the conservation of breeding females, traceability, increase in extraction rates (slaughter/herd), and the generalization of validation processes of technology with the support of research centers. These measures, could allow an increase of the herd size and the offer potential, with a broader diversification of exporting destinations.

Keywords

• development
• exports
• productivity
• Porter's theory of competitiveness