La Tropa Beef, the new company of the Gauto family group, will take over the commercial operation of Frigonorte under a toll-processing arrangement, targeting up to 18,000 head per month
The Gauto family group has just completed one of the most significant moves in its business history in Paraguay. La Tropa Beef, the group's new company, will assume the commercial operation of Frigonorte, a meatpacking plant located in the department of Amambay, under a toll-processing agreement.
La Tropa SAE, one of Paraguay’s leading livestock consignment firms with annual volumes of around 220,000 head marketed for slaughter, will serve as the main cattle supplier to the new venture. The plan is to carry out the first slaughter operations during the first days of July, subject to final bureaucratic approvals allowing the first export shipments before the end of the month’s first half. Carlos Gauto, director of the company, spoke with World Beef Report.
How did the decision to move into the packing sector come about?
It was always part of our long-term vision. We handle around 220,000 head annually through different processing plants, and that was already a volume that justified taking the next step. The opportunity arose because Frigonorte is a modern facility with approvals for all of Paraguay’s export markets—except Israel, which we are already working on—and it became available. It was a quick decision: the ship was passing by and we had to get on board.
What does the business model look like?
Frigonorte provides the industrial service under a toll-processing arrangement. La Tropa Beef takes responsibility for all commercial activities, both for cattle procurement and for marketing the products coming out of the plant. La Tropa SAE will be the main cattle supplier. All financial operations, foreign trade, and domestic market activities will be handled by La Tropa Beef, which will also be the brand under which production is marketed.
What volumes do you expect to start with, and what is the medium-term target?
The idea is to start with around 10,000 head during the first two months and then move to a pace of between 14,000 and 18,000 head per month. That is the goal.
Israel is the only market for which Frigonorte is not approved. When do you expect to resolve that?
We are in discussions with several Israeli operators and have meetings scheduled for next week. But all of this happened very quickly, and preparing the plant for that market takes time. Realistically, we may reach the end of the current cycle, or perhaps focus directly on the 2027 season.
How do you see the second half of the year after a period of low industrial activity?
We are very confident. Paraguay needs a strong local operator, and La Tropa has built a solid reputation in the country. We believe we can contribute to the sector’s continued growth and help maintain the pace that Paraguay is accustomed to. The region where the plant is located has very high-quality cattle, and internationally the establishment number 15 brand is already well positioned. We trust producers, and producers trust us.
Who will lead the operation?
Guillermo Gauto, my son, will be the CEO of La Tropa Beef. He is putting together the commercial and sales teams and everything involved in running the meatpacking operation. I will support him, but mainly from La Tropa SAE. We do not want to lose focus on that business, because it is what brought us to this point.
