en.Wedoany.com Reported - Jussara, a 72-year-old dairy company based in São Paulo, Brazil, is studying the possibility of opening its first production unit outside Brazil, with Paraguay as the chosen location. According to Paraguay's Ministry of Industry and Commerce, the company plans to build a milk powder packaging plant in the country with an investment of $10 million (approximately R$50.8 million at the current exchange rate). The plan is currently in the "exploration" and "negotiation" stages.
Paraguay's Minister of Industry and Commerce, Marco Riquelme, held a meeting with representatives of Jussara, including the company's director, Odorico Barbosa. The Paraguayan government stated that the plant will operate under the Maquila Law (Lei de Maquila), with 100% of its production destined for the Brazilian market. This law allows foreign companies producing in Paraguay to be exempt from import taxes on raw materials and machinery, paying only a single 1% tax on the value added during production. At least 318 companies in Paraguay have already joined this legal framework.
The local government did not provide information on the expected production capacity of the new plant but estimated that it would begin operations within a year. Jussara currently operates two factories in Brazil, located in Patrocínio Paulista (São Paulo state) and Araxá (Minas Gerais state). According to an annual survey by the Brazilian Dairy Association (Abraleite), the company purchased 368 million liters of milk from 1,467 dairy farmers last year, ranking ninth in Brazil in terms of purchase volume, ahead of companies such as Tirolez, Scala, Frimesa, and Danone.
According to a balance sheet released in March last year, Jussara's revenue fell by approximately 7% last year, from R$1.4 billion to R$1.3 billion. Net profit was R$20.9 million, a 41.6% decrease from R$35.8 million in 2024. The company was founded in 1954 by physician Amélio Rosa Barbosa in Franca (São Paulo state) and remains owned and operated by Barbosa's children. Jussara was one of the first companies in São Paulo state to produce pasteurized milk and has been investing in long-life milk since the 1990s.
Jussara is not the only Brazilian agricultural company planning to invest in Paraguay. In recent months, companies of various sizes in related industries, such as JBS, Agrotis, and Reland, have expanded their operations in Paraguay. The business community considers Paraguay to have one of the lowest tax burdens in Latin America, one of the cheapest electricity rates in South America, competitive production costs, incentives for export-oriented companies, and a stable political environment.
