en.Wedoany.com Reported - Spanish Costa Food Group has announced a $300 million (approximately 1.65 billion Brazilian reais) investment in Paraguay to build an integrated pig farming project, aiming to produce 1 million pigs annually. This marks one of the largest international investments ever received in the country's protein industry chain.
The investment will be realized through the acquisition of a majority stake in Granja San Bernardo, located in the Alto Paraná department, which is considered one of the most efficient pig farming operations in Paraguay. The transaction will be carried out in partnership with local entrepreneur Hugo Schaffrath. The expansion plan is expected to significantly increase production capacity, targeting approximately 40,000 sows. Pig production will be integrated with a modern slaughterhouse currently under construction in Naranjal, in the southern part of the country. According to the announced project, annual production is expected to approach 1 million pigs, with the majority destined for export to Asian markets, particularly Taiwan and the Philippines, where consumption of animal protein is growing rapidly.
Founded in 1966, Costa Food Group is one of the largest food groups in Europe. The company has a commercial network spanning 107 countries and is one of the world's leading producers of jamón ibérico. The group operates under a fully vertical integration model, controlling everything from animal genetics to industrial processing and sales. Currently, approximately 80% of the company's production is exported, further reinforcing the export-oriented nature of its new project in Paraguay.
The Spanish group cited factors for choosing Paraguay, including macroeconomic stability, low-cost electricity, ample supply of feed grains, competitive tax burdens, a favorable regulatory environment, and export incentives. In recent years, the country has fostered an environment considered highly conducive to agribusiness investments.
This investment comes at a time of strong expansion in Paraguay's pig farming sector. Industry data shows that in September 2025, the country's pork exports exceeded $40 million, a 75% increase compared to the same period last year. For Enzo Manarinni, president of the Paraguayan Association of Pig Producers (Associação Paraguaia de Produtores de Suínos), the current economic and regulatory environment is conducive to expanding investments and reinforces the sector's growth potential.
Although Brazil remains a global leader in pork production and exports, Paraguay's progress is noteworthy. This neighboring country has significant competitive advantages, particularly in operating costs and logistics for accessing specific markets. With the entry of large international groups and the commissioning of new slaughterhouses, Paraguay is poised to expand its share in the global pork trade. The growth in regional production could also solidify South America's position as a strategic supplier of animal protein to Asia, expanding the continent's presence in the growing meat consumption market.
This investment marks Paraguay's emergence as one of the most attractive destinations for agribusiness investment in Latin America. If the targets are achieved, Paraguay will gain greater scale, competitiveness, and international influence, consolidating its position in the global pork market and raising the level of competition among major exporting countries in the region.
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