Paraguay ordered an immediate halt to beef exports Monday after detecting foot-and-mouth disease in cattle from a farm northeast of Asuncion, in a potentially devastating blow to its cattle industry.The outbreak sent tremors through a region famous for its beef production, with neighboring Uruguay closing its borders to Paraguayan livestock to prevent the spread of the highly contagious disease, and Brazil also stepping up border controls. The discovery occurred during a test of 13 cows at a farm in San Pedro department some 400 kilometers (250 miles) north of the capital Asuncion, according to national animal health inspectorate Senacsa.\"Meat exports are suspended for 80 days,\" said Senacsa spokesman Manuel Cardozo, citing codes set by the International Organization for Animal Health (OIE). At a news conference Monday, Paraguayan Meats Industry Chamber president Mari Llorens described the outbreak as \"a blow to the national economy.\" Beef is the country\'s number two export, with $650 million worth of exports last year. Llorens estimated it will take six to eight months to return to a normal health status, with projected losses of $70 million a month. The outbreak also raised concerns among the country\'s cattle-raising neighbors -- Brazil, the world\'s second largest supplier of beef, and Argentina, number six in the world. Uruguay, whose number one export is beef, immediately closed its borders to animals, animal byproducts and certain goods from Paraguay. Brazil said it has increased its vigilance and heightened controls at border crossings. It offered to Paraguay help in managing the crisis.San Pedro, where the outbreak occurred, is in the middle of the country, nearer to Brazil than to Argentina.Paraguay immediately communicated data about the foot-and-mouth detection to OIE, Senacsa said in a statement. \"Senacsa is taking all appropriate measures in this case,\" the inspectorate said. President Fernando Lugo declared a health emergency in an 85 kilometer radius from the scene of the outbreak. Hoof and mouth disease is one of the most contagious animal diseases known, infecting mainly cattle and pigs but also sheep and goats, according to the OIE. The disease can be spread with dust, animal-to-animal in herds, through consumption of contaminated animal products, and even with farm implements and vehicles. Although the disease normally does not kill adult animals, they must be destroyed once infected to keep it from spreading.The disease was last detected in Paraguay in 2002, when the South American nation also suspended beef exports.Senacsa said there were several possible explanations for the outbreak. \"The cold chain might have been broken, vaccinations may have failed. We are going to determine the cause with scientific precision,\" Cardozo said.The Rural Association of Paraguay said it had immediately begun to take measures to contain the disease. It called for a \"profound review\" of the government\'s system of inspections to avoid a repeat of the current crisis \"whose impact, unfortunately, will affect thousands of families.\" \"We exhort the government to take immediate measures to reestablish national and international confidence in Paraguayan beef, otherwise it will be impossible to return to the place where we were.\"The European Union had authorized imports of Paraguayan beef in August 2008. Paraguay also exports beef to Chile, Russia, Israel, Venezuela and Brazil. The Rural Association warned that the suspension of beef exports would have a broader ripple effect in the economy.About 5,000 people employed in the meat packing industry will lose their jobs, the Paraguayan Meats Industry Chamber said.