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The government will support the dairy sector with US$7 million

The government will support the dairy sector with US$7 million

He dairy sector is going through a complex financial moment, therefore, from the Executive power They prepared a bill that proposes aid of 7 million dollars that would impact 1,600 Uruguayan producers.

“The sector is going through a complex financial moment and that is why it generated assistance of 7,000,000 dollars, which will impact 1,600 producers according to the referral in 180 days,” said the Undersecretary of Livestock, Juan Ignacio Buffa.

During 2023, Uruguay suffered a water deficit for the third consecutive year that directly affected the agricultural sector. The primary sector suffered losses of around 1,800,000,000 dollars, which is equivalent to 3.1% of the average of the last 3 years of the national gross domestic product.

In that sense, the help from the Executive to the dairy sector is provided through credits from the Guarantee Fund for Debts of Dairy Producers and of Financing and Sustainable Development of Dairy Activity. This is because, according to data from the Central Bank, dairy producers had to increase costs to sustain production, going from $197,000,000 in January 2023 to $239,000,000 a year later.

The keys

The aid is intended for the producers that are being sent at the time the support is granted and focuses on those producers who have sent up to 3,000 liters per day on average during 2023 and whose main income is derived from that activity.

On the other hand, the amount of aid is based on the amount of product shipped in 2023. In this way, those who have shipped up to 500 liters per day will obtain the equivalent of 2 pesos for the average over 6 months; between 500 and 1,000, 1.5 pesos; between 1,000 and 2,000.1 peso, and between 2,000 and 3,000 liters, which is the limit, 0.6 pesos.

“The greatest effort is put into the producers smaller ones, in which the effect of the dry season was more important,” explained Buffa. In addition, he clarified that the aid will be provided only once, will be non-refundable, will not constitute gross income for the purposes of the settlement of the income tax on economic activities (IRAE) and that it will be freely available, which means that it they can use for what they understand best in their production system.

To get the benefit, Producers must prepare an affidavit and be active by March 2024.

Source: Ambito

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