Paraguay confirms new foot-and-mouth outbreak

Daniel Rojas, head of the government's animal health service, said a "positive test result" of the highly contagious disease for cattle had been reported to the World Organization for Animal Health (OIE).

Authorities on Tuesday ordered the slaughter of about 150 cattle belonging to a rancher in the San Pedro department, some 400 kilometers (250 miles) north of Asuncion.

The new outbreak was found about 30 kilometers from an outbreak reported in September, which led to the slaughter of some 1,000 animals.

Paraguay, one of the world's top 10 beef producers, suspended exports in September and had been preparing to resume sales to Russia, Brazil and Venezuela.

As a result of last year's outbreak, Paraguay's beef exports for 2011 fell to $700 million, from about $900 million the previous year.

Hugo Idoyaga, a government international trade official, said the San Pedro outbreak will have little impact on exports as no foreign buyer has yet canceled Paraguayan beef orders.

Beef to be sold to Russia, Brazil, Venezuela and some African countries does not come from San Pedro. "There is no reason for the importers to suspend operations," he said.

According to Idoyaga, only Chile has not renewed Paraguayan beef imports since the September outbreak.

One of the most contagious animal diseases known to scientists, foot-and-mouth (also known as hoof-and-mouth) disease infects mainly cattle and swine but also sheep and goats.

The disease can be spread by dust, animal-to-animal contact in herds, through consumption of contaminated animal products, and even by farm implements and vehicles.

Although adult animals normally do not die from the disease, they must be destroyed once infected to keep it from spreading.

Unlike last year, the government said it will not pay compensation to the animal owners.

Nestor Nunez, president of the Rural Association of Paraguay, criticized this as "punishment by example" for the cattle owner.

Officials said last year that a botched vaccine intended to protect Paraguay's livestock against foot-and-mouth disease was responsible for transmitting the ailment to hundreds of animals.

The outbreak prompted neighboring countries to ban the import of Paraguayan meat, livestock, and meat by-products.

Agriculture ministers from six South American countries agreed in November to make the eradication of foot-and-mouth disease a regional priority.