Trade volume

Trade value

Cattle deforestation exposure

Gross emissions from cattle deforestation exposure

Pasture area

Name of the biome where the production municipality is located

Name of the country where the commodity was produced

Description of the type of product classified according to the HS Code

The Forest 500 commodity score of the exporting company. The Forest 500 score ranks companies according to the strength of their sustainability commitments between 0 and 5

Zero-deforestation commitments (ZDC) are obtained by Global Canopy’s annual assessment which determines whether the exporting company (exporter_group column) has a commitment to zero deforestation in their supply chain (net or gross deforestation are both acceptable). For more details plase refer to the full methodology document

Name of the department where the commodity was produced

Name of the district from where the commodity was exported

Company, including subsidiaries, responsible for exporting the commodity

Corporate group responsible for exporting the commodity (groups the exporter column into parent companies where applicable)

Country of product destination as recorded in trade data

Aggregation of destination countries according to relevant economic blocs, including for example the European Union. Not all economic blocs existing in the world are represented in the data: where there is no specific economic bloc the name of the destination country is used instead.

Volume of the traded commodity. The total value is the raw equivalent of the traded sub-products (for example, soy cake and soy oil are converted to soybean equivalent tonnes).

Value of the traded product at point of export in US dollars based on customs and trade data in FOB (Freight on Board).

Cattle deforestation exposure is obtained by calculating five years of pasture deforestation divided by five years of beef production per jurisdiction. The results are subsequently multiplied by the trade volumes to allocate the area of exposure for each actor (traders or countries) in the supply chain

Gross emissions attributable to cattle deforestation exposure. Emission estimates are based on the complete release of carbon stored in native vegetation. Carbon stocks were transformed to CO₂-eq. using 3.67 as conversion factor.

Area of land being used as pasture. Based on exported volumes and yield values per jurisdiction.

Unique ID for each department where the product was produced, formatted as 'PY-' followed by the geocode

Country where the product was produced, described using the official ISO 2 code

Country of product destination, described using the official ISO 2 code

Paraguay beef - Supply chain data

Maria Tyldesley

None of Paraguay’s beef exports in 2019 were covered by a zero-deforestation commitment, despite high deforestation risk

Paraguay exported 378,000 tonnes of beef in 2019. By volume, the main export markets were Russia (36%) and Chile (31%), followed by Israel (8%), Brazil (6%), Taiwan (5%) and Vietnam (5%). Very little Paraguayan beef went to the European Union (2%) or China (1%).

The export market for the country’s beef is highly concentrated. Just 14 exporter groups

 traded Paraguayan beef in 2019. The top five accounted for 86% of export volume with just one company, the Brazilian trader Minerva, exporting almost half (45%).

Pasture deforestation for beef continues to drive rapid conversion of the Chaco

A growing proportion of Paraguay’s cattle herd (47%) is raised in the western part of the country. Between 2010 and 2019, the Paraguayan part of the Chaco biome lost 2.4 million hectares of native vegetation, largely due to the expansion of pasture. The Dry Chaco region in particular has seen 

some of the highest rates of deforestation in the world

Between 2014 and 2019, we estimate that pasture-driven deforestation

 in the Dry Chaco totalled over a million hectares and accounted for nearly all direct deforestation

 – although the expansion of other crops, including soy, may 

. Over this period there was a further 94,000 ha of pasture-driven deforestation in the Humid Chaco region. Together, this 1.2 million hectares of pasture deforestation is associated with over 270 million tonnes of CO₂ equivalent gross emissions

Much of the deforestation in Paraguay was permitted under Paraguayan law. While a zero-deforestation law applies to eastern Paraguay, in western Paraguay (including the Dry Chaco and most of the Humid Chaco), if a property is larger than 20 hectares, up to 45% of forest must be preserved as legal reserve and buffers for pasture and riparian areas.

Paraguay has ambitious economic development plans for the livestock sector that reportedly include a significant increase in the herd size. New roads in the Chaco, including the Bi-Oceanic Corridor, which will soon connect the Paraguayan Chaco to Brazilian, Chilean and Argentinian ports, are likely to bring further expansion of production and deforestation.

Zero companies publicly commit to beef with zero deforestation

The deforestation risk of Paraguayan beef exports from the Paraguayan Chaco (dry and humid) is disproportionately high, even when compared to hotspots of risk in Brazil.

titleCard2

According to our analysis, the deforestation risk (per tonne) which exporters buying beef from the Paraguayan Dry Chaco were exposed to in 2019 was 3.6 times greater than the risk of buying beef from two contiguous municipalities which sit on the frontier of cattle deforestation in the Brazilian Amazon in 2017 (Altamira and Sao Felix do Xingu).

As the visualisation below shows, this risk is also highly concentrated. The beef exported by just five companies from Paraguay was associated with 94% of the deforestation risk of exports from the Chaco.

titleCard1

Despite this, according to Forest 500 assessments in 2020 and additional secondary research, none of the companies that exported beef from the country in 2019 had a public zero-deforestation commitment (ZDC) that applied to Paraguayan beef exports.

Although the largest exporter group, Minerva, has 

 its direct supply chain in the Paraguayan Chaco, according to Forest 500 assessments in 2020 and additional secondary research, none of the companies that exported beef from the country in 2019 had a public zero-deforestation commitment (ZDC) that applied to Paraguayan beef exports.

There is currently little demand-side pressure on the industry. While 

 of the New York Declaration on Forests (NYDF)

, the Chilean government has so far not applied public pressure to Paraguay to address the rate of deforestation for beef production in the Chaco. None of the other main importers of Paraguayan beef are signatories of the NYDF or the Amsterdam Declarations

, and the beef industry in Paraguay has so far escaped the kind of scrutiny the industry has attracted elsewhere, and especially in the Brazilian Amazon.

Progress in monitoring land use change hampered by budget cuts and patchy data

Deforestation for cattle pasture in the Paraguayan Chaco has been left unchecked by major beef exporters. But some progress has been made to improve monitoring of changes in land use in the region.

At the end of 2020, researchers at both the Humboldt University of Berlin and the multi-organisational initiative 

 produced collections for the Chaco which included annual land-use maps from 2000 through to 2019. These collections have enabled Trase to calculate territorial and commodity deforestation in the Paraguayan Chaco over an extended number of years.

The government’s monitoring of activity in the Chaco has also increased with the launch of a 

 which detects cases of illegal deforestation in priority areas for conservation. To increase transparency, the Ministry of the Environment (MADES) has begun 

 and licences which it approves, including for landowners to deforest land. Such moves 

Paraguayan Roundtable for Sustainable Beef

, the cross-sectoral board of beef producers, retailers, environmental NGOs, researchers and government representatives, which formed in 2018 with the aim of promoting sustainability in the beef sector.

 of the MADES and the National Institute for Forests (INFONA), both of which are responsible for enforcing legislation to prevent deforestation. MADES’ budget is now so low it reportedly receives 

National investment is urgently needed to protect the remaining natural vegetation in the Chaco. Last year’s fire season in the Chaco was so acute, citizens in the capital Asuncion 

 was declared in the severely affected department of Boqueron.

Access to data about land-use change and supply chains has also been patchy in several critical areas. Until recently, there were no annual pasture maps in the Atlantic Forest, preventing the calculation of deforestation associated with beef production in this region. There has been 

 from the agricultural lobby against the use of transparency of information legislation to access data, specifically against accessing information which would indicate the location and movement of cattle.

Such data could greatly increase the accuracy with which supply chain initiatives can identify the point of origin of exported beef and in doing so, highlight which supply chains are deforestation-free.

Data in this article is based on the updated Trase Paraguay beef supply chain map (Version 1.2). Detailed methods, data sources and changes from the previous version are available for the 

To reference this article, use the following citation: Tyldesley, M. (2021). High deforestation risk for beef from the Paraguayan Chaco. Trase. 

High deforestation risk for beef from the Paraguayan Chaco

Department where the commodity was produced

Paraguay beef supply chain dataset

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