MIEM will contribute up to US$12 million between loans and subsidies for the dairy industry

MIEM will contribute up to US$12 million between loans and subsidies for the dairy industry

The Executive Power opened the call for the Reconversion Fund to support businesses affected in their profitability.

Photo: MGAP

The undersecretary of Ministry of Industry, Energy and Mining (MIEM), Walter Verryannounced that the Executive Power opened the call to the Reconversion Fund destined to support ventures in the dairy industry that have seen a deterioration in their profitability.

Through the Reconversion Fund, MIEM will allocate some 9 million dollars in loans for business transformation projects, with an interest rate of 2% and 36 months of grace. At the same time, $3 million more will be awarded in non-reimbursable grants for the return of indirect taxes, totaling 12 million dollars.

This support stems from a project submitted by the Executive Power to Parliament at the end of 2022 and which became law in December of that year, as a result of the fact that the dairy industry, especially the sector destined to the production of cheeses, suffered a sharp overall decline in their balance sheets.

The increase in the costs of the raw material for cheese, raw milk, is due to the fact that the value has grown from exportation powdered milk, leading to higher prices and less and less supply of raw milk in the local market for cheese production.

At the same time, among other problems related to the order of equipment and personnel, The cheese sector has been experiencing negative profitability in the international market since 2016and since 2020 in the local market itself, after the outbreak of the Covid-19 pandemic, according to Verri.

What are the conditions and deadlines to access the Reconversion Fund?

This fund will be open and companies dedicated to the primary processing of milk that specify an annual remittance of 50 million literswhich are certified by the National Milk Institute (inhale). In turn, they must be outside the credit line.

The call was open from June 1, and will receive until Wednesday June 28 all those initiatives that seek to prosecute a technical transformation. For more information about registration, click here.

Interview with the Undersecretary of Industry, Energy and Mining, Walter Verri

Source: Ambito

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