(Photo: Moore de la Serna -left- in front of the Paraguay Pork farm in the Caazapá department)
Buenos Aires, May 7th. In association with European partners, the Paraguayan Grupo Llano is going ahead with a millionaire investment to achieve 25,000 sows in production, versus currently 2,500. Considering an average of US$6,500 per sow, this implies US$150 million total investment in the next years.
“Initially we considered to bring the partners to Argentina, but we found that Paraguay offered a quicker repayment rate for the investment”, veterinarian Andrés Moore de la Serna told to eFarmNewsAr.com, in the previous days to his conference at Argencarne meeting. The first stage of the plan has demanded US$20 million investment.
In his role of consultant (Proteinum), developer and shareholder of Paraguay Pork SA (the new company of Grupo Llano for the pork production) Moore de la Serna explained that Paraguay presents some advantages in respect to Argentina, for an investment of this magnitude. “Basically, it is a tax matter. Paraguay doesn’t apply export taxes and has a lower value-added tax and earning tax than Argentina”, he said.
With 2,500 sows, Grupo Llano has 10% of the national herd. In his business plan, they consider the possibility to mount a slaughterhouse to integrate the process. “The initial investment was done contemplating the highest quality and sanitary standards, including everything related to the animal welfare. For example, we will not use antibiotics, as the European Union call for”, the consultant explains.
With a relatively small population, Paraguay has a strong export culture, Moore de la Serna opines. In the last years, the country has surpassed Argentina as a beef exporter and currently, it has the same opening markets that Argentina to export pork. “Last year Paraguay exported 5,100 tons of pork meat and offal, mainly to Russia”, he specifies.
He remarks the excellent sanitary status of the country, which is recognized by the OIE as Classical Swine Fever free. He also adds that they are looking for the recognition of the farm as mycoplasm free.
The Paraguay Pork farm is located near Abaí city, in the Caazapá department, 180 kilometers East to Asunción (the capital of Paraguay). The farm occupies a 131 hectares plot. “We planned to construct this farm with the ultimate technology, not just in the infrastructure for the pigs, but in the wastewater treatment, energy, roads, and the slaughterhouse”, Moore de la Serna says.
Is this the major pork investment in the Southern Cone Latam? eFarmNewsAr.com asked the consultant. “I don’t know if it is, but surely is the largest investment in Paraguay”, he affirmed.
Photo below: Aerial view of the Paraguay Pork farm.